The video surveillance market of Saudi Arabia is expected to experience growth over the next couple of years, recovering from a slump thanks to various drivers, including stabilizing oil prices as well as increases in government spending and private investment amid the Vision 2030 initiative.
The video surveillance market of Saudi Arabia is expected to experience growth over the next couple of years, recovering from a slump thanks to various drivers, including stabilizing oil prices as well as increases in government spending and private investment amid the Vision 2030 initiative.
That was the point raised by
6Wresearch in its recent
report, titled “IP Video Surveillance Segment to Register Growth in Saudi Arabia’s Video Surveillance Market,” which forecasts that the country’s video surveillance market will reach US$163 million by 2023.
According to the report, the Saudi video surveillance market registered a decline owing to deteriorating economic conditions, primarily due to a slump in oil prices. “During this period, major government spending were cut down, resulting into halt in several government projects in the country,” it said.
In terms of oil prices, the web portal InfoMine shows that they had dropped from a high of above US$120 per barrel back in 2012 to $30 between 2015 and 2016. Prices however seemed to have picked up a bit since then. Brent Crude closed at $64.92 on December 11.
6Wresearch said this rising trend would bring positive impact to Saudi Arabia’s video surveillance market. “Although from 2014 to 2016, the video surveillance market recorded negative growth due to slump in oil prices, post 2017 the market is expected due to a recovery,” it said.
In addition, Saudi Arabia, like other markets in the Middle East, are quite regulations-driven. Business owners are subject to various video surveillance requirements, raising the prospects of growth in this regard. “Saudi Arabia’s government has mandated compulsory installation of video surveillance systems in major verticals, and this would result in increased installation of surveillance cameras over the coming years," the report said.
Further, it cited increasing infrastructural projects and an increasing inflow of FDI in the construction sector as some of the drivers for growth over the next six years. “The IP video surveillance segment captured major revenue share of the market. Growing demand for high-quality secured surveillance cameras and declining prices of IP video surveillance systems have resulted in IP video surveillance market growth in the country,” the report cited Prijo Samuel, Assistant Research Manager for Research and Consulting at 6Wresearch, as saying.
Vision 2030 plays a part
Samuel further mentions Saudi Arabia’s Vision 2030 initiative, which, according to its
website, aims to lower the rate of unemployment from 11.6 percent to 7 percent, increase SME contribution to GDP from 20 percent to 35 percent, increase women’s participation in the workforce from 22 percent to 30 percent and achieve various other objectives.
“Under Vision 2030, the Saudi Arabia government has passed a plan to invest in the infrastructural development and to allow FDI in commercial and retail sectors. This would result in major expansion of infrastructure. To protect and keep these under vigilance, video surveillance systems would be deployed,” Samuel said.
Shefali Goel, Senior Research Analyst for Research and Consulting at 6Wresearch, added: “In Saudi Arabia, the central region held major share of the video surveillance market, backed by rising infrastructural development projects, especially in the commercial and residential verticals.”
“Further, the government and transportation verticals accounted for highest revenue share followed by commercial offices, retail, and others. Over the next six years, hospitality and healthcare and education verticals are forecast to grow at a higher CAGR,” Shefali concluded.