The market is expected to be driven by the growth in cybercrimes, worldwide. There has been a surge in the need for real-time insights from the communication data and call records, which is a major factor in the overall market growth. Furthermore, with the rise in the number of telemarketing frauds, phone hacking, technically advanced and innovative products for audio monitoring and surveillance, the market is expected to register significant CAGR Growth in the coming years.
FIGURE: AUDIO SURVEILLANCE MARKET, US$ Billion, 2020 to 2026
Source: Knowledge Sourcing Intelligence Analysis
Increase in Cyber Crime Cases
There has been a surge in the number of cybercrime cases, across the world. According to the National Crime Record Bureau of India data, there had been a surge of 63.5% in cybercrime cases in 2019, as compared to 2018. The data stated that in the country, 44,546 cybercrime cases were registered in the year 2019, as compared to 28,248 in the year 2018. Audio surveillance becomes an imperative feature for the crime agencies, as data showed that in 60.4% of cases, registered fraud had a major share, which was followed by sexual exploitation and causing disrepute, with a share of 5.1% and 4.2%, respectively. With the growth in digitization, cybercrime cases are expected to surge in the coming years. Identity Theft is one of the most common cybercrimes occurring in the world. It continues to possess a major challenge for the consumers as well as governments, worldwide, as criminals continue to develop novel and advanced solutions, to commit cybercrime or fraud. According to the Insurance Information Institute data, 3.3 million suffered from some type of fraud, in the year 2017. The Consumer Sentinel Network, which has been maintained by the Federal Trade Commission of the United States, stated that out of 3.2 million identity frauds and theft reports received in the year 2019, 1.7 million reports were related to fraud, 900,000 were another consumer complaint and 651,000 reports were identity theft complaints. 23% of the 1.7 million fraud cases, reported that their money was stolen or lost. In the year 2019, consumers in the United States reported losing more than USD 1.9 billion from some sort of fraud, with a substantial increase from USD 293 million from the year 2018. Mobile Telephone frauds had a share of 8.2% with over 44,208 cases. Credit card fraud had a major share with over 246,763 cases and a share of approx. 45.7%. The Australian Competition and Consumer Commission reported that approx. $3,198,388 were lost in identity theft attacks and there were around 20,943 reports in the year 2020. The reports with the financial losses were around 3.3% of the total loss.
Phone Related Frauds is expected to drive the market growth.
The Federal Trade Commission received more than 3.2 million reports related to cybercrimes and frauds. Imposter scams had a major share and people reported losses worth USD 667 Million to imposters. The imposters connect directly through cell phones or telephones. They sometimes pretend to call from a well-known business, a family member, a romantic interest, or from the government, related to an emergency or for other purposes. People usually reported paying money to scammers with a gift card. There were around 166,190 reports about the social security scam in the year 2019, and the median loss was around USD 1,500, in the United States. Most people reported that they lost money by receiving a call on their mobile or telephones. Those who lost money stated that the median loss had been around USD 1000 in the year 2019. With the adoption of novel and advanced technologies, the ability to fight and solve cases, related to cyber fraud has improved. The Federal Trade Commission, in the year 2019 stated that their actions led to a recovery of more than USD 232 million in refunds. In the last four years, there had been a recovery of USD 1 billion in FTC refund Checks. The ability to record calls, and to monitor the recording, has been a major factor in solving various types of cybercrimes related to mobile phones. Major companies have been offering solutions, related to gift card frauds. Imposters usually ask a user to pay the amount with gift cards. They ask to wire or put money into the gift cards. Major companies such as Amazon, eBay, Google Play, iTunes, Steam, and others have a cybercrime branch in their company, which deals with the frauds related to gift cards and others. The Australian Competition and Consumer Commission reported that around 2,029,776 Australian Dollars were lost in a phishing scam in the year 2020. There were a total of 44,084 reports and complaints regarding the phishing attack.
Advancement and Innovation is expected to drive market growth
There has been a rise in the number of novel and advanced products in the market, in recent years. Major companies have been spending significant capital to develop innovative and advanced products for their customers. In December 2020, China announced that it would build more than 600,000 base stations for 5G in the year 2021, as the country had been accelerating and surging the rollout of wireless technology. The country would lay a sound telecom infrastructure for integration of the real and digital economies. In November 2020, a team of researchers introduced a technique that converted a smart vacuum cleaner into a microphone, which would be capable of recording nearby communications. The researchers were from the National University of Singapore and the University of Maryland. The technique had been called as LidarPhone, and it worked by taking Vaccumm’s LIDAR laser-based navigational component, which would then converted into a laser microphone. There have been other developments in the market in recent times. In June 2020, Scientists at Ben-Gurion of the Negev University in Israel announced the development of a new method from which a user can listen to audio through a lamp, without any need for modifications. The project had been called Lamphone, which showed that high-resolution content and data obtained by a visual microphone, would not be required when using a light hanging bulb. An electro-optical sensor would be used to recover sound. In December 2019, Sony India announced the launch of a novel Digital Voice recorder range with ICD-UX570. The product offered a reliable and high-quality recording with an auto voice, a long-range skipping tool, and music recording. The product had enhanced usability and feature which made it ideal for on the go recording.