Business growth and increased disposable income levels will bolster industry demand.
New York, NY (PRWEB) January 19, 2014
The Security Alarm Services industry installs, maintains and monitors alarm, fire and surveillance equipment. The industry stagnated during the five years to 2013, with revenue expected to remain flat at an annualized rate of 0.0% to $17.0 billion. “During the recession, falling residential and commercial construction activity dampened demand for new security systems while falling corporate profit and disposable incomes caused many clients to reduce security budgets,” according to IBISWorld Industry Analyst Stephen Morea.
With tough operating conditions and slowing demand, weakening profit caused many security and alarm services companies to shut down or become acquired by larger competitors. For example, Tyco International acquired Broadview Security in 2010 only to spin-off their combined security services business in the initial public offering (IPO) of ADT Security Services in 2012. The newly formed ADT has made at least two major acquisitions since its IPO, putting further downward pressure on the number of companies operating in the industry.
Despite these conditions, the industry has experienced a slow turnaround in demand in recent years, with industry revenue expected to increase 1.4% in 2013. “As the economy continues to recover, businesses and residential customers are expected to invest in security again,” says Morea. Rising corporate profit margins have allowed companies to invest in electronic security systems. In addition, the availability of low-cost monitored security systems has also benefited the residential segment.
In the next five years, small-business growth and increased disposable income levels will contribute to rising industry demand. The emergence of new technologies will drive industry revenue expansion in the residential market. Many security alarm services companies will offer secure web access, allowing customers to monitor their homes, control appliances and set home temperature from a computer or a mobile device. Additionally, firms will also take advantage of new technologies such as biometrics, which involves face or fingerprint recognition, providing opportunities for expansion.
For more information, visit IBISWorld’s Security Alarm Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Security Alarm Services industry comprises establishments that sell security systems, such as burglar and fire alarms and locking devices. They also offer installation, repair and monitoring services of electronic security alarm systems. While the industry includes locksmiths, the locksmith segment is not a primary focus of this report because it generates a relatively small portion of revenue.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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