Never before in the electronic security industry has change been so profound. As hardware and boxes moved onto the network, they have morphed into intelligent, connected products. Everything from video surveillance to access control/intrusion detection to fire systems boasts remote web accessibility. Many more systems can be integrated as manufacturers abandon proprietary technology to bring disparate solutions together. With it, the electronic security industry has evolved, moving from hardware-centric technologies to cloud- and network-based services.


It’s not just the security industry that has had to change its business model. Every low-voltage discipline—from contractors who play in the audio/video space to information technology (IT) resellers who focus on network controls and infrastructure—continues to adopt managed services to offset dwindling hardware profit margins.


Many security product categories are witnessing solid growth, but access control and video surveillance stand out. In access control, renewed efforts to boost physical and data security and the ability of security companies to provide managed services—the administration of systems, controls, settings and ­permissions—continue to turn the tide. In video surveillance, Internet protocol (IP) systems have become more affordable and easier to deploy and use, providing value-added benefits, such as business intelligence, analytics and big data.


Rising star: access control


Research firm IHS Technology, Englewood, Colo., predicted the market for electronic access control would top $3.5 billion globally in 2014, driven by returning growth in the Americas as well as in emerging regions. While certainly not as dynamic as video surveillance growth, the industry will witness rapid advancement in the short term, according to Blake Kozak, senior analyst, IHS.


“We’re predicting 5 percent growth in access control, with electronic locks having a big impact on the market and 7–8 percent growth,” he said.


Kozak said the growth will be driven by electronic locks, which can be offline-stand-alone, data on card or wireless-online. 


“Wireless continues to see strong growth as end-users begin to trust and understand the technology. Additionally, IT departments are more involved than in the past and will likely continue to be heavily involved and, in some cases, may begin to manage and dictate access control installations,” he said.


Growth in access control also is attributed to older infrastructures needing renovation and upgrades; technology that is less expensive to operate; and increased use of more flexible web- and cloud-based platforms, he said.


IHS research has pointed to commercial office buildings, restaurants and hotels adding more electronic access control. Notably, education, critical infrastructure, utilities and manufacturing are seeing increased use of the technology. 


“In the future, some of the new and emerging trends in access-control technologies or implementations will be mobile credentials and continued integration of physical security and logical access control. Software and services are becoming increasingly important, and hardware is more of a commodity,” Kozak said.


Shining bright: video surveillance


Video surveillance and video surveillance as a service continue to grow, as users move from analog cameras to IP solutions that add network capabilities to the product category, which is increasing about 20 percent annually.


In addition to, greater overall usage of IP video, the industry will see more users of the technology in small- to mid-market businesses, ranging from 10 to 100 cameras, according to Scott Dunn, director of Business Development-North America, Axis Communications, Chelmsford, Mass.


“One macro trend is increased use of cloud-based surveillance for small businesses who can record video locally on an SD card or store to the cloud long-term without the expense or ongoing costs of a DVR. Another trend is alarm verification, as municipalities mandate video evidence of intrusion before dispatching authorities,” Dunn said, adding that greater use of IP is further tied to better image quality and lower costs.


“From the technology side, there is a lot of buzz associated with 4K ultra-high- definition images, but it will take some time for widespread use,” he said. “You need a 4K monitor for the best viewing of images, and it also takes up more bandwidth. Bandwidth is being addressed by compression algorithms, like the current H.264 and the newer H.265 high-­efficiency video coding. It offers dramatic improvements in compression without the loss of image quality.”


Better resolution and more intelligence at the edge also continue to stimulate video surveillance growth. 


“Cameras are smarter, which helps processing video images,” Dunn said. “And now the discussion is on big data, and what we can learn from the data that’s been captured. There’s continued use of crossfunctional video and using it for more than surveillance to monitor business activity.”