Video-Surveillance Market Forecast to Reach $20.5B by 2016

The bombing in Boston could increase sales
Author:
Publish date:

Global revenue for the video-surveillance equipment market is projected to increase to $20.5 billion in 2016, a 114 percent increase over the $9.6 billion spent in 2010, according to an analyst and consultant. In addition, the bombing in Boston could fuel increased sales, the analyst says.
History shows that high-profile terrorism events like the Boston bombing can drive increased government spending on security, and global sales of video surveillance equipment could exceed the booming growth already predicted for the market, according to IHS, the consultant which is located in Englewood, Colo.
Therefore, IHS is updating its video-surveillance spending forecast to take into account the Boston bombing, the company says.
“The growth outlook of the video-surveillance industry is subject to significant variances,” said Paul Everett, IHS’ senior manager, video surveillance. “This is because the market is dependent upon the vagaries of several intertwined factors that are difficult or impossible to predict, including economic conditions, government spending and notorious terrorism incidents.
“While it’s too early to tell exactly what impact the Boston bombing will have, past events—like 9/11 and the London Underground bombings—have led to increased government spending on video surveillance for public spaces, particularly in the transport sector,” Everett said.
Government funding and legislation play a major role in total video-surveillance spending, even though economic factors are also an important consideration, IHS says. The U.S. Federal Emergency Management Agency has issued 11 grants for physical-security equipment and video surveillance that have generated millions of dollars of spending, the analyst says.
The banking and retail sectors are also major spenders on video surveillance and have a major influence on overall market growth.
The development of new technologies also is contributing to rising spending on video surveillance. Currently the market is undergoing a transition from analog to network solutions that enable network-based control and the monitoring of security and surveillance.
By 2014, the global market for network-based video surveillance will climb to $7 billion, surpassing for the first time analog-video system sales, which are forecast to be $6.5 billion, IHS says. Network systems provide a range of advantages compared to analog, including the use of megapixel security cameras that can capture high-definition images that improve the accuracy of video surveillance and security, the analyst says.
Click here for more information.

Related