Security systems integrators are taking on a much greater role in our connected world through their offerings of cybersecurity and added network services, as evidenced by the 21st annual Top Systems Integrators Report.
Security systems integrators lauded the state of the market in 2015, yet their revenue was down 1 percent overall and among those integrators with which a year-to-year comparison could be made, a significant number — 34 of 82 companies — reported decreased North American systems integration revenue.
A broader base of competition, margin erosion, and pressure on end user budgets all played their part on performance, but integrators experienced enough opportunities to counter those impediments to growth.
While there has been no shortage of market pressures and disruptive influences on the security business lately, systems integrators nonetheless performed well last year. As a group, the integrators encapsulated in SDM’s 2015 Top Systems Integrators Report didn’t show much growth — just 0.3 percent. But that had more to do with the structure of the report than with the companies’ individual accomplishments in 2014.
Which suppliers do the largest systems integrators use? This Top Systems Integrators brand-usage report lists the top 15 manufacturers and top 13 distributors that earn the business of the largest systems integrators in the physical security channel.
These brand-usage lists were compiled from the 2014 Top Systems Integrators Report. Earlier this year, integrators were instructed to list their top three suppliers (both manufacturers and distributors, unprompted) in order of volume purchased from them.
Revenue classified as North American systems integration revenue rose from $6.29 billion in 2012 to $7.36 billion in 2013 — even though seven fewer companies are included in the report. However, for comparison purposes, SDM measures the top 100 companies’ 2012 integration revenue ($6.25 billion) against the top 100’s 2013 integration revenue ($7.33 billion).
From the Top Systems Integrators Report, to technology trends in video surveillance/access control integration, PERS, power supplies, video compression – the feature articles in this issue demonstrate the high value proposition our industry offers.
The articles in this issue demonstrate that not only does the electronic security industry offer a high value proposition, but that new and improved technologies alone are never enough to strike success. They must fit into the overall picture of market need/acceptance the competitive environment, and — crucially — the business requirements of dealers and integrators.
For the second year in a row, systems integration revenue fell by 4 percent. Instead of paving their own straight road, integrators are facing sharp curves in adoption of new technology infrastructure and new service models.
Security systems integrators had expected to pull ahead in 2011, but instead they experienced a dismal first half of the year and a better-by-comparison but still “just average” second half. Following a 4.4 percent drop in 2010, systems integration revenue among the industry’s largest security companies fell yet again — by 3.6 percent in 2011 — leaving many wondering what it would take to get back up to speed. Integrators face sharp curves in the need to quickly adopt IP as the primary infrastructure for security systems, as well as to create business models that offer security as a service.
Gone are the days when cybersecurity was someone else’s problem. With savvy and tenacious hackers who can use almost anything connected to a network to access systems, and evolving and seemingly implacable threats, just where does the security industry stand on the cyber preparedness spectrum? Read more stories in September Issue 2017.