Saudi Arabia is the leading revenue generating country in electronic security market amongst all GCC countries. Led by factors such as increasing government security spending, rising public & private infrastructures, surging investments and growing IT infrastructure. Further, the market is also exhibited to increase due to growing IT spending and rising tourism in the country.
Although until 2014, Saudi Arabia’s electronic security market achieved significant growth, but with falling oil prices in 2015, the market registered negative growth year-over-year owing to lower government spending. Moreover, the country recorded fiscal deficit of $98 billion in the same year, which affected the momentum of infrastructure expansion and halted several projects in the country. However, post 2017, the market is anticipated to rebound back with expected increase in oil prices.
According to 6Wresearch, Saudi Arabia’s electronic security (includes video surveillance, access control and intrusion detection systems) market touched $172 million in 2015, where majority of the market revenues were generated from video surveillance segment. The video surveillance market alone accounted for more than 67% of the market revenues in 2015, followed by access control and intrusion detection systems.
In Saudi Arabia’s video surveillance systems market, IP video surveillance segment is growing at a rapid pace on the back of declining prices and rising IT infrastructure. During 2016-22, the market share for analog video surveillance is expected to decline, however, the market would witness adoption of HD analog cameras across various verticals. Over the next six years, with the penetration of IP surveillance systems, the market for video analytics software would register growth on account of need for remote monitoring, identifying suspicious activities and mounting awareness in the market.
Access control systems market in Saudi Arabia is led by card based systems but with growing need for advanced security systems, adoption of biometric access control systems would be witnessed in the country. The share of biometric access control system in 2015 was around 23% in Saudi Arabia’s access control systems market.
Central and western regions are the key revenue generating regions in the overall electronic security market. Cities such as Riyadh, Jeddah, Makkah and Madinah have contributed for these regions market dominance.
The Saudi Arabian government is planning to diversify its economy by introducing National Transformation Program (NTP) to generate revenues from non-oil sector; anticipating an increase from $73 billion in 2015 to $141 billion by 2020. More such programs would positively impact the development of non-oil sectors, which would indirectly boost the market for electronic security systems in the coming years.
Some of the major companies in Saudi Arabia’s electronic security market include- Axis Communications, Lenel Systems, Honeywell, Bosch Security Systems, Siemens, Pelco, Samsung Techwin, Tyco, Hikvision, Arecont Vision and Avigilon.