In 2018, Allegion delivered another year of industry-leading organic growth and profitability. We did this by executing on the company’s strategic pillars and building on our core strengths in specification, enterprise excellence and product offerings that strike the right balance between category leadership, innovation, convenience and efficiency. We delivered more than 13 percent total revenue growth, with top-line growth in all three regions. Total revenue growth was assisted by acquisitions made during the year, including AD Systems, Gainsborough, ISONAS, QMI and TGP. Our specification writing capabilities and channel strategies are key to enabling these businesses to meet their full potential.
We know that the best way to predict the future is to shape it. That’s why innovation is part of our culture and a driving force for our employees. From the manufacturing floor to IT and product teams, our company of experts are “curious beyond the obvious,” creating solutions that better serve our customers around the world. More than half of our engineering jobs were dedicated to future products (electronics and software), and open platforming continues to help us integrate with other solutions and get to market faster. Our investments in digital transformation extended beyond hardware products. Overtur, our cloud-based suite of specification tools that centralizes data, reduces errors and allows more collaboration with architecture partners and project teams, was launched in all three regions. In addition, Allegion’s annual Trailblazer Innovation Tournament continues to tap into employee creativity and extend our innovation pipeline.
1 IHS Markit; All third party marks are the property of the respective owners
Electronics continue to be a growth area, and worldwide sales of electronic locks for physical access control is expected to reach $2.6 billion by 20221. By enabling legacy products to become smarter and investing in forward-thinking technologies, Allegion is pushing the boundaries to offer customers comprehensive solutions that pair mechanical strength with electronics, edge devices and cloud-based security solutions. In 2018, Allegion’s Americas electronics revenue growth outpaced the market, across residential and non-residential businesses.
Outside-in thinking was in the forefront in 2018. Allegion Ventures was formed in March to invest beyond the core, finding technologies that can make security and access smarter, stronger, faster and less intrusive. For example, investing in Pindrop, a pioneer in voice security and authentication, can add a second layer of authentication to heighten security. Our business also formed alliances with European smart-home innovator Nuki. Integrations with leading software solutions and consumer platforms embedded Allegion solutions into connected building and voice-assistant technology.
Throughout Allegion, our employees seek out ways to better understand, meet and anticipate customer needs and improve the user experience. As we look to the future, Allegion’s vision of “seamless access and a safer world” serves as the inspiration for refreshed strategic pillars.