Although network video surveillance is one of the fastest growing markets in the security industry, it is not growing as fast this year as analysts had originally anticipated.
In a recent report from IMS Research, the United States market for network cameras, video servers and NVRs is estimated to have increased by 45 percent in 2007. However, the market has got off to a slower start in 2008, the company said, and it seems unlikely that it will grow as fast this year as it did last year.
STORY CONTINUES BELOW
Advertisement
The main reason for the slow-down is the struggling the country’s slowing economy. The retail industry, which is the largest spender on video surveillance equipment in the United States, has been particularly hard hit as high energy and food prices, together with the credit crunch, have curbed consumer spending. As a result, many retailers are scaling back new store expansion plans, which will impact sales of video surveillance equipment, IMS Research reported.
“In spite of the stagnant economy, the United States market for network video surveillance products is still growing strongly, albeit at a reduced rate from 2007,” said Simon Harris, senior research director at IMS Research. “We anticipate that the market will grow well above 30 percent in 2008 and may even top 40 percent, particularly if the economy picks-up in the second half of the year.”
While 2008 may prove a more challenging year for suppliers of network video surveillance equipment, the long term outlook for the market is still very positive, the report said. The transition from analog CCTV to network video surveillance is still in the early stages and last year network video surveillance products accounted for less than 20 percent of total video surveillance equipment sales. IMS Research anticipates that the trend to network video surveillance will be ongoing over a number of years.
