Annual Industry Forecast .taxonomy-header__description{ width: 675px !important; max-width: 100% !important; }

SDM’s annual Industry Forecast Study measures the health and viability of the electronic security industry. Factors include revenue increases and decreases, expected growth for the coming year, pricing trends, and challenges that installing companies face. The health and viability of the electronic security industry is measured each year through SDM’s Industry Forecast Study, conducted annually since 1981. Through the Industry Forecast Study, which samples SDM’s subscriber base of installing security dealers and systems integrators, we get a depiction of the strength of the industry as measured by revenue increases and decreases, expected growth for the coming year, pricing trends for systems and services such as monitoring, and challenges that installing companies face.

The study’s results are presented annually in the January edition of SDM and on the website. More comprehensive results of the SDM Industry Forecast Study are available in a report. To order contact Jackie Bean at (215) 939-8967 or by e-mail to beanj@bnpmedia.com.

]]> https://www.sdmmag.com/rss/2595 en-us SDM 2026 INDUSTRY FORECAST hodgsonk@bnpmedia.com (Karyn Hodgson) Rapid technology advances meet shifting economic conditions to set the stage for a pivotal year in the security industry.

]]> http://www.sdmmag.com/articles/104948 Mon, 05 Jan 2026 07:00:00 -0500 https://www.sdmmag.com/articles/104948-sdm-2026-industry-forecast eBook: SDM State of Security In this ebook you will find summary articles for all five reports, from the 2025 Industry Forecast to the most recent State of the Market Intrusion & Smart Home, with the last (fire) from the 2024 report, published last October. Each contains links back to the original report for more in-depth coverage of the topic.

]]> http://www.sdmmag.com/articles/104389 Thu, 26 Jun 2025 00:00:00 -0400 https://www.sdmmag.com/articles/104389-ebook-sdm-state-of-security The SDM Annual Forecast Panel Talks Competition for 2025 hodgsonk@bnpmedia.com (Karyn Hodgson) Looking ahead, the majority of dealers and integrators are optimistic that 2025 will be a good year for the security industry.

]]> http://www.sdmmag.com/articles/103873 Wed, 29 Jan 2025 00:00:00 -0500 https://www.sdmmag.com/articles/103873-the-sdm-annual-forecast-panel-talks-competition-for-2025 The SDM Annual Forecast Panel Talks Emerging Technologies & Opportunities for 2025 hodgsonk@bnpmedia.com (Karyn Hodgson) Looking ahead, the majority of dealers and integrators are optimistic that 2025 will be a good year for the security industry.

]]> http://www.sdmmag.com/articles/103871 Wed, 22 Jan 2025 00:00:00 -0500 https://www.sdmmag.com/articles/103871-the-sdm-annual-forecast-panel-talks-emerging-technologies-and-opportunities-for-2025 The SDM Annual Forecast Panel Talks Sales for 2025 hodgsonk@bnpmedia.com (Karyn Hodgson) Looking ahead, the majority of dealers and integrators are optimistic that 2025 will be a good year for the security industry.

]]> http://www.sdmmag.com/articles/103870 Wed, 15 Jan 2025 00:00:00 -0500 https://www.sdmmag.com/articles/103870-the-sdm-annual-forecast-panel-talks-sales-for-2025 The SDM Annual Forecast Panel Talks RMR hodgsonk@bnpmedia.com (Karyn Hodgson) Looking ahead, the majority of dealers and integrators are optimistic that 2025 will be a good year for the security industry.

]]> http://www.sdmmag.com/articles/103869 Wed, 08 Jan 2025 00:00:00 -0500 https://www.sdmmag.com/articles/103869-the-sdm-annual-forecast-panel-talks-rmr SDM 2025 Industry Forecast: A Year of Optimism hodgsonk@bnpmedia.com (Karyn Hodgson) Looking ahead, the majority of dealers and integrators are optimistic that 2025 will be a good year for the security industry.

]]> http://www.sdmmag.com/articles/103864 Mon, 06 Jan 2025 00:00:00 -0500 https://www.sdmmag.com/articles/103864-sdm-2025-industry-forecast-a-year-of-optimism 2024 Industry Forecast: Back to Business as Usual? hodgsonk@bnpmedia.com (Karyn Hodgson) With the pandemic and supply chain issues both mostly in the rear-view mirror, security dealers and integrators are returning to “normal” and focusing on more typical challenges such as the economy, increasing sales, competing effectively and generating more RMR.

]]> http://www.sdmmag.com/articles/102726 Mon, 08 Jan 2024 00:00:00 -0500 https://www.sdmmag.com/articles/102726-2024-industry-forecast-back-to-business-as-usual SDM 2023 Industry Forecast: Cautious Optimism Prevails hodgsonk@bnpmedia.com (Karyn Hodgson) The good news is COVID-19 seems to be in the rear-view mirror; but ahead all signs point to a recession. Security dealers and integrators are wary, but cautiously optimistic they can weather this downturn with the skills they have honed in recent years.

]]> http://www.sdmmag.com/articles/101521 Mon, 09 Jan 2023 16:39:54 -0500 https://www.sdmmag.com/articles/101521-sdm-2023-industry-forecast-cautious-optimism-prevails 2022 SDM Industry Forecast hodgsonk@bnpmedia.com (Karyn Hodgson) Everyone hoped things would be “back to normal” by now. While security companies in 2021 continued to feel the impacts of the coronavirus, the 2022 SDM Industry Forecast shows both slow but steady improvement and optimism.

]]> http://www.sdmmag.com/articles/100296 Mon, 03 Jan 2022 00:00:00 -0500 https://www.sdmmag.com/articles/100296-2022-sdm-industry-forecast SDM's 2021 Industry Forecast Shows Hope Ahead hodgsonk@bnpmedia.com (Karyn Hodgson) To say 2020 was a bit of a roller coaster ride is perhaps an understatement. At this time last year, most security integrators anticipated a strong 2020, only to be thrown into turmoil late in the first quarter by the emergence of the COVID-19 pandemic.

]]> http://www.sdmmag.com/articles/99002 Tue, 05 Jan 2021 00:00:00 -0500 https://www.sdmmag.com/articles/99002-sdms-2021-industry-forecast-shows-hope-ahead SDM 2020 Industry Forecast: Insight for the New Year stepanekl@bnpmedia.com (Laura Stepanek) Security integrators expect their brilliant business performance of 2019 to continue into 2020, according to results of SDM’s Industry Forecast Study, a report published each year since 1982.

]]> http://www.sdmmag.com/articles/97459 Mon, 06 Jan 2020 00:01:00 -0500 https://www.sdmmag.com/articles/97459-sdm-2020-industry-forecast-insight-for-the-new-year SDM0120-inside SDM 2019 Security Industry Forecast: Channeling Momentum Into Opportunities stepanekl@bnpmedia.com (Laura Stepanek) Security integrators expect their stellar 2018 performance to continue into 2019, according to results of SDM’s 2019 Industry Forecast Study, a report published annually by SDM since 1982. Last year saw double-digit growth in both total annual revenue and recurring monthly revenue (RMR) for integrators and dealers who participated in the study.

]]> http://www.sdmmag.com/articles/96034 Wed, 02 Jan 2019 00:01:00 -0500 https://www.sdmmag.com/articles/96034-sdm-2019-security-industry-forecast-channeling-momentum-into-opportunities SDM 2018 Security Industry Forecast: Moving Into High Gear stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/94723 Mon, 01 Jan 2018 07:15:00 -0500 https://www.sdmmag.com/articles/94723-sdm-2018-security-industry-forecast-moving-into-high-gear SDM 2017 Security Industry Forecast: Envisioning Change If the word “change” isn’t part of your business plan this year, you’d better rethink it.

]]> http://www.sdmmag.com/articles/93407 Sun, 01 Jan 2017 00:02:00 -0500 https://www.sdmmag.com/articles/93407-sdm-2017-security-industry-forecast-envisioning-change OUTLOOK: 2017 Will Be a Solid Year for Security A very solid year is anticipated by respondents to SDM’s Industry Forecast Study. Nearly 8 in 10 (78 percent) expect their total annual revenues to increase. Among those dealers and integrators who expect overall revenues to rise in 2017, the expected mean increase is 17 percent. 2016 CHANNEL REVENUE: 4.8 Percent Drop Whereas security integrators predicted one year ago that their 2016 revenue would increase, on average, 6.4 percent, that prediction did not materialize. The total size of the security installation channel in 2016 was $75.6 billion, a decrease of 4.9 percent from 2015’s adjusted $79.5 billion. This estimate is calculated across SDM’s entire circulation database, which is why it doesn’t necessarily reflect the results of the Industry Forecast Study. In the 2016 Study, two-thirds of respondents had increases in total annual revenue, by 16 percent on average. DIY Providers Are the No. 1 Competitor to Watch For the second consecutive year, SDM’s Industry Forecast Study respondents selected DIY security providers as their foremost group of competitors. However, respondents also indicated they are keeping their eyes on national/global security companies, many of which made news last year with repeated acquisitions. GREATEST CHALLENGES: Increasing Sales, Finding/Keeping Employees “Increasing sales” is the No. 1 challenge faced by dealers and integrators as they look out over the business landscape of 2017. The No. 2 challenge last year was “protecting profit margins,” but was replaced in this year’s study by the challenge of “finding/retaining employees” mentioned by 18 percent of survey respondents. This may reflect the fact that dealers and integrators think growth in security system sales could be hindered by a lack of skilled workers. SALES IN 2017: Video, Access Control Offer Most Potential Dealers and integrators think video surveillance will be the most rewarding segment when it comes to producing sales in 2017. When asked to rate the potential for sales among various technology segments, they gave it an average rating of 4.10 out of 5. Following video surveillance was access control — a segment where many changes also are underway in technology — with an average rating of 3.29 out of 5. Average RMR Increases 10 Percent Among companies that generate recurring monthly revenue, 83 percent noted an increase in their RMR in 2016 over 2015. Average 2016 RMR was 10 percent higher than average 2015 RMR reported in the SDM Industry Forecast Study. This table shows the distribution of RMR in various dollar ranges, comparing 2016 with 2015. STRONGEST NON-RESIDENTIAL MARKETS: Commercial Office Space, Education, Retail The integrator channel expects its top three most fruitful segments in 2017 to be commercial office space, education, and retail. As security concerns in the stadium sector escalate, the segment “entertainment/sports facilities” grew from 1 percent in 2015 to 6 percent in 2016. For the first time in several years, the segment “utilities/critical infrastructure” dropped below 5 percent response. STRONGEST RESIDENTIAL MARKETS: Existing Homes, Custom New Construction The results of SDM’s 2017 Industry Forecast Study indicate that the percentage of security companies that look to new home construction for sales is increasing — both in custom-built/spec homes and in tract homes. However, more than six in 10 companies still rely on existing homes for both new and add-on sales. There are 118.2 million households in the United States, according to the National Multifamily Housing Council. Economic Conditions: Always a Major Influencer of Sales For at least the last 10 years, economic conditions have ranked as the top factor dealers and integrators think will significantly affect their sales — and this factor could have either a positive or a negative spin on sales, but most respondents anecdotally assign it to the negative. Although there have been many indicators of a stronger economy in 2016 over 2015, businesses still are cautious about their spending due to factors such as healthcare and taxes, which could significantly affect the economy in general. PURCHASE FORECAST: How Spending on Equipment Will Change in 2017 Dealers and integrators were asked to rate how their level of spending on equipment will change in 2017 compared with 2016. This table is based on a 7-point scale where 1/2 = down more than 10%; 3 = down 1% to 10%; 4 = no change; 5 = up 1% to 10%; 6/7 = up more than 10%. This table shows only the “up” responses. The top four categories with the most potential for growth in spending are IP network-based video cameras; DVRs, NVRs, video storage, servers; non-residential integrated systems; and monitoring. REVENUE BREAKOUT BY: Type of Service SDM’s Industry Forecast Survey tracks how dealers’ and integrators’ total revenue is distributed among types of services. Together, 46 percent of revenue comes from non-residential and residential sales/installation. The share of revenue from both residential installation and residential monitoring increased in 2016. REVENUE BREAKOUT BY: Type of Product SDM’s Industry Forecast Survey tracks how dealers’ and integrators’ total revenue is distributed among types of products. The 2016 results show how the channel is diversified in its product offerings. Note the significant increase in portion of revenue from burglar alarms last year. SDM 2016 Industry Forecast: Is the Security Space Too Congested? stepanekl@bnpmedia.com (Laura Stepanek) Fasten your seat belts: 2016 is going to be a bumpy ride. 

]]> http://www.sdmmag.com/articles/91952 Mon, 04 Jan 2016 23:59:00 -0500 https://www.sdmmag.com/articles/91952-sdm-2016-industry-forecast-is-the-security-space-too-congested SDM 2016 Industry Forecast 2015 CHANNEL REVENUE: 4.6 Percent Growth Based on SDM’s Industry Forecast Study, the total size of the security installation channel in 2015 was just under $75 billion, an increase of 4.6 percent from 2014’s $71.7 billion. Keeping the momentum going, respondents indicated they expect 2016 to offer a healthy growth rate of 6.4 percent. GREATEST CHALLENGE: Growing Sales, Protecting Margins “Increasing sales” is the No. 1 challenge faced by dealers and integrators as they look out over the business landscape of 2016. The No. 2 challenge, “Protecting profit margins,” was not even among the top five last year but establishes how wary integrators have become about falling prices and rising competition. DIY Providers Are the No. 1 Competitor to Watch More than one-third of dealers and integrators view DIY security providers as their stiffest competition. SALES IN 2016: Video, Access Control Offer Most Potential Dealers and integrators think Video Surveillance will be the most rewarding segment when it comes to producing sales in 2016. When asked to rate the potential for sales among various technology segments, they gave it an average ranking of 3.7 out of 5. The Monitoring segment — where many changes are underway in technology — closely follows, with an average rating of 3.3 out of 5. REVENUE BREAKOUT BY: Type of Service SDM’s Industry Forecast Survey tracks how dealers’ and integrators’ total revenue is distributed among types of services. Nearly one-third of their revenue came from non-residential sales/installation in 2015.  REVENUE BREAKOUT BY: Type of Product SDM’s Industry Forecast Survey tracks how dealers’ and integrators’ total revenue is distributed among types of products. The 2015 results show how the channel is diversified in its product offerings. Note the significant increase in portion of revenue from integrated commercial security systems. Average RMR Increases 45 Percent Among companies that generate recurring monthly revenue, approximately seven in 10 noted an increase in their RMR in 2015, with an average increase of 45 percent. This table shows the distribution of RMR in various dollar ranges, 2015 compared with prior years. Sales Tested by Economic Conditions, Spending One-third of dealers and integrators expect “economic conditions” to be the top factor to significantly affect sales in 2016, with “crime” as the second-greatest factor and “residential building activity” as third, but both far behind. STRONGEST NON-RESIDENTIAL MARKETS: Retail, Commercial Office Space, Gov’t, Industrial The integrator channel expects its top four most fruitful segments in 2016 to be retail, commercial office space, government facilities, and industrial. Retail, commercial office space, education, and industrial topped last year’s list. STRONGEST RESIDENTIAL MARKETS: Middle, Existing Homes More than six in 10 installation companies that serve the residential market rely on existing homes for both new and add-on sales. There are 117.3 million households in the United States, according to the National Multifamily Housing Council. PURCHASE FORECAST: How Spending on Equipment Will Change in 2016 Dealers and integrators were asked to rate how their level of spending on equipment will change in 2016 compared with 2015. This table is based on a 7-point scale where 1/2 = down more than 10%; 3 = down 1% to 10%; 4 = no change; 5 = up 1% to 10%; 6/7 = up more than 10%. This table shows only the “up” responses. The top four categories with the most potential for growth in spending are video surveillance/CCTV, IP network-based video equipment, access control, and monitoring. 3 of 4 Integrators Had Higher Sales in 2015 Among companies that generate new sales, approximately 75 percent noted an increase in their sales revenue in 2015, with an average increase of 69 percent. This table shows the percentage of respondents with sales in each of 10 dollar-amount ranges for 2015 and prior years. Median annual sales per company in 2015 were $500,000. Michael T. Grady Michael T. Grady is executive vice president of Vector Security Inc., Warrendale, Pa. Dean Belisle Dean Belisle is a 27-year veteran of the security industry and the president of his family’s regional security and fire alarm company — ACT NOW! ALARM, in Clinton Township, Mich. Piyush Sodha Piyush Sodha is the co-chairman and chief executive officer of Kastle Systems Int’l, Falls Church, Va. SDM 2015 Industry Forecast stepanekl@bnpmedia.com (Laura Stepanek) Results of SDM’s Industry Forecast Study, coupled with an outlook from leading dealers and integrators, offers positive assurance for the security industry’s 2015 performance: 13.9 percent growth. It will be driven by a higher level of services being offered to consumers and businesses. 

]]> http://www.sdmmag.com/articles/90775 Thu, 01 Jan 2015 00:01:00 -0500 https://www.sdmmag.com/articles/90775-sdm-2015-industry-forecast 2014 Subscriber Market Forecast Study stepanekl@bnpmedia.com (Laura Stepanek) Sometimes it’s good to be wrong. In late 2012, security systems integrators and dealers forecasted that their total annual revenue would improve only slightly — 1 percent, on average — during 2013.

]]> http://www.sdmmag.com/articles/89905 Thu, 23 Jan 2014 01:00:00 -0500 https://www.sdmmag.com/articles/89905-smart-start-to-the-new-year 2013 Industry Forecast: Controlling the Game stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/88671 Thu, 10 Jan 2013 14:00:00 -0500 https://www.sdmmag.com/articles/88671-industry-forecast-controlling-the-game Stops, Starts & Bright Spots stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/87347 Tue, 17 Jan 2012 13:52:00 -0500 https://www.sdmmag.com/articles/87347-stops-starts-bright-spots Amidst Flux, The Beat Goes On stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/84075 Mon, 01 Jan 2007 10:27:00 -0500 https://www.sdmmag.com/articles/84075-amidst-flux-the-beat-goes-on TRADE SHOW NEWS http://www.sdmmag.com/articles/83954 Sat, 01 Jul 2006 00:00:00 -0400 https://www.sdmmag.com/articles/83954-trade-show-news-government-sales-and-marketing-summit The Iron Is Hot stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/83463 Sun, 08 Jan 2006 00:00:00 -0500 https://www.sdmmag.com/articles/83463-the-iron-is-hot Honeywell Program to Pull in Builder Business for Dealers http://www.sdmmag.com/articles/81701 Tue, 01 Mar 2005 00:00:00 -0500 https://www.sdmmag.com/articles/81701-honeywell-program-to-pull-in-builder-business-for-dealers 2005 :: Opportunities and Pressures stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/81702 Sat, 01 Jan 2005 00:00:00 -0500 https://www.sdmmag.com/articles/81702-2005-opportunities-and-pressures 2004 :: More Optimism Than Caution zaludb@bnpmedia.com (Bill Zalud) http://www.sdmmag.com/articles/81703 Thu, 01 Jan 2004 00:00:00 -0500 https://www.sdmmag.com/articles/81703-2004-more-optimism-than-caution 2003 :: Pockets of Strength stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/81712 Thu, 11 Dec 2003 00:00:00 -0500 https://www.sdmmag.com/articles/81712-2003-pockets-of-strength 2002 :: No Downturn for this Industry stepanekl@bnpmedia.com (Laura Stepanek) http://www.sdmmag.com/articles/83550 Wed, 10 Dec 2003 00:00:00 -0500 https://www.sdmmag.com/articles/83550-2002-no-downturn-for-this-industry 2001 :: Boom Time: New Economy, Technology Dominate zaludb@bnpmedia.com (Bill Zalud) http://www.sdmmag.com/articles/83551 Tue, 09 Dec 2003 00:00:00 -0500 https://www.sdmmag.com/articles/83551-2001-boom-time-new-economy-technology-dominate 2000 :: Same Story; New Challenges; Looming Threats zaludb@bnpmedia.com (Bill Zalud) http://www.sdmmag.com/articles/83552 Mon, 08 Dec 2003 00:00:00 -0500 https://www.sdmmag.com/articles/83552-2000-same-story-new-challenges-looming-threats