Recovery Is Here… For Surveillance Gear

 Security video has been growing especially rapidly in China and the Middle East.
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More than 9 percent year-over-year growth? That kind of performance would make most industries and countries jump for joy. But that's what's happening in the worldwide market for video surveillance equipment in 2010, according to a new report from England-based IMS Research.

“Whilst the economic downturn did impact the global video surveillance equipment market in 2009, fiscal stimuli from governments and the inherent demand for video surveillance equipment mitigated the magnitude of the impact,” said report author and IMS Research analyst Gary Wong.

The "fiscal stimuli" to which Wong refers includes the so-called Stimulus Bill in the United States, which has sent billions of dollars into surveillance through the Department of Homeland Security, programs for state and local governments, and under the banner of broadband development. Security video has been growing especially rapidly in China and the Middle East.

The impact of the downturn was more profound in the analog video surveillance equipment market than in the network video surveillance market, the report said. The global market in analog video surveillance shrunk by more than 5 percent in 2009, while the network video surveillance market grew by more than 18 percent,

IMS forecasts a "short and sharp recovery" for the total market for video surveillance equipment in 2010, bolstered by strong network video surveillance growth. The introduction of high definition (HD) network cameras and the increasing adoption of open standards (such as ONVIF/PSIA) are expected to further accelerate the migration towards network video surveillance.

Conversely, the market for analog video surveillance equipment, with the exception of China, is forecast to recover more slowly and to remain challenging for vendors, particularly as the enterprise market segment continues to transition quickly towards network video surveillance solutions and the low-end market becomes increasingly price competitive. But analog video surveillance equipment still represents the majority of annual unit shipments and demand shows no signs of disappearing in the foreseeable future, the report said.

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