GE security comment

January 2010 News

The integration of building automation systems with physical and logical security systems is pushing for the convergence of both technology and competition. UTC’s acquisition of GE Security is clearly in line with recent acquisitions made by other corporations in the building automation, such as Schneider, or networking side, such as Cisco, trying to get a foothold in the physical security market.

According to Matia Grossi, industry analyst for Frost & Sullivan Physical Security group, “UTC had already made a few acquisitions in the security side which gave the company great integration capability and in the fire space with the acquisitions of companies such as Chubb, Red Hawk, Kidde and Lenel. The company needed to gain access to a full product portfolio and GE Security is providing that to UTC. With this acquisition, UTC has made the giant leap in the attempt to widen its capabilities and fulfilling the need of providing a real ‘one-stop-solution’ to its clients.”

The company can now compete in the market with companies such as Tyco and Schneider, which have moved aggressively in recent years in the M&A field. “If we look at Tyco, the similarities between the two companies are staggering. Tyco acquired ADT, which would be the equivalent of Chubb for UTC, and Software House of Lenel. Then the company proceeded to a number of acquisitions in the physical security space of companies such as American Dynamics, Sensormatic, DSC and many others. UTC was able to fill in the gaps in its portfolio in one stop,” adds Archana Rao, senior research analyst for Frost & Sullivan Electronics Security group.

From a GE Security perspective that was in line with a divestment process from its security space started with the sale of GE Security’s Homeland Protection Business to Safran only a few months back. In a converging market these moves only make sense if the long term plan is to exit it.

“Frost & Sullivan expects the consolidation process to continue in the coming months and years because of technology changes in the market. We are going to see new players coming from the telecom market such as Alcatel Lucent, Nokia (Siemens) and others looking at the huge potential of leveraging their network infrastructure capabilities in the fast growing security market,” concludes Grossi.

For more information contact Frost & Sullivan, +48 22 390 41 46,,

Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

SABRIC annual crime stats 2019
Issue 5 2020 , News
SABRIC, the South African Banking Risk Information Centre, has released its annual crime stats for 2019

From the editor's desk: We're back!
Issue 5 2020, Technews Publishing , News
Welcome to the fifth issue of 2020. If years were people, 2020 would have been hung, drawn and quartered...

XtraVision moves to new premises
Issue 5 2020, XtraVision , News
Hot on the heels of the company changing hands, XtraVision, a distributor of electronic security and fire solutions in Africa and South America, has relocated.

20 years of innovation in security and biometrics
Issue 5 2020, Suprema , News
Founded in 2000, Suprema has built a sales network in over 140 countries and has over 1 billion users.

Fidelity ADT and Vumacam join forces
Issue 5 2020, Fidelity ADT , News
Fidelity-ADT recently partnered with Vumacam to roll out a surveillance network of cameras across a number of southern suburbs in Johannesburg.

Dahua launches ECO Partner Programme
Issue 5 2020, Dahua Technology South Africa , News
Dahua Technology has launched its new technology partner programme, the Dahua ECO Partner Programme.

Suprema unveils Suprema G-SDK
Issue 5 2020, Suprema , News
Suprema’s latest software development kit (SDK), Suprema G-SDK, allows Suprema devices to be seamlessly integrated with third-party software.

New smart alarm solution with video verification
Issue 5 2020 , News
IDS has released the 806, a new 8-zone alarm solution based on 20 years of experience and over 1,5 million IDS805 installations.

From the editor’s desk: Sustaining security and sanity
Residential Estate Security Handbook 2020, Technews Publishing , News
Sustainability is a critical component of almost anything in these days of a tanking economy, boosted by COVID-19, which is given further emphasis by the economy being further hammered by the ‘cure’ for ...

Gallagher launches Command Centre v8.30
Issue 5 2020 , News
Gallagher’s v8.30 release improves operator efficiency with enhancements to Command Centre Mobile and integrated third-party systems, and further supports health and safety obligations.