Systems integration will continue to be the fastest growing segment of the global security services industry through 2026, according to a new analysis released by research firm Freedonia Group.
Growth is being driven by the increasing prevalence of smart technology devices and building automation systems, which are providing systems integrators with opportunities in both commercial and residential markets.
The growth of systems integration is a major driver of acquisitions, as the specialized technological skills required to serve this market are often outside the competencies of traditional security service providers. As this trend continues, the conventional distinction between physical security and cybersecurity is becoming increasingly blurred, and security service providers are increasingly being called on to develop new technological capabilities.
Smart Home Expands Demand for Integration Services
Nonresidential customers are the primary outlet for systems integration services, at 95% of revenues in 2021. These services are particularly valuable in larger spaces that attract both high levels of security spending and investment in complex building automation systems.
However, a growing number of companies are offering security systems integration services targeted at the residential market. In particular, the growing popularity of smart home systems provides an attractive opportunity for alarm monitoring providers to diversify their service offerings and differentiate themselves from competitors.
Freedonia Group’s Global Security Services analysis provides historical data (2011, 2016 and 2021) and forecasts for 2022, 2026 and 2031 for global security services revenues by service and market in U.S. dollars. Total revenues for individual countries are also presented in local currency terms.
Services covered include:
- alarm monitoring, including personal emergency response services (PERS)
- security systems integration
- consulting, private investigations and niche services such as pre-employment screening, drug and contraband detection dog services
- private airline security
- guard and guard patrol
- cash-in-transit and related services