Security 50 (Part 3): multinationals reorganizing, re-engineering, repositioning

Facing market competition from Chinese competitors and also the commercialization of the security equipment, global security companies are all gearing up for the change. In 2015, many companies among the top 50 reorganized and consolidated to stay competitive in the market. Some branched out to multiple market sectors and applications for new opportunities.

• Honeywell: At the end of September, Honeywell announced the merging of its security and fire division into one single entity. “Honeywell Security Group (HSG) has announced that it will merge with Honeywell Fire Safety (HFS) businesses to form the new Honeywell Security and Fire (HSF) business unit within Honeywell Automation & Control Solutions (ACS),” according to its latest statement.
• FLIR Systems: FLIR announced a realignment of its business which resulted in the formation of six business segments, surveillance, instruments, OEM & emerging markets, maritime, security, and detection. The security segment sells products under the FLIR and Lorex brands for commercial, critical infrastructure, home security, and border surveillance applications. The reorganization will help the company more efficiently use a mix of their products and solutions for various customers and applications.
• Infinova: Similar to FLIR, Infinova bought Swann Communications to branch out to the DIY market. The Swann brand is quite well-known in the consumer market, which sells through approximately 15,000 big-box retail stores as well as from direct and partner e-commerce websites. Its sales revenue grew 98 percent in the first half of 2015.
• Avigilon: Acquiring key technologies used for HD and megapixel network-based video surveillance systems, video analytics, and access control equipment for the global security market, Avigilon finished several acquisitions of 96 international video analytics patents, such as automatic event detection, pattern-based analytics algorithms, and teach-by-example self-learning capabilities this year after its acquisition of ObjectVideo. Recently, it also launched its 7-megapixel cameras. In the future, we might see more of their strategic acquisitions regarding key technologies in security and the Internet of Things.
• Milestone Systems: Milestone being acquired by Canon Europe caused a big sensation in the industry this year. Many industry experts foresee more proprietary VMS in the market; however, this statement is still too early to be verified. However, after Canon’s take over, we did see more and more companies start to develop its own or new VMS, such as Vicon Industries, OnSSI, IndigoVision, and Mobotix. Some of them claim to be “standards-based” but some, I would say, are still very proprietary.

After acquiring Milestone, Canon acquired Axis Communications, aiming to become the world biggest security solution provider. However, at first, they might have to worry about how to compete with its future biggest competitor, Hikvision.

• Allegion: Allegion acquired SimonsVoss to consolidate its position in the EMEA region to compete with the industry’s number one access control company Assa Abloy.
• Samsung: Samsung would like to utilize its parent company Hanwha’s solution and strength to enter other markets.
• Nice Systems: Nice Systems, then, is out of the security market after selling its security division this year; it is followed by the new company, Qognify, which is financially backed by Battery Ventures. It can only be confirmed that the new company will continue to focus on its PSIM penetration in the top-end market of security.
• Tyco Security Products: Tyco also internally strengthens the integration and unification of their brand families. Telling from their latest announcement, they have focused on the development of more integrated systems and solutions for end customers. “This year we have released victor, a unified system that allows the full management of American Dynamics and Software House using one software and database,” said Leon Langlais, Senior Director of Growth Markets and Regional Strategies of Tyco Security Products. “On the residential and small business side, we have continued to invest in the smart home. The expectation is that the security system will do much more than security. With the rise in use of smartphones and tablets, people want full management of their systems wherever they are and at any time. The investment in Qolsys, our latest addition to the Tyco Security Products portfolio, shows how important this segment is to the business.”
• IndigoVision: In addition to focusing on its end-to-end video surveillance solution, IndigoVision made an interesting product launch in body-worn cameras with video analytics, with which IndigoVision is able to include more new customers from mobile users or lonely workers.