Research Question: Will Taser International be the primary beneficiary of the surge in demand for body cameras by law enforcement agencies?
Report Available: June 12, 2015
Blueshift’s initial research shows high momentum behind law enforcement agencies’ interest in adopting body cams, but the purchases may be delayed or not occur at all due to high costs, lack of departmental funding, and objections by police unions.
- TASR stock has spiked 150% in the past year and saw revenue climb 19% to $165 million. Analysts are predicting revenue growth of 18% in 2015 which might be conservative considering the potential revenue TASR could generate from its growing body camera business.
- TASR appears to be in the best position to capture police body cam contracts, which will generate upfront revenue along with recurring revenue from its cloud storage supplied for the cams’ video footage. TASR may add over $100 million in revenue from body cams sales if adoption rates exceed expectations. The Rialto, CA police department saw a 300% return on its purchase of cameras since they led to 21 fewer complaints, which TASR estimates resulted in a departmental savings of $20,000 in court costs. TASR recently purchased MediaSolv, a small surveillance and body cam firm, which will help it better compete with DGLY.
- Law enforcement agencies face roadblocks that could prevent body cam adoption, including high costs, privacy issues/laws, and resistance from police unions that fear body cams could be used as a discipline tool. Panasonic recently announced its entry into the body camera market. GOOG has become a potential threat to TASR with its Google Glass market reentry, and KOPN’s Golden I could be a more sophisticated wearable device that can perform more than just video recording.
Will law enforcement agencies purchase hordes of body cams within the next two years? Will Taser capture most of the law enforcement body cam market? To gain insight into TASR and the body camera market, Blueshift will gather data and issue a market research report from independent sources in the following areas: Police departments, supply chain, vendors/competitors, lawmakers, police unions, and industry specialists/consultants.
Companies: Taser International (TASR), Digital Ally (DGLY), Google (GOOG), Kopin (KOPN), Panasonic (TYO: 6752)
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