2009: a bad year for CCTV, according to report

17 Dec 09

The report, 'Closed Circuit Television', aims to identify current and future trends in the market for CCTV in the UK.

The report describes how during the second half of 2008 and in 2009, the CCTV market has been adversely affected by the crisis in the banking and finance sector, the economic recession and the demise of many retailers.

A statement said: “Banks and building societies, especially, are important customers for the electronic security industry, and are willing to pay for advanced systems.

“Takeovers in the financial sector in 2008 and 2009 have led to fewer branches and a long-term decrease in the potential income to the security companies from this sector. Furthermore, the clamp-down has led banks to become far more cautious about lending, to companies as well as individuals.

“As a result, businesses have been finding it difficult to obtain capital to invest in new premises and refurbishments in 2009. This difficulty has contributed to the slowdown of the CCTV market in 2009, and Key Note expects it will continue to have an effect in 2010.”

Construction decline
The report also looks at the impact of the decline in the construction market.

“While output, as measured in terms of value at constant prices, has been fairly flat between 2004 and 2008, there was gradual growth in 2006 and 2007,” the statement says.

“However, the provisional National Statistics figures for 2008 show a decline of 1.1 per cent as the economic downturn started to take effect. The value of new construction orders in the private commercial sectors fell by more than a quarter in 2008, although this was partially offset by an increase in orders for public building and infrastructure.

“Orders for private housing projects were down by more than 40% There was a further very large fall in orders in the private commercial and industrial sectors in the first quarter of 2009.

“These trends will have a negative impact on the opportunities in 2009, 2010 and later for fitting out new buildings and this will include a loss of opportunities for new CCTV installations.”

Tough year ahead
Assuming the economy begins to pull out of recession in 2010, there is unlikely to be a sudden upturn in the CCTV market, according to Key Note.

“It will take time for business confidence to return to a level where there is strong investment in premises,” the statement says.

“However, some of the planned upgrades to CCTV systems, which have been delayed by the economic crisis, should achieve approval and there will continue to be projects which are essential for public safety and homeland security.

“As such, Key Note forecasts a further fall in the CCTV market in 2010, and a fairly severe one, but anticipates good levels of growth beginning in 2011.”

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