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Jon Cropley

Video surveillance equipment market growing

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Wednesday, July 11, 2018

Growth in the global professional video surveillance equipment market accelerated in 2017, and is forecasted to continue growing in 2018, according the latest IHS Markit research.

The world market for professional video surveillance equipment grew by 9.3 percent in 2017, IHS found, a much higher rate of growth than in 2016 (3.9 percent) and 2015 (1.9 percent).

“Increased government spending on equipment to fight crime and terrorism was a major factor in this growth, as was private sector spending on replacing equipment in retail and commercial installations,” Jon Cropley, senior principal analyst, video surveillance, IHS Markit, said in a summary of the study.

Increasing demand for security cameras is expected in 2018, he said, but a slightly lower of level of price erosion is also forecast. The combination of these factors will lead to 10.2 percent growth in the video surveillance equipment market, which will reach $18.5 billion in 2018, IHS noted.

Global demand for security cameras grew rapidly in 2017, but average prices continued to fall. “Nevertheless, revenue grew in most countries,” said Cropley. “Two of the fastest-growing country markets were Brazil and India. A major factor behind the growth in both countries was increased spending by private retail and commercial organizations on HD CCTV systems used to prevent crime.”

Accounting for 44 percent of all global revenue, the Chinese professional video surveillance equipment market grew by 14.7 percent, while the world market excluding China grew just 5.5 percent. “One major reason for the higher growth in China was the government’s Xue Liang program driving investment in both city surveillance projects and extending city surveillance systems into surrounding rural areas,” Cropley noted.

Other key findings include:
•    Although it remains highly fragmented compared to many other markets, the supply base for professional video surveillance equipment is gradually becoming more concentrated. The top 15 vendors accounted for 62 percent of global revenue in 2017.

•    Overall, 62 percent of all security cameras shipped in 2017 were network cameras.

•    Deep-learning-enabled recorders and servers, a new category this year, are an important element in powering what many expect to be the next generation of video analytics using artificial intelligence. They accounted for just 1 percent of global market revenues in 2017.
 

Camera demand growing as prices plummet

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Wednesday, July 5, 2017

The world market for professional video surveillance equipment grew by 3.9 percent in 2016, despite a drop in camera prices, according to recently published estimates from IHS Markit through its Video Surveillance Intelligence Service.

“This is a higher rate of growth than in 2015 (1.9 percent) but still low by historical standards,” Jon Cropley, principal analyst, video surveillance, IHS Markit, said in the announcement.

IHS forecasts a slightly higher growth in the global market for 2017—at 5.5 percent—and as a result, the world market will be worth $16.2 billion in 2017.

Accounting for more than 40 percent of global revenues measured in U.S. dollars, the Chinese market grew by 7.2 percent in 2016, according to IHS, which noted that exchange rate changes did play a role in suppressing a higher calculated growth in that currency (as the average annual exchange rate of the Chinese Yuan Renminbi to the U.S. dollar fell by 6.6 percent in 2016). In the report, Hikvision took the top spot in several categories.

“The world market excluding China grew by just 1.6 percent in 2016,” Cropley pointed out. “Demand for security cameras grew rapidly but prices fell considerably, affecting revenues. In fact, revenues declined in a number of countries.”

IHS also found that the supply base for professional video surveillance equipment is gradually becoming more concentrated, although it remains highly fragmented compared with supply to many other markets.

“The top fifteen vendors accounted for 58 percent of revenues in 2016,” noted Cropley. “In 2016, a number of Chinese vendors continued to gain market share rapidly in regions outside China. They tend to offer products with low prices and this has been a major factor in average price erosion in those regions.”

The report also found that 59 percent of all security cameras shipped in 2016 were network cameras, and shipments of HD CCTV cameras more than doubled. Less than 1 percent of network cameras shipped were 4K-compliant, according to IHS.

Note: Check back for more on this report, including additional comments from IHS’ Jon Cropley.

Canon to buy VMS provider Milestone Systems

Milestone will operate as stand-alone division; Canon committed to open platform
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06/13/2014

LONDON—Camera manufacturer Canon announced today that it will acquire VMS provider Milestone Systems. Terms of the deal were not announced.

IMS: Video analytics market to be worth $600 million in 2015

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12/27/2011

While the availability of free content analysis in video surveillance devices continues to grow, the need for chargeable higher-end applications will push the market for video analytics to nearly $600 million in 2015, according to a new report from IMS Research.