A rise in the instances of terrorism has prompted organizations, authorities and individuals to devise effective response mechanisms. Physical security has become essential for enterprises looking at solutions to address everything from pilferage to theft and terrorism. This has led to an increased demand for solutions like video surveillance in sectors like public transport, hospitality, airports, BFSI and education, prompting organizations to increasingly incorporate network video into their enterprise IT security plans.

While surveillance requirements of corporate environments are generally driven by the need to protect employee and company assets, they help achieve other business objectives also. Retail outlets for example use network surveillance for footfall measurement. In airports, an intelligent video system measures the queue time between entering and exiting a check-in point helping direct staff and minimizing waiting time for travelers. In banks, remote surveillance and monitoring can help prevent theft, fraud and facilitate investigation.

Market opportunity
Gartner estimates a CAGR of 16.4 percent for the Indian security market between 2008 and 2013. According to ASSOCHAM, corporates are likely to increase their security budgets by 35-40 percent. The demand for security equipment has increased by 10-15 percent and the private security industry in India is expected to touch Rs. 50,000 crore by 2012 (125 percent growth as opposed to the 25 percent that's been the norm for the past five years). The Indian surveillance market, which is about 30 percent of the security industry, is seeing a shift from analog to IP-based surveillance. Currently IP-based surveillance market in India is valued at about $50-60 million and is expected to grow at 45 percent YoY for the next four to five years.

While the global market for analog video surveillance equipment was flat in 2009, the growth rate of global IP video surveillance equipment exceeded 15 percent. According to the 2009 IMS Research report, the global growth of network video products will be approximately 30 percent over the next five years.

According a report by International Fire and Security Exhibition and Conference (IFSEC), physical security in India is likely to grow into a $3.5 billion market; this is expected to grow by up to 30 percent YoY. Growth is expected from various sectors including urban security, public transport, hospitality, airport security, BFSI and education. The government remains the biggest spender on physical security/ surveillance solutions and is expected to spend $10 billion on the nation’s homeland security requirements, over the next two to three years.