A Frost & Sullivan survey of 355 end users and channel players is reporting a three-percent increase in budgets for video surveillance systems in Europe while budgets for access control and security systems integration will rise by around two percent over the next twelve months.
The five-year outlook for security spending also forecasts a bright scenario with video surveillance budgets set to increase by in excess of five percent and access control and security integration pegged to between three and four percent.
Channel players such as system integrators, consultants and distributors are naturally more optimistic anticipating an increase in video surveillance budgets of close to eight percent, systems integration to six percent and access control with five-percent growth over the next year. Intrusion detection will see a modest growth in budgets of close to one percent. Growth in the U.K budgets of four percent is believed to be lagging behind the rest of the world.
A Frost & Sullivan survey of 355 end users and channel players is reporting a three-percent increase in budgets for video surveillance systems in Europe while budgets for access control and security systems integration will rise by around two percent over the next twelve months.
The five-year outlook for security spending also forecasts a bright scenario with video surveillance budgets set to increase by in excess of five percent and access control and security integration pegged to between three and four percent.
Channel players such as system integrators, consultants and distributors are naturally more optimistic anticipating an increase in video surveillance budgets of close to eight percent, systems integration to six percent and access control with five-percent growth over the next year. Intrusion detection will see a modest growth in budgets of close to one percent. Growth in the U.K budgets of four percent is believed to be lagging behind the rest of the world.
While this represents good news for technology sales there is a bleaker picture for manned guarding with budgets set to reduce by around one percent over the next year.
The positive outlook for IP/network video surveillance is also supported by the survey with 12 percent of respondents planning to install an IP/network video solution within the next 12 months. Network/ IP video surveillance cameras already have a fairly good penetration of large business and therefore growth is expected to be faster with small to medium organizations under 1,000 employees. Video analytics is also set to experience strong new demand though this will be with larger organizations.
The optimistic picture for network/ IP video surveillance is shared by channel players with 71 percent of respondents believing that the pace of migration to IP systems will quicken in 2011/12. Systems integrators have the strongest expectations with security consultants, installers and distributors all having broadly the same opinion.
Over the next two years the analog market will remain flat with the loss of revenues from customers switching to network/ IP video surveillance being balanced out by replacement sales or new sales in applications that require a relatively simple security solution. Decline in analog camera usage will be highest in very large organizations with 50 percent reporting a reduction in spend.
Convergence between physical security and IT remains top of mind with most channel players believing that it will have a positive impact on their business. However challenges still exist including the compatibility of different manufacturer's products and lack of cross standard platforms, installation costs and lack of IT skills and knowledge.
To support the migration from an analog system to a network/ IP video surveillance solution most end-users partnered with an IT systems integrator accounting for 29 percent and/or trained existing IT staff with 26 percent. Training existing security staff was the least preferred of the key migration strategies. Channel players on the other hand are placing much more emphasis on training existing staff (44-percent) while also recruiting IT talent (5-percent) to bridge the knowledge gap.
Always top of mind for security organizations is how to demonstrate the ROI of their solution when security is still seen as a grudge purchase. Proving that the security solution will reduce the level of threat is key though this can be difficult to demonstrate. Increased operational efficiency and increased adherence to security procedures were ranked as the second and third most important factors by end-users while a reduction in security guards was a key consideration for very large organizations. The use of security technologies in non-security applications is a further consideration and allows suppliers that think about the broader customer need and business challenge to put themselves ahead of the competition.
As an example the use of access control for time and attendance is clearly gathering momentum with 35 percent of customers currently utilizing it for this application and a total of 64 percent (including current users) interested in implementing it. Further, 25 percent of survey sample are currently employing security technology in other applications ranging from health and safety (employees are wearing correct PPE for example), monitoring occupancy levels and asset tracking and operational processes.
In regards to man guarding 30 percent of customers surveyed keep man guarding in-house and this is largely in small to medium organizations (under 1,000 employees). The main reason stated was maintaining control of the guarding with price only ranking as the fourth criteria. This contrasted strongly with organizations that outsource their guarding responsibilities with price being the key consideration followed closely by three other key factors including provider reputation, previous experience and ability to tailor the service.