Issue link: https://read.dmtmag.com/i/34202
2 SECURITY STATS www.securitysystemsnews.com JULY 2011 SECURITY SYSTEMS NEWS SECURITY STATS Surveillance to grow through 2016 R By Daniel Gelinas ECENT RESEARCH from Frost & Sullivan indicates the global video surveil- lance market is currently enjoy- ing growth, and Frost & Sullivan industry analyst Dilip Sarangan says that growth should continue and strengthen over the next five years. The report, “Growth Opportunities in the Video Surveillance Market,” forecasts 18 percent growth of the global video surveillance market’s IP-based solution segment from $2.24 billion in 2009 to $2.64 bil- lion in 2016. According to Sarangan, all areas of the market—IP and legacy hard- ware sales, software sales, physical integration and IT networking, and monitoring—will see growth, but none more than IP-based solution related activity. “There’s a lot of growth every- where, but if you look at it, a lot of it is in the IP sector,” Sarangan said. “The legacy systems will grow, but only by about 5 or 6 percent, including DVRs as part of that leg- acy growth.” By comparison, legacy surveillance solution-based activity accounted for about $5.31 billion in 2009. When asked what the primary drivers for growth would be, Saran- gan said there are a number of rea- sons video surveillance will con- tinue to grow. One primary driver is the natural cycle of technology acceptance, adoption and refresh. “Obviously, there are a lot of dif- ferent initiatives going on like global Safe Cities initiatives that will have an impact. Also, technology is just naturally refreshed,” Sarangan said. “A lot of people have an installed base of legacy systems in place, but over the next few years they’ll begin upgrading their infrastructure and solutions. There’s only so long you can get away with using older technologies … If you have the ability to deliver better quality video that you can actually use as evidence, there’s so much value in that.” Sarangan did con- cede entrenched legacy infrastructure would not be replaced overnight, especially in the more developed markets of the U.S., Asia and Europe. Sarangan said lowering price points are also a motivating growth factor. “Price points are going to start coming down just because as you put more and more of the upgraded infrastructure in, the more of these solutions there are deployed, and the price will reduce,” Sarangan said. “Right now it is still expensive, but it’s about the value in the tech- Dilip Sarangan nology, because you can do more with it. The systems integration part is key, because people want every- thing to work together.” Systems integrators will be well served over the coming years to upgrade their IT know-how in order to acquire better traction with the end user, according to Sarangan. “Look at all the solutions that are coming out now. A lot of companies are putting out solutions and coming up with better business models and making it easier for end users to acquire technology without a huge investment,” Sarangan said. “[Integrators] need to work with the vendors to understand how to use the technology, understand what it does … Installers need to understand IP networking, need to get Cisco certified or IBM certified. If they don’t have these capabilities already, they need to learn.” SSN