Over the last few years, the BRICs (Brazil, Russia, India and China) have been the countries of choice for video surveillance vendors seeking new growth opportunities.
Unlike the more developed video surveillance equipment markets in EMEA and North America, the BRICs were far less impacted by the recent economic downturn. IMS Research estimates that the total video surveillance equipment market in the BRICs was worth over $2.5 billion in 2010.
With a growth rate exceeding 20% for the next two years, the BRICs will continue to offer video surveillance vendors solid growth opportunities as the more established and mature video surveillance markets feel the impact from a second potential downturn.
Whilst the BRICs have and continue to offer opportunities for growth, many of the leading market players have already established footprints in these countries, diminishing any potential for first mover advantage.
Growth opportunities
So beyond the BRICs, where should companies seek out new growth opportunities? The CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are being touted as the next set of tiger economies due to their rapidly industrializing economies. The indicators appear promising as the current long term GDP rate for the CIVETS is in line with that for the BRICs.
In terms of the current spend on video surveillance equipment the CIVETS are a minnow when compared with the BRICs. However, in the medium to long term, as infrastructure development and social mobility increases, the CIVETS will provide a strong opportunity for video surveillance vendors to grow.
From a broad economic perspective, political instability and terrorism are current issues that will deter FDI (Foreign Direct Investment) in to some of the CIVETS. However, whilst this may serve as deterrent for growth in many industries, the security industry has historically benefited from instability and the threat of terrorism.
In terms of video surveillance market size, the CIVETS will not overtake the BRICs for many years, if at all; however, IMS Research believes that manufacturers will begin to explore the long term growth potential of the CIVETS in 2012.
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