As recession-proof industries go, security might be as close as you can get. Every business has a need for security and few are willing to compromise it to save a few bucks.
“People and organizations are still buying video security systems despite the recession,” said Stan Schatt, research vice president and practice director for ABI Research in an April 1 press statement. “In fact some large retailers have increased their deployments to counter recession-induced shoplifting. Meanwhile U.S. government spending, particularly on enhanced border, port and airport security will be a mainstay in the short to medium term.”
Whether or not a slowdown-induced crime spree ensues, there is a very real opportunity in government funding for security projects through stimulus funds awarded under the American Recovery and Reinvestment Act.
According to analyst Alastair Hayfield from IMS Research, the trickle-down from government stimulus packages will not be felt until late 2009.
Regardless, the security market is a sizable opportunity at $9.7 billion, according to a study released in January 2009 by the Security Industry Association (SIA), based on 2007 data. This includes access control, video surveillance, fire detection, intrusion detection and electronic article surveillance. There’s another $8.2 billion going to supporting industries like installers and integrators, SIA’s report said.
Those figures are likely to grow as companies upgrade their security systems to newer technologies. Like the telecom industry, the security industry is migrating from analog to IP-based surveillance and access control systems. Much like IP PBXs, IP surveillance systems, for instance, will grow faster than the analog market, overtaking CCTV by 2011, according to a forecast from iSuppli Corp..
The IP transformation means telecom partners not only can relate to the pains of transformation, but they might have a greater understanding of the underlying networking technology than even traditional security dealers. And, telephony vendors like Grandstream Networks are recognizing the synergies by offering products that do double duty. Grandstream announced April 1 its entrance into the IP video surveillance market. Its SIP-based H.264 video surveillance products with two-way audio capability turn each camera into a VoIP device that can interoperate with tens of millions of SIP phones that are already deployed.
