Global CCTV Market Analysis (2008-2012)

Contributed by RNCOS

Executive summary

he global video surveillance market has been experiencing significant growth for the past few years on the back of rising concerns for security and safety across the globe. This, in turn, has resulted in the increased demand for technically advanced surveillance system, therebycreatinghugegrowthopportunities for CCTV manufacturers, operators and distributors. The global CCTV market is projected to reach around US$ 19 billion by the end of 2013, growing at a CAGR of around 21% since 2011. This growth rate undoubtedly points out that the global market has vast potential for CCTV consumption, especially in countries where security has become a major area of concern. At the regional level, Asia will gain significant share in the global CCTV market by 2013 end, accounting for over 34% of the total market, close to American and European markets. Developing countries like India and China with huge population bases will be the key drivers in the Asian market. Additionally, three major economies, viz., Malaysia, Thailand and Taiwan will be the key drivers for CCTV growth in the region. The report provides reason-based analysis of the global CCTV market with focus on key growth drivers that influence present and future market outlook of the CCTV market in different geographical regions. The report discusses key CCTV market profiles including the US, Canada, the UK, Italy, Germany, Russia, China, Thailand, Malaysia, Taiwan, India, and Brazil. We have chosen these countries for the purpose of our study on the basis of current market trends and future

growth potential. As per our report Global CCTV Market Analysis (2008-2012), the analogue CCTV market currently dominates the global CCTV market, but the scenario will change by end of 2013. In future, network IP technology will emerge as the leading CCTV technology. Various factors that will drive the IP technology market in the near future have been covered in the report. It also details the potential growth areas for the CCTV market along with the major roadblocks. Sectors such as retail, transportation and healthcare have immense potential to drive the growth of the CCTV market. Moreover, government initiatives in various countries are expected to provide a significant impetus to market growth. The report provides an insight into the trends prevailing in all the countries, along with the technology and regionwise segmentation of the CCTV market across the globe. Analysis and statistics regarding market size, growth and trends in technology developments have also been thoroughly studied to present a comprehensive overview of the market.

Analyst view

hegovernmentauthoritiesareheavily investing in the security market, including CCTV (video surveillance) market due to the rising number of security breaches worldwide. Under these conditions, the global CCTV market was estimated to reach around US$ 11.1 billion at the end of 2010. Further,continuouslydecliningprices of CCTV devices are also anticipated to add to the growth of the CCTV market, making it affordable for even smaller March 2011 88

firms to embrace CCTV technology. Additionally, various innovations, including theintroductionofsmallnetworkcameras orcameraswithremotesurveillancecapabilities (also known as IP CCTV surveillance) will spur the uptake of CCTV cameras. They are expected to remain at the forefront of the CCTV market during the forecast period, as evident from the rapid replacement of analogue CCTV cameras with the IP-based CCTV systems. At the regional front, our study finds that Asia is projected to witness robust growth in terms of CCTV technology adoption. Backed by rapid economic growth and flourishing industrial and service sectors, developing countries such as India and China have emerged as the most potential markets for CCTV surveillance. Various countries in the Middle East, Africa and Eastern Europe will also witness rapid deployment of CCTV across various industrial verticals during the forecast period. The CCTV surveillance market in more developed markets such as the US and Europe is expected to take a paradigm shift from analogue to IP-based CCTV systems. However, to ensure rapid growth of the CCTV market, few challenges need to be immediately addressed. Privacy issues and limited retention capabilities are two of the key challenges. With the increasing concerns for future national and global security mechanisms, the market will providehugeopportunitiesfortheplayers involved in different areas such as software development for CCTV.

Market overview

CTVs have become one of the prominent and sought after secu-

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rity and safety products globally. Post 9/11 terrorist attack in the US, demand for CCTVs has significantly soared to deal with security threats and anti-social elements. As the numbers of terrorist attacks are increasing worldwide, it ap-

pears hard to find a place without CCTV. Moreover, deployment of CCTV helps a lot to carry out post-attack investigations. The global CCTV market was estimated to reach US$ 11.1 Billion at the end of 2010, up around 13% from 2009. With the increasing concerns for national and global security, the global CCTV market (including both analog and IP-CCTV) is projected to grow at a CAGR of over 19% during 2010 - 2013. In future, the global CCTV market will witness rampant growth on the back of the following reasons: Growing concerns for domestic security and protection against terrorism. Emergence of new improved surveillance system technologies like IPbased CCTV.

Potential growth areas: Airport security

e it combating the ubiquitous threat of terrorism or enforcing strict rules and regulations, there is no room for mistakes for airport security personnel, who work in a fast-paced environment. In this

regard, CCTV surveillance systems have been playing a vital role in ensuring security at airports across the world for the past few years. Especially, IP surveillance technology and new innovations in the field of video analytics are committed to raise airport security to new heights. The ability of CCTV to combat securitybreaches led the CCTV surveillance system market in airport security to reach around US$ 307 million in 2007, which is further anticipated to grow at a CAGR of around 23% till 2013. Moreover, several incidents that occurred in the past have highlighted the need for pilots to be aware of all the activities that are taking place inside and outside the aircraft. With the help of CCTV cameras, pilots can see both accessible areas, like the passenger cabin, and inaccessible areas, like the cargo hold and outside the aircraft. Cu r re n t l y, what is most importantly required is a means by which pilots can visually monitor the area outside the now locked and hardened flight deck door. Although it is required to restrict the cockpit access as demonstrated by several terrorist activities, simultaneously it remains necessary for the cabin crew to enter the cockpit March 2011 89

during a long flight. Here, the best solution is a CCTV system with a dedicated monitor or other display, like an Electronic Flight Bag (EFB), linked to cameras positioned to give a clear view of the area outside the cockpit door. This enables the pilots to clearly monitor all the activities, when entry is requested so as to identify any suspicious behavior or potential threats, and to take appropriate action. Moreover, two of the biggest threats to the safety of airliners smoke and fire can be addressed properly and timely with the help of CCTV. The cameras can even detect smoke using SmokeVu software and other false alarm triggers, like haze/ humidity. The software is installed on a video server, which can warn the flight deck crew of the presence of smoke. The most interesting thing is that it can detect the smoke at the source itself as the detection does not depend on smoke particles traveling to the detector.

Hence, the flight crew gets enough time to analyze the situation and take better decision. Thus, past incidences along with increased need for security have opened up plethora of opportunities for the CCTV systems in the aircraft safety and security market.

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