Wellingborough, U.K. – 29 November 2012. A new report from IMS Research (now part of IHS Inc. (NYSE: IHS)) has found that the transition to IP-based technology in the security industry is changing the role of its systems integrators. Factors such as an increasingly competitive environment as new IT integrators enter the marketplace, declining product margins, and the increased importance of networking knowledge, are all contributing to this change. On the bright side, there are rewards for those integrators that adapt. The world market for systems integration is forecast to grow at an average rate of almost 10 percent to 2016.
Paul Bremner, market analyst at IMS Research comments, “As more IT integrators have been entering this market they have been fundamentally changing the way security systems integrators do business. IT integrators have brought their business model of lower equipment costs but higher service costs, and this has translated well when dealing with IP-based technology, which often requires a lot of network planning in the design stage to offer the best available solution. Design & consultancy services are likely to become a larger part of the typical integrator’s revenues. Such services include risk analysis, vulnerability assessment and client security policy analysis, to name but a few.”
The report, Security Systems Integration – World – 2012, found that one strategy some integrators were taking was to focus on specific vertical markets, as the knowledge the integrator gains from one project can then be directly applied to another project in the same vertical. This can further bolster the margin obtained from services, which can sometimes exceed 30 percent. This compares favorably with equipment margins, which can be lower than 10 percent in extreme cases.
Bremner continues, “The opportunity for design & consultancy revenues is highly dependent on the vertical market in question. Projects in transportation for example, are much more likely to include design & consultancy revenues than projects in either retail or commercial. This is mainly due to the nature of the projects themselves, but is also, in part, due to the different organizational structures found within those verticals.”
This all said, the integrator should not lose focus on providing the highest quality technology solution to their customers. Keeping track of major developments from their product vendors will still be fundamental to their success. The world market for physical security equipment sold through integrators and installers is forecast to be worth over $38 billion in 2016.
IMS Research’s report, Security Systems Integration – World – 2012 Edition, was published in October in three regional volumes, the Americas, Asia and EMEA, and contains forecasts and analysis for this highly fragmented and competitive market.
For more information please contact:
Niall Jenkins
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Europe
Ann Ruff
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US
Paul Everett
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Asia Pacific
Bo Zhang
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IHS Media Relations
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Alternative Contacts:
Europe
Ann Ruff
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Tel: +44 1933 402 255
US
Stacy Hackenberg
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Asia Pacific
Yvonne Zhang
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About the report:
The market for security systems integration is a highly fragmented market. It comprises both large multi-national companies and companies with only a handful of people. This unique report provides country level analysis for three different service types, as well as examining 10 different end-user sectors for various countries. The report also provides analysis by project type, integration type, transmission type, and end-user industries by service type.
This report is an essential tool for executives who are assessing or seeking an in-depth and highly detailed understanding of this very complex market, or who are attempting to understand the systems integration channel further.
To find out more, contact IMS Research:
[email protected]
T: +44 (0) 1933 402255
http://www.imsresearch.com
http://securitymarketintelligence.com
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to long-term, sustainable growth and employs more than 6,000 people in more than 30 countries around the world.
About IMS Research (www.imsresearch.com)
IMS Research, recently acquired by IHS (NYSE: IHS), is a leading supplier of market research and consultancy to over 2500 clients worldwide, including most of the world’s largest technology companies. Established in the UK in 1989, IMS Research now has dedicated analyst teams focused on the factory automation, automotive, communications, computer, consumer, display, financial & ID, LED & lighting, medical, power & energy, solar PV, smart grid and security markets. Currently publishing over 350 different syndicated report titles each year, these in-depth publications are used by major electronics and industrial companies to assess market trends, solve marketing problems, and improve the efficiency of their businesses.
