The advent of new technology opens up a range of potential applications and use-cases for residential-focused security integrators looking to expand beyond the smart home.
The so-called smart spaces market – characterized by the use of connected sensors and Internet of Things (IoT) devices within a physical location – offers a variety of benefits to integrators looking to break into new sectors, including industrial settings, municipalities, commercial buildings, schools and educational sites, multifamily housing, hospitality, retail, quick service restaurants, and others.
These connected sensors and devices are at their most effective when they are integrated with each other, with central control planes, and with a unified data repository that allows technologists to harness the full power of the information at hand. Integrators play a key role in design, installation, and management of audiovisual and automation systems; thus, making them integral to the effective creation and operation of smart spaces. Their experience in setting an internet connectivity backbone for devices, sensors, and networks is vital in transforming businesses and campuses into smart spaces.
Custom integrators (CIs) have a generational opportunity to expand their reach to target non-residential markets. These small and medium size business markets are large and dynamic, with needs that CIs are uniquely positioned to solve. While each market is unique, several common technologies – smart thermostats and energy management solutions, access control, video surveillance, and water leak detection – are highly useful across multiple industries.
By diversifying client bases and leveraging expertise in automation and connected systems, integrators can capture a share of this lucrative market, positioning themselves as essential partners in digital transformation initiatives across industries. Expertise in serving the residential market translates well towards serving other verticals, with CIs well-versed in installing and integrating these highly desired solutions.
Opportunity Area: Schools
The U.S. school system is a large market with a trillion-dollar market value. According to the National Center for Education Statistics, there are more than 129,000 K-12 schools in the United States, and the higher education market accounts for an additional 5,900 schools. The market opportunity presented by the education sector is enormous, but also bureaucratic and dependent on both local and federal players. Players that can successfully navigate school systems’ bureaucracy, regulatory environments, and buying cycles stand to benefit.
Many schools are increasingly investing in IoT technologies for a variety of purposes, such as improving operational efficiency, enhancing student learning, increasing energy efficiency, and containing costs. These investments were originally driven during the COVID-19 pandemic, when school shut-downs triggered a wave of Federal and state funding to upgrade school technologies, including campus networks. Increasingly, school safety is also a focus, as schools grapple with violence and mass shootings.
The education market has unique considerations compared to other markets, especially for elementary schools. The K-12 market has special privacy and data security concerns and regulations that must be followed, including the Family Educational Rights and Privacy Act (FERPA) and Children’s Online Privacy Protection Act (COPPA) as well as relevant state and local regulations.
Schools follow an annual budgeting process and have a limited window for purchasing new technologies, which companies looking to serve this market must follow. Integrators must align their sales process with this timeline, and installation and support needs must be aligned with school schedules to minimize disruption. This may mean not following regular working hours.
Opportunity Area: Hospitality
The U.S. hospitality industry consists of almost 62,500 properties, 5.6 million guest rooms, and 238,000 employees. From hotels to private rentals, this market is investing in new technologies to enhance guest experience, improve business operations, reduce costs, and meet environmental sustainability goals.
IoT is being used to offer a personalized guest experience through smart room keys and customized room settings. Access control solutions enable guests to more easily access amenities while also providing greater security. Sensors monitor room occupancy and adjust heating, cooling, and lighting, leading to optimized energy consumption and reduced costs, as well as a more comfortable guest experience.
The guest experience is increasingly driven by mobile applications, enabling remote guest check-ins, amenity reservations, and mobile payments.
Additionally, water leak detection and automatic water shut-off is of increasing interest in the hospitality industry, where incidents can lead to potentially millions of dollars of property damage. On a smaller scale, the cost of a single leaking toilet adds up over time: $840 per year, on average. Compounded across a hotel chain’s footprint, leak detection stands to add considerable cost savings.
Key considerations for integrators to keep in mind:
- Hotel ownership and management are fragmented, and new market entrants may find it challenging to find the proper sales channels or contacts to be added to vendor lists.
- Cybersecurity is concerning for hospitality executives, with 37% reporting that they are extremely worried about cybersecurity and its potential impact on brand reputation. Concerns about IoT and smart device security has hindered IoT adoption in this industry. Having the proper certifications can help soothe concerns.
- Hotels require prompt customer support and maintenance service, given the potential impact of misbehaving systems on guest experiences and the hotel brand.
Opportunity Area: Distributed Audio/Visual
One area where custom integrators possess vital knowledge that translates into larger markets is in the A/V space.
A case in point is Sound Concepts, an Arkansas-based custom integrator specializing in custom audio and video. One of the company’s recent projects was a custom A/V integration for the University of Arkansas’s recently opened Northeast Rice Research and Extension Center.
At the beginning of the project, the Arkansas Agricultural Experiment Station, the research arm of the University of Arkansas System Division of Agriculture, drafted plans for the center’s distributed A/V design. After winning the University’s request for bids, Sound Concepts ran analyses on the station architect’s plans, and after substituting alternative products, was able to reduce the project expenses to half of what was originally budgeted.
Sound Concepts installed the distributed A/V solutions across several areas of the campus, including adding digital signage in the entry, and a full A/V system with video conferencing in the exhibition hall and board room. Another major feature is a demo kitchen, where university staff can simply press a button to live-stream cooking classes or other demos directly to YouTube or Facebook.
A key selling point of Sound Concepts’ design was products from Nice North America and an integration with Yealink’s video conferencing solution. University staff can control the entire A/V solution from a single ecosystem and app. Sound Concepts also offered full remote support, allowing for rapid turnaround times for support tickets.
This article is an excerpt from Parks Associates white paper, Smart Spaces: New Opportunities for Custom Integrators, written in partnership with Nice Group. Parks Associates will host the 16h annual Smart Energy Summit: Engaging the Consumer, in partnership with DISTRIBUTECH, March 25-26 in Dallas. Email [email protected] for a guest pass to join this event.
