Prices and delivery times for essential components in CCTV systems are being driven up as demand soars from other industries. Secure Logiq’s Robin Hughes explains the current state of the market.


Component shortages and supply chain challenges are a hot topic in just about every industry based on semi-conductors and silicon chips right now, and security is no exception.

It’s common knowledge that the global Covid lockdown caused a shutdown in the mining of silicon and spherites as large industries such as motor manufacturing cancelled or postponed their chip orders – this has caused a supply gap that every industry is feeling.

However, there is a second challenge that is hitting the security sector particularly hard, and it may not be one you are expecting – cryptocurrencies.

Cryptocurrencies and security

When people discuss cryptocurrencies and security, thoughts often turn to cybersecurity and ransomware payment tracking. But the issue for the majority of the security industry comes from crypto mining.

When it comes to cryptocurrencies, GPUs are intrinsic for ‘proof of work’ mining

GPUs (Graphics Processing Units) are a key component in CCTV, they decode images and display them onto screens. With the increase of video analytics, these have also become key to running the complicated algorithms required for creating the metadata and presenting it in a meaningful way for end-users. However, when it comes to cryptocurrencies, GPUs are intrinsic for ‘proof of work’ mining.

Demand for GPUs

When Bitcoin prices were relatively low, it was hard to justify the cost of a GPU and the associated power consumption for Bitcoin mining applications.

But as the price of Bitcoin has increased exponentially, demand for GPUs to do the number-crunching has grown dramatically causing a major shortage and huge price hikes. This rise in prices is not correlated with an increase in technological performance on the new GPUs, it is entirely a case of demand outstripping supply and a resulting bidding war.

To put this in context, cards are currently going new for around twice the original price and manufacturers simply cannot keep up with the demand.


On top of this, there is a new cryptocurrency creating a new threat to a different part of the CCTV industry.

A new ‘environmental’ cryptocurrency called Chia has dispensed with the processing power and electricity demands of traditional GPU mining, instead of utilising the spare storage space on hard drives (HDD) to verify blockchain transactions (‘proof of space’).

The demand for this particular cryptocurrency has to date called on 30 Exabytes of storage since May this year – that’s 30 Billion Gigabytes of data, and it’s not just HDDs, high-capacity SSDs are also in demand. This is causing massive hard drive supply issues globally, thus rocketing prices for those that are available.

HDD consumption

The security industry sits comfortably in the ‘Big data’ category and with storage retention times running from 30 days to 6 months

Of course, this has a particularly large knock-on for the CCTV market. There is nothing more data-intensive than video, other than multiple streams of HD video.

With this in mind, the security industry sits comfortably in the ‘Big data’ category and with storage retention times running from 30 days typically up to 6 months and longer in some regions/applications, the CCTV market consumes more HDDs than many other markets.

Growth of data centres

While you would think that this would make security an important area for HDD manufacturers, our market is a relatively small player.

IT vendors will always focus on their core customers, and the rise of the gaming market, as well as the growth of data centres due to remote working in the pandemic, has created a more important sector to serve – and these customers will always come first. Imagine the daily storage space required if 5 Billion people uploaded just one image a day to ‘the cloud’!

Component manufacturers

These factors combined with the lack of raw materials leading to longer lead times for component manufacturers mean that the prices for hard drives and GPUs are likely to remain inflated well into 2022 while factories play catch up on the backlog.

The market for IT hardware is currently strong enough to continue even with the increase in component prices and the extended lead times for products. If you can get your hands on any HDDs, the delivery times from most distributors are around 6-8 weeks.

Increased delivery times

All of this has had a serious impact on the security industry. CCTV projects are now facing the combined issue of increased delivery times and higher costs.
Many manufacturers, integrators, and distributors are doing their best to absorb the price increases where they can, but this is unsustainable over the long term. So what can be done?

Second-hand applications

Some people are getting more creative by purchasing from the second-hand market

Some people are getting more creative by purchasing from the second-hand market. However, it is unlikely that commercial applications will be willing to risk potential downtime or data losses by using second-hand components that have been pushed hard for months on end mining cryptocurrencies.

Making early purchases

While I can’t comment on what other manufacturers have done, at Secure Logiq we have been watching this market trend closely.

We always try to keep a close eye on anything that has the potential to significantly impact our manufacturing capabilities and try to offset any potential challenges with early purchases before the impact is fully felt.

As such, we have been able to secure enough products to continue manufacturing as normal for more than six months.

Increased demand as a challenge

While we have this existing stock to meet current and anticipated orders, we continue to scour the market for any available stock to make sure we are at the top of the list when any fresh products come on the market. This has meant that throughout our 10-year history we have never failed to deliver a customer order within 7-10 working days.

The delays with component manufacture and the ongoing increased demand will continue to present a huge challenge to the CCTV and wider security industry. However, good planning and intelligent design will allow projects to remain on track.

Security technology manufacturers are not alone in this challenge, but the dual-threat is perhaps unique. It will take a while for this threat to be overcome, but with robust planning and by paying close attention to the market forward-thinking CCTV manufacturers can still deliver projects for their clients.

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Author profile

Robin Hughes Sales Director, Secure Logiq

Robin has worked in the electronic security industry for over 25 years and has been instrumental in the transition of the CCTV industry from analogue to digital to megapixel. He has been responsible for designing and delivering many of the UKs most prestigious HD CCTV installations.

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