Revenues in South Africa for network video surveillance equipment have passed those of analog for the first time, according to analysis from IHS.
The South Africa video surveillance market is worth around $90 million, making it the largest single market on the continent, but it is also one of the most mature markets. The “tipping point” milestone — where revenues in network surveillance surpass those of analog — is significant for the market in Africa generally, as it is such an important market for security equipment and services.
However, IHS also gave a hint of caution, saying that low growth, a weakening Rand, and labour disputes in certain key vertical markets are maintaining growth in the SA surveillance market to single digits for 2013 and 2014.
Analysts also noted that despite the revenue picture, units of analog equipment remain higher than network equipment — unsurprising, given the relative costs.
And with a buoyant residential surveillance market — driven by a middle class concerned with their safety at home — analog equipment will continue to be popular, due to its low cost and ease of installation in a market where the skillset for installing IP equipment is not as mature as it is in Europe and North America.
Education will be key in convincing installers to diversify into installing network equipment, but in the main this will also be driven by demand from the market.
High-value projects are expected to continue driving growth in network surveillance in the region, and this is sure to be a hot topic at the IFSEC Global Academy education programme, which takes place within IFSEC South Africa in Johannesburg on 13-15 May 2014.
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