The market for professional security installations has recently been characterized by increased caution and projects with specified surveillance cameras have been deferred or suspended. This has impacted Axis' growth and moderated the pace of the technology shift from analog to digital network video.
Axis has announced on previous occasions that the current financial turmoil has meant that its customers' new investments and expansion plans have been deferred to a future date. This view has been strengthened in recent times and Axis' assessment is that the growth rate for network video is now significantly lower than before.
"The current financial turmoil and the high degree of caution make it more difficult to predict the market development. However, it is clear that the rapid slowdown will impact the growth rate for network video significantly", says Ray Mauritsson, President of Axis Communications.
Axis has seen signals from the market during the year, e.g. from the retail sector in Europe and the US, where major retail chains have chosen not to expand as planned. The same trend is also apparent within other customer segments where customers have chosen not to start or continue projects already initiated.