Looking to 2016: Security Pros Predict Growth in Video Surveillance, Internet of Things
Industry members expect higher revenues, steady growth and more in the new year.
Security professionals expect there to be steady growth in the industry in 2016 in a number of channels.
Jon Cropley, Principal Market Analyst, IHS: IHS forecasts that the market for video surveillance equipment will grow by 10% in 2016. Consolidation is inevitable in the longer term, although it is uncertain whether 2016 will be the year when the rate of consolidation really picks up.
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Paul Bremner, Senior Analyst, Video Surveillance and Security Services IHS: IHS forecasts the security system integration market to grow 6.9% from 2016 to 2017, with this rate exceeding 10% in Asia, while the Americas see sub-3% growth rates. EMEA is forecast to be the middle-ground at just over 6% growth from 2016 to 2017. Overall, this is a positive picture for integrators, despite the challenging conditions in the physical security equipment markets regarding price declines. It is expected that integrators will continue to shift towards a service oriented approach for their customers.
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Peter Giacalone, Principal, Giacalone and Associates: Some of the traditional manufacturers and distributors may have the toughest time with growth and competing with the more nimble, boutique vendors. Those manufacturers are quick to adapt to market trends and may be teaching the legacy groups a few lessons.
The same applies to distributors. Some independents are offering some great value-added services with meaningful flexibility. Growth should be steady for the dealer and integrator companies that are smart and sensitive to market trends. Balancing profitable installations and RMR growth will prove to be most beneficial to the companies who are paying attention.
Monitoring is an area that I believe will drive a lot of growth for dealers and integrators alike. It will also be the center of the universe for those who engage in so-called self-monitored systems and DIY. The monitoring providers are investing in the infrastructure, connectivity and telecommunications necessary for the dealers and integrators to leverage towards new growth and pro
fits.
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Jim Lantrip, Security Segment Head, Siemens’ Building Technologies Division: Video manufacturing will continue to see the best growth, and continued innovation will drive new directions like cloud-based services, more powerful analytics, etc. Access control companies will see modest growth and will still struggle to figure out how to sustain growth while moving away from control panels. It will take some time for this to happen, but it is gaining momentum.
I expect that dealers/integrators will see another year of steady growth. The smaller regional companies will see higher levels of growth, but there should be steady 4% to 6% in the industry for dealers/integrators. Growth will follow the economy, and it is still growing. Unless there is another catastrophic security event, growth will be steady.
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About the Author
Scott Goldfine
Scott Goldfine is the marketing director for Elite Interactive Solutions. He is the former editor-in-chief and associate publisher of Security Sales & Integration. He can be reached at [email protected].
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