A just-released report from IMS Research, Wellingborough, U.K., predicts that the security systems market in the Americas will grow at an average rate of 7 percent per year to more than $30 billion by 2016.
The largest portion of these revenues will continue to come from the United States, according to the report, “Security Systems Integration – World – 2012 Edition.” The fastest growth, however, will be seen in Latin American countries such as Brazil, which will host the 2016 summer Olympic games.
“The Latin America market is a really exciting place right now for systems integration. A lot of technology providers are trying to establish themselves in this marketplace, including the large international systems integrators. In the U.S. it’s a different picture entirely and I believe we’re seeing the start of consolidation,” says Paul Bremner, IMS Research market analyst who authored the report.
Additionally, the report also forecasts there will be no lessening of competition in the Americas’ security systems integration market, in which the largest five integrators account for less than 20 percent of market share, according to the research company. Rather, competition should only increase as traditional IT integrators enter the market and further erode market share. Meanwhile, in some Latin American countries, fragmentation remains the name of the game
“The security systems integration competitive environment is really interesting because the range of companies in the market is huge. At one end there are the enterprise integrators, like Johnson Controls and Siemens. At the other end, are five-man companies serving a product or geographic market niche,” Bremner says.
This is best illustrated by SDM’s 2012 Top Systems Integrators Report, which ranks the No. 1 integrator, ADT, with $1.8 billion (2011 North American systems integration revenue) and the No. 100 company, Sonitrol New England, with $3.1 million (2011 North American systems integration revenue). Total systems integration revenue from the top 100 companies was $6.88 billion in 2011, down 3.6 percent from 2010.