A deepening economic recession has forced analysts to cut their projected growth forecasts for the surveillance market.
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According to a new report from UK-based IMS Research, the growth forecasted for the world video surveillance market earlier this year has been cut in half, from 6 percent to 3 percent due to the sustained economic recession.
The Western Europe CCTV markets have been the most affected by the economic downturn, with sales expected to decline in the region by nearly 7 percent. Though the economies of the Americas have also been impacted by the economic downturn, growth is still expected in the market due to heavy investment by the government, as well as the education and transportation sectors. The transition form analog to network video is also driving sales in the market.
Another market seeing substantial CCTV growth is Asia, with a strong demand from China expected to push revenue growth in the region to more than 13 percent.
“Clearly the economic downturn has disrupted historical growth trends within the global video surveillance market,” says IMS Research analyst Gary Wong.
Analysts predict, however, that the market will rebound in late 2010 with improving economies and the continuing transition to IP video in emerging markets.