Confidence in Security Industry Continues End of year Climb

The SIA Security Market Index rose to 74.6 in November 2014, up from 72.3 in September. That continues a climb that began with an index that weighed in at only 62 in July 2014.

The increasing sense of confidence has been heightened by new products, good sales and strong orders in the past two months, industry leaders told the Security Industry Association (SIA).

The SIA Security Market Index, a bimonthly measure of business confidence in the security industry, surveys a select group of nearly 100 executives at SIA member companies to gauge the state of the industry. Individual responses are kept anonymous, and only aggregate results are released.

"Across the board, security companies indicated that they are feeling bullish about the performance of the security industry in the coming months," said Ron Hawkins, SIA manager of special projects and partnerships. "The survey's findings are consistent with the performance of the U.S. economy overall, with strong growth in the past two quarters providing hope that we are, perhaps, about to finally escape the post-Great Recession doldrums."

When executives were asked how they expected their companies to do during the next three months:

  • 38% said they would fare much better
  • 42%, a little better
  • 15%, no change
  • 4%, a little worse
  • 1%, much worse

The November 2014 SIA Security Market Index also asked respondents their view of the Internet of Things (IoT) and its impact on the security industry. IoT expansion could potentially broaden the influence of security devices, but survey respondents noted several challenges (they could choose more than one):

  • 75%, danger of security and privacy to end users
  • 60%, no across-the-board standards, architecture
  • 60%, lack of interoperability of new products
  • 50%, little sufficient battery life inside device
  • 45%, no tangible IoT infrastructure
  • 45%, lack of end users to see value
  • 10%, no fully accepted next-generation IPv6
  • 10%, lack of manufacturers to commit; loss of competitiveness

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