Report: Economic Downturn Continues To Dampen Video Surveillance Market Growth
- By Brent Dirks
- Aug 31, 2009
Even with the economic downturn, a new report from UK-based IMS Research is forecasting the world market for video surveillance equipment will grow by 3 percent in 2009.
The updated report, “The World Market for CCTV and Video Surveillance -- 2009 Edition,” revises more optimistic estimates the firm made earlier this year.
“Cleary the economic downturn has disrupted historical growth trends within the global video surveillance market,” said IMS Research analyst Gary Wong. “In the last IMS Research market update released in February, global video surveillance revenues were expected to grow by 6 percent in 2009. A more sustained, deeper recession has led us to cut the forecast to 3 percent.”
The mature Western European is forecasted to be hit the hardest in 2009, with video surveillance equipment revenues falling nearly 7 percent. The firm said the drop in growth reflects the dire economies of countries like the UK and Spain.
In the Americas, video surveillance is expected to see growth, even though it will be smaller than previous years. Despite the economy, the firm said growth will be helped by government investment and trickle down from stimulus funds.
Verticals including transportation and education are still strong this year in the Americas because video surveillance is thought of as a necessary expenditure in the markets.
The firm also said the transition to network-based security is helping the overall market in the Americas. The network video surveillance market in the region is forecast to grow at more than four times the rate of the EMEA region.
In Asia, since the economies have been less affected, investment in video surveillance has continued to remain strong. IMS is forecasting that the market will be the fastest growing region for video surveillance in the world, driven by sustained demand in China.
But while 2009 growth is forecast to be modest, IMS says the market will begin to improve in late 2010 with improving economies, the transition to IP and emerging markets key to recovery.
Brent Dirks is senior e-news/Web editor for Security Products and Network-Centric Security magazines.