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security
technology market
hardware sales are expected to
witness a boost in the initial years
of adoption. Software segment
would also follow the suit, but
due to its lower revenue ratio in
a surveillance system, its market
size would remain comparatively
low. The rising number of new IP
surveillance system installations
in the country would continue
to drive the sales of associated
software.
Though cloud technology
has been a feasible and low-cost
technology in most countries,
specifically due to lower initial in-
vestment, this technology is yet to
gain prominence in South Africa.
Cloud-based solutions would gain
importance in the country with
the increasing penetration of cloud
services in various industries. In
the current scenario, cloud service
providers are charging high prices
so as to recover their initial R&D
investments. These factors col-
lectively act in congruency to limit
the adoption of cloud-based sur-
veillance in the current scenario.
However, with growing awareness
and price reduction, cloud-based
surveillance would witness consid-
erable growth during the forecast
period.
The analysts suggest that exist-
ing analogue surveillance systems
installed at residential buildings
in the country would witness
threat of replacement from IP
surveillance systems in the com-
ing years. However, the replace-
ment of analogue with IP would
be comparatively slower in this
sector. As analogue surveillance
systems are low cost and easy to
install, small security profession-
als prefer these systems and high
number of such cameras are being
installed in the country every
year. Due to the considerable
price difference between analogue
and IP surveillance systems, the
former is often preferred by the
security solution vendors. Now,
it has become a tough task for
the IP device manufacturers to
convince the installers to switch
to IP surveillance. Nevertheless,
commercial and government
sectors are gaining prominence in
the South Africa IP surveillance
market. n
The revenue from the sales of
hardware accounted for nearly
60%, whereas cloud services,
software and other services segment
accounted for around 40% of the
revenue in 2013. Cloud-based
solutions are expected to witness
tremendous growth opportunities
in future as it reduces the total cost
of ownership for the customers.
The manufacturing and corporate
sector is expected to grow at the
fastest CAGR during the forecast
period. The residential and health-
care sector are other key application
areas that are expected to evolve as
huge markets for IP surveillance
during the forecast period. In the
year 2012, revenue from the sales
of analogue IP surveillance hard-
ware sales surpassed the revenue
from the sales of analogue devices.
The video surveillance equip-
ment market in South Africa is
largest among all other countries
in Africa. With the growing
technological advancements in the
country, IP surveillance is gaining
foothold, however, analogue sys-
tems would maintain its presence
through the forecast period due
its cost effectiveness and huge
install base in various sectors. As
the surveillance industry is in
developing stage in the country IP
surveillance market would witness
incremental growth in South Af-
rica, during the forecast period.
Hardware are the key products
required for the installation of
IP video surveillance system.
With rising numbers of new
installations and updating the
existing analogue systems, the
RSAVSaaSmarkettoreach$51.8M
Portland, Or (USA)
According to a new report by Allied Market Research
entitled, "South Africa IP Video Surveillance and
VSaaS Market Size, Industry Analysis, Trends, Op-
portunities, Growth and Forecast, 2013-2020", the
South African IP video surveillance and VSaaS market
is expected to reach $51.8 million by 2020, registering
a CAGR of 16.1% during 2014-2020.
The video surveillance equipment market in South Africa is largest among all other countries in Africa.