As the world continues to evolve, so does the fire protection industry. With an ever-increasing demand for safety and security, many people are turning to fire protection products and services to safeguard their homes and workplaces. In this article, we will look at some of the latest trends in this growing sector and discuss how these developments can help us stay safe in the future. We’ll also look at how the commercial fire protection market is changing and the impact that will have on fire protection business owners.
How Big is the Fire Protection Industry?
Fire protection is a billion-dollar global industry. According to Grand View Research,
“The global fire protection system market size was valued at USD 77.88 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030.”
Their report references the increased demand for fire detection systems across major sectors like healthcare and education as one reason for this growth. Another is that more businesses are investing in increased safety and security. The industry is closely regulated and plays an essential role in helping businesses meet safety compliance standards set by local and national authorities. This means that these services will always be in demand.
The fire protection industry includes a large variety of services. These include the installation and maintenance of fire suppression systems, fire alarm systems, fire sprinkler systems, exit and emergency lighting, and fire extinguishers. It can also overlap with the security industry, as some integrated security companies will offer fire alarm and security system services under the same roof. The monitoring of these systems is also part of what drives the industry. While many of these services are for commercial businesses, there is a growing demand for them in the residential space.
Innovation Drives the Fire Safety Industry to Find New Solutions
One of the most significant recent developments in the fire protection industry is the introduction of smart technology. Like many other industries, fire protection is working to utilize the Internet of Things (IoT) to add new features and improve the performance of existing systems and equipment. One example of this is the use of barcoding technology to provide customers with the ability to check on the status of their building’s fire safety equipment from any device, at any time. Other examples include wireless fire alarm systems and the use of reporting technology to send building managers predictive maintenance reports.
Some of the top fire protection companies in the United States are leading the way with innovation. When the leading fire protection providers are prioritizing the research and development of smarter safety systems, it is a good idea for all those in the industry to prepare to update their services. Today’s customers expect to have an app for everything. If they can control the systems inside their homes from their phones, they are going to expect the same features from the systems that protect their businesses.
This demand is driving fire protection to embrace technology. The passion those in the industry have for public safety is also encouraging more fire safety companies to proactively look for ways to use technology to improve their service offerings. Fire protection companies that want to succeed would be smart to watch this trend and think about how they can incorporate tech into their own offerings as well.
How Private Equity Will Shape the Future of Fire Protection
The recent rush of interest from investors and private equity firms is also shifting the fire protection space [make this a link to the private equity firms blog once live]. More owners of small fire protection companies are watching as competitors in their regions are purchased by larger players in the industry. When this happens, it becomes even harder for the small companies to compete. The big fire protection companies can offer more services and pick up larger accounts with an ease the smaller companies can’t. The more fire protection companies with private equity funding that pop up, the harder it gets for the companies that want to stay independently owned.
This is going to significantly change the way the industry continues to evolve. Fire protection is an industry with strong family foundations. Many of the businesses start as family businesses that are passed down to children and even grandchildren as new generations learn the trade. But as the mergers and acquisition activity in the industry increases, more small companies are having to sell to avoid being shut down by the competition.
How this evolves over the next few years will be interesting. Most likely, this trend will result in a few major, national fire protection companies that rival the fire protection divisions of industry giants like Johnson Controls or Cintas. But as this happens, there may be a renewed demand for small companies to return to areas that are dominated by these giants if they fail to provide quality services. One thing is for sure: the fire protection industry will remain strong to meet the need for it and there will always be room for more people to make fire protection their careers.
This is a Great Year to Sell Your Fire Protection Business! Contact Rory Now
Only time will tell how these evolving trends could change the fire protection industry in the future. But right now, fire protection companies of all sizes are still very much in demand and receiving bigger offers than ever.
If you own a fire protection business and think now might be the time to sell, contact Rory Russell at 800-354-3863! With over 30 years in the industry, he knows how to get the best deal for you. Give him a call and find out what your business is worth in today’s market.
He looks forward to speaking with you!