The European market for security systems integration was estimated to be worth almost US$6.69 billion in 2009, according to a new study by IMS Research
. The research, which focuses on the installation and maintenance of security systems, identified analysis and design as the fastest growing service type, with revenues set to double between 2009 and 2013.
Analysis and design covers a wide range of services including risk analysis, vulnerability assessment, system audits, security policy analysis, system specification and design requirements. Historically, these services have been difficult to charge for as they are usually completed at the tender stage of the project, and have to be billed back as a part of the installation and service agreements. However, many systems integrators are looking to move away from the low profitability of the installation market and focus on analysis and design as a new revenue stream.
"There has been a definite move away from the installation market from a number of the large systems integrators. Installation is typically the least profitable service type and with hundreds of small regional players, it is a highly fragmented and price competitive market. In many cases, it makes more business sense for integrators to subcontract the basic installation to these regional installers," said Niall Jenkins, Report Author and Market Analyst, IMS Research.
"Integrators are identifying the revenue from analysis and design as a more profitable segment of the market," Jenkins said. "While security consultants will always have a percentage of the market working directly with the end user, IMS predicts systems integrators will increase their analysis and design service portfolio over the next couple of years to take advantage of the greater profitability available in this market."