As a result of this demographic boom, and a need to promote independent living among the elderly, there is a rising uptake of social alarm products in building technology and security applications to provide improved health and social care services. Against this backdrop, Frost & Sullivan expect the European social alarms market to yield earned revenues to the value of $332.4 million in 2012 – a significant rise from the $220.3 million reached in 2005.
The shortage of residential homes that provide intermediary care is leading to delays in elderly acute-care patients being discharged. This is forcing many governments to adopt social alarm technologies to ensure better use of funds for intensive care. Currently, says the report, only 4.5% of potential end users in Europe possess social alarm products, which should offer tremendous growth opportunities to information and communications infrastructure providers, social alarm equipment suppliers and community service providers.
However, continues the study, significant challenges prevail for new entrants. The company’s research analyst, Ms Archana Umesh Rao, explains: “Price serves as a major deterrent to cost-conscious customers that are seeking cheap, reliable products rather than innovative, high-quality ones. While prices of social alarm devices have exhibited a decline, thereby leading to growth in sales volume, increasing competition and cheap imports from the East are causing a slump in profits per unit.” As a result, the study concludes, merger and consolidation strategies will become essential to gain access to existing customers.
