A report covering the UK security market says that fear of terrorist attack has stimulated growth of the CCTV sector.
The report, The UK Security Installers Market to 2006 published by MSI Marketing Research for Industry Ltd* covers the three main technology sectors, intruder alarms, access control and CCTV.
“…The threat of terrorism will impact significantly on the growth for CCTV in 2002 and 2003 following the terrorist attacks in America,” says the report.
The CCTV section of the report details the size of the market and forecasts the future prospects for this sector. The following extracts look at the value of the market, details who specifies CCTV and looks at how the market is expected to develop.
What is the value of the CCTV Market?
The CCTV sector has been a strong growth area within electronic security market during the review period. Indeed, market value is estimated to have increased by 16 per cent between 1997 and 2000. The market is projected to increase by a further 5 per cent in 2001 with growth at the end of the year stimulated by fear of terrorist attacks.
The use of CCTV has become an extremely useful tool in crime prevention and detection. The installation of CCTV systems in public places has proved very effective in reducing crime rates and people generally feel safer when it is in use, particularly when terrorist attacks are feared. The main function of CCTV is to allow remote viewing and surveillance, typically from many different cameras back to one location.
A CCTV system can be installed so that the camera is fitted overtly or covertly. However, the Data Protection Act has meant that cameras fitted now must be easily seen and noticed. In centres and commercial premises, an overtly placed camera has more impact in deterring crime.
The police have benefited greatly from the widespread use of CCTV as they can monitor town centres and record incidents as they happen. CCTV can provide the necessary evidence that a crime has been committed. As a consequence, the images recorded by CCTV systems enable the police to convict offenders and assist with court prosecutions. Local authorities use CCTV to monitor traffic, for people management and controlling traffic lights during special events.
Many technological developments have occurred within the CCTV market during the review period. The major changes are maintenance free, colour systems, fibre optic cables, wireless communication and digital technology. These changes have resulted in clearer, high resolution images and a more efficient, feasible system for the end user to specify. Constant technological advancements have also meant that renting CCTV systems has become an attractive option. In 2001 a projected 56 per cent of the market value will be accounted for by rented CCTV systems.
The use of CCTV has played an important role in town centre regeneration. In July 1998, the CCTV initiative was launched in England and Wales, as part of the governments Crime Reduction Programme. The scheme was granted GB pound 153 million and the first phase began in 1999, followed by a second injection of funds in August 2001 MSI believe the retail sector is the largest end user of CCTV, and in 2001 is projected to account for 32 per cent of the market value. The retail sector has a clear interest in crime prevention because it threatens profits, prices and employment. For the retail industry, CCTV can be utilised to monitor both customers and staff. Moreover, crime in the retail sector range is mainly theft related, but various acts of violence also occur.
Which end users specify CCTV?
Technological advances in CCTV systems and the use of integrated security systems has made monitoring retail premises much more feasible. Camera operators can use radio links with shop staff and police/security personnel to apprehend criminals.
The commercial sector covers a range of end users, including banks, offices, car parks, airports and sports stadia. The use of CCTV for these applications have been very effective in reducing crime levels. In sports stadia, the use of CCTV has been beneficial for crowd control and in preventing hooliganism. CCTV in these types of premises will often be part of an integrated security system.
The public and civil sectors are traditional end users of CCTV systems, as they have an obligation to protect the public against crime. The installation of CCTV systems in town and city centres across the UK has been a positive step in reducing serious offences, such as theft, violence and terrorism, and nuisance offences, such as vandalism, graffiti and littering. CCTV is increasingly being specified by hospitals and educational establishments for surveillance purposes, in combating crime and anti-social behaviour.
The installation of CCTV in and around infrastructure, particularly road and rail links has also been very successful. CCTV systems have aided traffic management and deterred acts of violence, such as road rage. The privatisation of the rail industry has enabled Railtrack and the TOCs to invest in CCTV systems to enhance the safety of workers and passengers and to reduce vandalism and trespassing on the rail network.
The industrial sector, particularly manufacturing, has limited capital available for investment in sophisticated CCTV systems. However, installations of more basic systems have been in demand.
How will the CCTV market develop?
MSI believe that the CCTV market will increase during the forecast period. The market is expected to increase by as much as 18per cent in real terms between 2002 and 2006.
MSI believe that the threat of terrorism will impact significantly on the growth for CCTV in 2002 and 2003 following the terrorist attacks in America. According to trade sources, growth in the CCTV sector will occur with CCTV operating as a surveillance application and remotely monitored as part of an integrated system with access control.
The use of CCTV will increase in public areas where other security systems such as access control will not be efficient. Financial institutions, commercial buildings, such as airports, and public and civil building will be forced to tighten their security and CCTV will be the most viable option. In addition, end users which are capable of immediate capital investment will do so in the near future, whereas other companies which have less capital will plan their investment which may take place over a couple of years.
The use of digital technology is expected to accelerate during the forecast period, and will stimulate demand for higher quality CCTV Systems. Digital recording offers many benefits to the end user, by allowing cost-effective recording of large amounts of data in digital format, onto digital cassettes. This then eliminates the need for the end user to maintain a catalogue of analogue tapes. Digital recording provides fast access to data required, and provides the end user with the ability to record images, whilst playing back previous images from an earlier time.
However, the price of digital CCTV systems, in comparison with analogue systems, is expected to constrain their penetration into the market. Many manufacturers of digital CCTV systems have adopted installer partnerships, with the aim of increasing installers’ knowledge and skills, so that the end user will benefit from high standards of installation to meet their needs.
The increased competition within the UK CCTV market is expected to reduce prices of analogue systems, fuelling demand from a range of end users.
The data communications area is also expected to develop during the forecast period. The use of LAN and WAN will undoubtedly increase, making information easily accessible. The integration of security systems facilitates the use of networks, and also digital CCTV, because it is software based.
The government is committed to the continual investment in CCTV systems as a security and surveillance application in an effort to deter and detect crime, particularly terrorism. The government is reported to have plans to invest a further GB pound 170 million into more installations of CCTV systems across England and Wales, within both urban and rural areas.
According to trade sources, the PSDB will have a more active role to play within the CCTV market. This will occur through enforcing guidelines and specifications relating to the management of CCTV digital systems. These guidelines will adhere to requirements set out in the Data Protection Act, but may increase prices of digital CCTV.
