An article titled “Market for surveillance systems to reach $41B in 2014”, written by J. Bosasia, was published by The SecurityInfoWatch. It was based on a recent research report published by ABI Reseach. Interesting excerpts:
- Global sales of video surveillance systems are expected to reach $41 billion in 2014, up from $19.4 billion this year, a nearly 15% compound annual growth rate, says ABI Research.
- New technology is sparking the rise. Familiar closed-circuit analog video systems with grainy pictures…are giving way to more costly systems that rely on Internet standards to transmit data…
- Retailers and restaurant chains are among those most quickly adopting these new systems, to guard against theft and to help gauge the effectiveness of product displays.
- “Once video surveillance gets embedded into business processes, it’s probably there to stay,” said Stan Schatt, wireless security practice director at ABI Research.
- “Retailers have cut back spending in some areas, but they’re still investing in theft prevention,” Schatt said. “They’re plowing money into security because as the economy goes down, shoplifting goes up.”
- Some major tech vendors are building businesses in this fragmented field. They include Cisco Systems, Honeywell and Samsung. Camera makers such as Pelco, Panasonic and Stanley are also active. Privately held systems vendors include Envysion, Cernium and IntelliVision.
- “With IP (Internet protocol) systems, you can send the information back to a central site for analysis,” Schatt said. “It’s no longer just having security guards with fat stomachs eating doughnuts and staring at video screens all day.”
- Louisville, Colo.-based Envysion offers a Web-based video service to manage cash register transactions. By aiming cameras at each register and noting when cash drawers are opened without a sale, restaurants and stores can reduce losses from thefts or voided sales. Envysion won a contract in July to install video systems for the O&M Restaurant Group, a Burger King franchisee, at 14 BK outlets in and near Oklahoma City. Envysion also has systems in some 800 outlets of the Chipotle Mexican Grill restaurant chain, among others.
- In addition, marketing execs can use video feeds to assess in-store customer reactions to new product launches. And store managers use the system to improve training programs and business processes.
No article on this topic is complete without a quote from Envysion CEO Matt Steinfort. “We enable multiple operators to use video across a large number of people and sites in a meaningful way to understand their business better and to improve profitability,” Matt said, and added customers can improve profit by 10% to 15% within months of adopting the service.
Frost & Sullivan analyst Archana Rao was also quoted: “A huge untapped market . . . is opening the doors to some real activity in this market in the coming years.”
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