Industry Forecast: The Good, The Bad, & The Surprising

May 24, 2022 by ESX

The past few years have taught us that the electronic security industry is essential and resilient. It has also led many to understand that operational efficiencies and staying close to the customer are paramount for long-term viability. It is time for dealers and integrators to be proactive and set their course. In order to do that with some success, they must first have some industry insights to plot the course ahead.

What might surprise security professionals?

The Good – Security professionals are still considered one of the most trusted partners in delivering safety and security products and services. Because of disruptors entering the industry, they caused traditional players to change their operational playbooks and adopt new product offerings. Although traditional players sometimes rail against these disruptors, their fresh perspectives have supercharged revenues, especially recurring revenue streams.  

The Bad – Truck rolls are getting more expensive. Dealers and integrators will need to augment field service with technology that minimizes truck rolls. 

The fight for the smart home is the next battleground for traditional dealers to address, especially as the largest technology companies on the planet are ramping up their smart home go-to-market strategies. In addition, recurring revenue is at risk for those dealers and integrators that don’t have a proactive customer engagement plan in place.   

Negative Industry Impacts Compared to Previous Years

Supply Chain and Labor Shortages – With supply chain and labor shortages, dealers and integrators may experience lower growth.  

Profit Squeeze – As a result of supply chain and labor shortages, dealers and integrators may experience a profit squeeze unless price increases for products and services are implemented.    

Response to Alarms –  As cities and municipalities implement or consider budget cuts for police services, the potential fallout may result in a more limited capacity for police to respond to alarm activity.

Positive Industry Impacts Compared to Previous Years 

Proven Resiliency – Many dealers, integrators, and monitoring centers experienced strong growth in 2021, proving that security services are important to end users, whether for homes, businesses, or governmental agencies. The most successful companies are the ones that adopted new technologies, services, and methods to market, and have the ability to add incremental and sustainable recurring revenue.  

Customer Experience – Consumers and businesses have a higher degree of interaction and engagement over the technology and services offered by the industry. This simplifies the process of managing what’s important to them on their terms. This reinforces that dealers and integrators are the go-to trusted resource that consumers and businesses expect for security, safety, convenience, or productivity needs.


Security professionals who are interested in taking a deeper dive into the industry’s trends should register and attend ESX 2022 in Fort Worth, TX, June 14-17. Over the course of 3.5 days attendees will experience industry-leading education programs, best practices, and more. It is where the industry gathers, and you don’t want to miss it.