PHYSICAL SECURITY EQUIPMENT & SERVICES REPORT 2015

Transcription

1 Information Information Analytics Analytics Expertise Expertise AUGUST 2015 PHYSICAL SECURITY EQUIPMENT & SERVICES REPORT 2015 Nicola Millar, Data Transformation Specialist (click here to turn the page) 2014 IHS / ALL RIGHTS RESERVED

2 Contents page Click on an icon to move to that section. Click on the home icon to move back to this page at any time. B Background Stats Chapter 1 market statistics % Chapter 2 market shares CP Chapter 3 company profiles 2

3 Background Click on the contents to move to that page of the report. Click on any icon below to move to that chapter of the report. Introduction Market segmentation Geographical market definitions B Equipment market definitions Service market definitions End user industry definitions 3

4 Introduction This is the third edition of the IHS report on the world market for physical security equipment and services. This report provides marketing executives and senior leadership with an assessment of the total addressable market for physical security equipment and services. It presents market size and forecast data for key physical security equipment and service markets and provides market shares estimates for the leading suppliers and service providers. It also provides company profiles for the top ten companies (in terms of USD revenues in 2014). For more information on the IHS report portfolio on security technologies please go to: ihs.technology.com. 4

5 Market segmentation Physical security equipment & services Region Technology Vertical EMEA Video surveillance VSaaS Banking & finance Residential Americas Access control ACaaS Commercial Retail Asia Intruder alarms Remote monitoring services Education Sports & leisure Entrance control (vehicle & pedestrian) Security systems integration Government Transportation Consumer video surveillance Healthcare Utilities & energy Thermal cameras Manufacturing & industrial Wireless infrastructure Security equipment Security services 5

6 Geographical market definitions Americas: All countries in North, Central and South America. Including USA, Canada, Argentina, Brazil, Mexico, Chile, Columbia, Ecuador, Peru, Uruguay and Venezuela. EMEA: All countries in Europe, Middle East and Africa. Including Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, Albania, Belarus, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Macedonia, Malta, Montenegro, Poland, Republic of Moldova, Romania, Russian Federation, Serbia, Slovakia, Slovenia, Ukraine, Afghanistan, Bahrain, Cyprus, Iran, Iraq, Israel, Jordan, Kuwait, Kyrgyzstan, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Tajikistan, Turkey, Turkmenistan, UAE, Uzbekistan and Yemen, and all countries in the African continent. Asia: Countries in Asia and Oceania. Including China, Japan, Australia, New Zealand, South Korea, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Laos, Cambodia, Philippines, Burma, Taiwan, Hong Kong, Pakistan, Sri Lanka, Bhutan and Bangladesh. 6

7 Equipment market definitions (1) Video surveillance: Includes the following equipment types for professional video surveillance equipment: analogue security cameras, DVRs, NVRs, network security cameras, video encoders, video management software (VMS), CS-mount lenses, camera housings, CCTV controllers/keyboards and motorised camera positioning mounts. Access control: Includes the following equipment types: readers, control panels, credentials, software and electronic locks. Intruder alarms: Includes the following equipment types: intrusion sensors, control panels, keypads and accessories. Entrance control (vehicle): Includes the following equipment types: gate operators, rising bollards, road blockers, barriers, garage door operators, and parking systems. 7

8 Equipment market definitions (2) Entrance control (pedestrian): Includes the following equipment types: entrance gates, full-height turnstiles, optical turnstiles, interlocking doors, revolving security doors, security booths, speed gates, and tripod barriers. Consumer video surveillance: Video equipment distributed through a diversified network of physical and online retailers, designed for residential and SMB applications, and to be installed by the consumer (although may be installed professionally once purchased). Thermal cameras: Un-cooled thermal cameras used in security applications such as perimeter security. Wireless infrastructure: Wireless infrastructure used in video surveillance applications: wireless mesh nodes, point-to-point links and pointto-multipoint base stations and sub units. 8

9 Service market definitions Video surveillance as a service (VSaaS): Where a customer pays on a yearly, quarterly, or monthly basis for the ability to view live or recorded video surveillance data off-site to the location of the security camera, and the video is used for self-monitoring surveillance and business applications. Access control as a service (ACaaS): Where a customer pays on a yearly, quarterly, or monthly basis for the ability to have a server which manages the access control system to be located at a third party location. There is no software or server located on the customer s premises. Remote monitoring services: Includes the following service types: alarm monitoring, video monitoring, access control monitoring, fire detection monitoring, PERS (Personal Emergency Response Services) monitoring and other monitoring services. Security systems integration: Includes the following security service and equipment types: design and consultancy, installation, service and maintenance, and equipment (intruder alarms, physical access control and video surveillance). 9

10 End-user industry definitions (1) Banking & finance The banking and finance category includes all buildings where financial transactions take place, such as banks, building societies, stock exchanges, and bureaux de change. Commercial Includes all commercial buildings that are not covered already by the other categories. The main examples are hotels, restaurants and office complexes. Education All forms of education facility, including schools, universities, and colleges. Government The government sector includes the facilities and assets of governments at all levels. Examples include military establishments, town halls, libraries, museums, council offices and prisons. It also includes all areas and public space covered within the remit of a city surveillance/public-safety surveillance project. It does not include government-owned airports, educational facilities, hospitals, ports and railways, since these are covered in separate categories. 10

11 End-user industry definitions (2) Healthcare The healthcare sector includes all forms of healthcare facility, such as hospitals, clinics, physician offices, pharmacies and laboratories. Manufacturing & industrial Refers to facilities involved in the production of goods. Some of the sub-sectors that make-up this category include: automotive, chemicals, food, pharmaceuticals, textiles, metals, paper and machinery production, to name a few. Residential This category includes all homes and residences, both individual houses and blocks of flats/apartments. Retail The retail sector includes all facilities where goods are sold to the consumer, including shops, supermarkets and petrol stations. 11

12 End-user industry definitions (3) Sports & leisure All facilities where sporting events and leisure activities take place, including sports stadia, casinos, fitness centres, and public swimming pools. Transportation This sector includes railways, bus stations, seaports, airports and ferry terminals. This sector also includes all associated infrastructure and grounds such as car parks and video surveillance equipment to monitor traffic on public roads. Utilities & energy Includes all facilities involved with the production and distribution of gas, electricity, water and heat, and sewage treatment. 12

13 Chapter 1 market statistics Click on the contents to move to that page of the report. Click on any icon below to move to that chapter of the report. Market breakdowns Total market Total market dashboard Product level forecasts Equipment by region Equipment by vertical Equipment by country Services by region Stats Trend analysis Video surveillance Access control Intruder alarms Entrance control Consumer video surveillance Americas USA EMEA UK and Eire Thermal cameras Wireless infrastructure VSaaS ACaaS Remote monitoring services Security systems integration Asia China 13

14 Physical security equipment & services Dashboard World Data Americas EMEA Asia World (% of world market) 5 Year trend ( ) & CAGR Americas Data Video surveillance $3.7bn $2.7bn $7.8bn $14.3bn 54.0% 9.6% EMEA Data Asia Data Physical security equipment Access sontrol Intruder alarms Entrance control Consumer video surveillance Thermal cameras $1.3bn $1.2bn $1.3bn $3.7bn $1.4bn $1bn $0.5bn $2.9bn $1.1bn $1.8bn $0.8bn $3.7bn $0.9bn $0.2bn $0.1bn $1.2bn $0.1bn $0.1bn $0.1bn $0.2bn 14.0% 7.8% 11.1% 4.6% 14.1% 4.8% 4.5% 28.7% 0.9% 14.3% Wireless infrastructure $0.2bn $0.1bn $0.1bn $0.3bn 1.3% 14.2% Security services VSaaS ACaaS Remote monitoring services $0.2bn $0bn $0.5bn $0.7bn $0.2bn $0.1bn $0bn $0.3bn $20.5bn $7.8bn $9.5bn $37.7bn 0.7% 17.5% 0.3% 20.8% 36.7% 6.3% Click on the contents above to move to that page of the report. Security systems integration $24.4bn $16.5bn $23.1bn $64bn 62.3% 9.7% 14

15 Physical security equipment & services PHYSICAL SECURITY EQUIPMENT & SERVICES REPORT 2015 Dashboard World Data Americas Data EMEA Data Asia Data Table 1.1 World market for physical security equipment & services by technology Revenue ($m) Video surveillance 14, , , , , , % 9.5% 10.0% 9.4% 9.4% 9.7% Access control 3, , , , , , % 6.5% 7.2% 8.2% 8.4% 8.6% Intruder alarms 2, , , , , , % 3.1% 5.8% 5.8% 4.3% 3.8% Entrance control (pedestrian & vehicle) 3, , , , , , % 4.8% 4.7% 4.8% 4.7% 4.9% Consumer video surveillance 1, , , , , , % 29.4% 29.8% 28.7% 27.9% 27.6% Thermal cameras % 13.9% 16.0% 13.1% 14.0% 14.5% Wireless infrastructure % 12.2% 13.1% 14.1% 15.5% 16.0% CAGR Total Equipment 26, , , , , , % 8.7% 9.6% 9.6% 9.7% 10.2% VSaaS , , , % 14.9% 16.2% 17.5% 18.9% 20.2% ACaaS % 14.5% 17.7% 20.8% 23.9% 27.4% Remote monitoring services 37, , , , , , % 4.7% 5.4% 6.3% 7.5% 7.8% Security systems integration 64, , , , , , % 9.2% 10.0% 10.2% 9.5% 9.7% Click on the contents above to move to that page of the report. Total Services 102, , , , , , % 7.6% 8.4% 8.9% 9.0% 9.2% Source: IHS Aug 15 15

16 Physical security equipment & services Dashboard World Data Americas Data EMEA Data Asia Data Table 1.2 Americas market for physical security equipment & services by technology Revenue ($m) Video surveillance 3, , , , , , % 2.2% 3.6% 4.3% 4.7% 5.9% Access control 1, , , , , , % 6.3% 7.7% 8.2% 7.5% 7.1% Intruder alarms 1, , , , , , % 4.5% 7.4% 6.9% 4.0% 3.0% Entrance control (pedestrian & vehicle) 1, , , , , , % 5.3% 3.0% 2.2% 1.6% 1.9% Consumer video surveillance , , , , , % 31.5% 31.8% 29.9% 28.6% 28.0% Thermal cameras % 16.1% 15.9% 12.4% 8.6% 7.7% Wireless infrastructure % 14.5% 15.2% 15.9% 16.4% 17.0% CAGR Total Equipment 8, , , , , , % 6.9% 8.6% 9.2% 9.2% 10.2% VSaaS % 18.7% 20.3% 21.8% 23.6% 24.3% ACaaS % 16.3% 19.1% 20.2% 20.7% 20.9% Remote monitoring services 20, , , , , , % 4.3% 5.2% 6.3% 7.9% 8.0% Security systems integration 24, , , , , , % 6.7% 8.6% 9.4% 9.0% 9.0% Click on the contents above to move to that page of the report. Total Services 45, , , , , , % 5.7% 7.2% 8.2% 8.7% 8.7% Source: IHS Aug 15 16

17 Physical security equipment & services Dashboard World Data Americas Data EMEA Data Asia Data Table 1.3 EMEA market for physical security equipment & services by technology Revenue ($m) Video surveillance 2, , , , , , % 6.0% 6.8% 5.9% 4.8% 3.2% Access control 1, , , , , , % 5.3% 6.4% 7.3% 7.5% 7.6% Intruder alarms 1, , , , , , % 0.1% 3.6% 4.1% 3.8% 3.3% Entrance control (pedestrian & vehicle) 1, , , , , , % 4.1% 4.9% 4.9% 4.7% 4.9% Consumer video surveillance % 17.7% 19.0% 17.5% 16.2% 15.0% Thermal cameras % 14.5% 16.5% 10.4% 16.1% 19.2% Wireless infrastructure % 5.5% 6.4% 8.2% 12.2% 12.0% CAGR Total Equipment 7, , , , , , % 5.0% 6.3% 6.1% 5.8% 5.2% VSaaS % 16.5% 17.7% 18.8% 17.7% 18.3% ACaaS % 10.3% 12.5% 19.1% 26.0% 34.0% Remote monitoring services 7, , , , , , % 5.3% 5.9% 6.5% 7.3% 8.0% Security systems integration 16, , , , , , % 8.2% 7.8% 7.7% 6.6% 7.0% Click on the contents above to move to that page of the report. Total Services 24, , , , , , % 7.3% 7.2% 7.3% 6.9% 7.4% Source: IHS Aug 15 17

18 Physical security equipment by region Graphic Data Table 1.4 Asia market for physical security equipment & services by technology Revenue ($m) Video surveillance 7, , , , , , % 14.2% 13.8% 12.5% 12.4% 12.8% Access control 1, , , , , , % 7.9% 7.5% 9.1% 10.2% 10.9% Intruder alarms % 5.4% 5.8% 6.2% 6.3% 6.5% Entrance control (pedestrian & vehicle) , , , % 5.8% 6.8% 7.9% 8.7% 8.5% Consumer video surveillance % 32.7% 31.4% 34.2% 35.7% 37.0% Thermal cameras % 8.3% 15.3% 19.3% 23.2% 21.7% Wireless infrastructure % 14.1% 14.9% 15.5% 16.5% 17.0% CAGR Total Equipment 10, , , , , , % 12.6% 12.5% 12.0% 12.2% 12.7% VSaaS , % 13.3% 14.4% 15.5% 16.7% 18.1% ACaaS % 12.7% 18.1% 25.8% 35.3% 45.1% Remote monitoring services 9, , , , , , % 4.9% 5.5% 6.1% 6.9% 7.0% Security systems integration 23, , , , , , % 12.6% 12.8% 12.5% 11.8% 12.0% Click on the contents above to move to that page of the report. Total Services 33, , , , , , % 10.4% 10.8% 10.9% 10.7% 11.0% Source: IHS Aug 15 18

19 Physical security equipment by region Graphic Data Click on the contents above to move to that page of the report $8.7bn $7.1bn $10.7bn Americas EMEA Asia $13.3bn $9.4bn $19.1bn 19

20 Physical security equipment by region Graphic Data Table 1.5 World market for physical security equipment by region Revenue ($m) Americas 8, , , , , , % 6.9% 8.6% 9.2% 9.2% 10.2% EMEA 7, , , , , , % 5.0% 6.3% 6.1% 5.8% 5.2% Asia 10, , , , , , % 12.6% 12.5% 12.0% 12.2% 12.7% Total 26, , , , , , % 8.7% 9.6% 9.6% 9.7% 10.2% CAGR Source: IHS Aug 15 Click on the contents above to move to that page of the report. 20

21 Physical security equipment by vertical World Americas EMEA Asia Switch to Data Click on the contents above to move to that page of the report. 21

22 Physical security equipment by vertical World (% of 2014 Americas Market Revenue) Americas EMEA Asia 21.39% 23.07% Switch to Data 10.57% 11.27% 4.74% 7.80% 3.00% 3.81% 6.68% 4.50% 3.17% Click on the contents above to move to that page of the report. Banking & finance Commercial Education Government Healthcare Manufacturing & industrial Residential Retail Sports & Leisure Transportation Utilities & energy 22

23 Physical security equipment by vertical World Americas (% of 2014 EMEA Market Revenue) 25.88% EMEA Asia 17.76% Switch to Data 10.66% 11.99% 5.14% 4.31% 3.16% 5.72% 7.18% 3.68% 4.53% Click on the contents above to move to that page of the report. Banking & finance Commercial Education Government Healthcare Manufacturing & industrial Residential Retail Sports & Leisure Transportation Utilities & energy 23

24 Physical security equipment by vertical World (% of 2014 Asia Market Revenue) Americas 20.87% EMEA Asia 17.08% 17.89% Switch to Data 9.15% 7.86% 8.22% 3.80% 2.24% 4.93% 2.34% 5.62% Click on the contents above to move to that page of the report. Banking & finance Commercial Education Government Healthcare Manufacturing & industrial Residential Retail Sports & leisure Transportation Utilities & energy 24

25 Physical security equipment by vertical World Americas EMEA Asia Switch to Graphic Click on the contents above to move to that page of the report. Table 1.6 World market for physical security equipment by vertical market Revenue ($m) Banking & finance 1, , , , , , % 7.1% 8.9% 9.6% 10.9% 11.7% Commercial 5, , , , , , % 8.4% 9.3% 9.6% 8.5% 10.5% Education 1, , , , , , % 8.9% 9.6% 8.6% 8.6% 8.5% Government 3, , , , , , % 9.8% 9.7% 9.0% 9.5% 9.0% Healthcare , , % 8.6% 8.2% 8.4% 8.5% 7.6% Manufacturing & industrial 1, , , , , , % 4.6% 6.4% 7.0% 6.7% 7.2% Residential 4, , , , , , % 9.3% 11.1% 12.0% 12.1% 12.8% Retail 1, , , , , , % 7.1% 8.6% 7.6% 7.3% 6.5% Sports & leisure , , , % 4.2% 3.9% 4.9% 5.1% 5.5% Transportation 3, , , , , , % 10.7% 11.3% 10.6% 11.2% 11.2% Utilities & energy 1, , , , , , % 10.2% 11.4% 11.4% 11.9% 11.7% Total 26, , , , , , % 8.7% 9.6% 9.6% 9.7% 10.2% Source: IHS CAGR Aug 15 25

26 Physical security equipment by vertical World Americas EMEA Asia Switch to Graphic Table 1.7 Americas market for physical security equipment by vertical market Revenue ($m) Banking & finance % 2.4% 2.8% 3.3% 3.2% 3.7% Commercial 1, , , , , , % 8.8% 10.1% 10.8% 10.3% 13.0% Education % 8.0% 8.6% 6.9% 6.5% 6.7% Government , , , , % 5.5% 7.0% 8.0% 8.5% 9.0% Healthcare % 8.1% 7.8% 9.2% 8.3% 7.2% Manufacturing & industrial % 1.6% 3.2% 3.7% 3.7% 4.4% Residential 2, , , , , , % 12.1% 14.2% 14.8% 14.9% 14.7% Retail % 2.5% 6.3% 4.5% 3.3% 2.6% Sports & leisure % 0.3% 0.2% 2.0% 2.4% 4.9% Transportation , , , , , % 2.5% 3.9% 4.7% 5.2% 5.9% Utilities & energy % 5.8% 8.0% 9.2% 9.5% 9.4% CAGR Total 8, , , , , , % 6.9% 8.6% 9.2% 9.2% 10.2% Click on the contents above to move to that page of the report. Source: IHS Aug 15 26

27 Physical security equipment by vertical World Americas EMEA Asia Switch to Graphic Click on the contents above to move to that page of the report. Table 1.8 EMEA market for physical security equipment by vertical market Revenue ($m) Banking & finance % 2.9% 4.9% 4.9% 4.5% 3.8% Commercial 1, , , , , , % 5.3% 6.4% 6.0% 4.5% 5.4% Education % 7.6% 8.6% 7.9% 7.1% 5.2% Government , % 5.6% 6.4% 5.8% 6.6% 5.0% Healthcare % 6.6% 6.8% 6.2% 6.5% 4.7% Manufacturing & industrial % 3.0% 4.9% 5.8% 5.7% 5.0% Residential 1, , , , , , % 3.8% 5.5% 6.1% 5.3% 6.2% Retail % 3.5% 5.7% 5.6% 5.6% 3.3% Sports & leisure % 5.9% 6.0% 6.0% 5.7% 3.8% Transportation , , , % 5.9% 6.9% 6.0% 6.3% 4.6% Utilities & energy % 6.4% 8.8% 9.1% 9.8% 8.8% Total 7, , , , , , % 5.0% 6.3% 6.1% 5.8% 5.2% Source: IHS CAGR Aug 15 27

28 Physical security equipment by vertical World Americas EMEA Asia Switch to Graphic Click on the contents above to move to that page of the report. Table 1.9 Asia market for physical security equipment by vertical market Revenue ($m) Banking & finance , , , , , % 10.8% 12.7% 13.5% 15.3% 16.2% Commercial 1, , , , , , % 11.2% 11.3% 11.5% 10.2% 12.3% Education % 11.5% 12.1% 11.9% 12.9% 13.2% Government 2, , , , , , % 13.0% 11.8% 10.3% 10.6% 10.1% Healthcare % 10.9% 9.8% 9.4% 10.3% 10.4% Manufacturing & industrial % 7.8% 9.4% 9.8% 8.9% 10.2% Residential , , , , % 10.9% 11.3% 12.7% 13.7% 15.4% Retail , , , , % 12.2% 11.7% 10.3% 10.2% 10.0% Sports & leisure % 8.6% 7.6% 7.7% 8.0% 7.7% Transportation 1, , , , , , % 17.1% 16.4% 14.7% 15.2% 15.0% Utilities & energy , , % 14.2% 14.2% 13.3% 13.8% 13.8% Total 10, , , , , , % 12.6% 12.5% 12.0% 12.2% 12.7% Source: IHS CAGR Aug 15 28

29 Physical security equipment by country 29

30 Security services by region Graphic Data Click on the contents above to move to that page of the report $45.3bn $24.3bn $33.1bn Americas EMEA Asia $65.6bn $34.5bn $55.2bn 30

31 Security services by region Graphic Data Table 1.10 World Market for Security Services by Region Revenue ($m) Americas 45, , , , , , % 5.7% 7.2% 8.2% 8.7% 8.7% EMEA 24, , , , , , % 7.3% 7.2% 7.3% 6.9% 7.4% Asia 33, , , , , , % 10.4% 10.8% 10.9% 10.7% 11.0% Total 102, , , , , , % 7.6% 8.4% 8.9% 9.0% 9.2% CAGR Source: IHS Aug 15 Click on the contents above to move to that page of the report. 31

32 Technology profiles Video Surveillance Overall market analysis $14.32bn 2014 Global revenue 9.6% CAGR The global market for video surveillance equipment is forecast to grow from $14.3 billion in 2014 to $22.8 billion in 2019.The network video surveillance market is estimated to have been more than one and a half times larger than the analog market (in revenues) in all four world regions (EMEA, Americas, China, Asia) in In each of these regions, the analog market is forecast to decline while the network market is forecast to grow. Key geographical trends China is estimated to have been the largest regional market for video surveillance equipment, accounting for 40% of global revenues in It is also forecast to grow fastest to The two largest Chinese suppliers, Dahua and Hikvision, are estimated to have gained market share in regions outside China in They tend to offer products with low prices and this has been a major factor in average price erosion globally. Key technological trends 2014 Revenue split A range of technologies are increasingly being adopted to improve image quality such as day/night functionality, wide dynamic range, and improved resolution. There is also high and growing demand for HD video surveillance and this is driving growth in the market for megapixel network cameras and HD CCTV cameras. In terms of form factor, demand for dome-shaped network cameras is forecast to grow quickly as end-users often prefer their look compared to more standard box-shaped cameras. 32

33 Technology profiles Access Control Overall market analysis $3.72bn 2014 Global revenue 7.8% CAGR have proven to be both exciting and challenging for access control manufacturers and channel partners. With the influx of new trends and technologies, manufacturers must decide which technologies to invest in for R&D, and channel partners must learn how to install, integrate and sell the new technologies. Those looking for short-term gains may miss out on long-term opportunities by moving too quickly and not properly vetting and testing the technologies. The global market for electronic door access control was estimated to be worth $3.7 billion in 2014 and is forecast to reach $5.4 billion by Key geographical trends In 2014, the Americas was estimated to be the largest region for access control; however, the split between the regions was fairly similar, with the Americas representing 35% of the global market, EMEA 32% and Asia 33%. By 2019, more separation will occur, where the Americas representing about 33%, EMEA 31% and Asia 36%. Globally, AssaAbloy was estimated to be market leader in 2014, representing about 11% of market. Key technological trends 2014 Revenue split IHS expects that the access control industry will continue down the path of openness. Either through ONVIF Profile C, PLAI agent, LDAP/ Active Directory, OSDP or the sharing of APIs and SDKs, these protocols and standards are beginning to take shape in the industry and will play a role in the end-user and integrator decision-making process. Mobile identities and biometrics will also continue to gain traction. 33

34 Technology profiles Intruder Alarms $2.95bn 2014 Global revenue 4.6% CAGR Overall Market Analysis The world market for intruder alarms was estimated to be worth $2.95 billion in The market is forecast to grow to $3.69 billion in 2019 at a projected compound annual growth rate (CAGR) of 4.6%. The indoor sensor market is expected to grow at a slightly faster rate than the outdoor market despite the more mature indoor market having accounted for over 86% of the world market for sensors in 2014; this is largely due to the exceptional growth of the indoor wireless markets in the EMEA and American regions. Key Geographical Trends The U.S. is estimated to have been the largest market for intrusion equipment, accounting for 37% of global revenues in 2014 with total sales of $1.1 billion. The Asian market is expected to grow fastest over the forecast period with a CAGR of 6%; however, Asia was the smallest of the three regions in 2014 with an estimated value of $521.6 million. Slow construction rates in EMEA continue to stifle growth in the region. Key Technological Trends 2014 Revenue split The use of wireless sensors is expected to increase at the expense of their wired counterparts; this trend is particularly evident in EMEA and the Americas where the higher wages increase the cost of installing intrusion systems. DIY systems continue to grow in popularity with a number of key manufacturers introducing new offerings between 2012 and 2014 to facilitate this demand. 34

35 Technology profiles Entrance Control $3.74bn 2014 Global revenue 4.8% CAGR Overall market analysis Global revenues for the vehicle and pedestrian entrance control equipment markets combined are projected to reach more than $4.72billion in Speed gates are forecasted to be the fastest growing product type which come in a variety of forms including retractable door, flap, or swing. Key geographical trends The entrance control market continues to be dominated by European-based suppliers which continue to make inroads into the Americas and Asia regions, identifying new revenue stream in these markets as their domestic EMEA region continues to saturate. Key technological trends Traditional speed gates utilize dry contacts and are not required to provide live information which could be updated regularly. With the continued uptake of IP technology throughout security networks, speed gates with IP functionality can now be part of an end user s secure network, communication with variety of systems as part of an overall security solution Revenue split 35

36 Technology profiles Consumer and DIY Video Surveillance $1.19bn 2014 Global revenue 28.7% CAGR Overall market analysis Consumer video surveillance equipment purchased either in-store or online is a popular security solution for a home or small business. Increasingly, the equipment is used for live home monitoring via mobile devices and a key trend will be the use of video in smart home solutions. Key geographical trends The USA is the largest individual country market and will continue to grow at a double digit rate. The USA has a strong online and in-store retail sector with a wide range of retailers stocking consumer video surveillance equipment. The UK and German markets are the largest in the EMEA region. The emerging markets to watch with high expected growth rates for consumer equipment include China and Brazil. Key technological trends 2014 Revenue split Analog video surveillance kits including cameras and a DVR are very common in the consumer market, yet the market will transition to HD CCTV (analog HD) kits offering similar functionality and installation but with HD video. These traditional consumer video surveillance kits will be overtaken by standalone network cameras as the most popular solution in the market. Consumer network cameras are typically Wi-Fi enabled and offer an integrated system without the need for separate recording hardware through either edge or cloud recording. Increasingly these cameras will form part of smart home solutions through connections with other non-camera devices. 36

37 Technology profiles Thermal Cameras Overall market analysis $0.25bn 2014 Global revenue 14.3% CAGR The market for thermal cameras is currently experiencing several technology trends to help reduce manufacturing costs and increase performance characteristics. The main trends are; transition to 10µ and 12µ sensors, declining prices, the introduction of radiometric cameras, and the market split into high-end and low-end products. Key geographical trends Un-cooled thermal cameras are mainly used as a component in perimeter security for larger compounds. The technology has therefore seen strong growth in regions such as the Middle East, Russia, Nordic countries, China, and the USA all of which have large utilities, critical infrastructure and industrial sectors. Key technological trends 2014 Revenue split In 2014, 70% of units shipped used 17µ sensors. However, several sensor manufacturers are expected to release smaller 10µ and 12µ sensors in early One sensor manufacturer confirmed that its new 10µ sensors would be backwardscompatible modules and would have the same electrical interfaces, software protocols, mechanical interfaces and mounting structures as its current range. This will allow much easier integration with camera suppliers. IHS expects 10µ sensors could reduce the cost of cameras by 25-30% compared to that of 17µ sensor cameras of a similar specification, and as such IHS forecasts that by 2019, 10µ and 12µ sensors will account for over 70% of all unit shipments. 37

38 Technology profiles Wireless Infrastructure $0.34bn 2014 Global revenue 14.2% CAGR Overall market analysis Growth in the market for wireless infrastructure used in video surveillance will be driven by cost saving methods where wireless infrastructure is cheaper and quicker to install than wired alternatives. Despite growing awareness, the use of wireless technology in video surveillance is excepted to remain confined to niche applications and will not rival a wired solution where both options are viable. Key geographical trends Higher rates of growth are seen in developing markets with limited or no existing infrastructure. Here wireless offers a cheaper, scalable solution for video surveillance, one that can either offer full infrastructure for video surveillance or can expand and integrate with existing systems. Opportunity for vendors to grow their business is greatest in these regions. Key technological trends Developments in transmission protocols are for the first time making it possible to use WiMAX and Wi-Fi for high bandwidth video surveillance applications. The IEEE ac standard offers greater functionality for video surveillance with higher data rates and can move transmission out of the congested 2.4 GHZ spectrum Revenue split 38

39 Technology profiles Video Surveillance as a Service (VSaaS) Overall market analysis $0.69bn 2014 Global revenue 17.5% CAGR Despite the initial hype, predicted high growth rates in this market remain allusive. Growth instead has been confined to niche applications where video is often integrated with other services such as access control or alarm. The residential sector in particular has been identified as having the potential to shape the market in the coming years. The market for Hybrid VSaaS solutions (which combine an element of on-site storage with off-site storage ) is forecast to see the fastest rate of growth. Hybrid solutions are an appealing prospect for end users because it offers the fail -safe of both on-site and offsite storage. Key geographical trends The Chinese market, which accounted for 59% of the market, has been driven by government funded safe city projects. The American VSaaS market has seen faster rates of growth than the European VSaaS market. This is in part due to the success of large companies targeting the residential sector and lower cultural and language barriers. Key technological trends 2014 Revenue split The main trends driving the market for video surveillance as a service (VSaaS) are: the enhanced functionality from multiple sites over a wide geographic area and the recurring monthly revenue model. Barriers inhibiting growth in the VSaaS market include internet bandwidth and lack of end user awareness. Future developments in technology, especially compression algorithms and provision of increased infrastructure may, overcome some barriers to the VSaaS. 39

40 Technology profiles Access Control as a Service (ACaaS) Overall market analysis $0.26bn 2014 Global revenue 20.8% CAGR The outlook for ACaaS remains promising for the next 10 years. Many of the larger trends affecting the access control market today are closely tied with IT, for example, mobile credentials (BYOD), wireless locks, web-based panels, NFC and BLE. While these hardware trends are beginning to take shape, standards and software are also changing. Over the next 10 years, the access control industry will be reshaped by Physical Logical Access Interoperability (PLAI) and role-based access control (RBAC) as it relates to logical, physical and HR integration as well as the implementation of new methods to assign access control rights. Key geographical trends Adoption of ACaaS across EMEA and APAC remains much smaller compared with North America. In terms of annual revenue from ACaaS, IHS forecasts that APAC and EMEAwill combine for about $200 million by 2018, nearly $150 million less than theamerican market. Key technological trends 2014 Revenue split ACaaS offers many options for the end-user. If the end-user does not want to manage their own system but wants all hardware onsite, they can pay a monthly fee for remote management. If end-users want to manage their own system but not the infrastructure, then they can pay a monthly fee. Finally, if end-users do not want to manage the system locally or manage the infrastructure, they can pay a monthly fee. As a result, the monitoring companies are expected to continue to see strong growth in the short to medium term since many local/regional integrators lack the resources to provide managed services. 40

41 Technology profiles Remote Monitoring Services PHYSICAL SECURITY EQUIPMENT & SERVICES REPORT 2015 $37.73bn 2014 Global revenue 6.3% CAGR Overall market analysis Alarm monitoring accounted for over 90% of world remote monitoring services revenues in 2014, and is forecast to grow at a compound annual growth rate (CAGR) of 4% to However, this is a much slower rate of growth than predicted for other services such as home and building automation, video monitoring, PERS and lone worker solutions. Key geographical trends The remote monitoring service market has regional differences in terms of the service providers, market penetration rates and end-user needs. Of the top five leading providers to the world remote monitoring services market, four specifically focus on one regional market. The USA is estimated to be thelargestmarketwithanestimated market penetration of 20%. Key technological trends 2014 Revenue split Companies that have been offering home automation services have reported lower attrition rates. This is due to the more regular interaction customers have with these services, and that they are more closely associated with positive interactions, such as saving money on energy bills, as opposed to thenegativeinteractions,associatedwith intruder alarms. 41

42 Technology profiles Security Systems Integration $64.02bn 2014 Global revenue 9.7% CAGR Overall market analysis The security systems integration market is a highly fragmented market with many competitors ranging from large multinational companies, large regional companies, national companies and a very large number of local installers and integrators. The market is driven by a number of factors ranging from new technologies impacting a customer s security operations, organisational pressures to reduce costs, regulatory compliance, expanding enterprises and on-going security threats. Key geographical trends The security systems integration market is experiencing the highest growth rates in Asia, followed by the Americas and EMEA. The market s split between new construction and retro-fit/upgrades varies across these regions, with more mature economies having less of the market reliant upon new construction. Key technological trends 2014 Revenue split The security market is notoriously slow at adopting new technologies. That said, the move towards IP-based technology is now firmly established, affecting both video surveillance and access control equipment. This transition has impacted integrators and installers, forcing them to re-skill and re-focus. Integrators and installers have had to shift away from the selling boxes mentality as IP-based equipment is now an integral part of an organisation s IT-network. 42

43 Country profiles Americas - USA $44.04bn 2014 USA revenues 7.5% CAGR 2014 Revenue split Product Markets 6.5% Video Surveillance 2.2% Access Control 2.5% Intruder Alarms 2.1% Entrance Control 1.8% Consumer Video Surveillance 0.4% VSaaS 0.2% Thermal Cameras 0.3% ACaaS 0.3% Wireless Infrastructure 39.3% Remote Monitoring Services 44.5% Security Systems Integration Overall market analysis The total security market in the USA is by far the largest market globally in terms of revenues, The physical security industry has long been established, however China has now overtaken the USA in the physical security equipment market for the first time. Even though Network equipment markets now see larger revenue in many of the technology categories, much of the installed base remains analog equipment. Despite China overtaking the USA in terms of equipment revenues in 2014, the USA is still double thesizeofthechinesemarket.thisisduetothe huge security service revenues associated with remote monitoring and security system integration. Collectively security service revenues account for 85% of the total USA security market, a far higher proportion than in any other country. Whilst the USA remote monitoring market will mainly be driven by increased adoption of home automation functions, the system integration market is being affected by a number of different areas, each contributing in various ways to future growth. These factors range from the continuing transition towards IP video, and beyond that, towards megapixel video; the increased usage of analytics for security and operational purposes; the deployment of hosted or as-a-service models in both video and access control; and the increasing focus from the integrator's customers on how they are integrating their security systems into their business processes. 43

44 Country profiles EMEA UK and Eire $4.49bn 2014 UK and Eire revenue 6.0% CAGR 2014 Revenue split Product Markets 7.4% Video Surveillance 5.0% Access Control 3.3% Intruder Alarms 5.2% Entrance Control 2.1% Consumer Video Surveillance 0.0% VSaaS 0.1% Thermal Cameras 0.3% ACaaS 0.3% Wireless Infrastructure 21.8% Remote Monitoring Services 54.6% Security Systems Integration Overall market analysis Unlike other regions, EMEA is not dominated by one large market in terms of population, GDP and therefore security spending. Instead, EMEA has many medium sized markets within Northern Europe, such as the Germany, France, the middle east, Russia and the Nordics. The market for remote monitoring services is particularly strong in the UK and Eire, putting the UK and Eire ahead of Germany in terms of total market size in The UK and Eire market has a CAGR of 6% from 2014 to This is the third faster growth rate in Western Europe after the Nordic regions and Germany. ACaaS, consumer DIY and video surveillance and VSaaS markets that are expected to show the strongest market growth over the next five years. 44

45 Country profiles Asia - China $22.08bn 2014 China revenues 14.1% CAGR 2014 Revenue Split Product Markets 25.8% Video Surveillance 2.7% Access Control 1.0% Intruder Alarms 1.7% Entrance Control 0.1% Consumer Video Surveillance 1.9% VSaaS 0.2% Thermal Cameras 0.0% ACaaS 0.1% Wireless Infrastructure 4.7% Remote Monitoring Services 61.7% Security Systems Integration Overall market analysis China s physical security equipment market has grown considerably in 2014, and is still the second largest global market in terms of revenues. China is forecast to grow at double the rate of either the USA or Germanyoverthenextfiveyears,andthecountrycontinuestodrivemuchofthe growth in the security industry overall. China is estimated to have the largest regional market for video surveillance equipment, accounting for 40% of global revenue. The supply base in China is less fragmented than in other regional. Hikvision and Dahua together are estimated to have accounted to have for almost 43% of revenues in The top 15 vendors are estimated to have accounted for more than 60% of revenue. Interestingly, having established themselves in the domestic market, many Chinese brands are now starting to gain market share worldwide, driving increased price competition in many technology markets. 45

46 Chapter 2 market shares Click on the contents to move to that page of the report. Click on any icon below to move to that chapter of the report. Total market World Americas EMEA Asia Equipment World Americas EMEA Asia % Services World Americas EMEA Asia 46

47 Physical security equipment & services World Americas EMEA Asia Table 2.1 Market shares for total market World in 2014 Revenue ($m) Company Name Tyco International Ltd. 3.8% 2. ADT 2.6% 3. SECOM Co., Ltd. 2.4% 4. Hikvision Digital Technology Co., Ltd. 1.8% 5. Stanley Security Solutions 1.4% 6. Honeywell International Inc. 1.3% 7. United Technologies Corporation (UTC) 1.3% 8. Bosch Security Systems 1.2% 9. G4S Technology 1.0% 10. Siemens AG 0.9% 11. ALSOK 0.8% 12. China Security & Surveillance Technology, Inc. (CSST) 0.8% 13. S1 Corporation 0.7% 14. Zhejiang Dahua Technology Co., Ltd 0.7% 15. Panasonic Corporation 0.7% Click on the contents above to move to that page of the report. Others 78.4% Estimated 2014 Revenues = $ billion Source: IHS Aug 15 47

48 Physical security equipment & services World Americas EMEA Asia Table 2.2 Market shares for total market Americas in 2014 Revenue ($m) Company Name ADT 6.3% 2. Tyco International Ltd. 5.3% 3. Stanley Security Solutions 1.8% 4. Honeywell International Inc. 1.7% 5. Diebold Inc. 1.0% 6. United Technologies Corporation (UTC) 1.0% 7. Chamberlain 0.9% 8. Monitronics International 0.9% 9. Vivint Inc. 0.8% 10. Johnson Controls 0.8% Others 79.7% Estimated 2014 Revenues = $54.01 billion Source: IHS Aug 15 Click on the contents above to move to that page of the report. 48

49 Physical security equipment & services World Americas EMEA Asia Table 2.3 Market shares for total market EMEA in 2014 Revenue ($m) Company Name Tyco International Ltd. 3.9% 2. Bosch Security Systems 3.5% 3. Stanley Security Solutions 2.7% 4. G4S Technology 2.7% 5. United Technologies Corporation (UTC) 2.6% 6. Siemens AG 2.2% 7. Honeywell International Inc. 1.5% 8. Securitas Direct Group 1.3% 9. Kaba 1.0% 10. Axis Communications AB 0.9% Others 77.7% Estimated 2014 Revenues = $31.42 billion Source: IHS Aug 15 Click on the contents above to move to that page of the report. 49

50 Physical security equipment & services World Americas EMEA Asia Table 2.4 Market shares for total market Asia in 2014 Revenue ($m) Company Name SECOM Co., Ltd. 7.0% 2. Hikvision Digital Technology Co., Ltd. 4.5% 3. ALSOK 2.3% 4. China Security & Surveillance Technology, Inc. (CSST) 2.3% 5. S1 Corporation 2.2% 6. Tyco International Ltd. 2.0% 7. Zhejiang Dahua Technology Co., Ltd 1.7% 8. Panasonic Corporation 1.5% 9. China Telecom 1.2% 10. Tsinghua Tongfang 1.1% Others 74.2% Estimated 2014 Revenues = $43.77 billion Source: IHS Aug 15 Click on the contents above to move to that page of the report. 50

51 Physical security equipment World Americas EMEA Asia Table 2.5 Market shares for physical security equipment World in 2014 Revenue ($m) Company Name Hikvision Digital Technology Co., Ltd. 9.0% 2. Honeywell International Inc. 3.8% 3. Zhejiang Dahua Technology Co., Ltd 3.3% 4. Axis Communications AB 2.9% 5. Bosch Security Systems 2.9% 6. Tyco International Ltd. 2.8% 7. Samsung Techwin 2.5% 8. Panasonic Corporation 2.2% 9. United Technologies Corporation (UTC) 2.2% 10. Chamberlain 2.0% 11. Schneider Electric 1.7% 12. Assa Abloy 1.5% 13. FAAC 1.0% 14. Sanwa 0.9% 15. Avigilon 0.9% Click on the contents above to move to that page of the report. Others 60.3% Estimated 2014 Revenues = $26.50 billion Source: IHS Aug 15 51

52 Physical security equipment World Americas EMEA Asia Table 2.6 Market shares for physical security equipment Americas in 2014 Revenue ($m) Company Name Honeywell International Inc. 7.5% 2. Tyco International Ltd. 6.2% 3. Chamberlain 5.6% 4. Axis Communications AB 4.5% 5. United Technologies Corporation (UTC) 3.5% 6. Bosch Security Systems 3.1% 7. Schneider Electric 2.8% 8. Samsung Techwin 2.5% 9. Assa Abloy 2.5% 10. Argusa 2.5% Others 59.4% Estimated 2014 Revenues = $8.72 billion Source: IHS Aug 15 Click on the contents above to move to that page of the report. 52

53 Physical security equipment World Americas EMEA Asia Table 2.7 Market shares for physical security equipment EMEA in 2014 Revenue ($m) Company Name Bosch Security Systems 4.7% 2. Axis Communications AB 4.0% 3. Hikvision Digital Technology Co., Ltd. 3.6% 4. United Technologies Corporation (UTC) 3.1% 5. Honeywell International Inc. 2.8% 6. FAAC 2.6% 7. Tyco International Ltd. 2.3% 8. Schneider Electric 2.1% 9. Samsung Techwin 2.0% 10. Assa Abloy 1.9% Others 70.8% Estimated 2014 Revenues = $7.11 billion Source: IHS Aug 15 Click on the contents above to move to that page of the report. 53

54 Physical security equipment World Americas EMEA Asia Table 2.8 Market shares for physical security equipment Asia in 2014 Revenue ($m) Company Name Hikvision Digital Technology Co., Ltd. 18.4% 2. Zhejiang Dahua Technology Co., Ltd 6.7% 3. Panasonic Corporation 3.4% 4. Samsung Techwin 2.9% 5. Uniview 1.7% 6. Honeywell International Inc. 1.5% 7. Bosch Security Systems 1.5% 8. Kedacom 1.1% 9. Amano 1.1% 10. Axis Communications AB 1.0% Others 60.7% Estimated 2014 Revenues = $10.67 billion Source: IHS Aug 15 Click on the contents above to move to that page of the report. 54