Executive Summary
Key Note estimates that the UK market for closed-circuit television (CCTV) systems was worth £350m at end-user prices in 2000. This figure includes the cost of system design, installation and maintenance, as well as the cost of the equipment itself. It does not include the ongoing cost of monitoring these systems. Security applications account for most of the market, but Key Note's definition also includes other applications, such as transport safety and the monitoring of industrial plant. The security applications include surveillance systems, point-of-sale monitoring systems, alarm verification, biometric identification for access control, and automated number-plate recognition.
The UK's CCTV market is very advanced and mature compared with those of other countries. It enjoyed a boom in the mid-1990s, when many large city-centre surveillance schemes were set up. There is still growth in volume terms, but this is outstripping any value growth, because of price pressure. The price/performance ratio has improved considerably in the last 3 or 4 years, and good-quality `commodity'-type equipment is available at keen prices from many suppliers. On the other hand, customers are still willing to pay higher prices for the most advanced equipment, which tends to command better margins.
Digital equipment is gradually replacing analogue equipment in this market. The most promising area for future growth is equipment that allows CCTV images to be transmitted over IP (Internet protocol) networks, alongside other forms of data, to remote locations. A boom is expected in this area.
In addition, there are opportunities for upgrading and extending existing surveillance systems, many of which could be improved through the use of new technology. There is also a continuing demand for public-area surveillance systems. The current round of Home Office grants for community CCTV schemes will distribute funding up to a total of £108m, but the total cost of all the schemes that submitted bids for this round would be around £250m.
Despite the many remaining opportunities in the UK market, the best prospects are now overseas, and manufacturers are having success in several export markets, including Europe and the Far East.
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