While it may be more conservative when it comes to adoption, the fire alarm market is no stranger to the new and exciting technology advancements that are heavily influencing the greater security industry — particularly artificial intelligence, cloud computing, and integration. In this second installment of the State of the Market Fire & Life Safety, SDM explores new technologies in this space, their impact on business, as well as the top opportunities — and challenges — for dealers and integrators.

“End users are increasingly seeking fire alarm technologies that deliver greater intelligence, situational awareness, and operational efficiency,” Lee Kaiser, vice president, engineering and training, ORR Protection, Louisville, Ky. “Products that integrate video with fire detection are in high demand, as customers want more visual data about what’s happening during an alarm event, especially in high-risk or remote environments. They also want smart sensors that can monitor critical equipment and provide dual functionality, serving both as environmental monitors and fire detectors. Mobile monitoring capabilities are another key expectation, allowing users to receive system alerts and diagnostics directly on their personal devices, wherever they are. … These trends, along with growing interest in AI-based analytics, ERCES systems and cloud-connected platforms, are shaping the next phase of growth for the fire alarm industry.”

Emergency Responder Communication Enhancement Systems (ERCES) have been particularly influential in recent years. Required in certain instances by code, these systems assist first responders in being able to communicate while inside a building during an emergency response.

“In my view, ERCES represent the most significant opportunity for growth in the fire alarm industry,” says Gregory R. Breyer, vice president, design and compliance, Zeus Fire and Security, Paoli, Pa. “While emergency responder radio coverage compliance has been included in base building codes since 2015, widespread adoption and enforcement have taken several years to materialize. This life safety system addresses a long-standing challenge: emergency responders historically struggled to communicate effectively within newly constructed buildings. Inadequate radio coverage not only put first responders at risk but also hindered the ability of police, fire, and EMS personnel to protect the public.

“Today we are seeing a shift in perspective,” Breyer continues. “Where some jurisdictions were previously hesitant to enforce ERCES requirements, there is now a strong focus on the meaningful life safety improvements these systems provide. The increased adoption of ERCES is not only critical for protecting people and property, but also represents a substantial growth opportunity for the industry.”

Boyd Ferrin, national sales leader, Pye-Barker, Alpharetta, Ga., also sees ERCES technology as a growing opportunity. “ERCES has been great technology where we can boost radio signals and help first responders,” he says. “[But] I think the biggest technology change in the last three to five years is the networking available between campuses. There is now the ability to put things in the cloud. I could sit at my desk and look at three campuses and know what is going on.”

Darrell Sackwar, director of fire alarm and life safety business development, Convergint, Schaumburg, Ill., agrees. “Fire systems in general have become more sophisticated,” he says. “The fire panel is really more of a microprocessor computer taking in information from devices. Because many now include voice, the fire system is part of the building’s integrated life safety and security plan for things other than fire, such as weather or security.”

Other technologies becoming more prolific are systems that can report their health status to the cloud, helping integrators get the right parts on trucks before rolling to a site. But going beyond just reporting will take longer to happen with fire systems — if ever, Sackwar adds.

“You can look at a lot of things remotely now, but you can’t do a lot of things remotely,” he says. “I see that being very slow in coming. Any program changes have to be tested, and you have to have somebody on site to verify that it works. The risk is so great, if a programming sequence were changed, it might stop the system from doing its job. The fear of that is greater than the efficiency of doing it remotely.”

One area where Sackwar and others do see increasing efficiency happening in the fire alarm space is in the rise of AI. From being able to learn on the spot which local codes apply, to predicting maintenance needs and helping reduce false alarms, AI is only beginning to demonstrate its value.

Fire systems in general have become more sophisticated. The fire panel is really more of a microprocessor computer taking in information from devices. Because many now include voice, the fire system is part of the building’s integrated life safety and security plan for things other than fire, such as weather or security.

“Over the past year, market growth has been fueled by surging demand for smarter, digitally connected fire detection solutions,” says Rodger Reiswig, vice president of industry relations, Johnson Controls, Milwaukee. “IoT and AI are reshaping the sector with modern fire monitoring systems now gathering and analyzing data, integrating with mobile platforms and providing real-time safety information from virtually anywhere. Many can automatically alert fire professionals the moment an incident is detected. This has opened the door for manufacturers to expand their portfolios with innovative, AI-ready products that meet the needs of a more connected future.”

This trend is motivating customers to upgrade, perhaps more quickly than in the past, says James Guzikowski, senior category strategist, ADI | Snap One, Melville, N.Y. “The industry’s shift toward IoT and AI-enhanced detection systems is also accelerating upgrade cycles, offering compelling value where retrofits may not have previously been justified,” he says.

Another technology trend Reiswig sees shaping the market is the move from away from POTS. “The transition to IP- and cellular-based communicators, integrated with cloud platforms and mobile apps, is enabling remote diagnostics, real-time alerts, and new recurring revenue opportunities,” he says.

One advancement helping this transition along has been the advent of multi-carrier cellular options, says Daniel Rosales, senior director of technical service, PLM, and marketing, Telguard, Atlanta. “The notion of having a single device that can use any of the major carriers in the U.S. depending on who performs best is a concept the industry has really welcomed with open arms,” he says. “As we continue to produce quality products with innovative technology that gets rid of the single-carrier headaches, we will continue to see the growth of cellular adoption.”

Tom Karl, vice president, corporate sales, NAPCO Security Technologies Inc., Amityville, N.Y., adds: “Advances in communications technology have greatly increased the reliability and integrity of fire alarm communications. Cellular fire alarm communicators that support multiple carriers not only ensure there will be an active carrier at all sites, but also provide an additional level of redundancy. If, for any reason, the primary carrier is not available, the communicator can quickly switch to the secondary carrier to ensure that the life-safety signal is delivered.”

Future Opportunities & Challenges

Whether from communications technology, cloud, or AI, more integrators are seeing recurring revenue opportunities in the fire space beyond the traditional test/inspection.

“The need for transmitting more data from fire panels continues to evolve and impact the fire market,” says Laura Wall, vice president of product management, AES, a mesh network provider based in Peabody, Mass. “Also, the shift to an RMR model continues to change and offer dealers and integrators more opportunities to generate revenue.”

Guzikowski says he is seeing changes in how integrators are managing fire safety, including remote monitoring and AI-enabled risk assessments, cloud-based platforms, and remote emergency activation. “The greatest opportunity in the year ahead lies in the integration of intelligence and automation within the fire category — moving beyond traditional, legacy components towards smarter, more connected solutions,” he says. “These advancements empower dealers and integrators to deliver systems that not only meet compliance standards but also enhance safety and unlock new recurring revenue streams through monitoring and data-driven services.”

However, Guzikowski and others do see challenges related to technology as well. “The biggest risk is the pace of market adoption,” he says. “Integrators who are slow to embrace these emerging technologies may find themselves at a competitive disadvantage, much like the shift from analog to digital in the security industry. As the market continues to evolve, staying ahead of the curve will be critical to long-term success.”

Reiswig also sees this as a challenge: “The biggest threat is failing to adapt quickly enough to evolving customer needs, regulatory requirements, and technology standards. Those who integrate emerging technologies, meet stricter compliance mandates, and offer comprehensive support will gain a competitive advantage.”

Integrators acknowledge these challenges but point to a more immediate issue impacting their ability to follow through on these trends: labor.

“The biggest challenge in the industry is finding and creating the qualified field people to service the systems,” Sackwar says. “As systems become more complex, the training necessary to service them correctly is more than it ever was. The two things that keep me up at night are training and developing those people, and any market hesitation on the economic side that … could slow business.”

These are two issues that concern says Rick Reynolds, executive vice president, ORR Protection, as well. “The biggest threat is the ongoing challenge of economic uncertainty and skilled labor availability. Inflation, interest rates, and global instability — including tariffs and supply chain disruptions — continue to impact capital spending and project timelines. Additionally, the fire protection industry is facing a talent gap, particularly in engineering, inspection, and technical service roles. If not addressed proactively, these constraints could slow our ability to execute efficiently and maintain service quality at scale. ORR is actively mitigating this threat by investing in training, digital tools, and process automation to support our teams and ensure we continue to deliver best-in-class service as demand increases.”

Despite the challenges, however, providers and integrators in the fire space are optimistic for the future.

“The biggest opportunities still come from the millions of POTS users in the commercial space and the fact that you have companies like AT&T that are publicly retiring from supporting those services,” says Daniel Rosales, senior director of technical service, PLM, and marketing, Telguard, Atlanta. “When these changes get more publicity, it gives room to more opportunities for fire integrators to initiate the conversations to take over the communication path and increase RMR on existing accounts.”

Breyer agrees. “Assisting customers through this change [in communications methods] continues to generate significant opportunities, both within our existing customer base and with new national account partnerships,” he says.

ERCES is another fast-growing opportunity for fire integrators, Breyer says. “This represents one of the most significant opportunities the industry has seen in the past two decades, and we are well-positioned to lead in this space,” he says. “Additionally, lithium battery hazards have emerged as a major safety concern. From storage facilities to consumer products, these batteries present unique fire risks that require specialized detection, suppression, and response strategies. Both issues will continue to influence the industry’s evolution and the solutions we bring to our clients.”

These battery storage units are something ORR specializes in, Kaiser says. “We are strategically investing in our business development teams to deepen our vertical focus in high-growth centers such as data centers, battery energy storage systems (BESS), modular infrastructure, connected communications (broadband/IT/telco/cable), and power generation.

“The biggest opportunity for ORR Protection in the coming year lies in the convergence of mission-critical growth sectors and the increasing need for specialized fire protection solutions,” Breyer adds. “The continued expansion of AI computing, modular infrastructure, data centers, broadband, and BESS is creating unprecedented demand for high-performance, code-compliant fire protection. … As customers seek more data, more automation, and more accountability, we see tremendous opportunity to lead with cloud-connected systems, multi-criteria detection, and service-driven models that offer long-term protection, insight, and ROI.”