Did the Security Spending Boom Never Happen?

By: John Honovich, Published on Sep 08, 2009

Almost a decade after 9/11, the questions and doubts on the security spending boom continue to increase. Did the boom never happen? And, even if it did, why is there such questions arising now.

The Mercury News, Silicon Valley's hometown newspaper is the latest to raise this question. The columnist specifically cites the quiet sale of GE Security's homeland defense business and contrasts that to expectations immediately after 9/11. This is similar to a thread from VentureBeat, another Silicon Valley related publication, who also questioned the financial performance of security companies.

To the contrary, most American security professionals have personally benefitted from post 9/11 security spending. India is almost certainly experiencing the same growth.

Analyzing this is difficult because the post 9/11 expectations were vague. However, there are a few trends that can be discerned:

  • Video surveillance grew the fastest of any security segment (by many accounts a CAGR of 10-15% for the decade). However, this growth was significantly driven by mainstream technological advances (in the first half, the move from VCRs to DVRs, in the second from DVRs to IP video). Even without terrorism, video surveillance growth would have been likely strong  due to poor technological advances.
  • The public priority for security in the US and Western Europe has faded. In the US, not only has the economy overtaken security but it could be argued that green initiatives and health care may also have gained greater prominence. Whatever driver terrorism was in 2002-2008 is unlikely to be matched in 2009-2015 (barring a significant terrorist event).
  • In that respect, the assumption by many that the terrorism fueled spending would become semi-permanent (like a new 'Cold War') is not proving to be true (simply because of the issues mentioned above.
Ultimately, the greatest impact this has is the assumptions of investors and executives in setting expectations and plans for video surveillance/security businesses. It's likely that prudent individuals will have to start removing terrorism as a positive factor. Companies will need to survive without the external driver of frantic homeland security expenditures (again barring a significant terrorist event).
Comments : Members only. Login. or Join.

Related Reports

Dahua, Hikvision, ZKTeco Face Mask Detection Shootout on Jun 19, 2020
Temperature tablets with face mask detection are one of the hottest trends in the current coronavirus driven market. But how well does face mask...
Terrible Convergint Coronavirus Thermal Camera Recommendation on Apr 01, 2020
A week after Convergint disclosed falling revenue, pay and job cuts, Convergint is touting 'extensive research' that is either grossly incompetent...
Pivot3 Mass Layoffs on Mar 27, 2020
Pivot3 has conducted mass layoffs, the culmination of grand hopes, a quarter of a billion dollars in VC funding, and multiple failures to gain...
Faked Coronavirus Fever Detection, Athena Used Hikvision; Responds - Selling NDAA Compliant Cameras, Pledging 50% Of Profits to Victims on Mar 24, 2020
US company, Athena Security, faked its coronavirus fever detection marketing, faked a customer, faked comments, and is now using Hikvision, IPVM...
Fever Camera Sales From Integrators Surveyed on Jun 01, 2020
Fever cameras are the hottest trend in video surveillance currently but how much are integrators selling them? 220 integrators answered the...
"He Is An Idiot!" Exclaims SIA Director John Mack on Mar 23, 2020
Here is another inside look into the "leaders" of the security industry. SIA director John Mack of Imperial Capital is angry at IPVM. Why? We...
The Problem With Fever Detecting Thermal Sunglasses on Apr 15, 2020
While the media has promoted using thermal sunglasses to detect fevers, this approach has fundamental problems and, at best, is health...
FDA "Does Not Intend to Object" To Unapproved Fever Detection Cameras If No 'Undue Risk' on Apr 17, 2020
The US FDA has declared it will not go after the many companies marketing unapproved fever detection cameras during the coronavirus public health...
Axis Thermal Camera / Grekkom Human Temperature Control Tested on Jun 10, 2020
While Axis has a temperature detection camera (the Q2901-E), they has been reluctant to market it for coronavirus. However, Axis partner Grekkom...
Dahua Temperature Measurement Station Tested on Jun 17, 2020
Dahua hit the market hard with its original 'fever' camera (tested here). Now, they have a temperature measurement station, that costs just a...

Most Recent Industry Reports

ZeroEyes Presents Firearm Detection Video Analytics on Jul 09, 2020
ZeroEyes presented its Firearm detection Video Analytics system at the May 2020 IPVM Startups show. A 30-minute video from ZeroEyes...
Clinton Public View Monitor (PVM) Mask Detection Tested on Jul 09, 2020
Face mask detection, or more specifically not wearing one, is expanding amidst the pandemic. Clinton Electronics has added this capability to their...
These Florida Real Estate Agents Are Now Selling "SafeCheck USA" Temperature Detectors on Jul 09, 2020
The "Kakon Brothers", William and Nathan, are self-described "south Florida Power Agents specializing in Luxury Real Estate" who "have closed over...
Avigilon ACC Cloud Tested on Jul 08, 2020
Avigilon merged Blue and ACC, adding VSaaS features to its on-premise VMS, offering remote video and health monitoring that was previously limited...
Hikvision's India Dominance Faces Threat on Jul 08, 2020
While Hikvision has become a dominant video surveillance provider in India, recent tension between the governments of India and the PRC is...
The US Fight Over Facial Recognition Explained on Jul 08, 2020
The controversy around facial recognition has grown significantly in 2020, with Congress members and activists speaking out against it while video...
Sperry West / Alibaba Tablet Temperature Measurement Tested on Jul 07, 2020
In April, we ordered a ~$500 temperature tablet from Alibaba. We set it to the side while doing 18 other temperature screening tests but, after...
Facial Recognition: Weak Sales, Anti Regulation, No Favorite, Says Security Integrators on Jul 07, 2020
While facial recognition has gained greater prominence, a new IPVM study of security systems integrators shows weak sales, opposition to...
Video Surveillance 101 Book Released on Jul 07, 2020
IPVM's unique introduction to video surveillance series is now available as a 145-page eBook. Designed for managers, salespeople, and engineers new...
Startup Duranc Presents AI VSaaS on Jul 06, 2020
Duranc presented its system at the May 2020 IPVM Startups show. A 30-minute video from Duranc including IPVM Q&A Background on the...