The market for security systems integration in the Americas is set to exceed $30 billion in 2016, according to a new report from IMS Research.
The report predicts annual growth in the market of more than 7% from 2011 with the fastest growth in Latin America.
The US will remain the largest market in the Americas throughout this time in a market that is described as “highly competitive.”
Avigilon look to HD growth
Last week, a Bloomberg interview with Avigilon CEO, Alex Fernandes, highlighted the scale of growth in the market and for the Canadian manufacturer in particular pointing to a growth for the company’s revenue from C$60 million last year to C$500 million in 2016.
He said: “It’s a land grab. Most digital systems out there are still low-resolution like analogue but the HD is what’s going to take over that industry and we’re leading that transition.”
The IMS report focused on the installation and maintenance of security systems in the Americas.
Report author, Paul Bremner, said: “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.”
Competitive environment
The largest five integrators in the entire Americas market account for less than 20% of the market, with a particularly competitive environment in some Latin American countries.
The arrival of IT integrators into the security market is further increasing competition as they eat into their traditional security counterpart’s market share.
Mr Bremner added: “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.”
Avigilon’s IPO last year tells a story of the growth. The company has been one of the most successful in Canada in the past 12 months, with a 96% rise in the trading price since its debut in November 2011. The trading price today is C$8.80 from a starting price of C$4.50.
A similar report last month pointed to an annual growth rate in China for the security integration market of 17%, putting 2016 revenues in the market at $40.4 million.
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