Ingersoll Rand Security Technologies - Experts & Thought Leaders

The Z-Wave Alliance, an open consortium of leading global companies deploying the Z-Wave smart home standard, today announces the addition of ASSA ABLOY to the Alliance Board of Directors. Owner of leading and trusted lock brands such as Yale, Mul-T-Lock and ABLOY, ASSA ABLOY joins principal members ADT, Alarm.com, FIBARO, Huawei, Ingersoll-Rand, Jasco Products, LEEDARSON, LG Uplus, Nortek Security & Control, SmartThings, and Sigma Designs. Smart Security And Connected Access Control “ASSA ABLOY was already a leader in the smart lock industry and is clearly making moves to become a global force in smart security and connected access control,” said Mitchell Klein, Executive Director of the Z-Wave Alliance, “The entire Alliance will benefit from ASSA ABLOY’s contribution to the Board of Directors and leadership in the future.” The ASSA ABLOY Group is a global leader in door-opening solutions, manufacturing a range of products for commercial and consumer markets. The group has a complete range of door opening products, solutions and services for institutional, commercial and consumer markets, and a worldwide leading position in smart door locks. Currently offering Z-Wave enabled smart door locks, ASSA ABLOY made big news recently with the acquisition of August Home, another Alliance member and manufacturer of Z-Wave smart lock solutions. Z-Wave-Enabled Digital Smart Locks “We have strongly supported Z-Wave through our Yale smart locks and plan to play an even bigger role as a decision maker in the growing Z-Wave Alliance,” commented Kevin Kraus, Director Technology and Integration Support for Yale Residential at ASSA ABLOY Americas. “As a Board member, we want to help in developing global Z-Wave product requirements as we build out our smart lock offerings in various regions around the world.” As a principal member, ASSA ABLOY will participate in developing global Z-Wave product requirements and in promoting Z-Wave enabled digital smart locks worldwide.The Z-Wave Alliance has over 600 member companies worldwide and over 2100 certified smart home and IoT devices.

The Z-Wave Alliance, an open consortium of global companies deploying the Z-Wave smart home standard, announces the addition of leading ICT solutions provider, Huawei, to the Alliance Board of Directors. Huawei joins principal members ADT, Alarm.com, FIBARO, Ingersoll-Rand, Jasco Products, LEEDARSON, LG Uplus, Nortek Security & Control, SmartThings, and Sigma Designs. Huawei is a leading global information and communications technology (ICT) solutions provider with innovative solutions, products and services used in more than 170 countries and regions. Many Z-Wave Alliance member companies, including Aeon Labs, LEEDARSON and FIBARO are part of Huawei’s OceanConnect pre-integrated IoT ecosystem. Promoting partnerships among members The Z-Wave ecosystem has seen unprecedented growth in the last several years, with most major tech manufacturers, service providers and telcos putting Z-Wave inside their smart home solutions. As a Z-Wave Alliance Principal Member, Huawei will take on a greater role in leading the Alliance and help guide future initiatives as well as promote partnerships among members. “We are honored to increase our role in the Z-Wave Alliance by joining the Board of Directors,” said Yang Qin, Cloud Communication Marketing Director of Huawei Cloud Core Network Product Line. “Z-Wave is a very important technology for the smart home and other vertical industries, and joining the Alliance is important for Huawei to promote the Z-Wave technology widely used in the IoT industry.” “Huawei has long been an active member of the Z-Wave Alliance and joining the Board of Directors demonstrates their commitment to the growth of IoT in the smart home and to Z-Wave’s leadership role in those markets,” said Mitchell Klein, Executive Director. Z-Wave Alliance membership now has over 600 members worldwide, with over 2100 smart home and IoT certified devices.

August Home joins over 450 members in supporting the Z-Wave standard in smart homes all over the world The Z-Wave Alliance, a global membership organization dedicated to advancing the popular Z-Wave wireless smart home protocol, welcomes leading smart lock provider August Home to its membership. August Home joins over 450 members in supporting the Z-Wave standard in smart homes all over the world. August Smart Lock Pro August Home has also announced the August Smart Lock Pro (Z-Wave), which will be sold exclusively through the professional installation channel. With Z-Wave Alliance membership, August Home will receive Z-Wave certification for the August Smart Lock Pro (Z-Wave) and will begin distributing to custom home installers this fall. The August Smart Lock is one of the top selling smart locks and August Home is a recognized leader in the smart home. Adding Z-Wave interoperability gives security and CE installers the ability to integrate the August Smart Lock into their Z-Wave installations. Mainstream Smart Home Adoption “August Home has been a leader in mainstream smart home adoption and we’re thrilled to welcome them to the fold,” said Mitchell Klein, executive director of the Z-Wave Alliance. “The August Smart Lock Pro (Z-Wave) will allow existing security dealers for Z-Wave-backed systems like ADT, Vivint, Qolsys and Alarm.com to potentially integrate August into their projects. We continue to see reputable brands in the space committing to the Z-Wave standard; it is a testament to our reach, interoperability and strong device security.” "Z-Wave is already the market leader in wireless control with millions of compatible products trusted for reliability and interoperability," said Nate Williams, CRO for August Home Inc. "By joining the Z-Wave Alliance, we are bringing access control through the August Smart Lock, which is the number one selling lock in retail, to our professional installers and security channels." Connected Home Ecosystems Z-Wave represents one of the largest connected home ecosystems, with 1700 certified devices and 70 million Z-Wave IoT products shipping into the market. The Z-Wave standard can be found in over 90% of professionally installed smart security systems, making it the de facto platform for the home security market and connected devices. The Z-Wave Alliance Board of Directors includes ADT, FAKRO, FIBARO, Ingersoll-Rand, Jasco Products, LEEDARSON, LG Uplus, Nortek Security & Control, SmartThings, and Sigma Designs. Z-Wave Alliance are exhibiting at ISC West 2017 between April 5th-7th at Booth 26065.

Consolidation is a dominant trend in the security marketplace. Large companies typically swallow up smaller companies as a means of expanding both their technology portfolios and their geographic reach. Sometimes a big fish is swallowed up by an even bigger fish.   Despite the pandemic and resulting economic challenges, the security market has continued to be a desirable environment for both big players and startups, which then provide abundant acquisition targets for the larger companies. Acquisitions of Motorola Motorola Solutions has been among the most acquisitive of the larger players, recently adding several smaller companies to their growing portfolio. Just this year, Motorola has acquired Ava Security, a video security and analytics company; Calipsa, another analytics company; and Videotec, an Italian provider of ruggedized video solutions for critical infrastructure applications. Video solutions that help to enhance safety and streamline operations while supporting customers In one announcement, Motorola chairman and CEO Greg Brown stated the goal of acquisitions is “to support our customers’ evolving security needs by expanding our portfolio of intelligent video solutions that help to enhance safety and streamline operations.” Previously, Motorola Solutions acquired Envysion, a video analytics company for the retail market. On the access control side, Motorola acquired Openpath Security, a cloud-based, mobile access control provider, in 2021. Motorola entered the video surveillance business back in 2018 with the acquisition of Avigilon for around $1 billion. Also now a part of Motorola are IndigoVision and Pelco, among others. ACRE's mergers and acquisition Another company active in the mergers and acquisition market has been ACRE (Access Control Related Enterprises). The company began with a spinoff from Ingersoll Rand in 2012 to become Vanderbilt Industries. As ACRE, the parent company has been active both in acquisitions and divestitures over the next decade. Vanderbilt grew with the acquisition of Siemens’ Security Products in 2015. ACRE owned Mercury Security, a manufacturer of OEM hardware used by access control companies, from 2013 until it was sold to HID Global in 2017. The acquisition of Razberi enhances the ComNet portfolio while providing complementary technologies ACRE’s more recent access control acquisitions are RS2 Technologies (in 2019), Open Options (2018), Feenics (2021), and Matrix Systems (2021). They acquired ComNet, a manufacturer of video and data transmission equipment, in 2016. The acquisition of Razberi (in 2020) enhances the ComNet portfolio and provides complementary technologies to the access control brands. Acquisition of ACRE ACRE itself was acquired by European investment firm Triton in 2021, and Joseph Grillo, the company’s founder, and CEO, announced his retirement in 2022. His knowledge of the security and access control markets helped to drive the company’s growth, including 11 successful acquisitions in all. Securitas acquiring Stanley Security  The acquisition of Stanley Security is transformational for both Securitas and the security industryStanley Security has also made headlines. In December 2021, Securitas signed an agreement to acquire the Electronic Security Business from Stanley Black & Decker for $3.2 billion in cash. Securitas President and CEO Magnus Ahlqvist says “the acquisition of Stanley Security is transformational for both Securitas and the security industry.” Allegion plc, global security products, and solutions provider, later signed an agreement to acquire Stanley Access Technologies and assets related to the automatic entrance solutions business from Stanley Black & Decker, Inc. for $900 million. Acquisition by HID Global, ADT Inc., & Allied Universal HID Global has acquired Vizinex RFID, thus increasing its presence and relevance in key vertical markets, including healthcare/medical, manufacturing, oil and gas, data centers, etc., and adding a key technology to HID Global’s RFID tag portfolio. ADT Inc. recently expanded its geographic reach with the acquisition of Key-Rite Security, a locally owned and operated security provider specializing in access control, surveillance, intrusion, and intercom systems in Colorado and for customers across the United States. Allied Universal continues its strategic growth with the acquisition of Attenti Group, an electronic monitoring company Allied Universal has acquired Star Protection Agency, the largest Hawaiian-owned and veteran-owned security company in the state. Although Star is primarily a guard patrol service, with workers at 125 sites throughout the state, it provides a range of security technology and consulting services. Internationally, Allied Universal continues its strategic growth with the acquisition of Attenti Group, an electronic monitoring company. Allied Universal will integrate Attenti Group with G4S Monitoring Technologies, to create Allied Universal Electronic Monitoring Services. SALTO Systems making acquisition news Also internationally, SALTO Systems has made acquisition news by investing in Bluefield Smart Access, thus strengthening its portfolio of access control solutions. SALTO Systems is a manufacturer of electronic access control and operating system solutions, designed to provide a seamless, keyless, and mobile experience for modern buildings. Also joining the SALTO Group is Cognitec Systems, a face recognition company. The goal is to strengthen their research, development, and market reach while working with SALTO on new technologies for expanding biometric markets. SALTO strategically selected Cognitec Systems to meet market requests for adding face recognition and artificial intelligence (AI) technologies to the company’s electronic access control and ticketing solutions. Acquisitions by MOBOTIX and Resideo Technologies  Resideo Technologies, Inc. entered into an agreement to acquire First Alert, Inc., a provider of home safety products Further, on the international scene, MOBOTIX has reached an agreement to acquire Vaxtor Group, Tres Cantos, Spain, an artificial intelligence (AI) based video analytics provider, specializing in Optical Character Recognition (OCR) and Deep Learning technologies. On the residential system's front, Resideo Technologies, Inc. entered into an agreement to acquire First Alert, Inc., a provider of home safety products, from Newell Brands Inc. for $593 million in an all-cash transaction. Established in 1969 and based in Aurora, Illinois, First Alert offers a strong omnichannel presence serving end-users directly through retail and e-commerce channels and professional contractors through relationships with distributors and home builders.

This year's IFSEC International show in London will provide a reflection of the physical security industry's rapid growth, especially in the video sector, says one industry observer who is also a speaker at the show, coming up 16-18 June. “If we look at the overall trend, it is no surprise to anyone that IP is driving the growth and the future of the security business,” says Jim McHale, managing director of research company Memoori, and a speaker at IFSEC. Security Industry Estimates Memoori's latest report on the security industry estimates a total worldwide market value of $25 billion, showing a growth rate of 7.5% in 2014. “The market is being driven by what’s happening in video,” says McHale. “The three main drivers for growth are IP video networks, higher demand from Asia, and greater success in selling into vertical markets such as transport, retail, healthcare and education.” According to Memoori, video accounts for approximately 53% of the total market at $13.5 billion, access control takes a 23% share at $5.6 billion, and intruder alarms at $6.2 billion take a 24% share. The developed markets of North America and the EU are losing market share to Asia – in particular China – which will be the largest single market by the end of this decade. Growth in the sales of access control systems increased by 10% in 2014 as the sector moved into IP network systems and there was strong growth in biometric and identity management systems. "The market is being driven by what’s happening in video. The three main drivers for growth are IP video networks, higher demand from Asia, and greater success in selling into vertical markets such as transport, retail, healthcare and education" Security Systems For Greater Business Value The use of security systems and the position security has in an organization is also affecting buying trends, says McHale. “Security should be more than just a cost center; it should be adding value to the business by optimising processes. This will require a fundamental change in perspective from both end users and suppliers and a greater understanding of how security will fit into the wider Internet of Things in both cities and buildings. I expect to see more integration of systems at IFSEC this year.” This move to optimize systems beyond security is not a quick process. “I don’t think we’ve reached the point yet where your average security manager is really thinking about how they can use their system to optimize business processes. But there are early adaptors such as data analytics in retail, people counting and heat-mapping,  giving valuable insights into the retail environment.” High Growth In Asia Moving to an international context, McHale sees strong growth in Asia and expects this to be reflected in a larger representation of Asian companies at IFSEC, especially video surveillance companies. They have done very well in their domestic markets but are looking to grow in Europe and North America. Like the rest of the security industry, intruder alarms are also following the trend towards IP. “There is a trend across the whole security business towards IP. With a 24% share of the total security market, intruder alarms are still a significant share of the business but the sector is not growing as fast as the others.” Market Participants As far as the surveillance sector is concerned, growth through innovation has come from "middle market" players – such as Avigilon and Axis Communications – rather than the major conglomerates, which have seen a decline in their share of the product market. The developed markets of North America and the EU are losing market share to Asia – in particular China – which will be the largest single market by the end of this decade. “Are the major conglomerates losing interest in the security market?” asks McHale, citing the sale of Siemens’ security products business to Vanderbilt and Ingersoll Rand’s spinoff of Allegion. Most conglomerates have made major acquisitions in their other businesses and they have significant cash reserves on their balance sheets. In contrast, Canon is now showing serious interest in video surveillance with its acquisitions of Axis Communications and Milestone Systems. “Security manufacturers now need to look towards the Internet of Things and understand how and why their products / services will fit into this new world of ubiquitous sensor networks,” concludes McHale.

Success in the access control arena is enhanced if the business has a global presence Vanderbilt 2014/2015 Review and Forecast: In 2014, our industry continued to be quite dynamic. While there are several “conglomerates” in the industry, such as UTC and Honeywell, who have been consolidators, there are also other companies (like ours) that are focused solely on security. The industry moves in both directions—some companies consolidating and acquiring, while others are more focused and concentrated. This includes some which are spinning off parts of their business into new entities altogether, such as Allegion from Ingersoll Rand or Siemens divesting their Security Products business to Vanderbilt. For access control system manufacturers (OEMs), the competitive landscape is still quite fragmented. This engenders a very competitive marketplace, but is not always helpful to end users, integrators and security consultants. While many of the small OEMs have changed very little over 10 or 20 years, there are also newer entrants that have impacted the industry, such as Open Options and Brivo. We believe that with the wide variety of smaller OEMs that still exist, there is continued opportunity for consolidation at this level of the value chain. Going forward, success in the access control arena is enhanced if the business has a global presence—major enterprise customers want to standardize on one integrated solution and a vendor that has an extensive network of integrator and technology partners. An experienced and loyal reseller channel is especially important to ensuring that there is less execution risk and that end user customers end up with systems that operate reliably and provide the desired solution. Larger, consolidated manufacturers can afford higher levels of R&D investment. In an industry sector that is sometimes slow to evolve and utilize the latest tools coming out of the IT market, this will be a key point of differentiation and added value as ongoing product enhancements are released at a continual pace. Looking to 2015, we can expect to see a lot of continued M&A activity, especially with a lot of “cheap” money in the hands of investors who realize the security industry will continue to experience steady growth and the need for continual investments and enhancements in the technology incorporated into the products most in demand. See the full coverage of 2014/2015 Review and Forecast articles here