Controversy over Market Sizing Statistics

Author: John Honovich, Published on Jan 23, 2010

A controversy between a number of US security publications and IMS Research has arisen, demonstrating some key issues in using market sizing statistics.

On January 20th, IMS issued a press release claiming that after acquiring Broadview, "ADT will now account for over half of the residential alarm monitoring services market in North America."

In response, SSN Editor's tweeted that he didn't mean to kick them but IMS was just wrong. The SecurityInfo Watch tweeted back that it was like IMS "just made it up to get a press release out." [Side note: interesting use of social media]

Finally, an SSN blog post provided feedback from IMS explaining that the original numbers "measured the remote monitoring services market for all companies owning and operating a central monitoring station" but now the metrics would be changed to include "revenues generated by independent alarm installation companies who do not own their own central stations."

Update: Jan 24, 2010: IMS has released a new press release clarifying their market size estimate. In response, Securityinfowatch criticized IMS's competence claiming they "forgot that there are independent dealers in North America with residential alarm accounts."

Given what we explained about choices on IMS's VMS market segmentation, this controversy is not surprising. One can argue whether this is a matter of perspective, a mistake, etc. However, the bigger point is that all of these statistics are heavily dependent on choice of segments which can greatly mislead users without the appropriate context.

My favorite example of this is Aimetis announcing that they were the 7th highest ranked VMS company in North America. While Aimetis clearly stated the segment they were in, for most readers it is unclear what that means (see our VMS market segmentation explanation). By excluding 90% of the video recorder/video management providers from the ranking, Aimetis made the top 10.  Are they correct? Are they misleading? Almost all of these rankings require understanding the segmentation to appreciate the signification.

Comments : PRO Members only. Login. or Join.

Related Reports

Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
'Best In Show' Fails on Apr 19, 2018
ISC West's "Best In Show" has failed. For more than a decade, it has become increasingly irrelevant as the selections exhibit a cartoon level...
Security Camera Cleaning Frequency Statistics on Apr 18, 2018
150+ integrators told IPVM how often they clean cameras on customer's sites and why.  Inside we examine their answers and break down feedback...
Worst Access Control 2018 on Apr 18, 2018
Three access control providers stood out as providing the most problems for integrators. In this report, we analyze the answers to: "In the...
Axis VMD4 Analytics Tested on Apr 17, 2018
Axis is now on its 4th generation of video motion detection (VMD), which Axis calls "a free video analytics application." In this generation, Axis...
Strong ISC West 2018, Says Manufacturers, GSX / ASIS Expected Weaker on Apr 17, 2018
Manufacturers say ISC West 2018 was strong, continuing the trend we have seen in 2017 results and 2016 results. However, those same 100...
Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
Alarm.com Business Market Expansion on Apr 13, 2018
Alarm.com has millions of subscribers, but the company has traditionally been mostly a residential/home focused offering.  ADC's new Smart Business...
GDPR For Video Surveillance Guide on Apr 12, 2018
The European Union’s General Data Protection Regulation (GDPR) comes into force on May 25, but there is much confusion and no clear guidelines on...

Most Recent Industry Reports

May 2018 Camera Course on Apr 20, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
April 2018 IP Networking Course on Apr 19, 2018
This is the last chance to register for our IP Networking course. Register now. NEW - 2 sessions per class, 'day' and 'night' to give you double...
Rare Video Surveillance Fundraising - Verkada $15 Million on Apr 19, 2018
Fundraising in video surveillance (and the broader physical security market) has been poor recently. Highlights are few and far in between...
'Best In Show' Fails on Apr 19, 2018
ISC West's "Best In Show" has failed. For more than a decade, it has become increasingly irrelevant as the selections exhibit a cartoon level...
Security Camera Cleaning Frequency Statistics on Apr 18, 2018
150+ integrators told IPVM how often they clean cameras on customer's sites and why.  Inside we examine their answers and break down feedback...
Worst Access Control 2018 on Apr 18, 2018
Three access control providers stood out as providing the most problems for integrators. In this report, we analyze the answers to: "In the...
Axis VMD4 Analytics Tested on Apr 17, 2018
Axis is now on its 4th generation of video motion detection (VMD), which Axis calls "a free video analytics application." In this generation, Axis...
Arecont CEO And President Resign on Apr 17, 2018
This is good news for Arecont. Arecont's problems have been well known for years (e.g., most recently Worst Camera Manufacturers 2018 and starting...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact