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Videosurveillancetechnology
growthsettoexceed10%in2015
London, UK
The global video surveillance industry can defy con-
ventional market logic, resist product commoditisa-
tion and still grow by more than 10 percent in 2015,
according to a new white paper from IHS Inc.
The global market for video sur-
veillance equipment was worth an
estimated $15.0 billion by the end
of 2014, up from $13.5 billion in
2013. By 2018, worldwide rev-
enue will reach a projected $23.6
billion, as shown in the attached
figure, equivalent to a five-year
compound annual growth rate of
12 percent.
"The year 2014 has been one
of the most interesting and
disruptive in recent memory for
both the professional and consum-
er video surveillance industries,"
said Jon Cropley, principal analyst
for video surveillance and security
services for IHS. "A sharp decline
in the cost of semiconductor
components has ushered in a new
era of price competition and the
competitive landscape has shifted,
with merger-and-acquisition
activity affecting some of the lead-
ing global product and software
vendors."
Even so, the video surveillance
industry can sustain this level of
fragmented supply base and over-
all revenue growth for a number
of reasons, such as brand recogni-
tion, subtle differences in end-user
requirements among geographical
locations and the continued dif-
ferentiation of products, as with
the use of embedded analytics, for
example.
Differentiation will be a key
market driver for almost every
equipment vendor, distributor
and integrator active in the
video surveillance market over the
next couple of years. This trend
represents the first of 10 that
IHS has predicted for the video
surveillance industry in 2015. The
remaining trends include:
Shipments of high-definition
closed-circuit televisions (HD
CCTV) cameras are projected
to have hit over 4 million units
in 2014, climbing from just
1 million units in 2013. Led
by the strong performance of
technologies such as composite
video interface (CVI), analogue
high-definition (AHD) and
transport video interface (TVI),
2015 will see the analogue portion
of the market far outsell digital,
serial digital interface (SDI)-type
solutions. However, fierce price
competition and small incremen-
tal product upgrades are expected
throughout the year.
H.265 was one of the most
popular topics at the Security
China Show held in Beijing in
October 2014, marking a shift in
cutting-edge video surveillance.
In 2015 China will emerge as a
leading region in product develop-
ment, instead of the market being
driven primarily from European
and North American research
and development (R&D) centres.
Some leading Chinese companies
now have the world's largest teams
devoted to video surveillance
R&D. With complete product
portfolios and cost-competitive-
qualified products, more Chinese
suppliers are also seeking oppor-
tunities in the global landscape,
gaining share in non-domestic
markets.
Increasing numbers of tradi-
tional IT vendors are taking note
of the opportunities in video
surveillance, and the migration
from analogue to network surveil-
lance cameras has changed the
way many security systems are
conceived, built and managed.
The global video surveillance
equipment and storage market is
forecast to be worth over $28 bil-
lion by 2018.
The consumer and do-it-
yourself (DIY) video surveillance
market, which comprises equip-
ment sold through in-store or
online retailers, was worth $953.4
million globally in 2013. Small
business as well as commercial end
users accounted for 47 percent of
the $953.4 million total in global
consumer and DIY market rev-
enue in 2013. IHS expects to see
more video surveillance vendors in
the professional not consumer
category taking an interest in this
market in 2015, in order to fill
out the low end of their product
offerings.
Video surveillance equipment
sold through distribution chan-
nels was estimated to account for
55 percent of global equipment
revenue in 2013 and represent
over 60 percent of European
market revenue in the same year.
Furthermore, these percentages are
forecast to increase as integrators
and installers take advantage of
the benefits of purchasing equip-
ment through distribution.
Trials of body-worn cameras as
part of video surveillance systems
for law enforcement have been
ongoing during 2014, but 2015 is
expected to be the year that firm
orders and long-term partnerships
are made. Body-worn cameras are
not just useful as part of an overall
video surveillance solution, they
can also be part of a political solu-
tion in helping to promote faith in
local law enforcement officers.
Embedded vision the combi-
nation of embedded systems and
computer vision will have new
implications in Advanced Driver
Assistance Systems (ADAS) in the
automotive industry, with innova-
tions in ADAS filtering back into
the video surveillance industry.
Jon Cropley, principal analyst for
video surveillance and security services
for IHS.
Security firm G4S, which provides
services to protect people, facili-
ties and assets across the region,
predicts an annual growth rate in
the market of ten per cent across
Egypt and the Gulf States.
Speaking ahead of a secu-
rity conference in Dubai, G4S's
G4SpredictsMEsecuritymarkettoreachover$7Bin2015
Dubai, U.A.E
The world's largest security company has forecast the
Middle east security market to be worth more than
US$7 billion in 2015.
regional managing director for the
Middle East, Chris Fergus, said
that the energy sector continues to
drive regional demand for safety
and security services.
"The inherent risks involved in
the extraction, transportation, and
management of precious natural
resources in the Gulf, is boosting
demand for security and safety
services from fire alarm systems
through to the provision of
security officers and sophisticated
technology. Companies operating
across the Middle East are looking
for security partners who can pro-
vide total security solutions that
combine technology and expertise.
"G4S understands the wider
challenges of oil and gas industry
protection and helps producers to
maintain and build trust in the secu-
rity of their assets, reduce operational
costs and build stronger reputa-
tions by improving overall business
performance. The falling oil price has
renewed companies' determination
to reduce production and operational
costs and working with other provid-
ers of these services including
security can help them to achieve
that." Fergus explained.