Research: IP Video Surveillance Market Defies Downturn, Grows 15 Percent In 2009 -- Security Today

Research: IP Video Surveillance Market Defies Downturn, Grows 15 Percent In 2009

Jan 12, 2010

The latest data from IMS Research suggests that the global video surveillance market will increase by 3 percent in 2009. This figure is significantly lower than historical market growth and is reflective of the severe impact of the economic slowdown on the video surveillance industry.

“The economic downturn has undoubtedly impacted global video surveillance growth in 2009, but the market for IP video surveillance equipment continues to grow strongly.” IMS Research analyst Gary Wong said. “While the global market for analogue video surveillance equipment will be effectively flat in 2009, the growth rate for global IP video surveillance equipment is likely to exceed 15 percent.”

This growth forecast is corroborated by recent third quarter financial updates from a number of publically traded IP video surveillance firms, and data reported to IMS Research’s quarterly network camera tracking service.

The quarterly tracking data shows strong growth in the Americas market for IP video surveillance equipment, with the region on course to meet IMS Research’s growth forecasts for 2009 and 2010.

“Nascent markets for video surveillance equipment which have embraced IP video surveillance technology will significantly outperform global market growth in 2009 and will continue to thrive in 2010,” Wong said.

The Middle East is a prime example of a relatively immature video surveillance market that has experienced strong IP video surveillance adoption. The rapid growth of IP video surveillance in the Middle East can be partially attributed to the vast number of greenfield projects.

Security consultants and integrators operating in the Middle East are generally more IT savvy than their European and U.S. counterparts; another key factor driving IP video surveillance growth in the region.

IMS Research’s forthcoming “Middle East CCTV and Video Surveillance -- 2009 edition” discovered that while some areas within the Middle East region -- in particular Dubai -- have been heavily affected by the economic downturn, the impact has been restricted to certain market verticals, and the region as a whole is forecast to grow strongly through 2010.

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