CCTV market headed for growth, changes

Analog-based systems most prevalent now, IP-based to take over
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Friday, June 19, 2015

NOIDA, India—The CCTV market is poised for growth, according to a RNCOS report, with a 7.5 percent CAGR expected in North America from 2014 to 2020, and a 12.2 percent CAGR globally during the same time period.

RNCOS expects the North American CCTV market to rise from $3.5 billion in 2014 to $5.3 billion by 2020, Shushmul Maheshwari, founder and CEO of RNCOS, told Security Systems News.

Though the North American market will grow, its overall share in the market will decrease, according to Maheshwari.

“North America’s CCTV market share in 2014 was 22.5 percent, and it will constitute 17 percent of the global CCTV market by the end of 2020,” he said.

“There is some growth happening in North America, but the real growth is happening in the Asian markets,” Maheshwari said. He listed India, China and Thailand as key countries in the market growth.

The global market was valued around $16.6 billion in 2014, Maheshwari said, and it will grow to about $37.2 billion by 2020. The market will “roughly double itself in the next six years,” he said.

The report divided the CCTV market into three main technologies: analog, IP-based and Wi-Fi-based systems.

In 2014, analog was the most prevalent, followed by IP-based and wireless-based, according to Maheshwari. By 2020, this order will change: IP-based systems will be at the top, with Wi-Fi close behind it, Maheshwari said.

The report also examined the market in terms of the value of four components: IP-based cameras, video analytics, video servers and video management software. According to Maheshwari, IP-based cameras have the highest value in the market, followed by video servers and VMS. Video analytics is the smallest portion of the market. “This order would remain the same [to 2020],” he said.

The video analytics market is rising, Maheshwari said.

“The home market is also growing—where you’re putting cameras at home and connecting your smartphones with those devices,” he said.

The capability for remote monitoring using a mobile device is a driver for the market, he said.

Higher rates of terrorism and burglaries are other market drivers, according to Maheshwari.

He identified 360-degree cameras as an emerging technology trend.

“Traditionally, banking was the biggest vertical where cameras were installed. We are just now moving from banking to retail,” Maheshwari said. RNCOS expects retail to beat out the banking sector in application of CCTV by 2020.

When asked about challenges to the market, Maheshwari said that the cost of CCTV systems and quality of cameras could improve.

In 2013, RNCOS published a report projecting the CCTV market growth through 2017. Maheshwari said that this report updates and expands upon the previous report.        

Maheshwari identified Axis, Samsung, Vicon and Tyco as key vendors for this market growth.

RNCOS is a consulting firm, established in 2002. It has been covering CCTV for about seven years. It has 35 employees.