Security Integrators Are Lukewarm about A/V, Home Automation Expansion

Cameras, alternative alarm transmission, mobile devices and IT are among the targeted product segments in 2013 for security companies, while home automation and A/V get a tepid reaction.

Security Integrators Are Lukewarm about A/V, Home Automation Expansion

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Jason Knott · February 20, 2013

It appears security integrators are shedding their traditional labels of being conservative and slow to adopt new technologies. In a study released today by the Electronic Security Association (ESA), security companies identified several key product segments for growth this year, as well as pinpointing new technology as their primary means of growth in 2013.

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.

  About the Author

Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at [email protected]

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