A new market research report that forecasts a 3.7 percent compound annual growth rate (CAGR) for the security equipment industry—including CCTV and video surveillance equipment—to 2016, is available from Reportlinker.com.
The survey focused on three main product segments including access control, CCTV/video surveillance and intruder alarms, the report says. However, while a 3.7 percent CAGR is broadly predicted over the next 5 years, demand will be very patchy in the developed markets of the world, the report says. Growth will need to come from the enormous latent demand for security equipment waiting to be exploited in the emerging markets of the world, according to the report.
The survey focused on three main product segments of the physical security industry, including access control, CCTV/video surveillance and intruder alarms, Reportlinker says.
During the last two years, the physical security industry has increased revenues and profitability whilst merger and acquisition has surged by more than doubled to $9.847 billion. In addition, despite 2011’s troubled economic climate, the physical security industry “outperformed most peers,” the report says. Therefore, the physical security industry “looks like a safe port in the storm,” the report says. Other findings listed in the report are:
That to continue reducing the impact of a recession on demand requires continued innovation and more effective systems at lower prices
That falling Internet protocol prices together with much easier to install products and improved performance have increased the return on investment and the total cost of ownership of this fast growing technology
That the physical security industry is still a fragmented market despite two percent of the players taking 49 percent of the product business
That the total value of security equipment world production at factory gate prices was $19.17 billion, and of that video surveillance product production reached $9.1 billion, or 47 of the market.
That defense and information technology industries are recognizing the opportunities within the physical security industry and will likely leverage their technological expertise and “financial muscle” to contribute to the growth of the industry.