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

  • Jan 22, 2010

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

  • The Evolution of IP Camera Intelligence

    As the 30th anniversary of the IP camera approaches in 2026, it is worth reflecting on how far we have come. The first network camera, launched in 1996, delivered one frame every 17 seconds—not impressive by today’s standards, but groundbreaking at the time. It did something that no analog system could: transmit video over a standard IP network. Read Now

  • From Surveillance to Intelligence

    Years ago, it would have been significantly more expensive to run an analytic like that — requiring a custom-built solution with burdensome infrastructure demands — but modern edge devices have made it accessible to everyone. It also saves time, which is a critical factor if a missing child is involved. Video compression technology has played a critical role as well. Over the years, significant advancements have been made in video coding standards — including H.263, MPEG formats, and H.264—alongside compression optimization technologies developed by IP video manufacturers to improve efficiency without sacrificing quality. The open-source AV1 codec developed by the Alliance for Open Media—a consortium including Google, Netflix, Microsoft, Amazon and others — is already the preferred decoder for cloud-based applications, and is quickly becoming the standard for video compression of all types. Read Now

  • Cost: Reactive vs. Proactive Security

    Security breaches often happen despite the availability of tools to prevent them. To combat this problem, the industry is shifting from reactive correction to proactive protection. This article will examine why so many security leaders have realized they must “lead before the breach” – not after. Read Now

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

Most   Popular

New Products

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • Unified VMS

    AxxonSoft introduces version 2.0 of the Axxon One VMS. The new release features integrations with various physical security systems, making Axxon One a unified VMS. Other enhancements include new AI video analytics and intelligent search functions, hardened cybersecurity, usability and performance improvements, and expanded cloud capabilities