Giacalone Sees Wireless Technology, Service Shaping Security Industry in 2015
Giacalone Associates’ Peter Giacalone shares his thoughts on where he thinks the electronic security industry is headed in 2015.
Giacalone Associates' Peter Giacalone believes monitoring companies need to adjust their approach to service these markets both in structure and price in 2015.
What are some general security industry challenges you see playing big in 2015?
Giacalone: I am more bullish on what’s to come than ever before. At the risk of sounding cliché, we have many challenges ahead that many will enjoy as real opportunities. The challenges that will eventually dissolve some of the existing players in all segments of the industry will be the opportunities that will allow the other players to enjoy growth and success that they have never experienced before. Licensing, false alarms and video verification will continue to be challenges. The hope is that with the new audio and video verification standards will cause greater adoption with positive results.
What type of year in 2015 are you anticipating for each segment of the channel?
Giacalone: Manufacturers and suppliers that have the foresight, stability and are fast to market with compelling systems will enjoy the growth; others will eventually fall.
Wireless technologies related to home control will continue to grow. Technologies like Z-Wave will expand with the introduction of new devices and benefits. Remote video and analytics will continue to experience growth bringing more benefits to an expanded market.
For dealers and integrators, the key is the offering the best value proposition both commercially and residentially. It is happening now where we see certain dealers enjoying the greatest growth ever while others are declining. This is more than a trend and is close to becoming the rule. It is no longer a security system or automation system; it is a control system with the consumers activating the levels of service they desire.
For monitoring providers, the larger ones with the full breadth of services will enjoy great growth. Others will decline and eventually get rolled up into the larger providers. I strongly believe that the smaller central stations will consolidate either with each other or with larger providers in order to stay competitive.
What are some pressing security industry issues you expect to remain unresolved, or things that might catch folks off-guard in 2015?
Giacalone: The obvious is licensing and reciprocity not happening. Licensing is such a big issue for multistate and national providers. A nationally accepted or recognized structure is so needed, yet still an issue. As far as catching people off-guard, consumers would rather pay more for systems that better serve their lifestyle and control, rather than less for a trad
itional security system. Dealers are finding that less resistance exists when selling comprehensive full control systems for $10 or $15 more a month.
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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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