After researching the UK surveillance market development and taking into account various other factors, MBD, a market specialist, released a report about the UK surveillance market.
Market Review from 2005 to 2009
In 2009, the value of the surveillance market increased by an estimated one percent to US$1.7 billion, consolidating growth of two percent recorded in the previous year. Prior to that slightly stronger growth of five and four percent was recorded in 2006 and 2007 respectively. Overall, the value of the market is believed to have increased by a cumulative 12 percent in nominal terms between 2005 and 2009.
The more moderate development in the latter part of the review period is a result of the economic downturn, tighter credit availability, lower levels of business investment and reduced construction output, in particular in the private commercial sector. Overall growth in the market has been driven by the switch from analog to digital surveillance and networked video solutions during recent years.
The surveillance market has also benefited from increased construction output up to 2008, in particular in the office, health and education sectors. Other sectors that have also shown strong growth potential include mobile surveillance systems, automatic LPR systems and algorithmic systems.
During 2008 and 2009, demand was also driven by continued public investment in a number of sectors, most notably the health and education sectors, where spending has remained strong during the downturn.
Market Forecast from 2010 to 2014
The value of the UK surveillance systems market (including sales and rental income) is anticipated to increase throughout the five year forecast period up to 2014, with annual growth levels expected to fluctuate between one and four percent in real terms. Overall, the value of the market is expected to increase by a cumulative 12 percent in real terms between 2009 and 2014. In the short-term, the surveillance market is expected to benefit from increased demand for public security generated by the London 2012 Olympics. The need to tighten security in public areas is also likely to boost demand from the government and transport sectors. However, there are increased uncertainties regarding public spending over the coming years, as spending cuts will be inevitable, regardless of which party will be in power.
Demand for digital and networked systems is expected to continue to increase over the next five years. Hybrid systems, which allow digital IP-enabled technology to be added to existing analog systems, thus providing a more cost-effective option, are expected to show the strongest growth potential over the next five years.
Further sectors of the surveillance market which are expected to show strong growth potential include remote monitoring services, rapid deployment cameras, alarm activated systems and mobile surveillance systems. However, intense price competition and increased import penetration from low cost manufacturers at the lower end of the market are expected to continue to be features of the surveillance market.