What business planner would not like to see their business grow at more than 50 percent per year without having to grow market share?
It’s almost too good to be true — promotions, raises and bonuses galore just by staying with the pack. And if you did manage to grow market share and grow even faster than the market rate, the industry would look enviously at you and immediately try to divine how you did it.
New Terror Means New Demand
While we projected the network and IP video market to grow at a rapid rate on its own, we did so before the attacks on the London transportation system occurred in July. It’s unfortunate that we live in a world in which the pain and suffering of others is a boon to a particular industry, but it’s one of the hard facts of life.
More people go to the doctor due to illness, and the healthcare industry prospers. More accidents on the highway, and the insurance industry does well. And now we have dead and injured people in London giving rise to a daily diet of national TV reporting on how cameras captured the images of some of the bombers and helped the investigation of terrorist cells and undergrounds.
Looking back a bit, we appear to be on the edge of another smoke detector boom. During my time at Wells Fargo, we ran the largest smoke detector plant in the world. As a result of a study on the human and financial cost of fire, legislation was enacted that mandated the use of smoke detectors practically everywhere. Sales soared since it was no longer a question of whether or not to buy them. You were illegal without them.
Network Video Market Is Red Hot
Of all the security businesses to be in right now, the one with greatest growth potential is the network video business — mainly as a result of this rising concern for safety.
Growth across the entire video surveillance market will probably accelerate from its recent 15- to 20-percent level during the next couple of years. There will be even more growth in Europe where more terrorist cells appear to be operating than in the United States.
Take a look at the chart on this page with the importance that dealers and integrators assigned to network video product sales by 2009. This is a picture that commodity producers can only dream of.
You virtually never see growth ratings of 4.6 and 4.4 for any group of products. More importantly, these dealer and integrator growth estimates were provided before London was attacked.
If you’re not that familiar with the network video business just yet, this is as clear a signal as one will ever see as to what business direction to go in. Ready, on your mark, get set …