IMS Research: Alarm Monitoring Market Will Retain Its Independence Despite Tyco/Broadview Security Deal

Following the recent announcement by Tyco International that it intends to acquire Broadview Security, there has been considerable discussion on what this means for the industry and whether other mergers and acquisitions will follow.

One topic of particular interest has been the share of the alarm monitoring market that Tyco International, and its security business ADT, will have following this acquisition.

In response, IMS Research stated that ADT and Broadview will have a combined share of around 50 percent of the residential alarm monitoring market. This analysis measured revenue generated by companies owning and operating a central station and did not include revenues generated by alarm installers that use wholesale central stations to monitor their own accounts. That being said, how will this acquisition affect the customer?

From the customers’ point of view, the residential alarm monitoring market will remain fairly fragmented despite this acquisition. There are thousands of independent alarm dealers in North America using third party central stations to monitor their customers.

When these independent dealers are included in the analysis, ADT and Broadview Security account for only around 30 percent of the residential alarm monitoring market. Their market share is further reduced if the commercial alarm monitoring market is also considered.

"Despite the economic situation, the U.S. alarm monitoring market has continued to perform reasonably well with low single digit growth in 2009,” said Niall Jenkins, research analyst at IMS Research. “The market offers long term growth potential and we expect more acquisitions to follow in the coming years.”  

In related news, it has been reported that Protection One is exploring its strategic alternatives, including a potential sale of the company. While the potential for further consolidation remains, the high number of independent dealers active in the alarm monitoring market will make it difficult for mergers and acquisitions to consolidate the market significantly.

Featured

New Products

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.