• Emerging growth companies will drive innovation in technology, solutions and business models
  • Convergence of technologies (digital, networked), platforms (fixed, wireless, IP) and applications (physical, IT)
  • Intelligent systems and sensors mitigate manpower needs and increase ROI for the end user
  • Processing and intelligence moves towards the “edge” facilitating true distributed and networked security systems
  • Video bandwidth needs drive advances in storage and distribution technologies


  • Unified command and control solutions penetrate the high-end critical infrastructure protection market
  • Preferred solutions will address both security and business (operational) needs
  • Vendors must become “IT-centric” in their sales and product positioning, as IT is the new “gatekeeper” in security
  • Enterprise-level customers demand open architecture, modular solutions that are easily integrated and upgraded
  • Platforms for physical security should also be positioned to address the increasing frequency of natural disasters

Business Models

  • Dual-use applications (government and commercial) diversifies revenues and improves valuations for vendors
  • A targeted M & A strategy supplements organic growth, builds value and represents the most viable exit strategy
  • System integrators benefit from the complexity and disparity of enterprise-level security solutions
  • Consolidation opportunities persists as the market remains fragmented
  • “Software as Service” gains traction and provides recurring revenue opportunities for vendors