Prediction: Telcos to increase video monitoring market share
WELLINGBOROUGH, UK--A Jan. 15 release from IMS Research predicts the remote video monitoring and surveillance market will see rapid and substantial growth over the next four years. The term RVMaS refers to network camera-based solutions that allow the end user to remotely view live or recently recorded video in security and non-security related applications. The question is: How much of a threat to established security companies are telcos going to become as RVMaS grows? According to IMS Research Security & Fire Group market analyst Gary Wong, "telcos, ISPs and mobile/wireless operators could potentially threaten the established monitored security market in the mid to long term."
Wong pointed out communications companies are well positioned to offer RVMaS services since they typically possess a large installed base of subscribers, the infrastructure required to offer RVMaS products and services, sizable marketing budgets, and strong brand awareness. Additionally, Wong said since telcos' traditional core businesses are on the decline due mainly to saturation, they are actively looking for exciting new products to increase customer retention and generate more revenue.
"The threat towards the traditional residential monitoring market will be dependant upon how quickly the communications companies market and educate consumers about the RVMaS proposition," said Wong in an email interview. "As the consumer becomes more educated about monitoring and surveillance solutions, they may begin purchasing products based on functionality and not standard convention."
Wong said in order to mitigate the encroaching telco presence, traditional security companies will need to offer customers more innovative products and services. Wong points to a recently announced partnership between ADT and iControl as an example.
Bob Tucker, public relations director at ADT said that the iControl partnership gives ADT dealers just such an innovative edge. "[Our dealers] will have a much broader portfolio of solutions to offer customers to meet their needs," Tucker said in an email interview. "We have already presented an overview of interactive services to our dealers and they are very excited about the potential."
The release from IMS Research claims revenues from the residential RVMaS market were $158 million in 2008. IMS Research predicts those revenues to more than triple to $478.3 million by 2013.