Closed-Circuit Television - Market Report 2007
Executive Summary
It is estimated that, in 2006, the total UK market for the design, supply, installation and maintenance of closed-circuit television (CCTV) systems was worth £560m at end-user prices, a rise of 5.7% on 2005. This estimate excludes the cost of monitoring. Video surveillance, including traffic monitoring, accounts for the majority of the market, but there are many other applications, in industrial safety, education and medicine, for example.
There is growing interest in CCTV for the home, but, in the face of the threat of terrorism and the need to protect against crimes such as retail thefts, the market continues to be dominated by demand for CCTV for public security.
Equipment prices have been falling for several years, as cheap products are sourced from countries with low labour costs and as the development of the world market for CCTV leads to economies of scale in production. This downward pressure on prices has been countered by a trading-up effect, as customers are able to buy much improved technology. Price competition is more severe at the lower end of the market and is less important for the most advanced products.
Much of the market involves extending and upgrading existing networks, and integrating different security systems. In many cases, some legacy equipment has to be retained. There is demand for equipment that facilitates this integration, including using digital cameras and older analogue cameras on the same network.
Internet-protocol (IP) network cameras started to make a big impact on the market from 2005 and demand for these is showing strong growth. The trend towards digital recorders is already well advanced, although there are still many analogue recorders in the installed base which could be replaced.
It is forecasted that, between 2007 and 2011, the market will grow by between 3.9% and 4.1% year-on-year at current end-user prices. The CCTV market will continue to be driven by concern for public security and reactions to the crime rate, as well as by the need to replace and upgrade security systems as organisations refurbish their premises. IP cameras using JPEG-4 (Joint Photographic Experts Group-4) compression technology are expected to show strong growth.
