Someone’s doing business
March 2018, News
It’s hard to say if 2017 was a good or bad year for the security industry. For some companies it was a booming year, but for many it was one of just making it through to the end. Recent research from Memoori states that the total value of physical security products “at factory gate prices in 2017” was $29.2 billion. This represents an increase of about 5% on 2016.
While not a top performing year, 2017 was better than the past year or two on a global scale. Memoori says the past eight years has seen the market growing at an annual CGR of 6.41%, and the company expects the market to reach $41.27 billion in 2022, a CAGR of 7.2%.
The access control market was the best performer, producing about 7% in growth to capture a healthy 23.5% of the total physical security market. Intruder alarms command a 22% presence, but with lower growth (2.5%), and the surveillance market rules the roost with 54.5% of the market, but again with lower growth (5.9%). If you’re interested in the report, you can buy it at www.memoori.com/portfolio/the-physical-security-business-2017-to-2022/.
So what is happening in the local market that saw so many companies taking strain over the past year? The first culprit must be the political situation which came to a head in December and has shown more positive signs in the first two months of 2018 than we have seen in years. The uncertainty kept many wallets shut with a ‘wait and see’ attitude taking precedence over doing what was necessary.
There are other reasons, however. What is known as the ‘race to the bottom’ had an impact as well. Today we see companies selling large numbers of devices at very low prices, making it especially hard for the traditional market leaders to maintain their pricing and revenue streams. Some have managed, others not so well.
There is nothing wrong with pushing the prices of technology down as the end user benefits at the end of the day. There is a problem when it is done in a way that is unsustainable and that damages the industry in the long term.
One of the problems lower prices create is that the middleman – the installer and integrator – is caught between a rock and a hard place. They can’t make much margin on products (if any), some even go so far as to sell cheap technology at a loss in the hopes of getting a deal and making some money on services. The result is poor service, poor support and rushed jobs in the pursuit of a profit.
We can also see poor skills becoming a problem because training is too costly. Even free training is too costly because technicians on a course are unproductive for however long they are away from the office or customer sites.
Yet we still have the race to the bottom and customers seem to love it as they save on the initial costs. But perhaps we should see the race to the bottom as commoditisation of a technology. Taking this approach (which is simplistic, as it doesn’t cater for all the market factors) leaves the traditional technology leaders in a position of having to add value – and unfortunately the definition of value can differ broadly. They need to start looking more closely at their total cost of ownership (TCO) and return on investment (ROI).
This issue of value is why we are seeing companies spending money on cybersecurity, IoT (Internet of Things), integration, automation and artificial intelligence – to name a few. Customers don’t want more megapixels, they want results and if the value you deliver helps them get those results, you have a foot in the door. Then all you have to do is deliver.
Andrew Seldon
Editor
|
|
|
|
|
|
|
|
Further reading:
- Habitual awareness
August 2018, Technews Publishing, News
Habits are very good things that allow us to carry out the many repetitive tasks we do every day. Our brains automatically form habits to make these repetitive tasks easier and allow us to do them ‘without ...
- Using data to stay secure
August 2018, Technews Publishing, This Week's Editor's Pick, Security Services & Risk Management, Residential Estate (Industry)
Situational awareness beyond the boundary walls can have a significant impact on the security of an estate and the wellbeing of its residents.
- Nice price, but consider the cost
August 2018, Technews Publishing, CCTV, Surveillance & Remote Monitoring, Residential Estate (Industry)
The influx of cheap surveillance products in recent years has put the squeeze on everyone in the supply chain, from the more established equipment manufacturers who have to compete with them, to the installers and system integrators who are forced to slash their margins.
- Efficient and proactive control rooms
August 2018, Technews Publishing, This Week's Editor's Pick, Integrated Solutions, Security Services & Risk Management, Residential Estate (Industry)
A question many estate managers face is whether they should keep the control room onsite and manage it and the relevant staff internally, or whether they should opt for a remote monitoring service.
- Securing Serengeti
August 2018, Technews Publishing, This Week's Editor's Pick, CCTV, Surveillance & Remote Monitoring, Access Control & Identity Management, Perimeter Security, Alarms & Intruder Detection, Integrated Solutions, Security Services & Risk Management, Residential Estate (Industry)
Serengeti Estate offers luxury, golf, conferencing and security, and the estate is on a new growth phase to incorporate more people and services within its 17.5 km boundary.
- Local estate, local security
August 2018, Technews Publishing, Residential Estate (Industry), CCTV, Surveillance & Remote Monitoring, Access Control & Identity Management, Perimeter Security, Alarms & Intruder Detection
Garlington Estate recently made the decision to improve some of its security systems and turned to Excellerate Services to assist in the upgrades.
- Major security upgrade for Kindlewood Estate
August 2018, Technews Publishing, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Perimeter Security, Alarms & Intruder Detection
Kindlewood upgrades to IP cameras for its gates and perimeter security, and biometrics for access control.
- Radar comes home
August 2018, Technews Publishing, This Week's Editor's Pick, Perimeter Security, Alarms & Intruder Detection, Integrated Solutions, Residential Estate (Industry)
Covering up to 15 km in real time, radar-based perimeter and intrusion detection is set to change the way security operations on estates are managed and planned.
- First line of defence
August 2018, Technews Publishing, This Week's Editor's Pick, Perimeter Security, Alarms & Intruder Detection, Residential Estate (Industry)
Hi-Tech Security Solutions asks what the best practices to take note of for installing and maintaining your electric fence.
- Secure in their retirement years
August 2018, Technews Publishing, This Week's Editor's Pick, CCTV, Surveillance & Remote Monitoring, Access Control & Identity Management, Residential Estate (Industry)
A retirement village with a limited budget upgrades its security to protect residents from increasing criminal activities.
- Protection via thermal detection
August 2018, Technews Publishing, This Week's Editor's Pick, CCTV, Surveillance & Remote Monitoring, Residential Estate (Industry)
Thermal cameras offer almost unbeatable surveillance security for estates and are the envy of any security manager.
- Make CCTV testify for you
August 2018, Technews Publishing, This Week's Editor's Pick, CCTV, Surveillance & Remote Monitoring, Security Services & Risk Management
Warrant Officer Bongiwe Gqotso highlighted some key points to consider when it comes to extracting evidence from your surveillance installation at the Residential Estate Security Conference 2018.
|
|
