Report: Despite Economic Uncertainty, Outlook for Video Surveillance Market Remains Strong

While the worst of the first global recession has subsided, another, potentially larger and deeper downturn looms on the horizon. Despite this fairly terrifying specter, IMS Research remains confident that demand for CCTV and video surveillance equipment will remain strong through 2012 -- growth for network video surveillance equipment sales is forecast to exceed 25 percent.

Looking back at what happened during the last global recession, despite the economic turbulence, the global CCTV and video surveillance equipment market continued to grow throughout the downturn. In a previous press release (The Tipping Point Approaches -- July 2011), Senior Analyst Gary Wong stated, “The world market for video surveillance equipment continued to achieve strong growth in 2010, in excess of 10 percent, despite the persistent after-effects of the global economic downturn."

Wong also noted that “While the global analog market was relatively depressed in 2010, the network video surveillance market continued to grow almost three times as fast as the total market in 2010, more than 30 percent.”

So why did the video surveillance industry continue to grow while many other industries suffered greatly during the first downturn? Well, the answer is, unfortunately, not a simple one and is due to the combination of a multitude of different factors split by vertical and geographic markets. However, there are two overriding themes.

The first is that despite economic turmoil, security (and video surveillance) does not become less relevant. The fear of terrorism and crime, an increasing focus on return on investment and government stimulus spending saw video surveillance equipment sales continue to grow in 2010 and 2011.

Secondly, while the last economic downturn did impact all countries, it did not impact all countries equally. As a result, the technology transition from low value analog video surveillance equipment to higher value network video surveillance equipment continued during the downturn and bolstered total video surveillance sales.

Throughout 2011 this trend continues to hold, with analog equipment sales remaining muted and network equipment sales continuing to flourish. Two examples include: Axis Communications announcing that, between January and September 2011, net sales had increased by 37 percent in local currencies and Mobotix announcing that it had closed its 2010/2011 financial year (Jul 2010 to June 2011) with 36 percent sales growth on the previous year. These growth rates are particularly impressive as both companies are well established and should serve as a positive indicator regarding the overall health of the market.

“The global video surveillance equipment market is forecast to continue to grow through 2012, spearheaded by sustained strong demand for network video surveillance equipment in the BRIC markets,” Wong said.

While the ongoing Eurozone crisis threatens to plunge much of the world back into another, and potentially deeper, recession, the BRIC countries continue to remain relatively unaffected.

IMS Research forecasts that network video surveillance sales in the BRIC markets are forecast to grow in excess of 30 percent in 2012.

Wong also notes, “Some market players may be better placed than others to deal with a potential second recession. Vendors that have focused heavily on regional diversification, investing in developing brand presence and sales infrastructure in emerging markets, should prove to be more resilient to a Eurozone meltdown.”

While the business environment for video surveillance equipment vendors will undoubtedly become difficult in the coming year, the underling factors guiding why people buy video surveillance equipment should continue to see video surveillance equipment sales show steady growth; sales of network video surveillance equipment will shape the growth of the total market.

Featured

  • Maximizing Your Security Budget This Year

    7 Ways You Can Secure a High-Traffic Commercial Security Gate  

    Your commercial security gate is one of your most powerful tools to keep thieves off your property. Without a security gate, your commercial perimeter security plan is all for nothing. Read Now

  • Making Safety and Security Intrinsic to School Design

    Public anxieties about school safety are escalating across the country. According to a 2023 Gallup report, 44% of parents fear for their child’s physical safety at school, a 10 percentage-point increase since 2019. Unfortunately, these fears are likely to increase if the incidence of school tragedies continues to mount. As a result, school leaders are now charged with two non-negotiable responsibilities. The first, as always, is to ensure kids have what they need to learn, grow, and thrive. Sadly, their second responsibility is to keep the children in their care safe from threats and physical danger. Read Now

  • The Power of a Layered Approach to Safety

    In a perfect world, every school would have an unlimited budget to help secure their schools. In reality, schools must prioritize what budget they have while navigating the complexities surrounding school security and lockdown. Read Now

  • How a Security System Can Enhance Arena Safety and the Fan Experience

    Ensuring guests have both a memorable experience and a safe one is no small feat for your physical security team. Stadiums, ballparks, arenas, and other large event venues are increasingly leveraging new technologies to transform the fan experience and maintain a high level of security. The goal is to preserve the integrity and excitement of the event while enhancing security and remaining “behind the scenes.” Read Now

Featured Cybersecurity

Webinars

New Products

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings. 3

  • Mobile Safe Shield

    Mobile Safe Shield

    SafeWood Designs, Inc., a manufacturer of patented bullet resistant products, is excited to announce the launch of the Mobile Safe Shield. The Mobile Safe Shield is a moveable bullet resistant shield that provides protection in the event of an assailant and supplies cover in the event of an active shooter. With a heavy-duty steel frame, quality castor wheels, and bullet resistant core, the Mobile Safe Shield is a perfect addition to any guard station, security desks, courthouses, police stations, schools, office spaces and more. The Mobile Safe Shield is incredibly customizable. Bullet resistant materials are available in UL 752 Levels 1 through 8 and include glass, white board, tack board, veneer, and plastic laminate. Flexibility in bullet resistant materials allows for the Mobile Safe Shield to blend more with current interior décor for a seamless design aesthetic. Optional custom paint colors are also available for the steel frame. 3

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge. 3