Retail Sales of Home Security Cameras Are Rising

The residential security market is not “recession proof” as it is sometimes labeled. The truth is home security sales have taken a hit during the recession, primarily because the real estate market tanked.

But one category of security equipment is bucking the trend: residential security cameras. But it’s not necessarily great news for dealers. The hot portion of the market is cameras that are being sold directly to consumers via retail vs. through the professional installation channel.

The residential CCTV market has always been minuscule compared to commercial CCTV, but the advent of sleek plug-and-play IP cameras are changing the market dynamics. Two recent reports reveal over-the-counter retail sales of CCTV equipment are a hot commodity.

The total U.S. market for home surveillance sold at retail is $280 million, according to Investor’s Business Daily. Logitech and Panasonic are cited as doing well selling surveillance equipment at retail, while Best Buy is reportedly testing the sale of home video surveillance products at stores in several markets.

Investor’s Business Daily quotes an executive from Swann Communications who says its retail sales of home surveillance equipment rose 15 percent in the past year to about $40 million. Swann is an Australian company that sells both pro security equipment and retail CCTV. Its retail resellers include Fry's Electronics, RadioShack, Home Depot and others.

Swann now has its cameras in 20 Best Buy stores, and Best Buy plans to roll out sales nationally if the pilot project goes well. A quick check of the Best Buy Web site reveals an array of video surveillance cameras under its Home Automation category.

Logitech, best known for its Harmony remotes, spent $24 million to buy a video camera company called WiLife in 2007. It now sells home security cameras for as little as $299.

Investor's Business Daily says the home surveillance market “has moved from systems that are expensive, difficult to install, hard to use and poor quality to affordable, easy-to-use systems with good video quality.”

One executive from Swann attributes growth in the market to the actual live demos at retail stores.

In another sign the residential CCTV market is becoming more attractive, Canada-based Circus World Displays (CWD) announced plans to aggressively pursue the U.S. market with its SVAT DIY video surveillance systems. The company also just purchased several other brands of consumer electronics from Synnex including Citizen, Electrohome, Magnasonic and Secureguard.