The fire detector market - France

1.2 The booming global market

Global market sales for smoke detectors Worldwide, ****-*****, in billions of US$ Source: ****

The global market for fire detectors is growing rapidly; between **** and ****, it is expected to grow at a CAGR of *.*%, reaching $**.** billion in ****.

This growth is driven by several factors: firstly, consumer awareness of safety and security is increasing worldwide. Increased consumer spending is also having a positive impact on the fire alarm market. Finally, stringent government regulations and mandates for workplace safety are expected to fuel the market.

In ****, North America dominated the market and is expected to continue to do so in the future. The anticipated growth in Canada's construction industry is due to the government's "Invest in Canada Plan". As part of this initiative, the Canadian government plans to invest $*** billion in infrastructure up to ****. Indeed, construction is a key driver of this market, as explained in the "Demand" section.

Finally, Asia Pacific is expected to post the highest CAGR from **** to ****, due to factors such as the increasing industrialization and urbanization of emerging markets like India, China and Japan. This will accelerate infrastructure spending and should offer lucrative growth opportunities for the industry.

Breakdown of fire detection and suppression systems by product World, ****, in ...

1.3 The French market is expanding against a backdrop of new regulations

In France, there is a fire every two minutes. Every year, there are around **,*** fire victims causing *** deaths, and around ***,*** households file fire insurance claims every year. If you're French, you have a one-in-three chance of falling victim to a fire in your lifetime[***]. The need for fire detectors and fire protection systems is very high indeed.

Sales of security systems activities (***) France, ****-****, in millions of € Source: ****

The revenue shown above refers to INSEE NAF code **.**Z: Activities related to security systems. It is therefore broader than the fire detectors market, but includes this category. The market is expected to grow between **** and ****. This is due to a law implemented in **** requiring households to install fire detectors. This has increased the penetration rate and stimulated market growth.

It is therefore possible to calculate a market size for ****, using the number of households with a fire detector (***):

[***]/**= €***,***,***

(***) Source: ****

(***) Source: ****

(***) Source: ****

(***) Source: ****

Finally, to obtain the total market size, we need to take into account the fact that this study focuses only on the size of the household market. As no data are available on the % breakdown of the household share of the fire detector market, we ...

1.4 International trade

This section analyzes France's bilateral trade agreements in the signalling equipment industry. It includes the following code obtained from UN Comtrade

******: Signalling apparatus; electric, audible or visual alarms, burglar alarms, fire alarms and the like, other than those of heading **** or ****.

France, ****-****, in millions of US$ and in % Source: UN Comtrade France imports more signalling equipment than it exports; in ****, exports amounted to $*** million, while imports were valued at $*** million. This leads to a coverage ratio (***) of less than *, which in effect underlines the fact that France's imports are greater than its exports, and that the country suffers from a trade deficit. This relationship changed quite dramatically between **** and ****, when exports fell, which is linked to the uncertainty triggered by the Brexit.

Main destinations for signalling equipment exports France, ****, in Source: UN Comtrade The chart above shows which nations received the largest share (***), which can be explained by the country's proximity and the size of the German economy.

In second place are the USA (***). The fact that the rest of the world accounts for almost **% of the value of exports in **** shows that France is not dependent on any particular country.

Origin of signalling equipment imports France, ****, in Source: ...

1.5 The impact of COVID 19 on the industry

Fire detectors are non-cyclical and, once installed, require only maintenance. In France, it is compulsory for households to be equipped with a device, and most commercial and industrial facilities also have one for safety reasons. For this reason, and because the device is indeed a safety necessity, the pandemic has not affected the number of detectors in use, and industry is unlikely to be as badly affected as other industries

Construction sector production index France and EU-**, ****-****, index (***) Source: ****

However, certain factors could point to reasons why the industry has suffered somewhat. For example, it's plausible to assume that, as purchasing power declined in the context of the global pandemic, maintenance of fire detectors became less of a priority. It is also possible to assume that such maintenance has been hampered by movement restrictions.

Another driver of this market is the number of new residential constructions in France, which correlates positively with the number of fire detectors installed, as these properties are obliged to be equipped with at least one device. On this basis, the sector looks more vulnerable; in the graph above, we see a sharp drop (***) in the number of properties built during the lock-in period between March ...

2.1 The French consumer's relationship with fire detectors

More than a third of French people don't know what to do in the event of a fire, a feeling particularly shared by **% of households with under-age children. [***] In addition, it seems that the maintenance of fire detectors is set to increase in France, as shown in the table below.

Frequency with which the French maintain their fire detectors France, ****, in Source: ****

Only **% of French people who own a smoke detector maintain it at least once a year, and **% never do. However, French consumer confidence is high, with **% of French people believing that smoke detectors save lives.

This confirms that the industry's revenues come not only from new installations, but also from maintenance. However, this figure is relatively lower than that for installations, because mysweetimmo reports that **% of French people with at least one smoke detector buy and install the equipment themselves in their homes.

Places where smoke alarms are installed in homes France, ****, in Source: ****

Most DAAFs (***).

In France, fires cause over *** deaths and **,*** injuries every year. And more, planetoscope reports that **% of fatal home incidents occur at night Indeed, Loisirs reports that "The majority of fire deaths are not caused by the flames, but by the toxic fumes that ...

2.2 Demand drivers

Regulations

The March *, **** law makes it necessary to install fire detectors (***) in residential areas.

As far as the regulations are concerned, construction is becoming a major driver in the fire detector market. Indeed, since the **** law stipulates that all residential properties must be equipped with a fire detector, this is a definite driver of growth in the fire detector market.

Number of new homes started and authorized France, Jan ****- Jan ****, in '*** properties Source: ****

Between **** and ****, the number of new residential properties fell by *.*% to ***,***. The actual rate of construction (***) was **% in December ****. Although the number of authorized properties fell, actual construction increased, which is good news for the sector.

In addition, other properties (***) also need to be fitted with fire detectors. In particular, the growing market for wooden homes is conducive to the development of the market for fire extinguishers and smoke detectors, as wood is a highly flammable material. Indeed, the authorities are boosting this market with a Wood Construction Plan from **** to **** and from **** onwards, **% of public buildings must be made of wood. [***] In other words, the need for fire detectors in non-residential buildings is likely to increase in the future .

2.3 Analysis: fire-related incidents

According to mysweetimmo in ****, there were ***,*** residential fires, **% of which came from electrical sources. This is a recognized problem in France, where **% of French people fear a fire in their home and **% clearly identify smoke as more dangerous than flames in the event of a fire. [***]

Breakdown of burn-related hospitalizations, by age group and gender France, ****, in % of accidents (***) Source: ****

The graph above shows data from **** (***), they still provide a relevant overview of the age categories most at risk, as well as a demographic analysis.

Overall, men suffer more burns than women. In addition, older people tend to be more prone to injury, which can be explained by the fact that hearing- and mobility-related features are less effective, but also by the fact that older people are more likely to be injured by smoke inhalation, for example.

Share of serious burn victims hospitalized in CTB (***) and residing in metropolitan France, by age France, ****, in Source: ****

Following a similar logic to that of the previous graph, we indeed find that older people are relatively more exposed. The **-** age category suffers the most fire-related injuries, with **.*% of hospitalization cases involving this age group.

2.4 Demand trends: connected fire detectors

Ranking of types of connected devices owned by French households France, ****, in Source: ****

In ****, *% of French households owned a connected smoke detection device. Although this figure is relatively low, it remains the fifth most common connected device in French households.

Connected fire devices alert users to the presence and location of a fire, no matter where you are. This is often done via a connection to a smartphone or similar device. Some detectors also provide the user with an analysis of the type of incident occurring (***).

In France today, there are many connected fire detectors on the market, including devices from Bosch, E-one, Smockeo, Somfy, Devolo and others. Prices range from around €** to €***. [***]

Types of connected objects France, ****, as % of total Source: ****

According to Vipress, security is the second most important reason for French people to buy connected objects. Smoke and fire detectors are among them.

3.1 Market structure and geographic clusters

The fire alarm market in France is fragmented, with a mix of local and foreign players, imported and domestic products, and no clear market leader.

Market share data is scarce, with Le Figaro reporting that in ****, Lifebox was the French leader with **% market share, ahead of Kidde and First Alert (***), but are also offered by insurer Axa and the Century ** real estate agency network

According to Inforprotection, the world's security giants are Tyco and United Technologies Corporation, followed by France's Desautel, Def and Eurofeu. Fire detection specialists include Hager, Honeywell, Legrand, Siemens and Stanley Black.

Geographical distribution of burns

France, ****, in people hospitalized for burns per ***,*** inhabitants

Source: ****

The map above shows the distribution of fire-related burns in France. It's relevant to highlight it as it gives an overview of where the need for fire detectors is greatest. For example, Corsica, Pays de La Loire and Hauts de France are all more prone to fire accidents than, say, Île-de-France. This is likely to be linked to a lower rate of detector installation, and retailers could target these regions more intensively to tap markets with greater relative needs.

3.2 The production process

Usine Nouvelle reports that there are ** fire detector manufacturers in France, including a mix of local and foreign players. In France, production is concentrated in the Ile-de-France region, along with most R&D.

In general, smoke detector production is divided into several stages

Am-*** production: Americium (***) is a man-made radioactive metal. It is installed in the sensor chambers. The compound is mixed with gold, shaped into a briquette, and fused by pressure and heat at a temperature in excess of ***°C. The briquette is again coated with silver and gold, then processed by cold rolling to obtain the desired thickness and radiation emission levels. Typically, the final thickness is around *.* mm. Assembly of the entire ICSD : The Ionization Chamber Smoke Detector (***) Detection and reference chambers these are the sensors that detect anomalies Electrodes are installed in the chambers and connected to external wires that protrude from the bottom of the chambers The printed circuit board printed circuit boards mechanically support and electrically connect electrical or electronic components boards are prepared by drilling holes for component conductors and laying a copper trace on the back to form electrical current paths The sensing chamber, reference chamber and buzzer are then installed on the ...

3.3 Distribution

Number of employees and companies in security systems-related activities (***) France, ****-****, in units Source: ****

The security sector in France is booming, both in terms of the number of employees and the number of companies. Between **** and ****, the figures rose by **% and **% respectively. It's worth mentioning again that this NAF code doesn't just concern the fire detector industry, but also the players and employees in the security sector as a whole. The figures should therefore be analyzed with this in mind.

4.1 Product overview

In addition, fire detector technology is based on four fundamental elements: [***]

Ionization - these smoke detectors have an electrical current which, when disturbed by smoke, triggers the alarm. It is ideal for identifying fast-burning fires Photoelectric - works in the same way as ionization detectors, but instead of electricity it uses a beam of light. It is ideal for small fires and is known for its high reliability and low number of false alarms. Heat - works by detecting increases in air temperature caused by flames. Known to occasionally trigger false alarms, and therefore best suited to less frequently occupied buildings such as warehouses or storage rooms Ionization/Photoelectric - a combination of ionization and photoelectric smoke detectors, considered by many to be the best type, as it analyzes both smoke and heat.

4.2 Maintenance and installation opportunities

As highlighted above, there appear to be problems with the installation of fire detectors in France, on both the demand and supply sides.

Firstly, **% of people equipped with detectors have installed more than one in their home, and in almost * out of ** cases, detectors are incorrectly installed in the kitchen, as indicated in point *.*. It is therefore necessary to raise public awareness by informing people that the devices should be placed near bedrooms, where people are most receptive to the sound of the alarm. [***]

Secondly, **% of people who own a detector bought it themselves, but only **% maintain it at least once a year. [***] Here again, the need for maintenance is greater.

Service providers in the fire detector sector should take advantage of this information and make sure they inform consumers of these discrepancies. In this way, problems can be solved, while installers and similar service providers can increase their revenues.

4.3 Price analysis

Source: ****

5.1 Regulations

French rules and regulations have in fact been the driving force behind market growth in recent years Sincethe law of March *, ****, all homes must be equipped with at least one smoke detector compliant with standard NF EN *****. The process began in **** via the Morange and Meslot law. If you are audited and no detection system is installed, you may be subject to a €*,*** deductible from your insurer.

Homeowners are obliged to buy and install one. If you are a landlord renting a house or apartment, you must provide your tenant with a smoke detector. If you are currently renting a house or apartment, you only need to maintain the smoke detector by replacing the battery. [***]

Information penetration of the law brought into force in **** is high, with around **% of French people aware of the need to install at least one smoke detector.

In addition, companies and industrial sites must equip their premises with fire extinguishers within well-defined surface limits

Fire extinguishers have been mandatory in public places, industrial sites and tertiary establishments since ****. The French Labor Code stipulates that every business in the tertiary sector must have at least one six-liter water extinguisher per *** square meters. For industrial sites, the risks ...

6.1 Segmentation

• Lifebox
• Tyco International (Johnson Controls Group)
• Cooper Sécurité France (Eaton Group)
• Finsecur
• Mondial Extincteur
• Honeywell
• Carrier Global Fire & Security
• Labaronne-Citaf
• Kermel
• France Incendie
• BatiFire
• Eurofeu Groupe
• Andrieu
• Dubernard
• Myteepi
• POK
• Meca-Inox
• Leader Group
• BEFPI