PALO ALTO, Calif. -- Global security issues, especially in the wake of 9/11 and the train bombings in Madrid, are driving demand for high-end video surveillance equipment. Manufacturers are responding to this growth spurt with advanced security solutions at significantly reduced prices.
New analysis from Frost & Sullivan World Video Surveillance Equipment Markets, reveals that revenue in this market totaled $4.09 billion in 2003. It projects to reach $8.64 billion in 2010. The market expects to grow at a compound annual growth rate of 11.3 percent.
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"Awareness among end users is on the rise and they have far more options than they had earlier," observes Frost & Sullivan Research Analyst Soumilya Banerjee. "Since this flexibility is available both in terms of price and features, manufacturers have to invest a substantial amount in research and development in order to keep up with the competition."
In fact, the average industry expenditure for research and development expects to be around 30 to 50 percent of turnover for large companies.
The level of management and maintenance required for optimum operational efficiency of the video surveillance equipment is also becoming a key-differentiating factor. End users are demanding systems that are high on efficiency and low on maintenance.
"Although reduced prices and fierce competition are affecting the margins of the manufacturers, the increase in volumes would more than compensate the reductions in the margins," says Banerjee.
For example, reduced prices expect to attract individual end users in the baby, aged, and home care market, which was so far a highly under-penetrated segment.
Closed circuit television (CCTV) systems are witnessing an increase in demand across a range of end-user segments due to technological advancements such as integration with other access control technologies like biometrics and digital video software.
Manufacturers have made the process of surveillance more proactive and efficient by developing smart cameras that are capable of analyzing captured image feeds and send out alerts to a wide range of communication devices, namely cellular phones, and e-mail addresses.
With end users becoming more demanding, companies are providing features in their products, which help in seamless integration with other access control technologies like biometrics. Such an example would be provisions for providing database of biometric indices within storage devices, which enable the comparison of captured images.
Nano particles are emerging as an important technology. The uses of nano particles in the sensors for CCTV cameras expect to reduce the cost of production. Similarly, use of nano-particles in the manufacturing of monitors holds promise of reducing costs.
The time taken to develop and incorporate new features is also decreasing making it imperative for other manufacturers to bridge the time gap from research to commercialization.