State of the Industry - Outlook: Strong & Healthy in 2014

As our industry continues to outperform the economy, here’s what to expect from the ever-growing security market in the coming year


 

The Technologies

Video Surveillance

According to “The United States Security Industry: Size and Scope, Insights, Trends and Data,” an extensive benchmark study of the private security industry’s expansion over the past decade and projected future growth conducted by ASIS Intl. and the Institute of Finance and Management (IOFM), video surveillance is the fastest-growing technology market in the security industry. The survey said that 17 percent of respondents were expected to increase video surveillance spending by 10 percent or more in 2013 — led by finance and insurance firms, healthcare, and manufacturing companies.

No doubt a byproduct of the IP technology boom, the report states that “the ability to watch and transfer video across the globe — and to deliver it to myriad devices — creates an opportunity to merge a security department’s video surveillance strategy with an organization’s broader effort to monitor all business activity. When examined jointly, a business case for upgrading IP video capabilities becomes easier to make.”

In its recent report on the top surveillance trends to watch for in 2014, research firm IHS forecasted that the un-cooled thermal camera market will see the largest average selling price (ASP) decline during the next few years in the video surveillance market. “While the number of un-cooled thermal camera units shipped to the commercial security industry suggests that the market has not yet been commoditized, increased competition, new products and new end-user markets will mean 2014 is a breakthrough year for the technology,” research manager Niall Jenkins says.

Other key takeaways from the report include:

  • The global video surveillance market will grow by more than 12 percent;
  • The video surveillance camera category winner in 2014 will be 180/360-degree panoramic network cameras, with global unit shipments forecast to increase by more than 60 percent over 2012;
  • With increasing awareness of embedded audio analytics and even sound source localization, market penetration could be about to rise; and
  • More new product and service announcements from network focused security companies, as they seek to add new revenue streams to their portfolio.

For more on 2014 video surveillance trends and technologies, be sure to check out additional articles in this special section, including a closer examination of the IP migration; a look at how HD and megapixel are driving the market; and an outline of video verification service as it relates to alarm monitoring.

Access Control and Intrusion Detection

Technology releases and advances in the consumer market are driving the demands on cutting-edge access control systems. In just a couple of examples, consumers — and thus security end-users — want the ability to open doors with their phones; and biometrics has gone from a government program to something every other person has on their smartphone or tablet.

“While advances in biometrics are not new, the biggest impact (in 2014) may come from that area, which has received increased attention recently in part by the fingerprint identification system incorporated into the new Apple iPhone and other mobile consumer devices,” SIA’s Erickson says.

“Consumer demand will begin to fuel wider adoption of biometrics into access control systems. “Smartphones have identified fingerprint authentication as a starting point, but more systems will also adopt identity verification via iris, facial and vein recognition, among other forms of biometrics,” Erickson continues. “Moreover, SIA sees biometrics for logical access driving increases in physical access security. That's different from the past, where advances in physical security such as the use of tokens and smartcards have shepherded advances in logical security.”

End-user spending on access control and identity management will continue to grow, with 51 percent of organizations planning to increase spending on access control in 2013, according to the ASIS/IOFM survey. The most spending was projected among healthcare and manufacturing facilities.