The world market for security system integration was valued at $59.5 billion in 2013, an increase of almost $5 billion from 2012, according to a new report from IHS. The security system integration market consists of the design, consultancy, installation, service and maintenance, as well as sales of video surveillance, physical access control and intruder alarm equipment. Revenue is expected to continue growing in excess of 9 percent through 2018.
The market is characterized by a handful of large international players, numerous regional rivals and many local competitors. Such a competitive landscape means fierce competition abounds and that both integrators and installers must remain at the forefront of technology trends to be able to continue serving “best-in-class” integration packages to their customers.
One trend that integrators have been eyeing closely recently is Security as a Service (SaaS), whether it be Video Surveillance as a Service (VSaaS), or Access Control as a Service (ACaaS). Both offer promising opportunities for integrators to expand their recurring monthly revenue (RMR), while simultaneously getting closer to the end customer. This model also allows integrators to increase the value they bring to the table, and lets them be seen as working together with their customers as partners.
As equipment margins continue to edge lower for integrators, driven by price declines in the equipment itself, it is the services that integrators can offer, as well as the added value they are perceived to bring to the customer that will ultimately prove to be the separator between the winners and losers in this market.