Sales of network video equipment have already overtaken analog in the Middle East, according to a new report from IMS Research.
In a statement, the research firm said that it estimates network video solutions accounted for 53 percent of CCTV equipment sold in the market in 2011.
IMS’ report from previous year didn’t forecast that IP sales would reach the tipping point in the market until this year, however, market analyst and report author Oliver Philippou noted that a weaker impact from the global recession and an increase in oil demands have fueled infrastructure projects in the region, thereby driving sales for IP surveillance products.
"With some countries, including Turkey, still predominantly installing analog equipment, this transition is just getting started," Philippou added. "Network video surveillance equipment is forecast to account for 79 percent of network and analog video surveillance equipment sales in the Middle East by 2016."
The demand for surveillance equipment in the Middle East will continue to be driven by larger regional markets, according to the report.
"Turkey, the largest market in the Middle East, is still mainly serviced by analog equipment. However, due to a number of infrastructure and transportation projects, the penetration of network video in Turkey will increase significantly towards 2016," IMS said in the statement. "In Iran, a heavy focus on city surveillance will be the key driver. In Saudi Arabia, large infrastructure projects in hospitals, schools, and airports will drive network video surveillance penetration. These projects are due to a surplus of oil revenues and a response to uprisings across the Arab world. Large banking projects have also been confirmed in Kuwait for 2012 and 2013, while the construction industry in the UAE is expected to see improvements towards 2015 and 2016."
For more information about "The Middle East Market for CCTV and Video Surveillance Equipment – 2012 Edition" report, visit www.imsresearch.com.