| Page Length: | 10-12 | |
| Last Quarterly Update: | 4/15/2013 | |
| SIC Codes: | 7382 | |
| NAICS Codes: | 561621 |
| Chapters Include: | ||
| Industry Overview | Trends & Challenges | Industry Forecast |
| Quarterly Industry Update | Call Prep Questions | Website & Media Links |
| Business Challenges | Financial Information | Glossary & Acronyms |
Companies in the security systems services industry sell, install, and monitor commercial and residential electronic security alarm systems. Major companies include US-based ADT, Convergint Technologies, and Monitronics; G4S (headquartered in the UK); Securitas (Sweden); and Secom (Japan).
Worldwide, security system monitoring revenues total about $40 billion, according to Global Industry Analysts. Europe and the US are the largest security system markets. Technological advances and reduced system costs are expected to fuel global industry growth.
The US security systems services industry includes about 5,000 companies with combined annual revenue of about $16 billion and is expected to grow at a moderate pace over the next two years. Key growth drivers include shifting demographics, new monitoring products and medical alert monitoring.
COMPETITIVE LANDSCAPE
Demand is driven partly by home sales, new home construction, and new commercial and office construction. The profitability of monitoring companies depends on the volume of customers, as most costs are fixed. Large companies have advantages of scale in operating monitoring centers and in national advertising and brand recognition. Small companies often compete by selling customer contracts to the large monitoring companies, or reselling the monitoring companies’ services, which they buy wholesale. The industry is concentrated: the 50 largest companies generate about 60 percent of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are the sales, installation, and monitoring of electronic security systems. The industry consists of commercial and residential segments, each of which uses different types ...
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