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How Security Contractors Expand Revenue Streams

By Ron Broussard

TL;DR: Security contractors looking to add revenue don’t necessarily need to start with a new customer base. One option is to add a product or service category that existing customers already buy from someone else. Start by looking at the categories closest to the work your technicians already perform, the licensing and training required to take them on, and whether demand already exists inside your current accounts. Industry data points to continued opportunity across video surveillance, video analytics and AI, access control, managed services, fire alarm, intrusion, and monitoring, but market growth alone doesn’t tell you which category makes sense for your company.

Adding a second category sounds simple until you start looking at what has to come with it.

The product is only one piece. You may need a new license or certification, technician training, test equipment, estimating experience, manufacturer support, and enough familiarity with the work to know what your first estimate is missing.

That’s why the better starting question isn’t simply “Which security category is growing fastest?” It’s “Which category can this company realistically add with the customers, technicians, and capabilities it already has?”

The opportunity may already be sitting inside accounts you serve today. A customer who knows you for intrusion may also be buying video, access control, fire alarm, networking, or another low-voltage category from somebody else. Before building an entirely new sales pipeline, it is worth understanding what your existing customers already need and where your current capabilities can reasonably expand.

The market data helps put that opportunity in context. In SDM’s 2026 Security Industry Forecast, 71% of respondents expected revenue increases in both video surveillance and video analytics and AI. SDM also reported expected growth from at least 60% of respondents in access control and managed services, while more than 40% expected increases in fire alarm, intrusion, and monitoring. Those figures show where dealers and integrators see opportunity across the industry. They do not tell an individual contractor which category to add first.

That’s what this guide is about: how to evaluate an adjacent category, what capabilities may have to come with it, how to approach the first jobs, and where a distributor can help during the transition.

Start with the customers you already serve

Before building a sales pipeline for a new category, look at the customers and buildings where your technicians already work.

You already know the account. You may know the facility contact, the systems in the building, how the customer operates, and where your current scope begins and ends. That gives you a useful starting point for identifying adjacent work the customer may already be buying from another contractor.

Run the exercise against your own customer list. For each active commercial account, write down what you provide today and what other security or low-voltage systems are in the building. If you handle intrusion and access control, who handles video or fire alarm? If you installed the cameras, who owns the network supporting them? Are there other systems such as structured cabling, gate access, intercom, or AV that fall outside your current scope?

You don’t need to assume every adjacent system is an opportunity. Ask. The useful information is whether the customer already buys that category, who currently provides it, and whether there is a reason they would consider consolidating more of the work with a contractor they already know.

Do that across enough accounts and a pattern can start to emerge. If the same category keeps appearing outside your scope, you have something more useful than a general market trend: visible demand among customers your company already serves.

That doesn’t automatically make it the right category to add. Licensing, training, equipment, staffing, manufacturer requirements, and the economics of the work still matter. But it gives you a much stronger place to start evaluating the opportunity.

The question becomes less “Which category is growing?” and more “Which category are our customers already buying that we could realistically learn to deliver well?”

How to choose which category to add

Once you see where customers are already buying outside your current scope, narrow the options against four questions before you start comparing potential margin.

  • How close is it to work your technicians already do? Look at the skills the new category shares with your current work: cabling, device installation, networking, programming, troubleshooting, documentation, commissioning, and customer support. The more overlap there is, the less completely new capability you have to build. But don’t assume two low-voltage categories are interchangeable just because they live in the same building.
  • What licensing or credentials does it require? Requirements can change by state, local jurisdiction, scope of work, and product category. Fire alarm, security, electrical, and other low-voltage work may each carry different company or individual requirements. Find out what applies before you build a sales plan around the category.
  • What new tools, equipment, and training come with it? Don’t stop at the product cost. Look at test equipment, programming tools, software, manufacturer training, certifications, documentation requirements, and anything else your technicians would need to perform and support the work properly.
  • Are your customers already buying it from somebody else? This is where the customer exercise becomes useful. If the same adjacent category keeps showing up across accounts you already serve, you have evidence of demand inside your own customer base rather than relying entirely on an industry forecast.

A category can be growing nationally and still be a poor first move for your company if it requires licensing you don’t yet hold, technical capabilities you haven’t built, equipment you haven’t budgeted for, or a customer base you don’t currently serve.

The better fit sits at the intersection of customer demand, technician capability, regulatory requirements, and what it will take to deliver the work well.

Where the work is heading and what that means for your investment

Category fit matters today, but there is another question worth asking before you invest in training and equipment: What additional skills will this category require as the technology changes?

Video is a good example. In its 2026 security technology trends, MOBOTIX highlights sensor fusion, edge-based analytics, device cybersecurity, and greater integration between video, access control, alarm, and building systems. Cameras are increasingly part of a connected system rather than standalone devices.

For contractors evaluating video surveillance, that makes networking knowledge increasingly relevant. IP addressing, switching, bandwidth, remote connectivity, cybersecurity practices, and system integration can all become part of delivering and supporting the system, depending on the products and scope involved.

The service side is changing too. SDM’s 2026 Security Industry Forecast found 65% of respondents planned to offer remote video monitoring within the next two years. The same forecast rated video analytics and AI at 3.5 out of 5 as a market segment in 2025, up from 3.3 in 2024.

There is also evidence of continued growth among larger systems integrators. SDM’s 2026 Top Systems Integrators report showed aggregate systems integration revenue among ranked companies increasing from $8.40 billion in 2024 to $9.72 billion in 2025, a 15% increase.

None of those numbers means every contractor should add video, analytics, or managed services. They do show why evaluating a new category only by the hardware being installed today can miss part of the investment.

Ask what capabilities sit underneath the category. Will your technicians need stronger networking skills? Manufacturer training? Software or cloud-platform knowledge? Cybersecurity awareness? Remote-service capabilities? And will those skills transfer into other categories your company may want to support later?

That last question matters because some technical capabilities can support more than one revenue stream. Networking knowledge, for example, can be useful across video surveillance, access control, intercom, AV, and other IP-based systems. Building a transferable technical capability can give you more options than training around a single product alone.

How to build capability in a new category

Adding a category creates a staffing question before it creates a revenue stream: who is going to learn the work, and how much field capacity can you afford to pull into training at once?

You don’t necessarily need to train the entire crew at the beginning. Starting with one technician can give the company a person who develops deeper familiarity with the new products, installation requirements, programming, testing, and troubleshooting while the rest of the team keeps working in categories they already know.

Choose that person carefully. Technical ability matters, but so does troubleshooting skill and the ability to bring what they learn back to the rest of the team. The goal isn’t just to get somebody through a class. It’s to begin building capability the company can eventually spread across more technicians.

Whenever possible, connect training to actual work. A manufacturer class or certification is more useful when the technician has an opportunity to apply it soon afterward rather than learning a product or process the company may not touch again for months.

That doesn’t mean the first job has to be performed entirely in-house. Depending on the category and your team’s experience, you may decide to work alongside a qualified subcontractor, manufacturer representative, or other technical resource while your technician gets exposure to the work. Licensing and supervision requirements still have to be followed where applicable.

Before building training from scratch, look at what already exists. Manufacturers and distributors may offer product training, certification courses, hands-on sessions, online modules, and other technical education. Some programs are product-specific, while others may support broader licensing or technical preparation.

Labor availability makes that planning more important. SDM’s 2026 Security Industry Forecast identified finding and retaining employees as the top business challenge reported by surveyed dealers and integrators. When experienced labor is already difficult to find, developing additional capabilities within the team you have can be one path to supporting expansion.

But training should have a business reason behind it. Before sending someone to class, know what the new capability is supposed to unlock. Is there a customer asking for the work? A project you currently subcontract? An RFP you can’t fully respond to? A category showing up repeatedly across existing accounts?

That gives you a better way to evaluate the investment than simply counting training hours. The question is whether the new capability allows the company to pursue and support work it could not confidently take on before.

What changes when you add fire: licensing and certification

Fire alarm is a good example of why adding a category can involve more than learning the product. Depending on where you operate and the work you plan to perform, licensing, certification, permitting, inspection, and manufacturer requirements may all affect how quickly you can begin taking on fire alarm projects.

Start with the jurisdiction where you plan to work. Requirements can vary by state and may also involve local authorities, so determine what the company needs, what the individual technician or qualifier needs, and what applies to the specific scope of work you intend to perform.

Those requirements can come from different places:

  • Company licensing. A state or other authority may require the business itself to hold a license or registration before performing certain fire alarm work. The application requirements, qualifying individuals, insurance, bonding, experience, and other conditions vary by jurisdiction.
  • Individual licensing or certification. Technicians, designers, installers, inspectors, or qualifying individuals may need separate credentials depending on the jurisdiction and the work being performed. NICET certification is recognized or referenced in some fire alarm requirements, but whether it is required, accepted, and at what level depends on the applicable authority and scope of work.
  • Manufacturer training or certification. Some manufacturers have their own requirements for activities involving particular systems or products. Before building a new offering around a product line, confirm what training, certification, authorization, software access, or other manufacturer requirements apply.
  • Codes, permits, and inspections. Determine which codes and standards have been adopted in the jurisdiction where the project will be performed and what the applicable authority requires for permits, plan review, installation, testing, inspection, and documentation.

Don’t assume that a credential covering intrusion, access control, electrical, or another low-voltage category automatically covers fire alarm work. Confirm the requirements before bidding the job, not after you’ve sold it.

The same principle applies when expanding into any new category. Licensing and regulatory requirements for access control, video surveillance, AV, networking, and other low-voltage work can vary based on the jurisdiction and scope. The fact that your company already performs one type of low-voltage work does not automatically establish what it can legally perform in another.

For fire alarm specifically, start with the state or local authority responsible for the work, such as the applicable licensing agency, fire marshal, or AHJ. Then confirm any additional manufacturer requirements for the equipment you intend to sell, install, program, service, or inspect.

The important part is sequence: understand the requirements before you build the category into your sales plan. A market opportunity doesn’t help if you’ve already promised a scope your company isn’t yet authorized or prepared to perform.

Bidding your first job in a new category, and what comes after

The first estimate in a new category has a problem your established work doesn’t: you don’t have your own production history yet.

Material is relatively straightforward to quote. Labor is harder. Your estimator may know exactly what the equipment costs without yet knowing how long your crew will take to install, program, test, document, and close out the system.

Before the first proposal goes out, look beyond device count and make sure the estimate accounts for the work surrounding the installation:

  • Programming, commissioning, and testing. Determine what has to happen after the equipment is physically installed and who is qualified or authorized to perform it.
  • Permitting and inspection. If the work requires permits, plan review, inspections, or coordination with an AHJ, understand that process and account for the associated time and fees. Requirements vary by jurisdiction and category.
  • An unfamiliar installation process. Your crew may need more time on early projects while technicians become familiar with new equipment, programming workflows, testing procedures, or installation requirements. Build the estimate from what you reasonably expect the work to require rather than assuming production rates from a category you already know will transfer directly.
  • Documentation and closeout. Depending on the project, the scope may include submittals, drawings, calculations, test records, as-builts, operating documentation, or other closeout requirements. Identify those deliverables before you price the work.

If there is a portion of the project your company is not yet prepared or authorized to perform, bringing in a qualified subcontractor or other authorized resource may be an option, subject to the licensing, contractual, and supervision requirements that apply to the project. That can also give your team exposure to the work without pretending it already has experience it doesn’t.

Product support matters here too. Before finalizing the bill of material for an unfamiliar system, use the technical resources available from the manufacturer or distributor to verify product compatibility, required accessories, power requirements, licensing or software needs, and other product-specific details. That review doesn’t replace the contractor’s responsibility for the design or scope, but it can help surface product questions before material is ordered.

Once the company can install and support the category consistently, look at what can come after the initial project. Depending on the category and your business model, that may include inspection, maintenance, monitoring, managed services, or other recurring service agreements.

There is real industry evidence behind the recurring-revenue opportunity. SDM’s 2026 SDM 100 report found recurring monthly revenue among ranked companies increased 7% in 2025 to its highest reported level in a decade, with 90% of companies reporting RMR growth.

That doesn’t mean recurring revenue should be bolted onto every new category immediately. First make sure you can deliver and support the underlying work reliably. Then evaluate which ongoing services make sense for the category, your customers, and your operation.

What a distributor should be doing for you

When you’re moving into an unfamiliar category, a distributor should be more than the company that ships the equipment.

The useful support happens around the product: helping you understand the line, connecting you with training and manufacturer resources, working through product questions, and helping you identify what you may be missing before material gets ordered.

That can include:

  • Product and application support. Your distributor should be able to help you understand the products available for the application, compare options, identify compatible components and accessories, and connect you with manufacturer technical resources when the question goes beyond the distributor’s role.
  • Training resources. Ask what manufacturer classes, certification programs, hands-on training, counter days, online education, or other technical resources are available before you send technicians elsewhere looking for them.
  • Bill-of-material review. On an unfamiliar product line, another set of knowledgeable eyes can help catch product compatibility questions, required accessories, power supplies, licensing, software, or other components that may be easy to overlook. That support doesn’t replace the contractor’s responsibility for system design, code compliance, or project requirements.
  • Product availability and lead-time visibility. Before you promise a project schedule, understand what is available, what may need to be ordered, and whether there are alternatives worth considering if a specified product has a long lead time.
  • Manufacturer access. When a question requires engineering, programming, certification, warranty, or other manufacturer-specific expertise, your distributor should be able to help connect you with the right resource rather than guess at the answer.

For contractors moving toward fire alarm, training and licensing preparation are worth asking about directly. Security Data Supply runs a fire alarm licensing class in Dallas, and your franchise team can tell you what training is currently available for the category and the jurisdiction you work in.

Security Data Supply also gives contractors access to product lines across fire alarm, intrusion, video surveillance, access control, networking, AV, wire, and related low-voltage categories. That range can be useful when you’re evaluating an adjacent category because you can discuss the products, training requirements, availability, and manufacturer resources before committing to a line.

The important distinction is that the contractor still owns the work. The distributor can support product selection, documentation, training access, and manufacturer coordination. It does not replace the contractor, system designer, manufacturer, licensing authority, or AHJ where those roles apply.

Thinking about adding another category?

Bring the opportunity to your local Security Data Supply franchise before you build the proposal. Tell the team what you install today, what you’re considering adding, and what kind of project is driving the decision. That gives the conversation somewhere concrete to start.

Find your local franchise

Frequently asked questions

What is the best new revenue stream for a security contractor to add?

There isn’t one category that makes sense for every contractor. Start by looking at what your existing customers already buy outside your current scope, then compare those opportunities against your technicians’ skills, licensing requirements, training needs, equipment costs, and ability to support the work.

Do I need a license to install fire alarm systems?

Requirements depend on the state, local jurisdiction, scope of work, and role your company will perform. Fire alarm work may involve company licensing, individual licenses or certifications, permitting, inspections, and other requirements. Confirm the requirements with the applicable licensing authority and AHJ before bidding or performing the work.

How much does it cost to train a technician in a new security category?

There isn’t one standard cost. The investment can include course or certification fees, technician time, travel, test equipment, programming tools, software, manufacturer requirements, and time spent gaining experience with the new systems.

Can I bid a job in a new category before my team has experience with it?

First confirm that your company is legally permitted to contract for the work and can meet any licensing, certification, supervision, manufacturer, or project requirements. Depending on the category and jurisdiction, working with a qualified subcontractor or other authorized resource may be an option while your team develops experience.

How can Security Data Supply help contractors add another category?

Security Data Supply franchises can help contractors evaluate product options, identify available training and manufacturer resources, work through product-specific questions, and understand product availability as they prepare for a new type of project. Talk with your local franchise about the category you’re considering and the type of work you’re preparing to take on.

About the author

Ron Broussard is Chief Executive Officer of Security Data Supply and has spent more than 30 years helping security, fire, and low-voltage businesses grow through strong distribution partnerships. He has held executive leadership roles across distribution and manufacturing, giving him a broad perspective on the challenges contractors, integrators, and distributors face every day. At Security Data Supply, he guides the company’s franchise network, vendor relationships, and long-term growth strategy.

Methodology

This article combines published security-industry research with practical considerations for contractors evaluating expansion into an adjacent product or service category. Market figures are attributed to the sources listed below.

Licensing, certification, permitting, and code requirements vary by jurisdiction and scope of work. Contractors should verify current requirements with the applicable licensing authority, AHJ, manufacturer, or other governing organization before bidding or performing work in a new category.

Security Data Supply training programs, product support, and other services described in this article reflect current offerings at the time of publication.

Sources and further reading