Systems integration drives global security market growth, Freedonia
June 1, 2022 By SP&T Staff
A report from Freedonia Group says that systems integration will continue to be the fastest growing segment in global security services through 2026.
Key drivers of growth include prevalence of smart technology devices and building automation systems, which Freedonia says provide systems integrators with opportunities in both commercial and residential markets.
The company’s research also suggests that the growth of systems integration is a major driver of acquisitions, as the specialized technological skills required to serve this market are often outside the competencies of traditional security service providers.
The company’s research also suggests that as this trend continues, the distinction between physical security and cybersecurity are becoming more obscure. Additionally, security service providers are being called on to develop new technological capabilities.
Nonresidential customers are the primary outlet for systems integration services, at 95 per cent of revenues in 2021.
Freedonia adds that a growing number of companies are offering security systems integration services targeted at the residential market. In particular, the growing popularity of smart home systems provides an attractive opportunity for alarm monitoring providers to diversify their service offerings and differentiate themselves from competitors.
Furthermore, suppliers in the systems integration market continue to keep apace with the latest technological developments through mergers and acquisitions. For example, Convergint Technologies achieved rapid growth in the second half of the 2010s via both acquisitions and organic growth as the global systems integration industry developed.
Other providers of security systems integration services include ADT, Carrier Global, Johnson Controls, and Stanley Black & Decker, all of which manufacture various building equipment for integration with security systems.
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