Presented at the Electronic Security Association (ESA) Leadership Summit and Electronic Security Integrators (ESI) Forum last month in Irving, Texas, the ESA Annual Megatrends Research Report provided keen insights into the direction and trends in the electronic security industry. In fact, according to AE Ventures, co-sponsor of the study, survey responses were taken into account in assembling new educational sessions and tracks to be presented at the ESX Show this June in Nashville. The focus on the show will be on change and how companies are embracing and moving to new technologies (see related story on the show on these pages).
The down low on the numbers
The online survey was sent to regular ESA members, including integration and monitoring companies. Survey results, from 119 respondents, were developed, fielded and reported by AE Ventures. The vast majority of the respondents were owners or top management; 87 percent. Some 39 percent of respondents had central stations and 61 percent did not. Other interesting statistics reported:
- More than two-thirds of respondents have been in business 20 years or more; and some 90 percent have been in business six years or more.
- Some 39 percent of respondents do more than $2.5 million in annual revenues and 18 percent log less than $250,000 per year in annual revenues.
- The annual average revenue growth nearly doubled from 1.7 percent to 3.3 percent. Fewer members reported annual revenue decreases for 2011 than in 2010. In 2010 almost one third of members reported revenue decreases in 2011. The percentage of members reporting increases in revenue rose from 47 percent in 2010 to 63 percent in 2011.
- According to the study, companies with central stations seen to be faring better in annual revenue growth. Some 73 percent of companies with central stations saw revenues increase in 2011 while only 47 percent of those without did. The gap was 13 percent in 2010. In 2011 the gap is twice that at 26 percent.
- Video, intrusion, access control and fire are at the top of the list as far as the product categories member respondents are involved with. However, there seems to be a trend toward diversification beyond security. Members are embracing commercial A/V and networks and building automation. There’s also growth in mechanical locks most likely coming from new Z-wave enabled remote control locksets now proliferating the market.
Check out some of the charts on these pages selected from the study for more insights into potential areas of growth for the marketplace.