After 2014, which saw a new era in price competition among video surveillance vendors, the competitive landscape in this sector is changing but will still result in a projected growth of $23.6 billion by 2018, according to a new white paper from IHS Technology.
By the end of 2014, the global market for video surveillance is estimated worth $15.0 billion, up from $13.5 billion in 2013. With a forecasted five-year compound annual growth rate (CAGR) of 12 percent, the market for video surveillance is forecast to grow to $23.6 billion by 2018, as shown in Figure 1.
Figure 1
IHS forecasts the video surveillance equipment revenue forecast will grow at a CAGR of 12 percent in the next five years.
Jon Cropley, principal analyst for video surveillance and security services at IHS, said in a statement that 2014 was an interesting and disruptive year for both professional and consumer surveillance industries. As a result of chip component prices declining, surveillance vendors ushered in a new era of price competition and now “merger and acquisition activity” is impacting “the leading global product and software vendors,” Cropley said.
Despite a fragmented supply base, growth in video surveillance is able to sustain growth through brand recognition, varying geographical location requirements and the continued differentiation in products, IHS said.
In fact, IHS believes differentiation among products for every equipment vendor, distributor and integrator will be a key market driver for the next couple of years in video surveillance.
Questions or comments on this story? Contact dylan.mcgrath@ihs.com
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