Is Access Control Nearly 400% Larger than Video?

By: John Honovich, Published on Aug 08, 2010

A July 2010 Report on Electronic Security Systems makes a number of contrarian and shocking claims about the state of the market. For background information, readers may review the Freedonia Group's Marketing Brochure and an SSN interview with the report's author.

Key claims made in the report include:

  • Overall US electronic security market will grow from $10.9 billion in 2009 to $17 billion in 2014. The report does not identify if this is manufacturer revenue or total end user revenue. We suspect this is manufacturer revenue.
  • Access control represents 37% of the market today and will grow to 43% of the market in 2014. Access control CAGR will be 12.8% from 2009-2014.
  • CCTV represents only 10% of today's $10.9 Billion market (that is about $1.1 Billion). Video/CCTV will grow only at 7% to $1.6 Billion in 2014.
  • Quoted in SSN, the report author said "the 2009 economy was so bad, the market for video stayed essentially flat between 2004 and 2009."

These claims appear erroneous. First, US video revenue cannot be only $1.1 Billion. Axis alone generated over $100 Million 2009 US revenue. Pelco easily generates yearly a few hundred million US revenue. Moreover, the consensus among other analysts is that US video surveillance revenue is $3 Billion+.

Secondly, it appears impossible that access control revenue would be that much higher than video. For instance, an April 2010 SSI integrator survey [link no longer available] records video as being 50% more popular revenue generator than access and having 50% more installs per month. We are not sure what the exact ratio of video to access sales. We could believe that total revenue was close. We find it impossible that access is 3 to 4x the size of video.

Finally, the report's claim that access control's growth rate would be almost twice that of video's is contrarian to say the least. As we examined in an August 2010 integrator survey, video absolutely dominates the list of future revenue generating opportunities.

Comments : PRO Members only. Login. or Join.

Related Reports on Access Control

Hikvision DS 2nd Gen Intercom Tested on Dec 12, 2019
With its newest IP intercom, Hikvision proclaims users can 'get full control over an entrance' regardless of where it is installed, home or office...
Access Startup Multi-Mount Aims To Streamline Reader Installs on Dec 03, 2019
Startup Multi-Mount claims it makes installing access readers 'Fast', 'Secure,' and fit 'any size frame.' The company states its bracket 'fits most...
Directory of Access Reader Manufacturers on Nov 27, 2019
Credential Readers are one of the most visible and noticeable parts of access systems, but installers often stick with only the brand they always...
Top 2020 Trend - AI Analytics on Nov 22, 2019
170+ Integrators answered: What do you think will be the top industry trend in 2020? Why? For the 4th year in a row, AI/video analytics was...
Glass Doors and Access Control Tutorial on Nov 21, 2019
One of the biggest access challenges are locking and securing glass doors. Unlike wood or steel doors that can be modified to work with...
ISC East 2019 Show Report on Nov 21, 2019
IPVM has finished in New York City covering both days of the ISC East 2019 show. Here is a 6+ minute general walkthrough: Inside this report,...
Avigilon H4 Intercom Tested on Nov 20, 2019
Avigilon is well-known for video surveillance and access, but how well does the company's intercom work? We purchased and tested Avigilon's H4...
Top Manufacturers Gaining and Losing 2019 on Nov 18, 2019
2019 has been an explosive year for video surveillance, with the world's two largest manufacturers, Dahua and Hikvision, being sanctioned for human...
The Access Control Codes Guide: IBC, NFPA 72, 80 & 101 on Nov 07, 2019
For access, there is one basic maxim: Life safety above all else. But how do you know if all applicable codes are being followed? While the...
100+ Companies Profile Directory on Nov 06, 2019
While IPVM covers the largest companies in the industry regularly (like Axis, Dahua, Hikvision, etc.), IPVM strives to do a profile post on each...

Most Recent Industry Reports

ADT CEO Not Worried About DIY: "2 Discrete Markets" on Dec 13, 2019
ADT's CEO is not worried about DIY, characterizing DIY and ADT's DIFY as "2 discrete markets" at the Imperial Capital Security Investor's...
Hikvision CEO Alleged Illegal Activities Investigated on Dec 13, 2019
Hikvision's CEO Hu Yangzhong is under investigation for suspected illegal activities, according to the PRC's securities regulator. This has become...
Video Surveillance 101 Course Opened on Dec 12, 2019
IPVM is adding a Video Surveillance 101 course, designed to help those new to the industry to quickly understand the most important terms,...
Verkada Notification Outage on Dec 12, 2019
Verkada is suffering an event notification outage and analytic search failures. Inside, we examine what the issues are, what Verkada told IPVM...
Hikvision DS 2nd Gen Intercom Tested on Dec 12, 2019
With its newest IP intercom, Hikvision proclaims users can 'get full control over an entrance' regardless of where it is installed, home or office...
Honeywell 30 Series Cameras Tested Vs Dahua and Hikvision on Dec 11, 2019
Honeywell has infamously OEMed Dahua and Hikvision for years, but now they have introduced an NDAA-compliant line, the 30 Series, claiming "lower...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
IP Camera Browser Support: Who's Broken / Who Works on Dec 10, 2019
For many years, IP cameras depended on ActiveX control, whose security flaws have been known for more than a decade. The good news is that this is...
Acquisitions - Winners and Losers on Dec 10, 2019
Most major manufacturers have been acquired over the last decade. But which have been good deals or not? In this report, we analyze the...
IP Camera Installability Shootout 2019 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Dec 09, 2019
What are the best and worst cameras to install? Which manufacturers make it the hardest or easiest to install their cameras? We tested 35 total...