History shows that major terrorist incidents such as the Boston bombing can prompt the government to increase security spending, and global video surveillance sales may exceed the expected higher growth level.
According to IMS Research, a division of IHS, the operating income of the global video surveillance equipment market will rise from US $ 9.6 billion in 2010 to US $ 20.5 billion, a 114% increase in 2016. Even so, IMS is currently updating the aforementioned forecast to take into account the impact of recent events such as the Boston bombing. These incidents may affect spending on security, thereby bringing additional growth to the market.
Figure 1 shows the current IMS forecast for the global video surveillance equipment market. This type of equipment includes a wide range of products, including analog and network video surveillance equipment and accessories.
Figure 1: Global video surveillance equipment market forecast, broken down by product type (operating revenue in millions of dollars)
IHS believes that the growth prospects of the video surveillance industry are very variable. This is because the market outlook depends on a number of interacting and unpredictable factors that are difficult or impossible to predict, including economic conditions, government spending, and terrorist incidents. Although it is not yet known exactly what impact the Boston bombings will have, previous incidents, such as the September 11 incident in the United States in 2001 and the London subway bombings, have caused the government to increase spending and strengthen video surveillance in public areas, especially in Transportation field.
Government funding and legislation are important roles that affect video surveillance spending, as are economic factors. The Federal Emergency Management Agency (FEMA) has issued 11 subsidies for physical security equipment and video surveillance, bringing in millions of dollars in expenditure.
The banking and retail industries are also major purchasers of video surveillance and have an important impact on overall market growth. For example, the financial crisis and economic recession in 2009 led to a decline in video surveillance investment in the United States and the world that year.
The development of new technologies is also driving the increase in video surveillance spending. The market is currently transitioning from simulation to network solutions, using the network to control and monitor security and surveillance equipment. The global market for online video surveillance will climb to US $ 7 billion by 2014, surpassing analog surveillance for the first time, which is expected to be US $ 6.5 billion by then.
Compared with analog monitoring, network systems have a series of advantages.
One of the main advantages of the network system is that it is equipped with a megapixel surveillance camera, which can capture high-definition pictures and improve the accuracy of video surveillance and security. Another advanced feature is the use of network video recorders and external storage technology, which has the advantages of more efficient and lower cost compared to local hard disk recorders. In addition, the network video surveillance system can also be integrated with access control and other non-surveillance technologies to form a complete system.
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