The growth of the Croatian video surveillance equipment market is expected to accelerate following its membership of the European Union earlier this month. This follows large expansions in the Romanian and Bulgarian video surveillance equipment markets since their accession in 2007.
The Romanian market has benefited from generous E.U. funding, which has driven the growth in infrastructure and city surveillance projects, according to a new report from IMS Research, now part of IHS, (NYSE:IHS). The Romanian video surveillance equipment market more than doubled in size to $12.6 million in 2012, up from $5.7 million in 2007, as presented in the attached figure.
The Croatian market for video surveillance equipment was estimated to be worth $5.1 million in 2012, with double-digit growth forecast for the next five years.
“Following its recent accession into the European Union, the Croatian market for video surveillance equipment is set to echo growth levels experienced by the Romanian and Bulgarian markets,” said Aaron Dale, research analyst for the Security and Fire Group at IHS. “Access to E.U. development funds, while crucial, is not the sole reason for growth in these markets. The associated administrative reforms designed to standardize business practices across Europe will serve to attract a greater level of foreign direct investment.”
However, a number of challenges remain for the Croatian authorities to overcome before the benefits to the country’s video surveillance market can be realized. Both the problems of inflexibility in labor markets and extensive bureaucratic red tape will need to be addressed. Should this be accomplished, the Croatian video surveillance equipment market likely will become more attractive to foreign investors.
“With the likelihood of E.U. development grants combined with an improved bureaucratic structure, Croatia represents an attractive opportunity for video surveillance equipment vendors looking to move into this space,” Dale said. “Increases in infrastructure and spending funded by grants from the European Central Bank, will lead to a greater demand for high-end networked video surveillance equipment. Currently the domestic market is not positioned to cater to such demand.”
The video surveillance equipment market in Croatia, while still in its infancy, has great potential to grow. High growth rates seen in the Romanian and Bulgarian markets following their accession into the European Union provide a strong indication that a similar expansion can be achieved in the Croatian market.