6Wresearch forecasts the country’s video surveillance market to grow at a compound annual growth rate of 5.3 percent from 2016 to 2022 in a recently published report.
After South Africa, Nigeria is the second largest market of video surveillance systems in the Sub-Saharan region, according to 6Wresearch, which forecast the country’s video surveillance market to grow at a compound annual growth rate of 5.3 percent from 2016 to 2022 in its recently published report, “Nigeria Video Surveillance Market (2016-2022).”
The country’s video surveillance market showed growth during the early 2010s, owing to government projects pertaining to installation of various electronic security systems in Lagos and Abuja, the research firm said. During this period, the government of Nigeria deployed nearly 2,000 video surveillance cameras for monitoring major areas in Lagos and Abuja, it said.
The market however slipped toward the middle part of the decade. “Nigeria’s video surveillance market declined in 2015 on the back of slumping global oil prices and weak economic conditions. Further, several projects were on hold due to elections in the country, which affected the growth of the market,” said Prijo Samuel, Senior Research Analyst at 6Wresearch.
However, market conditions are expected to improve from 2016 onwards, with rising terrorism and increasing crime set to drive the demand for video surveillance systems in the country over the next five years, the firm said.
According to the firm, apart from government vertical, industrial and manufacturing vertical is projected to capture key revenue share by 2022. Within industrial and manufacturing vertical, oil and gas has the highest demand for video surveillance systems due to rising theft in the sector -- Nigeria is estimated to record daily theft of nearly 100,000 to 350,000 thousand barrels per day, it said.
Retail shops are adopting electronic security systems, predominantly video surveillance systems, to counter theft, the firm said. “Apart from retail, commercial offices are also witnessing healthy demand for video surveillance systems; higher demand for IP video surveillance systems is likely to come from commercial offices vertical owing to declining prices and increasing penetration of players in the country,” Samuel said.
In terms of technology, IP surveillance is expected to pick up steam, said Rajat Kharbanda, Senior Consultant at 6Wresearch. “Although analog video surveillance systems accounted for largest share in Nigeria’s video surveillance market, growing demand for IP video surveillance systems is likely over the next six years,” he said. “In addition, IP video surveillance systems demand is projected from industrial and manufacturing and transportation verticals through the forecast period."