Investors are always bewildered by the fragmentation in the security/surveillance market. They cannot understand why there are so many manufacturers and how none of them has ever been able to become dominant (i.e., 40 / 50 / 60 / 70 percent share).
At some level, it makes sense. There is just not enough product differentiation to justify the vast number of manufacturers in surveillance.
I have a new theory that I wanted to throw out.
Perhaps the reason for manufacturer fragmentation is because of the huge number of integrators. Integrators tend to purchase differently than end users. Instead of just worrying about what is the best fit for their personal needs, they need to anticipate what products will help them sell the most / best.
Integrator Motivation For A 'Unique' offering
A regular theme with many (but not all) integrators is having a product that your rivals do not (whether it's a line that is dealer protected or one that is just not widely offered in your market). Whether that line is objectively better or worse, leading with a line your rivals do not offer, gives the integrator some sort of uniqueness that can then be sold / marketed as a differentiator.
Likewise, I suspect that until the number of integrators decrease and / or end users start buying direct without integrators, the market will continue to support hundreds, if not thousands of manufacturers.
What do you think?