Boston Marathon bombing could accelerate video surveillance spending
WELLINGBOROUGH, U.K.—In the aftermath of the Boston bombings, spending on video surveillance equipment may experience a spike that augments already lofty expectations for the market, according to a statement from IMS Research, a market research firm based here.
History suggests that high-profile events of terrorism can drive global sales of video surveillance equipment. Worldwide revenue for the market is projected to rise to $20.5 billion in 2016, up 114 percent from $9.6 billion in 2010, according to IMS Research, now part of IHS.
The research firm is now in the process of updating this forecast to account for recent events, which could impact spending and spur additional growth.
“The growth outlook of the video surveillance industry is subject to significant variances,” stated Paul Everett, senior manager, video surveillance, for IHS. “This is because the market is dependent upon the vagaries of several intertwined factors that are difficult or impossible to predict, including economic conditions, government spending and notorious terrorism incidents. While it’s too early to tell exactly what impact the Boston bombing will have, past events—like 9/11 and the London Underground bombings—have led to increased government spending on video surveillance for public spaces, particularly in the transport sector.”
Government funding and legislation are among the variables that can impact market growth. The U.S. Federal Emergency Management Agency, the statement noted, has issued 11 grants for physical security equipment and video surveillance that have generated millions of dollars of spending.
Other influences on spending growth include new technologies and the banking and retail sectors, which tend to spend more on surveillance when the economy is strong, the statement noted.