The global video surveillance market will increase by 3 percent in 2009, says an IMS Research report. That figure is significantly lower than historical market growth and is reflective of the severe impact of the economic slowdown on the video surveillance industry.
Report author and IMS Research analyst Gary Wong states, “The economic downturn has undoubtedly impacted global video surveillance growth in 2009, but the market for IP video surveillance equipment continues to grow strongly.” Wong continues, “Whilst the global market for analog video surveillance equipment will be effectively flat in 2009, the growth rate for global IP video surveillance equipment is likely to exceed 15 percent.”
This growth forecast, he says, is corroborated by recent third quarter financial updates from a number of publically traded IP video surveillance firms, and data reported to IMS Research’s quarterly network camera tracking service. The quarterly tracking data shows strong growth in the Americas market for IP video surveillance equipment, with the region on course to meet IMS Research’s growth forecasts for 2009 and 2010.
According to Wong, the Middle East is a prime example of a relatively immature video surveillance market that has experienced strong IP video surveillance adoption. The rapid growth of IP video surveillance in the Middle East can be partially attributed to the vast number of greenfield projects, he notes. Security consultants and integrators operating in the Middle East are generally more IT savvy than their European and US counterparts; another key factor driving IP video surveillance growth in the region.