According to analysis from IHS Markit by Jon Cropley, senior principal analyst, video surveillance, the world market for professional video surveillance equipment grew by 9.3 per cent in 2017. This is a much higher rate of growth than in 2016 (3.9 per cent) and 2015 (1.9 per cent).
By SP&T Staff
Increased government spending on equipment to fight crime and terrorism was a major factor in this growth, as was private sector spending on replacing equipment in retail and commercial installations, IHS says.
Increasing demand for security cameras is expected in 2018, but a slightly lower level of price erosion is also forecast. This will lead to a 10.2 per cent growth in the market, which will reach $18.5 billion in 2018.
Although global demand for security cameras grew rapidly in 2017, average prices continued to fall.
Nevertheless, revenue grew in most countries. Two of the fastest-growing country markets were Brazil and India. A major factor behind the growth in both countries was increased spending by private retail and commercial organizations on HD CCTV systems to prevent crime.
Accounting for 44 per cent of all global revenue, the Chinese professional video surveillance equipment market grew by 14.7 per cent, while the world market excluding China grew just 5.5 per cent, the analysis reveals. One major reason fro the higher growth in China was the government’s Xue Liang program driving investment in city surveillance projects and extending city surveillance systems into surrounding rural areas.
Other key findings from the report include:
• The supply base for professional video surveillance equipment is becoming more concentrated — the top 15 vendors accounted for 62 per cent of global revenue in 2017
• 62 per cent of all security cameras shipped in 2017 were network cameras
• Deep-learning-enabled recorders and servers (a new category this year) are an important element in powering what may be the next generation of video analytics using AI. They accounted for just 1 per cent of revenue in 2017.
More market statistics, forecasts and market share estimates can be found in IHS Markit’s Video Surveillance Intelligence Service database.