The North American security market saw some growth as the post-pandemic economic recovery prompted businesses and project work to return to normal. At the same time, supply chain shortages and uncertainties brought about by inflation will pose certain challenges to the growth of the North American market in the short term.
The North American market after the epidemic
At the peak of the epidemic, North America suffered huge economic losses. As of September 28, the average number of new cases in the region within 7 days was 47,112. With the reopening of office spaces and the normal recovery of projects, people's life and work are gradually returning to normal. Under this background, the security industry has also achieved certain growth.
"Last year, the security industry has made great improvements. Exhibitions, offline activities, customer communication and exchanges have all begun to return to normal, and they are generally developing in a positive direction. Although there are still major obstacles to be overcome in the supply chain, but We see hope in the post-epidemic era," said Jeff Ross, ACRE North America Marketing Director.
For many current North American end users, with the increasingly diverse office models of enterprises, the impact of the epidemic on people's work and life has been indelible. "The impact of the epidemic still exists, especially with the diversity of people's office models, such as home office, mixed office, etc., people's demand for network openness will be stronger. At the same time, security expenditures are still users' priority. As the impact of the epidemic weakens, people are returning to the office, and the demand for connectivity and remote accessibility is even more pronounced," said Charles Pitman, product marketing manager at Genetec.
The double-edged sword of supply chain shortages
"In the vertical industry, the security system integration market is expected to grow strongly. The main reason is that after the outbreak of the epidemic, industry technological innovation and cross-industry digital technology promote industrial transformation and upgrading, especially in markets such as finance, medical care, data centers and public utilities. more significant,” said Mike Mathes, executive vice president of Convergint.
In the development of the North American market, there are some uncertainties that may lead to a bleak future market outlook, including supply chain issues plaguing the entire global industry, which will test suppliers to meet deadlines amid component shortages and logistical disruptions. ability to deliver.
However, challenges and opportunities coexist, and supply chain problems have also had some positive effects. Pitman said: "The supply chain problems that the world is facing encourage companies to reduce their dependence on single sources or solution providers and actively seek open structures. solutions to meet their own flexibility needs.”
"Supply shortage constraints have led to more flexibility and higher willingness of end users to evaluate new security and management solutions instead of simply following traditional methods, such as access control systems due to limited supply of new microprocessors and other raw materials. It also quickly realizes the transition from the traditional method to the mobile credential method," Mathes said.
Closely linked to supply chain issues is inflation, with prices rising across a wide range of products, including security. "As costs have risen over the past year, all parts of the supply chain have been forced to raise prices, and some suppliers and distributors are now unable to fully absorb the rising costs. In the Americas, some security manufacturers have increased prices by 10%. %-20%, and other companies have cut their discount programs,” Lowenstein said.
Outlook to 2023
Looking forward to 2023, factors of uncertainty in the North American market will still exist. "It is expected that the industry will grow in North America in 2022 as the market recovers, but as economic uncertainties increase, the North American market is expected to slow down in 2023," Pitman said.
However, most security manufacturers are optimistic about 2023. Although external and internal challenges still exist, safety is still a rigid need of society. Especially in a country like the United States, security is a hot issue of concern to the whole society.
"Entering 2023, it is expected that the security market in North America will continue to grow, mainly due to the reduction of the impact of the epidemic and the advancement of technology. After the epidemic, people's demand for security will become stronger, and the upgrade of security systems will become more urgent." Mathes said.
Established 17 years ago, Blue Icon (Tianjin) Technology Co. Ltd, a national high-tech company, specializes in design, engineering, manufacturing and sales of high-quality CCTV surveillance equipment including pan-tilt head/positioner, long rang laser PTZ camera, IR thermal imaging PTZ camera, dual-vision PTZ camera, camera housing enclosures, camera mounting brackets and accessories, and provide custom pan-tilt products to meet our customers' various system/project requirements. Made with durable material, our products are tested to withstand continuous operation in the most harsh condition. Our products have been widely used in over 40 countries across five continents.