Whilst the worst of the first global recession has subsided, another, potentially larger and deeper downturn looms on the horizon. Despite this, IMS Research remains confident that demand for CCTV & video surveillance equipment will remain strong through 2012; growth for network video surveillance equipment sales is forecast to exceed 25%.
Looking back at what happened during the last global recession, despite the economic turbulence, the global CCTV and video surveillance equipment market continued to grow throughout the downturn. In a previous press release (The Tipping Point Approaches – July 2011), Senior Analyst Gary Wong stated, “The world market for video surveillance equipment continued to achieve strong growth in 2010, in excess of 10%, despite the persistent after-effects of the global economic downturn”. Wong also noted that “Whilst the global analogue market was relatively depressed in 2010, the network video surveillance market continued to grow almost three times as fast as the total market in 2010, over 30%.”
Despite economic turmoil, security and video surveillance does not become less relevant. The fear of terrorism and crime, an increasing focus on return on investment and government stimulus spending saw video surveillance equipment sales continue to grow in 2010 and 2011.
Secondly, whilst the last economic downturn did impact all countries, it did not impact all countries equally. As a result, the technology transition from low value analogue video surveillance equipment to higher value network video surveillance equipment continued during the downturn and bolstered total video surveillance sales.
Throughout 2011 this trend continued, with analogue equipment sales remaining muted and network equipment sales continuing to flourish. Two examples include: Axis Communications announcing that, between January and September 2011, net sales had increased by 37% in local currencies and Mobotix announcing that it had closed its 2010/2011 financial year (Jul 2010 to June 2011) with 36% sales growth on the previous year. These growth rates are particularly impressive as both companies are well established and should serve as a positive indicator regarding the overall health of the market.
