AUSTIN, Texas — In the wake of the bombing attacks in Boston, an increase in spending for video surveillance equipment could likely drive sales to exceed the already high expectations predicted for the global market, according to IMS Research.
Previous high-profile terrorism events, such as 9/11 and the London Underground bombings in 2005, resulted in increased government spending on video surveillance. While IMS Research initially projected that worldwide revenue for the video-surveillance equipment market will rise to $20.5 billion in 2016, up 114% from $9.6 billion in 2010, recent events like the bombings at the Boston Marathon has prompted the research firm to update its projections.
“The growth outlook of the video surveillance industry is subject to significant variances,” says Paul Everett, senior manager, video surveillance, for IMS. “This is because the market is dependent upon the vagaries of several intertwined factors that are difficult or impossible to predict, including economic conditions, government spending and notorious terrorism incidents. While it’s too early to tell exactly what impact the Boston bombing will have, past events…have led to increased government spending on video surveillance for public spaces, particularly in the transport sector.”
To further emphasize the effect government funding and legislation will have on video surveillance spending, IMS Research noted that the U.S. Federal Emergency Management Agency (FEMA) has issued 11 grants for physical security equipment and video surveillance that have generated millions of dollars of spending.
The banking and retail sectors also have an influence on overall video surveillance market growth, as those markets tend to spend more when the economy is steady, according to IMS Research.
The development of new technologies is also expected to fuel spending for video surveillance systems. The research firm cites the current transition from analog to network solutions that enable network-based control and the monitoring of security and surveillance. By 2014, the global market for network-based video surveillance will climb to $7 billion, surpassing for the first time ever the analog segment at $6.5 billion, the research firm projects.