Growing security concerns to bolster sales of CCTV, access control systems

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Nov 30, 2013 (3 years and 6 months ago)

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Growing security concerns to bolster sales of CCTV,
access control systems


Analysts forecast bigger roles for biometrics in access control and for CMOS cameras and digital
video recorders in CCTV installations.

The electronic security products and service
s market was projected by market research firm The
Freedonia Group to grow to nearly $9 billion annually by 2004, but the attacks of September 11
have rendered statistics obsolete, and most new projections are not yet available.

But one thing is obvious. "
Prospects for industry growth have elevated sharply," said Joe
Freeman, CEO of J.P. Freeman Co. Inc., a Newtown, CT market research firm and technical
consultant in the home and commercial security industry. Before the attack, growth in the security
indust
ry had been flat to 2 percent for the year. After, sales jumped an estimated 6 percent to 8
percent, for an annual average of 3 percent to 4 percent growth.

Freeman is confident of a growth scenario in 2002 and beyond, despite the economic slump.
"Next yea
r's growth rate will be to 10 percent, and after the economic recovery, up to 14 percent,"
Freeman said.

A tax break would spur growth. After the attack, the U.S. Congress introduced a bill to give
corporate America a tax credit on new equipment for electr
onic access control, biometrics and
CCTV, as well as locks, alarms and computers to control these systems. Passage is not assured
--

a similar bill died in committee last year
--

but some industry consultants are optimistic.

"I think it has a much better c
hance of passing than it ever has before," said Sandra Jones of
Sandra Jones & Co. in Chardon, OH. "[U.S. makers] we've talked to say their business has
doubled and tripled [since the attack]. There's still a recession, but even when a building is empty,
y
ou have to have cameras there."

Biometric applications to drive growth of access control market

In 2002, biometrics, CCTV and access control are going to be very important sectors, Jones said.
Access control had ceased to grow in 2001 in the U.S. market, a
lthough growth has continued in
Europe and some of the emerging markets. With security concerns rising even before Sept. 11,
the access control market is expected to grow by about 20 percent as people add biometrics to
their systems, Jones said.

The global

biometric market generated $66 million in revenue in 2000 and is likely to reach $900
million by 2006, according to Frost & Sullivan's
World Biometric Technologies Markets

report,
released a month after the Sept. 11 terror attacks. The main emerging marke
ts for biometric
technology are government and civil organization, financial institutions, computer and network
security, and access control/time and attendance systems.

Cost has been holding organizations from adopting biometrics, but increasing use of si
ngle
-
finger
biometric verification to log onto company computers is bringing an economy of scale to that
technology, Jones said. Efforts are also ongoing to produce a unified, industrywide set of
standards for biometrics products and applications.
(See sidebar)

Face and fingerprint identification

Biometrics using fingerprint scanners will be paired with high
-
security access control in growing
numbers. But for low
-
security applic
ations such as crowd surveillance, face recognition will be
key. Freeman predicts that government personnel now guarding installations will be replaced by
electronics and video. The creation of a governmental "master database" of suspicious persons,
agains
t which to check identities for crowd monitoring, is not far off, he says. This database will
involve face
-
recognition biometrics.

Freeman cautions that while facial applications may see a short
-
term "explosion," this may taper
off after users experience a

25 percent error rate.

Smart cards replacing prox cards

In the U.S. access control market, proximity cards are being superseded by contactless smart
cards. "There is a replacement cycle ongoing now," Freeman said. He predicted growth of 10
percent to 15 p
ercent, depending upon the economy. Freeman said one smart
-
card company
announced parity pricing to proximity card technology.

CCTV market will continue to grow strongly

Analysts agree the video surveillance market is going to see a dramatic rise, spurred
by the
growing use of the Internet in surveillance as well as the availability of cheaper cameras,
especially CMOS cameras.

"The Internet now plays a major role [in security surveillance]," said JP Freeman's new
2002
Remote Video

market report. "Also, ther
e are more applications for remote video than anybody
thought. The market has explosive potential." Household interiors and factory lines are up
-
and
-
coming applications. The rapid uptake of digital recorders supports the trend, Freeman said.
Many makers ha
ve added digital recorders to their product line, selling from $500 to $1,300
wholesale, depending on features. The versatility of digital units is drawing buyers, as they can be
more easily integrated with networks.

Said Freeman: "The digital recorder bus
iness is growing rapidly. Analog sales are still there, but
they've become extremely price
-
sensitive."

Cheaper CMOS cameras are also making CCTV installations more affordable. While some
buyers feel CMOS has not yet proved itself, it is gaining on CCD cam
eras because of the cost
advantage, Freeman noted.

Object tracking bolsters CCTV functionality

Object tracking, a newer development in the CCTV field, may become a hot feature. Motion
-
sensitive recording activation is being paired with tracking capability,

giving system integrators the
opportunity to sell to parking garages and large facilities a smarter CCTV system. Such a system
can follow a person or car moving out of one camera's range and activate the next camera,
although it cannot distinguish between

two moving bodies, Freeman said. Object tracking is
offered by at least one national home
-
monitoring service provider.

Freeman notes that anticipated growth is prompting electronics companies from outside the
industry to offer security applications, espec
ially in video surveillance and biometrics. Companies
that integrate the two will prosper.

Wireless development continues

Analysts predict wireless applications in access control and CCTV have a "huge future," despite
wireless's higher cost, because insta
llation cost is significantly reduced.

"The degree to which you can compress images wirelessly without loss of resolution is still a
major challenge," Freeman said. While no single standard is in use, there now seems to be a
preference for IEEE's 802.11b
format.

Integrators see rising residential sales

While suppliers to airports are receiving a dramatic increase in new orders, traditional commercial
integrators are fielding only a slight increase. California Systems Integrators, based in Silicon
Valley,
has received a 5 percent increase in calls from corporate clients, many of whom were
hard hit by the dotcom recession, according to Joe Lucido, sales manager. Selling and integrating
CCTV and access control make up 95 percent of the firm's business. Howeve
r, the integrator has
received "huge" interest from new residential customers.

Lucido said the barrier to installation of finger and hand biometrics is still price. Lower
-
priced
products do not usually have great technology, he said: "It's a software issue
. Interfacing with the
access control software has caused problems."

Technology is also the reservation Lucido has with wireless systems. "We've used RF for panic
buttons, alarms, contact points on windows, motion detectors and video signal transmission.
The
image quality certainly is not as good as wired, but it is pretty good. The problem with wireless is
always interference."