Opportunity Knocks

“Improvise, adapt, and overcome” may be commonly associated with the U.S. Marine Corps., but the slogan could just as easily apply to this year’s crop of top 100 systems integrators. These security companies weathered some serious obstacles — from major technology changes, to inflation and rising interest rates, an election year, ongoing labor challenges and the growing threat of tariffs — yet collectively brought in the highest North American systems integration revenues in a decade, $18.4 billion!

That represents an 18 percentage point increase over the previous year’s numbers. What’s more, for the second year in a row, more than 60 percent of the top integrators reported an increase in profits — rising on average 8 percent over 2023.

“The market in 2024 was very strong,” wrote Brent Edmunds, president of Stone Security, ranked No. 18. “The demand for our products and services seemed to jump to new levels compared to 2023. Stone finished 2024 with more momentum than any of our team can recall for many years. Data centers, healthcare and distribution/logistics sectors were particularly hot, but all sectors showed promise for future expansion and need for our services. We did not feel any significant impact from the negative macro-economic factors pestering the country.”

No. 31, TRL Systems Inc., wrote that 2024 was “the highest security sales in our company history.”

Vision Security Technologies, No. 32, expressed similar experiences, writing, “Vision found the 2024 market for security systems sales and integrated systems projects to be stronger than 2023. … We were fortunate in that we did not experience significant negative impact from factors such as interest rates, inflation, etc.

“The demand for integrated security solutions is rising as organizations seek more cohesive, intelligent and efficient ways to protect assets, data and people,” Vision Security wrote.

No. 40, A+ Technology & Security, had a different take on what it called a “significant increase” over 2023, while also noting, “We have adjusted to increased interest rates, inflation and other issues in 2024, accordingly, and are dedicated to offering our clients fair prices and optimal system function, despite changes outside of our control.”

Others credited more recurring revenue — hosted and managed services — with helping them not only weather but overcome these pressures.

“The market was strong,” noted No. 71, Haig Service Corp. “Interest rates had no significant impact on revenue or performance. Wage inflation and material inflation also had little to no significant impact, as we had planned prudently for wage and career growth for our staff. Material inflation was for the most part absorbed through efficiencies and growth in sales to recurring revenue customers.”

Whatever the stated reason, 2024 proved to be a great year for integrators, as they rolled out new business models, new service offerings, and new technologies. And they are just getting started, with a healthy and positive outlook for what is ahead.

2024 Insights

One theme that seemed to hold true for many integrators in the comments this year was the increasing importance of managed services — or an OpEx vs CapEx option. Those that had these offerings were able to weather ups and downs more easily.

“Funding for security projects was generally better in 2024 compared to 2023,” wrote No. 8, Security 101, reporting for the first time on the TSI. “Many end users returned to more proactive budgeting strategies after a period of delayed investments. … As security threats became more complex and highly publicized, organizations recognized the need to modernize aging infrastructure, integrate systems and invest in technologies that provide both physical and operational benefits. Additionally, the availability of flexible financing options and the shift toward solutions that align with OpEx budgets (like cloud-based platforms and managed services) made it easier for customers to commit to larger, more strategic projects.”

No. 35, Sound Inc., noted: “The market for security remained relatively flat while decision makers shifted and more buying came from IT. Sound has pivoted and focused on leveraging hosted/cloud solutions that support the traditional physical security sales in anticipation of this trend increasing.”

While many certainly felt the pressures of an election year and economic uncertainties, they responded with creativity and met the moment for their customers.

“As No. 28, Prosegur Security Integration, put it, “The market for security systems sales and integrated systems projects in 2024 experienced a mixed but largely resilient performance compared to 2023. … While the demand for security solutions remained strong, economic factors such as interest rates and inflation influenced investment decisions across various sectors. … Prosegur navigated these challenges by continuing to leverage its hybrid security model, integrating technology with manned guarding to offer cost-effective and scalable solutions. The company’s focus on value-engineering security programs helped clients mitigate cost challenges while enhancing security efficiency. Despite the economic headwinds, Prosegur remained adaptive and client-focused, ensuring robust service delivery across key verticals.”

No. 14, Unlimited Technology Inc., wrote: “In 2024, the security systems market presented a more challenging environment compared to 2023, prompting companies to pivot and explore new opportunities to sustain growth. While AI-powered solutions and advanced access control systems continued to lead, traditional sectors experienced slower growth, and older integrated systems struggled to keep pace with rapid technological advancements. Despite these challenges, Unlimited Technology was able to navigate the economic pressures — such as rising interest rates and inflation — by strategically diversifying our approach. Although our overall revenue remained flat from 2023 to 2024, we saw a significant increase in profitability. Our operating margin and EBITDA surged substantially, reflecting the success of our focus on higher-margin projects and more efficient operations. This growth in profit was driven by a careful shift in our business model, emphasizing subscription-based services like our SHIELD managed services program, and pursuing more profitable contracts in emerging sectors. While federal government spending saw a reduction in 2024, we successfully offset this by expanding our footprint within local and municipal government work. Additionally, we pursued smaller, high-value contracts with large enterprises across diverse sectors, including utilities, data centers, chemicals, pharmaceuticals, healthcare, and manufacturing. … Workforce shortages remained a challenge, but our investments in technical training and talent retention ensured we had the skilled personnel necessary to deliver complex integrated systems projects. Despite the hurdles, our ability to adapt to market conditions, emphasize high-margin work, and focus on operational efficiency led to a significant increase in profitability, positioning us for continued success in the years ahead.”

No. 22, Cook Solutions Group, leaned in on its service strengths, writing, “2024 was an average to strong market for CSG. We continue to gain market share based on our superior service and strong reputation in both the FI and commercial security segments. Even in times of higher interest rates and inflation, CSG tends to perform well on our service side of the business. While inflation and interest rates impact our sales numbers, we have been able to adapt our rates and work with our customers accordingly. We look at the security market as a never ending opportunity — meaning, end users or customers are always looking for a trusted partner and when they find CSG they find that partner. We rarely lose a customer having only lost five total in our 22 year existence.”

Top Verticals & Technologies

For many of the top 100 security integrators, the vertical markets they are most involved with mattered in 2024. Several highlighted key vertical high points, while others focused on particular technology offerings.

“We’re seeing growth in a lot of key areas where we envision a ton of opportunity for Everon and the industry as a whole,” wrote Mike McWilliams, president and chief operating officer, Everon, ranked No. 3. “For one, the data center market is consistently showing double-digit growth, and we don’t see that slowing down anytime soon. It’s a similar story in the video space as customers are convinced of the wide-ranging value that video can bring to their security programs and businesses, reaching far beyond surveillance. There’s also major opportunity in the fire market — we’re seeing better code enforcement and new technologies that are driving end users to a more proactive fire and life safety approach. We believe we’ll see the impacts of all of that in 2025 and beyond.”

No. 17, ORR Protection, noted similar findings, particularly in the fire space, writing, “The demand for advanced fire suppression, detection, and monitoring solutions continued to rise as industries prioritized safety, compliance, and asset protection. The push for more intelligent fire protection systems — integrating IoT-enabled sensors, cloud-based monitoring, and early-detection technologies — gained momentum, particularly in mission-critical environments. The commercial and industrial sectors demonstrated robust growth, driven by evolving fire codes, insurance requirements, and heightened awareness of fire risks. Data centers remained strong due to stringent regulatory compliance, energy concerns, increased demand due to AI, and the critical need to prevent downtime.”

Other key verticals mentioned frequently included healthcare, both local and federal government, and education, with No. 46, EMC Security, noting, “Commercial customers, especially schools, had need to spend federal allocated resources before they expired. Recent high-profile events in schools and workplaces spurred interest in video and access control services.”

Not surprisingly, the most frequently cited technology shift driving sales was the emergence of AI and its impact across a wide range of offerings, from proactive video monitoring to business intelligence offerings and beyond.

“The healthcare sector was a positive and we also saw more companies allocating funding for security infrastructure.” wrote Kevin Santelli, vice president commercial, Guardian Protection, ranked No. 43. “Our commercial video surveillance business also continued to grow and we expect this to continue based on favorable advancements in AI.”

For more on the technology and vertical market trends security integrators see for the coming year, see the sidebar, “3 Key Opportunities for 2025.”

Looking Ahead

While AI was touched on in reflections on 2024, it really came to the forefront when integrators were asked about the top trends they anticipate for the remainder of 2025 and beyond.

No. 50, D/A Central Inc., wrote, “AI will be impacting the engineering of systems. AI agents will be deployed in the major platforms in 2025. The rapid adoption of AI tools will determine a company’s competitiveness in the future.”

And No. 21, Zeus Fire and Security, wrote of AI: “Customers continue to seek support in operational and cost management challenges. We remain committed to investing in this technology and anticipate it will be a growing revenue stream for years to come.”

This is a trend that many are just starting to get a solid grip on and a few urged caution in their approach to AI. For example, Preferred Technologies LLC, No. 23, wrote: “In 2025, AI is the hottest technology trend, and it’s here to stay. Industries ranging from K-12 to healthcare will need to embrace AI, but it’s important for everyone to learn how to use it safely. With so many new AI software startups making big promises, it’s essential to distinguish those that will stand the test of time, especially in the security technology industry.”

Unlimited Technology also urged caution, writing: “As AI’s capabilities evolve, there is growing discussion about the path toward artificial general intelligence (AGI) and, ultimately, the technological singularity — a point where AI could surpass human intelligence in decision-making and adaptability. While this remains speculative, its implications for security cannot be ignored. The more autonomous and sophisticated AI becomes, the greater the need for clear ethical frameworks, cybersecurity protections, and human oversight to ensure that automated systems remain aligned with human intent.”

There were other notes of caution as well, particularly around tariffs and other challenges.

No. 66, Region 6 Systems Integration, put succinctly what many others also mentioned: “Tariffs could cause us big problems.”

SDM’s 2024 Systems Integrator of the Year, Chimera Integrations, ranked No. 53, added more context, writing, “The new tariffs being put in place in 2025 could make things more expensive for security companies like ours. … If manufacturers raise prices or supply chains get slowed down, it could make projects more expensive or take longer to complete.”

Others mentioned the ongoing labor shortage that has been felt keenly in the security industry for the past several years.

No. 82, Pace Protection, wrote, “The greatest impact on our business in 2025 is the ability to continue to find great people that fit our company culture. As long as we continue building key pieces to our staff our growth will remain limitless.”

This outlook is characteristic of many of the top integrators’ approach to challenges as well as opportunities: While tariffs and other concerns are definitely on the horizon, for the most part they have confidence in their ability to weather them by leveraging more SaaS options, AI, relationships, and their own ability to pivot and thrive.

Unlimited Technology wrote: “Tariffs could play a role in shaping the market, particularly if trade policies affect the cost of imported security equipment and components. While these changes can lead to price fluctuations, they also emphasize the importance of working with manufacturers and suppliers that can adapt to evolving trade landscapes. By maintaining strong partnerships with a diverse range of vendors, we can mitigate potential disruptions and continue delivering value-driven solutions to our customers. By embracing emerging technologies, strengthening cybersecurity measures, navigating potential tariff impacts, and offering flexible service models, we can navigate the shifting landscape while delivering the reliable, high-quality solutions our clients expect.”

Rob Oldham, vice president of sales at Stone Security, pointed to the importance of SaaS models as well as AI, writing: “While we’ve historically focused on selling and maintaining physical equipment like cameras and access control systems, SaaS introduces a model centered on flexible, scalable software platforms. This transition brings opportunities for recurring revenue streams but also challenges us to adapt our business model and guide clients through the complexities of SaaS pricing, cloud storage, and long-term costs. In tandem, AI-driven automation is revolutionizing how security systems operate. AI enables real-time threat detection, predictive maintenance, and intelligent surveillance with minimal human oversight. These advancements not only improve security efficiency but also challenge us to redefine our role from hardware installers to strategic advisors. To stay ahead, we need to offer managed services, system optimization, and AI training. Integrators who embrace these — adapting to SaaS models and leveraging AI technologies — will be well-positioned to thrive in this new landscape, delivering intelligent, future-ready security solutions that meet the evolving needs of our clients.”

Security 101 summed it up nicely this way: “In short, 2025 will reward security integrators that stay ahead of tech evolution, invest in secure and smart system design, and deliver clarity and confidence to clients navigating a complex threat landscape.”