ESA MegaTrends Study Reveals Industry Growth, Trends in Product Offerings
At the recently completed ESA Leadership Summit, the results of the annual ESA MegaTrends study - which polled association members on their businesses’ finances, product selection, and future plans - showed a lot of optimism and investment in the industry.
According to the study, average annual revenue growth increased 4.3% in 2012 after growing 3.3% in 2011 and 1.7% in 2010 - strong upward movement. Much of that can be attributed, however, to companies with more than $2.5 million in annual revenue, which saw an average of 7.6% growth versus 1.4% for companies up to $2.5 million in annual revenue.
“Larger security companies are able to better withstand erosion of accounts when it happens as in more recent times with the economy. Larger companies also tend to do more acquisitions,” said Joe Nuccio, president and CEO of ASG Security and a panelist during the presentation (as reported by Security Sales & Integration).
When it comes to product categories with the most potential, members are projecting the most growth in annual revenue over the next two years from video surveillance/security (9.1%), electronic access control (7.2%) and intrusion detection (6.9%). Of the non-security categories, energy management (5.8%) and home automation (5.7%) are expected to see growth as well.
One of the most interesting results from the study is the shift in business objectives seen year-over-year. For example, this year, 64% of respondents said it is very important to increase installation efficiency on video, access and automation to improve their RMR potential - up from 39% in 2012. That trend continued with other objectives, including:
When it comes to investing in their own companies and plans for expansions, respondents are focused heavily on IP/IT training and technical staff recruitment, training and development, with plans to expand into new products and applications organically.
One of the most talked about issues in the industry - the re-entry of telecom and cable providers - has most respondents agreeing that these companies are raising consumer awareness and enlarging the overall market.
The MegaTrends luncheon was sponsored by Digimerge.