As the fire alarm systems market continues to evolve amid increasing safety regulations and technological advancements, industry confidence remains strong.
According to SDM’s 2024 Industry Forecast, 83 percent of security professionals rated the state of the fire alarm market to be in the range from good to excellent, while 17 percent believe the state of the market is poor or fair.
The forecast also found a considerable majority of installing contractors either currently offer/sell/install fire alarm products (62 percent) or plan to in the next one to two years (12 percent). Another 5 percent are discussing offering them in the next three to five years.
Ahead, industry veterans from both the manufacturing and integration sectors provide valuable insights into the latest trends in the fire alarm systems market, highlighting the innovations and developments that are driving the industry’s growth and shaping its future.
Regulatory-Driven Market Growth
Grand View Research, a San Francisco-based market research firm, is forecasting the North American fire protection systems market size to reach $37.4 billion by 2030, registering a compound annual growth rate (CAGR) of 3.6 percent.
Several key factors account for the steady growth projections. A significant driver is the increasing regulatory pressure to ensure compliance with fire safety codes, such as those set by the National Fire Protection Association (NFPA). These regulations mandate the installation of fire detection and suppression systems across commercial, residential and industrial sectors, boosting demand for advanced fire safety equipment.
Richard Haig, CEO of Haig Service Corp., Green Brook, N.J., is very bullish about the future of the fire market, namely because of codes and regulations.
“We as an industry have one of the longest lived assets within a long-lived asset, the building,” Haig says. “The fire systems are 20-year assets by most hotel and high rise mandates when they build them. It is a 20-year asset before they look to cycle it out. The sprinklers are usually forever. That too is a long-lived asset. On average our attrition rate shows we hold customers between nine and 12 years. That is a statistic that is supported over the past 20 years of statistics that we’ve been tracking. We are in a code-supported line of business that’s not going to go away.”
Technological advancements are also propelling the market. Smart technologies and IoT-enabled fire protection systems are becoming more prevalent, offering features like real-time monitoring, predictive maintenance and automated responses. These systems not only improve fire detection accuracy but also enhance operational efficiency, making them appealing to businesses focused on minimizing risks and ensuring continuous operations.
Among other sector accelerators, growing construction activities, particularly in commercial and industrial settings, are fueling demand for fire safety systems, sources tell SDM.
“North American industry growth is being driven across several key verticals including data centers, energy storage facilities, hospitality and multi-family construction, as well as warehouse and distribution center new construction and retrofits,” says Sanjeev Kumar, executive director of product management and connected offerings,Edwards, Pompano Beach, Fla.
In the past year, Kumar says Edwards has observed significant macro trends driving increased change and growth in the fire and life safety market. These include:
- A rising demand for intelligent systems with addressability, has enabled more precise alarm identification, reducing false alarms, and improving emergency response times.
- The focus on early smoke detection has grown as organizations recognize the need for timely fire detection. Technologies like Edwards’ ModuLaser Aspirating Smoke Detectors (ASD) are at the forefront, offering advanced safety features.
- Cloud-based connectivity has revolutionized fire safety management, enabling real-time data collection, remote monitoring, preventative maintenance and faster decision-making.
“These trends are driven by the continuous advancement of new technologies being integrated into detection and notification devices, system panels and management tools,” Kumaradds.
Landline cutting and POTS replacement in communications from the premise to the central monitoring station continues to be a positive trend with cellular technology as the method of choice in the fire market, comments George Brody, president, Telguard, Atlanta.
Brody notes the company’s TG-7FM communicator, recently announced for the commercial fire market, features multi-carrier technology, supporting all three major U.S. carriers (AT&T, Verizon and T-Mobile). The TG-7FM is designed to ensure continuous coverage, employing a patent-pending selection process during installation. This process intelligently chooses the carrier with the best signal strength and data quality in the area, automatically selecting it as the primary network.
“The fire alarm business continues to perform well in 2024 and the outlook is for another excellent year,” Brody says. “With code-driven requirements necessary for commercial facilities, steady new construction and consistent retrofitting will all play a positive factor in near term growth.”
NAPCO of Amityville, N.Y., also views fire communications as a major opportunity, especially as traditional phone lines become obsolete. The transition away from POTS is driving demand for new communication solutions like NAPCO’s Starlink product, which is performing well in the market across multiple vertical niches, says Duane Warehime, vice president of sales. Additionally, more fire systems now require monitoring, a shift driven by local codes or Authorities Having Jurisdiction (AHJs), even when national codes don’t mandate it. This trend is expanding the need for monitored fire systems, he says.
“The POTS lines are not working, and we’re seeing all the time where they’re being switched over to VoIP,” Warehime says. “Often, carriers will arrive at a facility and make the switch without much notice. They claim to have informed the customer, but either the customer didn’t pay attention or wasn’t notified properly. After the switch, the fire alarm system stops working correctly, and the dealer steps in and upgrades the communications, which can sometimes involve multiple buildings.”
Recently introduced Starlink communicator models include dual SIM cards to operate automatically on either the Verizon or AT&T networks, depending on the best signal strength. “What’s nice about what we’re doing is it has this auto switchover capability,” Warehime adds. “So now, for example, if I have a bad Verizon signal in a moment in time, I’m still going to be able to get through on AT&T and get the signal out. The redundancy is built in, plus having an IP port there you can do dual path.”
Laura Wall, vice president of product management, AES Corp., Peabody, Mass., comments the need for transmitting more data from fire panels continues to evolve and impact the fire market. Also, the shift to an RMR model continues to change and offer dealers and integrators more opportunities to generate revenue.
“POTS lines continue to go away allowing for opportunities to update old systems and move into wireless technologies,” Wall says. “AES [mesh technology] communicators are perfect for those applications and markets where a customer does not want to, or cannot, rely on public infrastructure to transmit alarm signals.”
Because AES customers manage and own their own mesh networks, Wall adds that finding ways to make it easier for them to manage these networks as well as decreasing installation times is a top priority for the company.
“We continue to focus on new products to help them do this. We recently launched our new IntelliNet Network Control Center Software, as well as the Extender wireless antenna which helps our customers do both,” she says.
Current State of the Market
SDM asked in November 2023, “How would you rate the current state of the market for fire alarm/emergency communications?”
The POTS lines are not working, and we’re seeing all the time where they’re being switched over to VoIP. Often, carriers will arrive at a facility and make the switch without much notice. They claim to have informed the customer, but either the customer didn’t pay attention or wasn’t notified properly.
Advances in Peripheral Devices
Doug Hoeferle, global marketing director, Honeywell Fire, Northford, Conn., says the fire alarm industry, including Honeywell, continued to see strong demand for fire alarm systems and performed better in 2023 than the prior year. Growth in 2024 is being driven by improved performance, thanks to ongoing enhancements in supply chain stability and predictability, he adds.
“Overall, we’re seeing a shift to connected solutions that provide end users awareness of their system status,” Hoeferle says. “End users are being more proactive with their systems and may have on-site emergency response teams.”
Among technologies considered to be the most promising for sales and overall industry growth, Hoeferle cites self-testing detectors that reduce the time needed for system commissioning, testing and inspections.
“While a traditional smoke alarm test requires technicians to physically introduce smoke into the detector, with our recently introduced self-testing smoke detector, a technician can test an alarm by simply establishing a near field connection and activating the detector’s self-test feature,” he explains. “This fully functional test meets the same NFPA and UL requirements as traditional inspection methods but can be completed in a fraction of the time.”
Self-testing smoke detectors and similar technologies have the potential to revolutionize fire and life safety system installation, testing and maintenance, driving significant industry disruption, Hoeferle suggests.
“Because technicians can execute inspections from outside the room, self-testing smoke detectors save facility managers and occupants the hassle of unwanted interruptions — and because these detectors can be anywhere from above a conference table to a hotel room to a patient’s room in the ER, curbing disruptions is crucial,” Hoeferle says. “And lastly, self-testing smoke detectors also provide additional safety because it eliminates any human error: With an automated process, you receive a tracked report that clearly delineates each and every detector was tested.”
Although the fire/life-safety marketplace performance has been impacted by industry-wide price increases, Kumar says Edwards’ growth is being driven by continued global expansion and by launching innovative products that bring new capabilities, drive efficiencies and deliver cost-savings to industry stakeholders. Edwards has experienced substantial upgrade and retrofit business as end users transition from the EST3 fire alarm and emergency communications platform to EST4. Kumar also notes a significant uptake in deployments of the ModuLaser, an early smoke detection product. The emphasis on early smoke detection has intensified as organizations recognize the critical importance of detecting fires in their nascent stages, Kumar says.
“ModuLaser features a uniquely flexible, modular and fully scalable design that is equipped with ClassiFire, a patented artificial intelligence technology,” he adds. “ModuLaser is designed to meet the needs of challenging environments, reduce nuisance alarms and make installing and protecting your facility simple, customizable and cost efficient.”
Boosting First Responder Connectivity
Emergency communication enhancement systems (ERCES) are essential for ensuring that first responders can maintain reliable communication inside buildings during emergencies. These systems amplify radio signals to overcome the challenges posed by large structures, dense materials or underground areas that can interfere with radio coverage. Many jurisdictions are now requiring ERCES to meet building codes and fire safety regulations, ensuring critical communication is not disrupted during fire or emergency events.
David Roberts, president of North Little Rock, Ark.-based integration firm Encore Technology Solutions, explains that particular regulatory changes can be expected to fuel growth in the deployment of ERCES projects.
ERCES are required by model fire codes for new buildings, he says. The design, installation, testing and maintenance of these systems are covered by NFPA 1221, and with the adoption of the 2021 International Fire Code and NFPA 1 Fire Code, ERCES are required to be listed in accordance with UL 2524, the standard for in-building emergency responder communication enhancement systems.
According to the NFPA’s website, the 2022 edition of NFPA 1225, Chapter 18 specifically addresses building emergency responder communications enhancement systems. Prior to the 2022 edition of NFPA 1225, requirements for this technology were found in NFPA 1221, Standard for the Installation, Maintenance, and Use of Emergency Services Communications Systems.
“I truly believe the aforementioned changes, regarding the new requirements for ERCES, is the biggest disruptor we’ve seen in the life safety industry in recent history,” Roberts says. “We have been fortunate to design/install over 10 ERCES solutions in Arkansas in the last two years and have seen firsthand the opportunity for life safety professionals and integrators to grow and improve the future of our industry.”
“Most importantly,” Roberts adds, “with the enhancements to system communications, these new requirements will further protect two of our most important assets — our property and our people. Secondly, this will be an expansive opportunity to further our client service offerings through both installation and maintenance.”
Hoeferle also notes the rising opportunity to enhance life safety in buildings and facilities with ERCES deployments — a key focus area with AHJs.
“While both UL and NFPA have developed standards for the manufacturing and installation of these systems, wide-scale adoption and enforcement of this technology has not yet been achieved,” Hoeferle says. “Here is another example of how our industry can positively impact the outcomes for first responders by improving the communications coverage inside buildings. It’s important to remember that it’s not just firefighters here — EMS, law enforcement and other emergency agencies also need reliable communications within these facilities and these ERCES systems have the same level of integrity as that of a fire alarm system.”
While NAPCO is not involved in the manufacturing of these systems, Warehime also notes the expanding opportunity for dealers and integrators to participate in ERCES projects.
Every three years the various model codes, as well as the installation standards for fire alarm and signaling systems, are updated. A handful of states will begin adopting these codes and standards within 12 to 18 months after they are published, explains Doug Hoeferle of Honeywell Fire.
“For instance, the 2021 edition of the International Fire Code (IFC), International Existing Building Code (IEBC), NFPA 1 (Fire Code) and NFPA 101 (Life Safety Code) were published in the fall of 2022,” he says. “California has adopted the 2021 IFC, but it did not go into effect until Jan. 1, 2023; while Oregon is still in the process of adopting the 2021 IFC. Florida and Massachusetts have also initiated the process to adopt NFPA 1 and NFPA 101.”
Hoeferle provided the following key changes to model codes that will enhance public life safety:
Group S Occupancies — A new section was added to the International Fire Code (IFC) that requires public self-storage occupancies that are three stories or greater in height with interior corridors or interior common areas to have a manual pull station that activates the fire alarm occupant notification system.
Strobe lights are not required within storage units. An exception stipulates that a manual fire alarm system is not required when the building is equipped with an automatic sprinkler system that activates the notification appliances after sprinkler water flow switch activation. This new requirement will increase their available safe egress time for occupants in multi-story public self-storage buildings.
520 HZ Low Frequency Audible Alarm Signal — New provisions were added to the IFC, NFPA 1 and NFPA 101, which requires the audible alarm signal from smoke alarms installed in sleeping rooms of hotels, university dormitories and apartment building bedrooms to be the low frequency signal. This requirement only applies when the code requires these buildings to have a fire alarm system. The new section stipulates that where a sleeping room smoke alarm is unable to produce a low frequency signal, the low frequency signal shall be provided by a listed notification appliance or a smoke detector with an integral low frequency sounder.
This change will enhance the safety of all people sleeping in hotels, dormitories, and apartment buildings but most importantly high-risk segments of the population such as school-age children, people who are hard of hearing, the elderly and people who are alcohol impaired.
Mass Notification Risk Analysis — A change was made to NFPA 101 that will help to protect students and faculty in existing K-12 schools during all types of emergencies. When an existing K-12 school is replacing the fire alarm system, the code requires a risk analysis to be performed in accordance to determine if a mass notification system is required.
Where a mass notification system is required by the risk analysis, a mass notification system shall be in installed in accordance with Chapter 24 of NFPA 72. This change will help to protect students and faculty in existing K-12 schools during all types of emergencies and may lead to more mass notification systems being installed.
Smoke Detection — Earlier this year, a new UL smoke detector standard went into effect known as UL 268 7th edition. This product listing requires smoke detectors to not only perform better in detecting smoldering fires, but also in reducing false alarms from cooking fumes. This standard is now in effect for any new sites and also sites upgrading their fire alarm systems.
Revenue Change Expectations
SDM asked, “Compared to this year, how do you expect your company’s revenue in each of the following categories to change in 2024?”
Overall, we’re seeing a shift to connected solutions that provide end users awareness of their system status. End users are being more proactive with their systems and may have on-site emergency response teams.
The National Fire Protection Association (NFPA) conducted an in-person survey of industry professionals during the NFPA Conference & Expo (C&E) in June to gain insights into trends around training and development, the use of digital tools, and AI implementation within the skilled trades industry.
One in four respondents believe AI could assist skilled trade workers in streamlining tasks, particularly during labor shortages — a significant challenge noted by multiple sources for SDM’s 2024 fire market report.
“One of the biggest threats dealers and integrators are currently facing is finding and securing skilled labor,” comments Doug Hoeferle of Honeywell Fire. “Not only is the industry struggling with the realities of the currently limited labor market, but as the latest fire product solutions level up, so do the skillsets of the personnel needed on site. It becomes more difficult to find qualified people to do the job. Technicians now need to understand how the technology works, how to program it and how to interact with it.”
Hoeferle notes that while the skill level required to operate life-safety devices is rising across the industry, new solutions are being developed to make integrators’ jobs easier and more efficient. This includes systems designed to be easier to install, commission and maintain by using connected technologies that streamline or automate manual tasks, enabling technicians to diagnose systems and collaborate remotely.
“Ultimately, we want to help technicians be more productive with the time they have,” he says.
Nearly 20 percent of survey respondents reported that they or their organizations have started exploring AI-enabled tools to automate routine tasks. Additionally, 31 percent believe AI could drive industry growth by attracting younger workers to skilled trades. Conversely, nearly one-half (47 percent) of respondents said they are not currently leveraging AI in their day-to-day work and are skeptical of it.
Respondents also cited utilizing AI to act as a “personal assistant” to field workers for hyper-personalized and on-the-go learning (13 percent); streamline manual processes to save time (12 percent); and enhance learning and development initiatives, such as those delivered via virtual reality (8 percent).
The NFPA refers to “digital tools” as technology solutions being adopted by skilled trades workers to enhance productivity and efficiency. Examples of these tools include mobile apps for managing projects and digital platforms for tracking compliance and safety protocols. Indeed, the utilization of digital tools is positively impacting training and development programs, according to survey results.
A large majority (82 percent) of respondents report using digital tools each day to help streamline training and development programs. The majority of respondents within this group recognize the diverse benefits that digital tools offer the skilled trades industry, including:
- Making training easier (98 percent).
- Saving time while training (94 percent).
- Streamlining the process of conducting trainings (95 percent).
However, respondents also noted challenges in leveraging digital tools within their day-to-day operations, despite an increase in the number of participants using five or more tools on a daily basis compared to the 2023 C&E survey results.
For example, 69 percent of respondents cited collaboration as the top challenge for 2024, a 29 percent increase from last year’s results. The top-reported challenges teams face in leveraging digital tools include: collaboration (69 percent); inspection (51 percent); and complexity of projects (46 percent).
Challenges persist when it comes to advancing training and development programs, with 70 percent citing lack of time as the biggest barrier. Additional hurdles include:
- Determining the right training (41 percent).
- Lack of access to qualified instructors (48 percent).
- Overwhelmed with options and/or a lack of time to vet training programs (32 percent).
- Keeping track of which trainings are needed to maintain professional licenses (22 percent).
- Lack of technology to disseminate trainings to employee bases (18 percent).
- Inability to track and/or document training completions by employees (15 percent).
Nineteen percent of respondents reported that the skilled labor shortage has reduced opportunities for career growth through training and certifications. Additionally, 38 percent noted that it has negatively impacted the time and money spent on recruitment and retention efforts, while 14 percent have had to decline projects due to insufficient qualified labor.
Adding Fire Services
SDM asked, “Are you offering, or planning on offering, fire alarm products and services?any’s revenue in each of the following categories to change in 2024?”
North American industry growth is being driven across several key verticals including data centers, energy storage facilities, hospitality and multi-family construction, as well as warehouse and distribution center new construction and retrofits.
“That is a $50,000 starting point for a tiny job. And they’re being required all over the country, especially in the major urban areas,” Warehime says. “[An end user] who was planning on a particular budget now has to bump up their budget in order to be able to put in an ERCES system as well.”
Looking to the horizon, the fire/life-safety industry can expect continued development in emergency response enhancement systems, Warehime surmises. By example, he attended the recent National Association of State Fire Marshals convention in Kansas City, where stakeholders discussed extending the concept of “911 Inside” beyond first responder radio communications to include cellular communication.
“Someone was saying, ‘Why wouldn’t we want people’s cell phones to work everywhere to call 911, anywhere in the building?’ So there’s a fire in your room, all of a sudden you don’t have a cell signal in your part of the building and you can’t call 911 because you don’t have a good cell signal,” Warehime describes. “There are a lot of things that are being talked about to continue improving and expanding the functionality of fire alarms and well beyond fire alarm.”
