INTRODUCTION
Study Goal and Objectives
Visual surveillance devices have long been in use to gather information and
to monitor people, events and activities. Two visual surveillance technologies,
night vision devices and Closed-Circuit Television (CCTV), are the focus of this
market survey. Technological and political trends are occurring which are
accelerating the capabilities and employment of these technologies across our
society. It is indeed commonplace for individuals in our society to be under
surveillance as a daily fact of life, and in most applications to be quite
unaware of this surveillance.
The study goal of this market survey is to review and to analyze trends that
are continuing and are spawning an abundant array of commercial applications for
these products in industrial, commercial and personal use environments. This
comprehensive BCC industry analysis looks at the commercial, industrial and
personal use markets for these visual surveillance devices/systems, their
predicted impact on the market and industry, and provides historical data as
well as 5-year forecasts (through 2004) for market size and changes.
The objectives of this market study are twofold. The first is to provide
decision makers in the security industry -- security companies; security systems
integrators; surveillance device designers and manufacturers -- with insight
into this growth market. The objective is to provide users of visual
surveillance devices -- industry, commerce, corporations, law enforcement, and
civilians -- with insight into the current and forthcoming technological
capabilities of these visual surveillance systems.
To achieve these two objectives, the following tasks were performed, and the
results of these tasks are contained in this market study: 1) review and assess
night vision technologies and markets; 2) review and assess closed-circuit
television technologies and markets; 3) review and assess applications; and 4)
review and assess the state of the industry.
Night Vision Devices
The night vision segment of the visual surveillance device marketplace
consists of traditional designers and developers of night vision devices such as
Litton, Texas Instruments, Raytheon (purchaser of Hughes Aircraft Company), ITT
and others; the security systems integrators who incorporate these surveillance
devices in security systems for their clients; and the users of security systems
incorporating night vision devices. Users include civilians, law enforcement and
industry. The current "Gen III" or Third Generation night vision
devices have become much less expensive, more reliable, and more widespread in
nonmilitary use. These uses include law enforcement surveillance, civilian
hunting and navigation, and other sporting applications.
Closed-Circuit Television
Closed-circuit television has been in use for security applications for a
long time, but technological improvements such as thermal imaging, digital
television, and software products have enhanced this capability to new levels of
performance. These levels of performance are being capitalized on by security
companies to expand their market share. Nearly a third of all American
businesses use closed-circuit television for surveillance/ security functions,
and it is doubtful that the average American citizen can escape closed-circuit
television surveillance (retail stores, businesses, city streets, banks, ATMs,
airports, train stations, bus stations) anywhere other than their homes or in
remote locations. And this trend can be expected to continue. Application areas
where significant growth can be expected include elementary and secondary
schools and colleges and universities.
Reasons for this Study
There are a number of reasons for doing this study. The first is that visual
surveillance technologies once reserved solely for military or police use, such
as night vision devices, have been dramatically reduced in price, and are
entering the civilian market in ever increasing numbers.
A further reason is that despite the reported declines in violent crime in
major American cities during the final years of the '90s, concern about
personal, home and job security has never been greater. This has lead to the
increased use of surveillance systems (closed-circuit television - CCTV - for
example) in gated communities and offices. This in turn will create a growth
industry, as ever more efficient surveillance systems and devices are required
to protect individuals and businesses. Growth in the residential market can be
expected as new homes are routinely equipped with built-in computers, and these
systems include a surveillance system to protect the residence and its
occupants.
An additional reason for doing the study is that as microminiaturization of
these technologies proceeds, the presence of surveillance devices in our daily
lives is becoming ever more pervasive, and increasingly without our knowledge or
awareness.
And, the rapid integration and overlap of technologies which support the
visual surveillance device market -- communications, computer, video, data
storage, software systems architecture, optics -- will see strategic alliances
formed between major technological players to accelerate the commercialization
of these products. For example, the concept has been patented to use templates
stored as digital data in a CCTV system to recognize the faces of particular
individuals. These devices, in reality, will integrate video, software,
hardware, and digital television technologies.
And by 2004, it can be expected that growth in the visual surveillance device
market will result in mergers and acquisitions in the security industry that
depends on these devices.
Finally, the visual surveillance device industry is a growth industry, which
will see substantial growth in industrial, commercial and residential
applications well into the next century, with a consequent eroding of personal
privacy.
Contributions of the Study and for Whom
This report provides an analysis of the new technology market for visual
surveillance devices which will not only affect the companies currently in those
and related businesses, but in all likelihood will spawn the growth of new
businesses.
Military research and development into visual surveillance devices such as
night vision and closed-circuit television, and supporting software and digital
imaging technologies, promises to create a new family of visual surveillance
devices for military, law enforcement and civilian protection uses.
This report provides technology use and application through the year 2004 as
well as the structure of the industry and company profiles of major players, and
will benefit decision makers in a number of areas. These are:
- Law enforcement suppliers;
- Law enforcement agencies;
- Research and development companies;
- Defense contractors;
- Military and law enforcement suppliers;
- Personal protection developers and manufacturers;
- Security personnel and services;
- Security system integrators;
- Security system designers;
- Commercial enterprises;
- Industrial enterprises;
- Individuals;
- Corporate security managers;
- Academic and institutional security managers;
- Home builders and buyers.
Scope and Format
This report is an analytical business tool the primary purpose of which is to
cover the growing market for visual surveillance devices -- night vision devices
and CCTV -- in terms of application and end use. A summary follows this
introductory section and is followed immediately by an overview of the
development of the surveillance device industry and development of the market.
The succeeding sections are analyses of the current and future market trends.
This report will review the application and end use markets as well as the
technology, development of the market, and analyses of current and future market
trends.
The visual surveillance device industry is not a well-defined one, but rather
a grouping of visual surveillance device designers/manufacturers, systems
integrators and distributors. This study of the surveillance device industry
focuses on the following major surveillance device types:
Night vision devices used in law enforcement, security, and personal
applications; Closed-circuit devices used in industrial, commercial and personal
applications.
The final segments of this report address the industry's structure, and
provide an analysis of the technology currently under development and in the
market.
Methodology
The material presented in this study is based on information gathered from
personal contacts with government and industrial participants in the respective
areas of research, development and manufacture of these products as well as a
thorough review of the technology gathered from various government and industry
sources.
Additional data was obtained from an extensive review of secondary sources
such as trade publications, trade associations, company literature and on-line
databases. All dollar projections presented in this report are in 1999 constant
dollars.