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Security Integrators Are Lukewarm about A/V, Home Automation Expansion
The study entitled “ESA Annual Megatrends Research Report” was revealed during the ESA 2013 Leadership Summit in Orlando. It reveals the following key and sometimes surprising findings. One of the most surprising is that security integrators plan to grow in 2013 not by expanding their geographic coverage area or by acquiring competitors, but by adopting new technologies.
However, residential custom electronics (integrated audio, video, IT, etc.) is listed as the area with the least potential for growth. Indeed, only 8 percent of security companies definitely plan to expand into this area this year.
Also, home automation growth is lukewarm. While residential single-family homes are seen as the top area for growth in 2013, only just over half of all companies are offering home automation (53 percent). That’s only 3 percent more than offered it in 2011.
Among the other key findings are:
- Security integrators predict a 9.1 percent growth rate for video surveillance in 2013. That is the highest product category for growth by far, followed by access control, intrusion, fire, energy management and home automation.
- More security integrators install Personal Emergency Response Systems (PERS) than home automation. In all, 56 percent of companies install PERS compared to 53 percent in home automation.
- Fewer integrators are doing Commercial IT and Building Automation jobs. Both categories had double-digit drops in 2012 compared to 2011 in terms of the percentage of dealers working in those categories. Only 30 percent of security integrators perform building automation installations and only 36 percent do commercial IT networks.
- Integrators predict a 10 percent growth rate in revenue from alternative alarm signal transmission installations. This growth rate is likely due the fact that the 2G cellular network is going away and that means those modules need to be replaced.
- Mobile device security is hot, with dealers anticipating an 8.8 percent growth rate in that category.
- IT networking and training are becoming “musts.” Dealers predict a 7.4 percent revenue growth in the category and list IP/IT training as their biggest area of internal operational investment planned.
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2 Comments (displayed in order by date/time)
Glass half empty or half full? You were having a half empty day when you wrote this headline.
More security integrators than ever are doing home automation, and those that are doing it are projecting 5%+ annual growth each of the next two years.
Also the percentage of security integrators doing resi A/V climbed 8 pts. 2013 study vs. 2012.
You left out that overall security integrators are looking at single family residential as their top growth vertical over the next two years with almost 9% annual revenue growth projected.
Make no mistake, activity is vibrant for security integrators in the resi market, including automation and A/V. If we could just figure out a way to build RMR around AV they would do more of that, too.
Enjoy!
John
It occurred to me the other day that in California, security companies don’t need a contractors license (which I don’t understand the loophole, but that id for another day)
But as they dive into more inclusive installations like automation and surveillance they should be playing by our rules. I wonder how many of them are