5 Key Industry Trends in Second Half of 2018 as Seen by Imperial Capital
Imperial Capital’s Jeff Kessler and Saliq Khan outline five current trends in their recent report, “Technology Enabled Services Update.”
In this time of mass disruption, keeping abreast of industry trends is an especially important endeavor for business executives. Identifying trends in the early going allow organizations the necessary time to game plan and devise an informed, strategic path forward.
Staying up-to-date can also help you avoid jumping aboard a trend that may already have run its course and instead is on the cusp of flaming out.
Among the easiest ways to better distinguish industry trends is to read research reports from reputable sources. Networking and discussing the marketplace with peers and other stakeholders at industry events can be particularly enlightening as well.
Of course, SSI works to identify and report on trends and market developments with several major research projects throughout each year. For example, in 2018 we have published: Recurring Revenue Report (February), Physical-Logical Security Assessment (April), Wage & Salary Survey (July) and the Operations & Opportunities Report (August).
Another source of information I keep an eye out for throughout the year are the research reports and security sector updates published by Imperial Capital, which are replete with financial analysis penned by Jeff Kessler and Saliq Khan.
The duo’s latest report, “Technology Enabled Services Update,” highlights a select group of their coverage companies that are scheduled to release quarterly earnings during the next several weeks. These include ADT (ADT), Alarm.com (ALRM), Allegion (ALLE), Arlo Technologies (ARLO), Axon Enterprise (AAXN), Brink’s Co. (BCO), Control4 Corp. (CTRL), FLIR Systems (FLIR), OneSpan (OSPN), ShotSpotter (SSTI) and Zebra Technologies (ZBRA).
Most of these companies will be presenting and/or hosting one-on-one meetings at the upcoming 15th Annual Imperial Capital Security Investor Conference (SIC) in New York. It’s an impressive cross section of security services providers and manufacturers — no doubt all of which spend copious time trying to read the market tea leaves.
In their latest update, Kessler and Khan highlight five trends in particular they see gripping the industry in the second half of 2018 as fiscal third-quarter results approach. Each one of these has sharp relevance to installing security contractors, large and small. They are:
- A nearly universal focus on improved cybersecurity; large end users are demanding it.
- Increasing focus on verifying alarms (health, safety or burglary related) in order to improve response by professionals, reduce potential fines and disconnect fees, and increase its value proposition to customers.
- Use of analytics for improved prevention, actionable intelligence and verification of incidents for both law enforcement and responders.
- Improved growth of the commercial/institutional channel, relative to residential. This is due to significant improvements in analytics and product integrations, which allow for efficient and easier installs and improved end user experience. In addition, the recent plethora of DIY, dealer, internal, door-knocker and contract choices may be creating some temporary confusion in the residential growth profile, providing integrated companies with a chance to focus more on their larger commercial/enterprise/public-safety customers.
- Increasing pressure in the commercial/enterprise arena to provide a more complete solution to the channel (particularly integrators) that are under pressure to deliver an easier-to-use, easier-to-fix, easier-to-future proof solutions to their end users.
The Security Investor Conference will be held Dec. 11-12 at Barclays Intercontinental Hotel in Manhattan. For more information about the event, visit imperialcapital-sic.com.
Check out the video below for even more security trends that Kessler shared with us during GSX 2018.
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