A new study from market research analysts Frost & Sullivan has shown that increased awareness and adoption of IP solutions is acting as a major factor in this renewed growth.
Meanwhile, market research publisher Key Note has released data estimating that, in 2006, the total UK market for the design, supply, installation and maintenance of CCTV systems was worth 560m at end-user prices- a rise of 5.7% on 2005.
Both studies suggest that, while there is growing interest in CCTV for the home, the market continues to be dominated by demand for CCTV in the public security. Increased fears about violent crime and terrorism are thought to be the reason for this trend.
Equipment prices have been falling for several years, and this is suggested as another major contributor in the market growth. Cheap products are now sourced from countries with low labour costs, and the development of the world market for CCTV is leading to economies of scale in production. The new research suggests that price competition is more severe at the lower end of the market, with manufacturers forced to fight for customers.
IP
The CCTV and video surveillance equipment market in Europe is the most active segment within the security industry when compared to other building security equipment, and this is demonstrated by the surge of activity in the IP surveillance domain.
IP network cameras began to have a large impact in 2005, when the market was worth $1.42 billion, and demand for these is showing strong growth. With customers beginning to regard them as the most effective way of deterring crime, and huge levels of publicity, it is perhaps no surprise that the market is witnessing a major technological transition to network-enabled surveillance solutions.
“More than any other factor, the unnoticed breaches in security, followed by the subsequent loss of either personal or sensitive data, have heightened the need for CCTV and video surveillance solutions as part of security systems in every organisation,” says Frost & Sullivan Research Analyst Archana Umesh Rao. “Across Europe, it is evident that awareness levels of the need for video surveillance are at an all-time high, following acts of terrorism, vandalism and violence.”
CCTV and video surveillance systems capable of capturing, transmitting and recording real-time data are seen by many as the only effective deterrent to crime.
“A strong analogue market, followed by years of experience of security companies in offering traditional CCTV products, is rendering it difficult for manufacturers to make installers look beyond what they have been offering up to now,” explains Rao. “As a result, educating end users and installers, as well as making them aware of the huge benefits and the return on investment for network solutions should remain a key focus area for market participants.”
A great deal of the new market involves extending and upgrading existing networks, and integrating different security systems. In many cases, some legacy equipment has to be retained. There is demand for equipment that facilitates this integration, including the use of digital and analogue cameras on the same network.
The Key Note data forecasts that, between 2007 and 2011, the market will grow by between 3.9% and 4.1% year-on-year at current end-user prices. The CCTV market is expected to be driven by concern for public security and reactions to the crime rate, as well as by the need to replace and upgrade security systems as organisations refurbish their premises.
IP cameras using JPEG-4 (Joint Photographic Experts Group-4) compression technology are expected to show some of the strongest growth.
