Initially installed as a defense against routine law enforcement violations, video surveillance has become a key weapon against terrorism, according to a new report. The study, issued Monday by market researchers Frost & Sullivan, maintains that improvements in video surveillance software will drive sales of such programs for years to come.

"Against the backdrop of the recent London bombings and with the bombing suspects identified through closed circuit televisions, video surveillance has emerged as a key security technology in the fight against terrorism," the report noted.

New preset algorithms and faster processors are enabling surveillance software developers to create intelligent video surveillance (IVS) software for real-time analysis. Frost & Sullivan predicted the IVS market will grow at a compound annual growth rate of 23.4 percent reaching $670.7 million in 2011.

The London surveillance video networks were established to monitor potential attacks by the Irish Republic Army, and while they provided little information on the IRA perpetrators, they have proven invaluable in tracking down some of the Muslim extremist terrorists involved in July’s terrorist attacks in London.

The report noted that most video surveillance software is in use in video surveillance systems in the United States, although Frost & Sullivan said it expects video surveillance to grow in European, Middle Eastern and African markets now that its use has been demonstrated in the wake of recent terrorist bombings. "The spate of bombings spanning London to Sharm-al-Sheik has created significant opportunity for video surveillance software manufacturers," Frost & Sullivan noted in its announcement of the report

The market research firm observed that the growth of the IVS market segment will also be propelled by initiatives to replace existing analog cameras with network-based systems.

"The software products allow reduction of human intervention in video surveillance," said the firm’s senior research analyst Soumilya Banerjee in a statement. "Preset algorithms and easy user-defined policies reduce the requirement of security personnel in the monitoring station, allowing them to either be relocated on site, outside the monitoring station or dispensed with entirely, depending on the type of premise under surveillance."

In the United States, while law enforcement authorities have hailed the growth of video surveillance as a means of combating violations in high-crime areas, civil libertarians have cautioned against the growth of video surveillance as a potential unlawful privacy incursion.