Chinese Surveillance Market Predicted to Skyrocket through 2012

video-surveillance equipment exists in China, according to a just released report. But China lags when it comes to the transition from analog to digital and network surveillance video, the report finds, while local manufacturers dominate in the digital video recorder (DVR) market. The report, by Wellingborough, UK-based IMS Research, the specialist in electronics markets research and consultation, predicts that by 2012 this overall video-surveillance market will be worth over $3 billion, growing at a compound annual growth rate (CAGR) of 23.8 percent for the period 2007-2012. Sales of non-analog network video surveillance equipment, including network cameras, video servers, network video recorders and network video surveillance software, were estimated to account for less than 10 percent of total Chinese market revenues in 2008. However, that market is forecast to gather momentum over the coming years, with a forecast CAGR of 55.6 percent (2007-2012). IMS Research forecasts that in 2012, nearly 16 million security cameras will be sold in China, including both new deployments and replacements. The revenue from security cameras is expected to take around one third of the total $3 billion-plus equipment market, according to IMS, which notes that the “Chinese market shows a clear trend from basic box cameras to higher-end models, such as speed domes and box zoom cameras.” After cameras, DVRs are the next largest part of the Chinese video surveillance market, with local Chinese DVR manufacturers dominating in the marketplace. According to IMS, more than 80 percent of the DVRs sold in China in 2008 were local Chinese brands. Because of the world financial crisis and such other local factors as a devastating earthquake in southwest China, 2008 was a slow growth year for video surveillance equipment in the People’s Republic. However, because of a Chinese stimulus package, worth $586 billion, “2009 and 2010 are forecast to be very strong years for the Chinese video surveillance market,” according to an IMS analyst.

Chunovic, Louis (2006, March 16). Chinese Vid Surveillance Equipment Market Above $3 billion by 2012: report.  GSN: Government Security News.  Retrieved on March 17, 2009 from http://www.gsnmagazine.com/cms/features/news-analysis/1689.html]]>