Security has become an essential aspect of any building architecture. Rising incidences of workplace violence, armed robberies and corporate espionage have resulted in companies installing new security systems and upgrading their legacy systems with advanced surveillance systems.
New analysis from Frost & Sullivan entitled “The South African Markets for CCTV” finds that the market earned revenues of US$537.7 million in 2008 and estimates this to reach $869.3 million by 2015. The market is expected to grow at a compound annual growth rate (CAGR) of 7.1 percent from 2008 to 2015. The products covered in this study include cameras, remote surveillance systems, multiplexers, lenses, video recorders, quads, telemetry and video monitors.
"Insurance companies are becoming reluctant to insure unsecured properties," said Frost & Sullivan Research Analyst Kudzanayi Bangure. "This includes providing general crime prevention advice and system specifications for submission to insurance companies to obtain approval prior to installation."
Armed robberies, ATM bombings and other related crimes have impelled customers to increase their security levels and invest more in security systems such as surveillance.
Technological innovation has also brought more efficient and effective systems with a longer lifespan. Although this is an advantage in the short term, it has an indirect disadvantage in the long term as it erodes sales.
"In such a highly price-sensitive market, suppliers will find it difficult to increase their price to compensate for the decrease in demand," Bangure said. "Suppliers should focus on ongoing innovation so that newer and superior surveillance models are available in the market and attract consumers to upgrade to the latest surveillance models."
Technological innovation is mostly linked with better functions and operational improvements. Improved technologies result in the availability of advanced features, thereby making the products more appealing to the end users.
"End-users are becoming increasingly aware of the various benefits and medium to long-term cost efficiencies associated with the use of novel surveillance technologies," Bangure said. "This has prompted a shift from guard services to surveillance security systems that are considered to be more efficient and reliable."