With recessionary fears subsiding and continued supply chain improvement, most fire alarm industry stakeholders are expressing a lot of positivity. According to SDM’s 2023 Industry Forecast, 43 percent of security professionals consider the state of the fire alarm market to be very good or excellent, while 41 percent consider it to be good, and 16 percent believe the state of the market is poor or fair.

The forecast also found nearly 60 percent of contractors either currently offer/sell/install fire alarm products or plan to in the next one to two years. Another 13 percent are discussing offering them in the next three to five years.

Ahead, subject matter experts from the manufacturing and integration communities help bring focus to current and upcoming trends in the fire alarm systems market, shedding light on the key developments and innovations that are shaping the industry’s future.


A Simplex 4007ES Fire Control Unit outfitted with a StarLink Fire Universal Communicator
A Simplex 4007ES Fire Control Unit outfitted with a StarLink Fire Universal Communicator, which provides full-event sole and dual-path cellular and/or IP commercial fire alarm reporting. // IMAGE COURTESY OF NAPCO

Positive Market Trends

Future Market Insights (FMI), a Newark, Del.-based market research firm, is projecting the global fire alarm systems market size to be valued at $24.1 billion in 2023, rising to $40.6 billion by 2033. Fire alarm systems have emerged as one of the significant requirements among various verticals and sectors in recent years. Factors propelling the demand for fire alarm systems are numerous. FMI cites increasing commercialization, industrialization and urbanization as having increased the use of various electronic devices and other power and electricity-based equipment, thereby increasing the risk of fire accidents.

In particular, an increasing emphasis on safety and regulatory compliance across residential, commercial and industrial sectors has driven higher demand for advanced fire detection and notification solutions. Additionally, the growing awareness of the devastating impact of fires, both in terms of human lives and property damage, has heightened the need for advanced fire alarm systems. Technological advancements, such as the integration of smart and IoT-based features, have also made these systems more efficient and effective, further fueling market expansion.

Kartik Kumar, global P&L leader for Edwards’ commercial fire business, Bradenton, Fla., expresses a positive trajectory for the company following strong performance in 2022 vs. 2021. While the Americas region was the primary growth driver by delivering high, double-digit growth year-over-year performance, he says the company also saw broad-based growth overall across all its segments, driven by strong commercial building construction and upgrade activity.

“We believe that our segment continues to be supported by macro trends such as urbanization and digitization resulting in increased demand for infrastructure and campus-style sites, as well as investment in data centers, warehouses and distribution centers,” Kumar adds.

The fire alarm market is one of the fastest growing and important market segments for NAPCO Security Technologies, Amityville, N.Y., says Judy Jones-Shand, vice president of marketing. Through cell network sunsets and ongoing retirement of damage-prone POTs lines, the company’s universal StarLink Fire and new 5G-version StarLink Fire MAX Cellular/IP Commercial Fire Communicator Series have continued to grow rapidly in sales, she says.

“The market adoption is due to their universal support of any brand 12V or 24V fire alarm control panel, ease of installation, equipment and labor cost-savings, plus end-to-end life safety code compliance, as well as rapid acceptance of the technology by AHJs,” she says. “Its market adoption has also given rise to NAPCO’s growing line of FireLink FACU’s with StarLink built-in, including an onboard LCD touchpad and cloud programming.”


Current State of the Market

SDM asked, “How would you rate the current state of the market for fire alarm/emergency communications?”

Perception of the state of the fire alarm market in the “excellent/very good” category improved slightly compared to the prior year.
Source: SDM 2023 and 2022 Industry Forecast Studies


Thomas Dennis, director of sales at Hochiki America Corp., Buena Park, Calif., says the company posted a record year of sales in 2022, with growth in both its OEM and direct markets, including international. Among key factors driving sales, Dennis cites competitor supply chain issues, competitor instability with direction of strategies, and industrywide personnel changes in the upper management arena.

“We expect 2023 to be only slightly better than 2022 due to competitors becoming more stable,” he adds.

Technology advances in the fire alarm communication segment with cloud-based software integration of Telguard cellular and dual path commercial fire communicators helped fuel strong sales in 2022, explains Telguard President George Brody. POTS replacement, he adds, also is contributing to the positive performance in the marketplace as dealers upgraded 3G and CDMA communicators to LTE-5G technology.

Brody describes a fire alarm systems market in which demand is consistent and on the upswing as new construction, facility upgrades and changes taking place in the commercial real estate market are all having a positive, enduring impact.

“The fire alarm business is performing very well for the first half of 2023 and Telguard expects an excellent year in 2023,” he says. “Industry key trends will continue the positive performance in the balance of 2023 and continue on into 2024.”

AES Corp., Peabody, Mass., a manufacturer of wireless communications products that create private mesh networks, experienced slight growth in 2022 compared to 2021, explains Laura Wall, vice president of product development. As dealer partners continue to focus on training and getting their employees up to speed with AES systems, Wall says in addition to new fire installations, more alarm dealers are concentrating on commercial opportunities, which continues to drive growth for AES.

We are expecting 2023 sales to remain slightly above 2022 levels,” she adds. “The industry is starting to see a shift with new technologies being implemented for fire alarms. AES is planning on developing new products that will incorporate these technologies.”


Improved Supply Chain Helps Rekindle Fire Alarm Market

The COVID-19 pandemic has left an indelible mark on industries worldwide and the fire alarm systems market is no exception. In fact, it was one of the hardest hit sectors in the security and life-safety ecosystem.

Resulting supply chain disruptions hindered the manufacturing and distribution of fire alarm components, leading to delays and increased costs. This forced manufacturers and installing security contractors alike to make difficult decisions on how best to pivot in the face of unprecedented disruption.

“We saw the biggest supply chain challenges in the fire alarm space. I’ve heard that from many other companies as well,” Brian Duffy, president of Per Mar Security Services, Davenport, Iowa, and their fire alarm-focused company Midwest Alarm Services.

With a critical shortage of fire alarm products, many security dealers and integrators were unable to complete — or begin — projects for months-long stretches. Or worse. Per Mar, however, fared much better. The company had been stocking copious products for its fire alarm business even before the pandemic, and is carrying more now than they were in 2020.

“We had started really stocking up on that side just because it’s so important that we have the parts in order to help customers occupy buildings,” Duffy explains. “We have always had to work on tight timelines in that space. We had been doing that for a few years before we started seeing any supply chain challenges. So we were really fortunate that way.”

Access to products may have been less of a concern for Per Mar, but the company was no less immune to the significant stresses of adjusting its pricing to keep up with changing market conditions.

“How we deal with rising costs probably had the biggest impact in the fire alarm space,” Duffy says. “Because the time between when we make a sale, and when we actually do the work or deliver the parts, is the farthest apart because we’re frequently selling in new construction. It can be a year or more before we’re fulfilling on those.”

After much internal deliberation, Per Mar elected to absorb the additional costs of doing business.

“The general contractors and electricians expect that if we commit to something we’re going to follow through on it. So we didn’t go back to adjust those prices, we just had to build it into our business model,” Duffy says. “And there were cases where as costs were rising, we were trying to include that in the things that we were bidding. But we’re certainly not able to go back to something we already sold and recoup any extra costs.”

For the most part, lead times to receive product is back down to the more normal, pre-pandemic 10-day period. However, Brandon Clig of Custom Alarm says requested delivery dates for fire alarm products remains a critical matter.

“We may be bidding something right now but it may not be going in until 2024. The way the market has been the past couple of years, we were very hesitant on waiting to order it,” he explains. “So we were ordering everything and stockpiling it now. That puts a lot of risk and liability on the company for holding on to hundreds of thousands of dollars-worth of equipment, just to guarantee that we can have it here by that anticipated deadline for those projects.”

Sources also say the pandemic has accelerated the adoption of remote monitoring and diagnostic capabilities in fire alarm systems, as facility managers sought to minimize on-site inspections and ensure system reliability. As the world adapts to the new normal, the fire alarm systems market is poised to recover with a renewed focus on safety and technological advancements driving its resilience and growth.

For Springfield, Mo.-based DMP, the supply chain chaos actually presented the opportunity for the Springfield, Mo.-based manufacturer to expand its panel technology into the fire alarm systems market.

“The supply chain issues led our customers to ask us to develop a fire control panel,” explains DMP Director of Marketing Alee Rouhani. “Considering that responsiveness is a key DMP value, we have developed a 24V fire-only panel. Referred to as the XF6 Series, this is a departure from the longstanding DMP control panels that provided combination fire and security.”

DMP has already begun taking pre-orders, with units expected to be available in late Q3. The manufacturer is expecting a strong market response.

“A traditional addressable 24V fire panel that combines wireless and conventional wired initiating circuits and two built-in NAC circuits should nicely fill a section of the market that has been looking for an affordable and available solution,” Rouhani says.


On the integration side of the fire alarm sector, Custom Alarm, Rochester, Minn., is experiencing steady growth in 2023, mainly in the healthcare and K-12 verticals, explains Sales Manager Brandon Clig. Among the company’s largest end customers is a prominent medical center undergoing a lot of expansion to serve the growing region.

“They are pushing a lot of money out into the economy, and we’re growing with them with a lot of the new technology, incorporating a lot of different systems including the fire alarm system,” Clig says.

Multifamily housing, another key vertical for Custom Alarm, seems to have entered a sluggish period, Clig says, with the building community leery of the economy and the political calendar.

“Some of the developers are a little bit cautious in putting up new buildings, just with the word recession and going into an election year in 2024,” he says. “They are a little hesitant to be dumping millions of dollars into these new buildings with high interest rates, even though we still do need housing here in our area. But overall, it’s been a successful year.”


Revenue Change Expectations

SDM asked, “Compared to this year, how do you expect your company’s revenue in each of the following categories to change next year?”

The percentage of respondents that anticipated fire alarm/emergency communications revenue would grow in 2023 jumped an optimistic 13 percentage points over predictions from the previous year.
Source: SDM 2023 and 2022 Industry Forecast Studies


Remote Diagnostics on the Rise

Remote diagnostics in fire alarm panels have emerged as a game-changing innovation in the industry. These advanced capabilities now enable technicians and facility managers to assess and troubleshoot fire alarm systems from a distance, significantly enhancing efficiency and reducing response times.

As Kumar explains, for years the fire industry has faced challenges with facility shutdowns, reduced staff and effectively managing incidents with a shortage of skilled resources and information. Despite developments made in safety products and emergency response, the greatest challenge fire technicians still face today are the unknown factors they will have to deal with when they arrive on site, where the risks remain the same no matter the occupancy level.

“The advancements in the connected safety offerings can alleviate some of these challenges by equipping facility managers and fire technicians with high fidelity information that allows them to ‘know before you go,’” he says. “Our recently launched Edwards ConnectedSafety+ site and system management software application provides remote diagnostics, maintenance and trouble-shooting capabilities resulting in numerous cost efficiencies and reduced site disruptions.”

Remote diagnostics can pinpoint issues such as faulty sensors or system malfunctions in real time, allowing for immediate corrective action without the need for physical on-site inspections.

Moreover, these systems often incorporate predictive maintenance algorithms, which can proactively identify potential problems before they escalate, further minimizing downtime and ensuring the reliability of fire alarm systems. With the integration of remote diagnostics, the fire alarm industry is witnessing a transformative shift toward proactive maintenance and heightened system reliability, ultimately bolstering safety and peace of mind for end users.

84%

The percentage of security professionals who consider the state of the fire alarm market to be excellent, very good or good.
Source: SDM 2023 Industry Forecast

“We’ve seen two of our largest customers really jump on board, which has helped put our minds at ease when we have two of our largest accounts that have really dove into this,” Clig comments.

Custom Alarm is installing the NOTIFIER system with multi-criteria addressable detectors and the Honeywell Connected Life Safety Services (CLSS) Gateway. For its large medical center end customer, Clig said they will also soon be deploying CLSS Horizon, a graphical display software that will provide the next generation in life safety management for on-premises and remote visibility of the fire alarm system.

“Just looking at other technologies in the industry with security systems, it’s been many years that end users have been able to pull up an app on their phone and see the status of their system and see what’s going on with it,” Clig explains. “We’re finally there now with the fire alarm systems. You can see an active alarm that’s going off. You can see what kind of trouble or supervisory signal is going on right from a mobile app on your phone.”

Telguard has released its TG-7UB products, certified for AT&T and Verizon LTE networks
As the industry prepares for more cellular carrier technology sunsets, Telguard has released its TG-7UB products, certified for AT&T and Verizon LTE networks. These LTE-M Upgrade Boards make the conversion of older technology Telguard commercial intrusion and fire communicators simpler and more affordable, according to the company. // IMAGE COURTESY OF TELGUARD

The technology also leverages public safety answering points (PSAPs), delivering signals from the fire alarm system directly to emergency responders. This allows first responders to access real-time data from the fire alarm system, such as the location of the alarm, the type of detected fire and the status of building occupants. These critical details now enable them to quickly assess the situation before arriving on the scene.

“They know exactly what smoke detectors are going off, so they don’t have to get to the building not knowing what they’re going to be walking into,” Clig says. “They have all these visuals now with the maps and everything that are going to be loaded onto the CLSS Horizon with the graphics and the workstation.”


Apprising the Smoke Detector Sector

In a 2021 report, the National Fire Protection Association (NFPA) said almost three out of five home fire deaths in the United States resulted from fires in properties with no smoke alarms (41 percent) or smoke alarms that failed to operate (16 percent).

When present, hardwired smoke alarms operated in 94 percent of the fires considered large enough to trigger a smoke alarm. Battery-powered alarms operated 82 percent of the time. Power source issues were the most common factors when smoke alarms failed to operate, according to the report.


“The past few editions of NFPA 72 have added requirement for smoke alarms and detectors to be listed for a resistance to common nuisance sources when installed near cooking appliances.”
—Shawn Mahoney


Recent advances in smoke detectors have transformed fire safety by introducing cutting-edge technologies that enhance detection accuracy and responsiveness. Traditional ionization and photoelectric sensors have been augmented with multi-sensor technology, combining both detection methods to reduce false alarms while swiftly identifying various types of fires, from smoldering to fast-flaming ones.

Moreover, interconnected smart smoke detectors now form part of integrated home automation systems, providing real-time alerts to homeowners via mobile apps and enabling remote monitoring. Some models even incorporate advanced features like self-testing capabilities and the ability to distinguish between real emergencies and non-threatening conditions such as cooking smoke. With these innovations, smoke detectors are becoming increasingly reliable and effective tools in safeguarding lives and property from the dangers of fire.


POTS Sunset Signals New Era for Fire Alarms

The sunsetting of Plain Old Telephone Service (POTS) lines marks a significant turning point in the fire alarm industry, necessitating alarm dealers to transition their alarm customers to more modern communication paths.

For decades, POTS lines served as a reliable means to transmit fire alarm signals to monitoring central stations. However, as telecommunication networks shift towards digital and internet-based technologies, POTS lines are becoming increasingly obsolete and vulnerable to disruptions. This transition is driven by the declining infrastructure support for analog phone lines, making it imperative for alarm dealers to act swiftly to ensure the continued reliability and effectiveness of fire alarm systems.

Penetration rates are still relatively low and estimates are 30 million POTS lines are still in use for commercial fire and life-safety systems, according to George Brody of Telguard.

“Opportunities are great with cord-cutting and POTS service declining, cellular alarm communication is the technology of choice for new installs and upgrades, while providing additional RMR for dealers,” he says. “As alarm communication experts, we provide [an] extensive portfolio of universal LTE-5G cellular and dual path made in America communicators for the commercial markets.”

With the evolution of fire alarm reporting technology migrating away from leased POTs lines come the added exposure of data transmission outside a purely dedicated channel, explains Judy Jones-Shand of NAPCO. Increasingly today, providers/manufacturers handling private, sensitive data must exhibit diligence to protect and safeguard it she says.

“This requirement may prove a large liability threat to dealers today,” she adds. “NAPCO is one of the few manufacturers working toward attaining the rigorous standards of SOC 2 compliance to protect our dealers’ accounts, their livelihood and their companies from liability exposure.”

Alarm dealers are now presented with a crucial opportunity to proactively guide their customers toward modern communication alternatives, such as cellular, mesh network or internet-based solutions. These newer technologies offer improved reliability, faster transmission speeds and increased data capacity, enhancing the overall functionality of fire alarm systems.

“POTS lines continue to go away, allowing for opportunities to update old systems and move into wireless technologies,” says Laura Wall of AES Corp. “AES communicators are perfect for applications where a customer does not want to or can’t rely on public infrastructure to transmit alarm signals.”

Moreover, by embracing these advancements, alarm dealers can position themselves as trusted partners in ensuring the safety and compliance of their customers, while also tapping into a growing market for upgraded fire alarm communication services.

“Telguard sees this as an ongoing business advantage for the fire system dealers and integrators throughout the decade,” Brody says.


Edwards ConnectedSafety+
Edwards ConnectedSafety+ provides a remote connection to Edwards EST4 intelligent fire and life safety systems. The Floorplan+ feature automatically associates fire system devices in the site’s floorplan with the system configuration. // IMAGE COURTESY OF EDWARDS

As of January 2023, NFPA 72 requires smoke alarms and detectors within 20 feet of cooking appliances be listed for resistance to common nuisance sources from cooking, replacing common alarms with smart multicriteria smoke detectors and smoke alarms that can distinguish between a true fire or burning toast and nuisance sources.

“The past few editions of NFPA 72 have added requirement for smoke alarms and detectors to be listed for a resistance to common nuisance sources when installed near cooking appliances,” says Shawn Mahoney, technical services engineer for NFPA, Quincy, Mass. “Typically, these nuisance alarms are set off by common cooking appliances. One of the biggest issues is if there are frequent nuisance alarms in a residential occupancy, the occupant may be inclined to disable the alarm, causing a failure to perform as intended during a true emergency.”

According to India-based market research firm Mordor Intelligence, the global smoke detector market size is forecast to grow from $2.8 billion in 2023 to $3.97 billion by 2028. That amounts to a compound annual growth rate of 7.13 percent. North America accounts for the largest market share.


“Some of the developers are a little bit cautious in putting up new [multi-family] buildings, just with the word recession and going into an election year in 2024.”
— Brandon Clig, Custom Alarm


The COVID-19 pandemic adversely impacted the smoke detector industry as many organizations worldwide were compelled to shut down. This resulted in a demand-supply gap, a lack of workers, a delay in manufacture, and a postponement in the shipment of supplies and other parts of smoke detectors, according to Mordor Intelligence. However, the restoration of production activity has resulted in a large increase in the deployment of smoke detectors in the residential, healthcare and production industries.


How NFPA LiNK Can Make a Life-Safety Pro’s Life Easier

NFPA LiNK is a comprehensive digital platform developed by the National Fire Protection Association to provide professionals in the fire and life safety industry with convenient access to essential codes, standards and related resources.

“For those who work with parts of NFPA 72, but not the entirety of the document, NFPA LiNK allows users to bookmark sections that directly apply to the work at hand,” explains NFPA’s Shawn Mahoney. “Rather than carrying around and paging through a large codebook, users can reference the exact collection of requirements they need immediately, right on their device.”

Another key benefit is NFPA DiRECT, which allows subscribers to jump into the digital tool and access industry-specific scenarios and an interactive illustration of the space.

“Those working to mount devices can click through for mounting height information and be linked directly to the codes and standards that impact those aspects of the job,” Mahoney says. “As NFPA LiNK continues to grow as a digital tool, more and more situations relevant to fire alarm and signaling systems will be available for professionals to use.”

Following is an overview of NFPA LiNK feature sets:

Centralized access: The platform serves as a centralized hub for accessing NFPA codes and standards, making it easier for users to locate and navigate the vast library of documents published by NFPA.

Real-time updates: One of its standout features is the ability to receive real-time updates and revisions to codes and standards, ensuring that users always have access to the latest information and regulations.

Cross-platform compatibility: The platform is designed to work seamlessly across various devices, including desktop computers, tablets, and smartphones, allowing professionals to access critical information on the go.

Search and navigation tools: The platform offers robust search and navigation tools that simplify the process of finding specific code sections or standards, making research and compliance efforts more efficient.

Collaboration and sharing: The platform facilitates collaboration among users, allowing them to share documents, comments, and insights with colleagues and teams, promoting knowledge sharing and collaboration within the industry.

Interactive features: Some platform features include interactive tools like cross-referencing, annotations and bookmarking, which enable users to interact with the content and customize it to their needs.

Training and education: The platform often includes educational resources and training materials related to NFPA codes and standards, helping users stay informed and up to date on fire and life safety best practices.

To learn more about the subscription-based NFPA LiNK, go here. [link https://www.nfpa.org/nfpa-link]


Adding Fire Services

SDM asked, “Are you offering, or planning on offering, fire alarm products and services?

Nearly half of contractors surveyed currently offer/sell/install fire alarm products. Of those not currently offering fire alarm products and services, 11 percent are considering selling them in the next two years and 13 percent have undertaken discussions start offering them within five years.
// SOURCE: SDM 2023 INDUSTRY FORECAST STUDY


6.7%

The forecasted compound annual growth rate (CAGR) of the global fire automation system market to reach $130.4 billion in 2030.
Source: Adroit Market Research


Advancing technologies are also propelling growth across a range of sectors and end-user types. For example, wireless fire alarm systems and aspirating smoke detection are experiencing significant growth, according to Kumar.

“The installation, programming and maintenance of traditional wired alarm systems remains a labor-intensive process,” he says. “The adoption of wireless technology can greatly improve the installation and maintenance of fire alarm systems. Typical customers of smaller hotels, businesses, temporary construction sites, heritage buildings, etc., are looking for a flexible system that can be rapidly deployed with minimum building and occupant disruption.”


“We believe that our segment continues to be supported by macro trends such as urbanization and digitization resulting in increased demand for infrastructure and campus-style sites, as well as investment in data centers, warehouses and distribution centers.”
— Kartik Kumar, Edwards


Industry and infrastructure is another segment that is growing much faster than residential and commercial retail and office space, Kumar says. Key verticals like data centers, warehouses and manufacturing units are experiencing phenomenal growth, he says. Although these sites are not heavily populated, they are just as important due to the high value of the property, infrastructure and contents. The higher the value of properties and assets, the more damaging a fire can be.

“Active smoke detection or aspirating smoke detection is a highly effective way to protect these critical assets,” he continues. “Because ‘active’ detection systems acquire an air sample from the surrounding monitoring area and immediately assess threats, customers are expected to invest heavily in them.”