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2016<br />
21 st ANNUAL REPORT<br />
Integrators’ Sales Revenue<br />
By Product Category<br />
Top Systems Integrators were asked to break out their<br />
2015 revenue by type of product. The majority is earned<br />
from integrated non-residential systems that combine<br />
two or more different technology solutions. No significant<br />
changes were recorded from 2014 to 2015 in the percentage<br />
of revenue from these types of products.<br />
Badging<br />
1%<br />
IT hardware/<br />
software<br />
1%<br />
Intercom/<br />
communications<br />
2%<br />
Integrated<br />
residential<br />
systems<br />
3%<br />
Continued from page 63<br />
ing — solutions that deliver “big data.” There is also a greater<br />
emphasis on cybersecurity, say the integrators of their clients.<br />
“ITO and big data will continue to be a focus of our goforward<br />
strategy. The industry is way behind other industries<br />
in the use of data. Video analytic metadata is going to become<br />
very valuable,” claims D/A Central Inc., ranked No. 70.<br />
Therefore, the need for security systems integrators to become<br />
more network-savvy is greater than ever. When asked what<br />
percentage of projects sold in 2015 incorporated IP-based technology,<br />
45 percent of systems integrators noted that between<br />
three-fourths and 100 percent of their projects incorporated IP.<br />
WHICH MARKETS ARE SPENDING?<br />
A handful of vertical segments stood out as front-runners<br />
in spending on integrated security products and services:<br />
education (especially higher-ed), healthcare, utilities/critical<br />
infrastructure, and transportation/logistics. Integrators also<br />
mentioned:<br />
• Energy<br />
• Retail (especially<br />
multi-location)<br />
• Banking<br />
68 July 2016<br />
Other<br />
1%<br />
Fire protection<br />
9%<br />
Intrusion alarms<br />
10%<br />
Integrated<br />
non-residential<br />
systems<br />
42%*<br />
Video<br />
surveillance<br />
18%<br />
Access control<br />
13%<br />
*percentage of Top Systems Integrators’ 2015 sales revenue; based on 89 responses.<br />
Source: SDM Top Systems Integrators Report, July 2016<br />
• Multi-unit residential<br />
• Hospitality<br />
• Government<br />
• Banking<br />
Integrators’ Sales Revenue<br />
By Service Category<br />
Top Systems Integrators were asked to break out their<br />
2015 revenue by type of service. The majority is earned<br />
from system sales and installation. No significant changes<br />
were recorded from 2014 to 2015 in the percentage<br />
of revenue from these types of services.<br />
Equipment leases<br />
1%<br />
Sales/installation<br />
58%*<br />
Hosted/managed<br />
services<br />
2%<br />
Test and<br />
inspection<br />
3%<br />
Non-contracted<br />
service<br />
7%<br />
Service contracts<br />
11%<br />
*percentage of Top Systems Integrators’ 2015 service revenue; based on 93 responses.<br />
Source: SDM Top Systems Integrators Report, July 2016<br />
Monitoring<br />
18%<br />
No. 2-ranked Convergint Technologies emphasizes the<br />
broad-reaching application of video <strong>technologies</strong>: “The market<br />
for security systems sales and integrated systems continued its<br />
strong growth in 2015. Video sales continue to dominate as customers<br />
begin to look beyond traditional security applications<br />
and start looking at using video for manufacturing, process<br />
improvement, regulatory compliance, etc.<br />
“The best growth came from the utility segment as these<br />
customers continue to be concerned about the security of their<br />
infrastructures. With the downturn in the price of oil, petrochemical<br />
has been hit the hardest in terms of being weak in<br />
2015,” Convergint says.<br />
No. 7-ranked G4S Secure Integration LLC, calls out critical<br />
infrastructure as a leading sector. “Our strongest sector is<br />
definitely critical infrastructure. We see tons of potential in that<br />
market to adhere by NERC/CIP regulations and see ourselves<br />
as one of the best providers,” the company says.<br />
No. 59, Stone Security, says the positive marketplace had a<br />
constructive effect on its operations. “We felt the market was<br />
stronger in 2015 than 2014 especially in education and industrial<br />
markets. We were forced to add a number of people to the<br />
organization to keep up with increased demand in 2015.”<br />
No. 81-ranked Peak Alarm Co. Inc., affirms that spending on<br />
integrated security solutions continues to hold up. “The market<br />
in 2015 continued to be strong in security systems sales driven<br />
Continues on page 76