RUSSIAN SECURITY MARKET IS EXPECTED TO GROW: FEATURES AND TRENDS

 

The economic crisis in Russia has affected many segments of its physical security market. This is mainly due to the fact that the security market is closely connected with sectors such as construction, oil & gas as well as the private and commercial sector. However, according to experts study, as the economy recovers…

 

Features

>>> The public sector will be the greatest contributor to the growth of the physical security market in Russia, starting in 2009 and going into 2010, this will continue in the future thanks to the increasing number of federal, commercial, and oil and gas projects.

>>> Video surveillance and access control are the most dynamic segments of the Russian electronic security market, with compound annual growth rates of 13 percent and 7 percent, respectively, over the period from 2008 to 2012.

>>> Part of the recovery of the Russian security market is driven by booming investments for the 2014 Winter Olympic Games in Sochi, Universiade 2013 in Kazan, APEC SUmmit 2012 in Vladivostok.

>>> Russia will spend around 10.5bln rubles (Ј227m) on new stadiums across the country as it looks to win the right to host 2018 FIFA World Cup.

>>> IT security market volume is expected to grow up to USD78m by 2012. 

>>> On top of these investments, there is also the ongoing need for the replacement of older electronic security equipment for the many State-owned Russian conglomerates.

>>> The economic recovery in many Asian Pacific countries and stronger ties between Russia and China are pointing toward a strong recovery of economic activity in Russia. Companies need to position themselves ahead of the curve in order to take advantage of the huge potential of the Russian security market.

 

Trends

>>> Integration of security sub-segments (video surveillance, access control, intrusion detection)

>>> Movement from analogue to hybrid solutions and further network-based systems. Russia: 2005 - 100% ABS; 2009 - 90% ABS vs 10% NBS; 2012 – 70% ABS vs 30% NBS.

>>> Migration to IP bring hardware and IT distributors, value added distributors and further system integrators all together in the distribution chain.

>>> Increasing number of new vendors in video content analytics, network cameras, IP video surveillance software markets (high potential in Russia).