ENGLEWOOD, Colo. — Worldwide revenue for wireless infrastructure equipment for video surveillance applications will reach $705 million by 2017, an increase of nearly 160% from $274 million in 2011, according to a new report published by IMS Research.
The report titled, “Wireless Infrastructure Use in Video Surveillance — World — 2013,” points out that the growth will be driven by demand for low-cost systems in emerging economies, such as China and India. It also notes the market increased by 11% last year; however, in 2013, revenue will reach $350 million, an increase of 15%.
One reason for the surge is that offering wireless infrastructure to clients seeking to establish surveillance networks is less expensive than trenching cable, according to Josh Woodhouse, video surveillance analyst, IMS Research.
“In regions with widespread existing video surveillance infrastructure, such as the United States or the United Kingdom, the adoption of wireless infrastructure for video surveillance is growing steadily,” he says. “However, emerging regions that lack such infrastructure will generate the strongest growth in the world, causing the market for video surveillance wireless infrastructure gear to boom during the coming years.”
The global market for wireless infrastructure gear for video surveillance is expected to expand at a compound annual growth rate (CAGR) of 17% from 2011 through 2017. China will lead global growth with 28.8% revenue CAGR during the period. The next fastest-growing area will be the rest of the Asia region, including India, that will increase by 27.9%. Mexico is set for a 23.1% CAGR, Brazil will rise by 17.4%, and the rest of South America will increase by 26.6%.
Currently, the Asian market is the smallest and least developed region for wireless infrastructure gear for video surveillance, according to the study. However, Asia is forecast to grow the fastest among all global areas, in part to the region’s lack of any existing wired surveillance infrastructure, combined with the low cost of wireless and the booming demand for security.
The report also brings out that Cisco Systems was the leading supplier of wireless infrastructure gear used in video surveillance in 2012, with an 11.7% share of global market revenue.