2022 Access Control Deep Dive: Integrators See 12% Growth Despite Supply Shortage

SSI’s Access Control Deep Dive examines trends in the market, including the types of technologies being sold, average installation size, vertical market revenues and more.

2022 Access Control Deep Dive: Integrators See 12% Growth Despite Supply Shortage

The electronic security industry has long proved itself to be exceptionally resilient — in most recent times being among the fields least scathed by 2007-2009’s Great Recession and then pulling through the pandemic scarcely worse for the wear.

What has not as often been ballyhooed is just how resourceful the industry is as well. Never has that been more on full display than the past year as company owners and managers contended with an unprecedented supply chain-induced dearth of security products and soaring operational costs while simultaneously facing a Great Resignation-level talent drought.

Once again, the lesson is to never bet against security or its practitioners. That message resonates throughout Security Sales & Integration’s 2022 Access Control Deep Dive survey as in the face of all those challenges that have felled lesser businesses, dealer and integrator respondents report growth in that technology discipline of nearly 12% the past year.

That is more than 2 points higher than the prior 12-month period. That said the hardships everyone has encountered the past few years are evidenced by respondents’ five-year growth being diminished by 4.1 points (but still an impressive 21.3%).

Despite an overwhelming 98% of dealers and integrators indicating their business was negatively impacted by the procurement predicament, many found a way to nevertheless increase their access control-sourced revenues.

The survey found that gains in the number of and size of installations and projects (assumed the result of post-pandemic reopenings and business resumptions) in many cases helped offset lower prices per opening and lower gross margins.

Adding to that healthy market picture is the survey data indicating 84% of respondents’ firms are now either offering or considering offering hosted or managed access control as a service (ACaaS). That is a 17-point ascent from the prior 12 months, as providers and end users alike become more comfortable with Cloud-based subscription services and glom to its myriad benefits (including coveted recurring revenue streams).

Those selling it noted growth in excess of 14%. However, by a substantial measure cybersecurity remains the leading integrator access control concern. From a markets and technologies perspective, the Deep Dive reveals market share for 17 of the former and 27 of the latter. Commercial offices are still the top application, but assumedly as a consequence of ongoing pandemic fallout, the segment saw 4 percentage points shaved off its share from a year ago.

On the tech front, again likely exacerbated by COVID-19, keyless entry/exiting and mobile credentials gained ground. Those economic, operational and technology dynamics along with the challenges and opportunities they encompass lay at the heart of SSI’s Access Control Deep Dive — the publication’s third dedicated research project into the sector.

The new study was conducted during July 2022 and included dealers and integrators from throughout the United States and Canada. It also drew respondents from a wide range of company sizes spanning the residential, commercial and industrial access sectors.

Hopefully during the year ahead, we will see a renewed free flow of security products, the coronavirus (and any other maladies) held at bay, stabilizing of spiraling inflation and a more abundant labor pool — all helping catapult access control solutions providers to new levels of success. Even if that is a pipe dream, no matter as this industry will no doubt find a way to raise its bar even higher.

Take a good gander at the graphs, lists and sidebars that follow, digest it and adjust your plan accordingly. Then get back to keeping people and assets safe — and growing your business.

View the 2022 SSI Access Control Deep Dive

About the Author

Contact:

Scott Goldfine is Editor-in-Chief and Associate Publisher of Security Sales & Integration. Well-versed in the technical and business aspects of electronic security (video surveillance, access control, systems integration, intrusion detection, fire/life safety), Goldfine is nationally recognized as an industry expert and speaker. Goldfine is involved in several security events and organizations, including the Electronic Security Association (ESA), Security Industry Association (SIA), Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), ASIS Int'l and more. Goldfine also serves on several boards, including the SIA Marketing Committee, CSAA Marketing and Communications Committee, PSA Cybersecurity Advisory Council and Robolliance. He is a certified alarm technician, former cable-TV tech, audio company entrepreneur, and lifelong electronics and computers enthusiast. Goldfine joined Security Sales & Integration in 1998.

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