25 Mar, 2016
Windfall Profits: Terrorism to Generate 23% Surge in Global Video Surveillance Market
LONDON–(BUSINESS WIRE)–March 23, 2016 – Technavio analysts expect the global video surveillance market for 2016-2020 to reach USD 64 billion by 2020 growing at a CAGR of almost 23%, according to their latest report.
According to Amrita Choudhury, lead analyst at Technavio for IT Security research, “Rising instances of criminal activities in government organizations and enterprises are driving the video surveillance systems market worldwide. Advances in technology in the market are prompting organizations to invest in video monitoring solutions to keep a check on people and their behavior. The use of video surveillance is increasing in the retail sector because of a rise in the number of pilfering cases, which leads to inventory shrinkage.”
Technavio’s lead ICT research analysts have identified the following four factors that will drive the global video surveillance market:
- Shift from analog to IP cameras
- Increased demand for wireless network infrastructure
- Rise in terrorist activities
- Adoption of cloud-based services
Shift from analog to IP cameras
A number of enterprises are adopting IP cameras, owing to their many benefits. The total cost of operation of IP cameras is much lower than analog cameras, and includes their installation, maintenance, and labor costs. These cameras are flexible, scalable, and can be easily installed. As a result, they can be adapted to the changing needs of a customer. IP cameras can easily be integrated with the existing security devices. Further, the images produced by these cameras are of high quality.
IP cameras have built-in servers or encoders that help in image encryption and provide multi-level user access control, which prevents third-party manipulation. The adoption of IP cameras first began in cities like Dubai and Abu Dhabi, and is gaining further popularity in the rest of the Gulf countries. The use of IP cameras has grown largely in facilities such as stadiums, city surveillance projects, and hotels as they are relatively cost-effective and cover a large area.
Increased demand for wireless network infrastructure
Video surveillance includes the use of networks for connecting various devices such as cameras, video recorders, storage devices, and phones. Despite the advantages offered by video surveillance solutions, such as scalability and flexibility, they incur high network deployment cost and maintenance cost.
In order to avoid the additional charges incurred due to wired network, enterprises are opting for wireless network infrastructures. Wireless video surveillance provides security to critical infrastructures such as airports and cities without additional wiring and maintenance cost. It reduces the installation cost and the cost of hiring professionals.
“With an increase in geographically dispersed infrastructures, centralized supervision for security has become a necessity. This has resulted in increased use of wireless video surveillance, which acts as an alternative to the costly wired infrastructures,” says Amrita.
Rise in terrorist activities
Lack of investments in video surveillance leads to a rise in anti-social activities like terrorist attacks. Therefore, large enterprises, including government organizations, across the globe are increasingly installing video surveillance equipment in their premises to curb criminal activities and control hostile situations.
Stringent regulations have also been passed by countries worldwide to increase security by installing video surveillance solutions in public locations such as hypermarkets, hospitals, airports, railway stations, hotels, and malls. In the recent mishap that took place in France, killing several people working at the French magazine Charlie Hebdo’s office in Paris, the criminals were identified with the help of footage captured by the cameras installed in the premises.
Adoption of cloud-based services
The growing use of cloud-based technologies will fuel the growth of the global video surveillance market. Large enterprises and various government organizations are rapidly adopting cloud-based services that ensure a centralized, searchable repository of historical data. Cloud-based services can be used across the world without time and location constraints. These services ensure low cost of ownership along with improved management of the complexities involved with huge data volumes.
Enterprises face many issues dealing with a huge amount of data generated from video surveillance. Improper management may lead to loss of critical data, which may prove catastrophic for enterprises. Cloud-based services ensure scalability on demand without additional costs.
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