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down from 6.9 percent in 2011 and
9.6 percent in 2010. However, de-
spite this background, spending on
video surveillance equipment has
remained resilient with the Indian
market forecast to enjoy healthy
double-digit growth in 2012.
The unique characteristics of the
Indian market make it an exciting
place to do business. What is more,
compared to other high growth mar-
kets, barriers to entry for foreign-
owned suppliers are much lower.
4. Keeping it simple in 2013
Many suppliers of network video
surveillance are now targeting
smaller installations to grow their
businesses. IMS Research therefore
predicts 2013 to be the year where
suppliers focus on developing prod-
ucts that are easy to install, easy to
operate, and easy to maintain.
Network video surveillance
can be an overly complex topic,
particularly for those responsible
for smaller installations. 2013 will
be all about manufacturers making
it more straightforward.
5. Intelligent
Video Surveillance
Forums discussing this concept are
not new. In 2011, IMS Confer-
ences ran an intelligent video
conference in Los Angeles and the
Embedded Vision Alliance has
regularly been bringing together
engineers from leading companies
to discuss the industry.
However, with the explosion of
interest in intelligent video and the
1.New battle ground
in image quality
The increased popularity of HD
and megapixel resolution security
cameras has been a hot topic in
the video surveillance industry
over recent years. And quite
rightly so, world shipments of
megapixel resolution network
security cameras are predicted
to out-sell standard resolution
network security cameras in 2012
for the first time.
However, IMS Research does
not expect higher megapixel
resolutions to be a mass-market
trend. Instead, it expects to see
new technology developments
and camera features that improve
image quality becoming the key
battleground as manufacturers try
to establish their own USPs.
2. Mobile video streaming
­ the next gear change for
mobile video surveillance
Traditionally, in the mobile video
surveillance market, recorded
video to an on-board device is
downloaded wirelessly when the
vehicle returns to the station or
depot. Recently, there has been
increased buzz around the capabil-
ity to wirelessly stream video from
a mobile video surveillance camera
back to a control centre.
For a control room operative
this brings a number of advantag-
es. For the police, the ability for a
control room to view an incident
live allows for an instantaneous
assessment of the situation and
more effective guidance for offic-
ers on the ground. It could also
provide assistance for lone workers
on buses and trains. In the coming
year, IMS Research predicts that
there will be renewed emphasis on
this type of solution.
3. India to remain
a high growth market
Economic growth in India has
slowed. IHS expects that GDP in
Asia's third-largest economy will
grow by just 5.1 percent in 2012,
security
technology market
Top ten video surveillance trends for 2013
IMS Research has recently released its fourth annual
video surveillance trends for the year ahead. These
predictions for 2013 and beyond, serve to provide
insight into key trends and opportunities in the video
surveillance industry.
Market Forecast to 2017
Our forecast for the next 5 years
to 2017 is based on world market
trading conditions remaining fair-
ly static during the second half of
this year and carrying on through
the first half of 2013; thereafter
gradually growing through the
following 4 years.
We forecast a CAGR of 5%
over the 5 year period. This could
be considered rather optimistic,
considering that at best the Eu-
ropean market will remain static.
But we had an unprecedented
traumatic 5 year period from the
end of 2007 and the physical
security market managed to grow
by a CAGR of 2% during that
time.
The security industry is now
in a much healthier state with a
product portfolio that can deliver
more attractive opportunities for
their clients to improve security
and at the same time profit from
it. This together with the unstop-
pable growth of IP video network
and access control coupled with
management identification and
verification will drive the market
forward.
In addition further growth
opportunities are opening up in
relatively new vertical markets
and the smart building sector
where system integrators from the
security business are using PISM,
PIAM and SAP platforms to
deliver holistic systems incorpo-
rating monitoring building and
energy performance in addition
to security and safety. In the event
that these drivers don't live up to
expectations we can rely on the
BRIC and other emerging markets
to continue growing and the move
to cloud based systems.
Further Research
Memoori's report "The Physi-
cal Security Business in 2012"
combines clearly defined market
sizing statistics with financial
analysis of M&A and investment.
It brings together all the factors
that influence this industry's
future; including technology,
finance and the capability to
deliver products that meet the
customers need to drive more
ROI out of investment.
For more information about
the report and ordering details:
www.armedia.se, info@armedia.se
+46 (0)8 556 306 80
n
because it sets a benchmark for the
latent potential that is available
to exploit. There is an enormous
latent demand waiting to be
exploited in the emerging markets
of the world, confirming that these
are the markets that manufacturers
should be developing now because
they will grow at much higher rates
than the developed markets of the
western world. China for example
currently has a penetration of one
sixth of the USA but this stood at
one tenth in 2011, showing that
the market is growing rapidly by
taking up this latent potential.
Fig 2.5 shows that the penetra-
tion of physical security products
is highest in North America
where GDP per capita is forecast
at $49,340 and security sales per
capita $14.81. In the EU(7) GDP
per Capita is projected at $42,240
and security sales per capita at
$11.5.
In China the GDP per capita
in 2012 is projected at $6,120,
and sales per capita was $2.4
showing that the potential for
future growth is enormous. This
market has forged ahead at the
highest rates of growth recorded
in our industry and its aggre-
gate growth over the last 5 years
has not slowed down. However
despite the fact that its penetration
has increased by almost 60% dur-
ing this time its penetration is still
only a fraction of that in North
America so there is much latent
potential still to be exploited.
In the rest of Asia (including
India) the penetration chart shows
that this area now has a lower level
of penetration than China. There
are a number of countries in this
group that have large popula-
tions such as India, Indonesia,
The Philippines and Vietnam and
these countries have dragged down
the penetration to $2.0 per capita.
However Japan, Australia, South
Korea and Singapore have much
higher penetration of security on
a parallel to western countries.
Countries that have a long term
potential to develop their latent
potential include India, Thailand,
Indonesia and the Philippines.
With such high penetrations in
the western markets growth has to
come from the opening up of new
vertical markets, the migration
from analogue to IP network sys-
tems and continual improvement
in delivering a higher ROI.
Many suppliers
of network video
surveillance
are now targeting smaller
installations to grow their
businesses. IMS Research
therefore predicts 2013 to
be the year where suppliers
focus on developing prod-
ucts that are easy to install,
easy to operate, and easy to
maintain.