In the security industry, and for many readers here, North America is assumed to be the center of the security world. Multiple global headquarters are here, many industry standards are created here, and it holds one of the largest customer bases.
The unpopular thought is that this is not entirely true. Technology is being innovated all across the globe, and in many ways, North America is a step behind. While industry standards have been championed by groups like the Security Industry Association (SIA), ASIS, and the National Institute of Standards and Technology (NIST), these standards bodies are quickly being challenged by standards coming from the European Union (EU).
This is not a huge secret; however, there is a trend happening now and on the horizon for many manufacturers, with an influx of global companies that see North America as simply the next natural step. This will create a significant benefit (in my opinion) for the security industry, as this is not one or two manufacturers dipping a toe into the shallow end of the pool, but more so a steady wading into the waters by manufacturers in droves.
The opportunity has been created for integrators and consultants to look at companies that are quietly entering the North American market with impactful technology; however, the challenge for integrators is that they already have a full line card – do they add, delete, or multiply the offer?
Types of Manufacturers Moving into North America
Three types of manufacturers have set their sights on the North American market. Each comes with very different reasons. Here’s an overview:
The family-run business: Many successful security manufacturing companies have a strong history as a family-run business for many years, operating in their home country or region. They have created a market where they became an industry household name, but are almost unknown in the United States. Why are they coming to North America? Perhaps it is a changing of the old guard, with many of these companies being passed from an older generation to the younger generation. Maybe it is the realization that North America is a relatively untapped market. Perhaps tariffs (or the threat of tariffs) are to blame.
A few examples come to mind, including Gantner (now part of Salto), Elatec (now part of Allegion), Gallagher, ecos-systems, CIAS, and IDCube. All are very established companies with long histories of manufacturing in their home country or regions, but have only recently expanded with intent to tap the North American market. These companies, like others like them, are making ripples that will likely become waves in the security industry in the near future.
The startup: Cloud has been a game-changer for solution providers, offering software manufacturers a way to implement their solutions affordably and at scale. Unlike systems of old, software startups are taking the opportunity to retool the user experience (UX) and user interface (UI) to make it both sleek and functional. Many of them offer a software-only platform, allowing them to utilize hardware OEM partners with components that already meet North American installation requirements, such as power requirements and Underwriters Laboratories (UL) listing.
These revelations have offered companies that would never have been able to sustain a software platform and a hardware solution a respite to start with only one – typically the software platform. The software providers offer opportunities for growth and scale, with a better user experience, service-based business models that include recurring revenue, and they are fueled primarily by the proptech market.
Companies like Spintly, Torus, and Active Witness come to mind here. As many of these companies spread their fledgling wings, they are finding that the traditional channel market is difficult, and many are experimenting with new go-to-market strategies.
Agents of change: These are companies that are not playing by the rules (this is a good thing by the way), challenging the status quo, and making change happen. They bring technologies that are willing to push the envelope to solve real problems, not just compete with the norm. They bring conversations that involve all the buzzwords, like interoperability, open source, secure by design, self-sovereign identity, mobile credentialing, biometrics, and many more.
These are companies that do not seem to be afraid of the well-established industry giants; instead, they extend an olive branch across the aisle to partner and collaborate. In my experience, these companies tend to form interesting bedfellows, each with a unique and distinct use-case(s), solving new problems. Some of these companies also fall into the other two categories.
Agents of change that are seemingly making that difference are FATH Mechatronics, Any2Any GmbH, CoreWillSoft, Accessia, Sharry, iLOQ, and many more. A quick look at some of the recent industry acquisitions points to this growing trend.
Just the Beginning
Look for more companies that originate from outside North America to find a foothold and adoption in the North American market as barriers to entry continue to lower.
Do not be fooled, these are not just SMB technologies, but they run the gamut of offerings – in all verticals. Their presence alone will influence adoption and growth.
Many of these companies already comply with strict compliance regulations for their home country or region that are much more stringent than compliance requirements in North America – at least as it relates to data, privacy, biometrics, and AI. This is a hurdle that established North American companies are still struggling to overcome.
Integrators should be mindful of new entrants, and even if their line cards are already full, they should ask themselves – is there room to add some more?
