Trends in the Market for Professional Video Surveillance Equipment

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1 Trends in the Market for Professional Video Surveillance Equipment Jon Cropley

2 Security & Fire Research In-depth Quantitative and Qualitative Research Research Areas Access Control and Fire Critical Communications Entrance Control and Intrusion Video Surveillance & Security Services Building Technologies APAC Security & Fire Who are our clients? 19 of the World s 20 largest technology companies IHS is the world's largest provider of market research to the physical security industry, with an impressive customer base that includes the ten largest suppliers of electronic physical security products. We provide complete coverage of the electronic security market, with dedicated reports on the major product markets, such as access controls, video surveillance, intruder alarms and fire detection, as well as the related services markets, such as system integration and alarm monitoring. IHS Security & Fire Group produces data on both the global market and at country level for a wide range of security related products. 2 9 of the World s 10 largest semiconductor manufacturers All of the world s 10 biggest video surveillance vendors

3 Professional Vs Consumer and DIY Video Surveillance Equipment Consumer and DIY video surveillance equipment is that sold via an in store or online retail sales channel. 3

4 World Market for Consumer and DIY Video Surveillance Equipment Revenue ($billion) Residential Commercial Source: IHS 4

5 Residential Consumer and DIY Equipment + Residential VSaaS + Professionally Monitored Video Services (for the home) = Residential Video Surveillance (Part of the Smart Home concept) 5

6 Trends in the Market for Professional Video Surveillance Equipment 6

7 History of the Market Global Shipments of Analogue Cameras Source: Video Surveillance Intelligence Service August 2014, IHS 7

8 History of the Market Global Shipments of Network Cameras Source: Video Surveillance Intelligence Service August 2014, IHS 8

9 History of the Market Economic downturn dampened growth Unusual growth in 2013 Source: Video Surveillance Intelligence Service May 2014, IHS 9

10 What Happened in 2013? Forecast 11.3% vs 6.8% actual Price erosion major factor Global camera shipments higher $258 vs $160 One off effect Future price erosion more modest Source: Video Surveillance Intelligence Service August 2014, IHS 10

11 Network Camera ASP Sharp decline in 2012 and 2013 Price erosion forecast to be less 2014 onwards Source: Video Surveillance Intelligence Service August 2014, IHS 11

12 Other Market Trends 12

13 Network for Smaller Systems Market Channel Breakdown Video Surveillance Market VMS >99 channels Network Video Surveillance 64% 17 to 99 channels Low end: <17 channels Analogue CCTV 25% 11% Source: Video Surveillance Intelligence Service August 2014, IHS 13

14 Technology Trends The pursuit of a better image Day/night and low light performance WDR Resolution & video format Lens 14

15 Technology Trends The Megapixel Transition Source: Video Surveillance Intelligence Service August 2014, IHS 15

16 Largest Country Markets Source: Video Surveillance Intelligence Service August 2014, IHS 16

17 Market Share Estimates Source: Video Surveillance Intelligence Service August 2014, IHS 17

18 Summary and Key Takeaways Lower impact of recession than other industries. Network video exhibiting highest growth. Opportunity in smaller installations. Focus on image quality. Importance of China. Supply base remains highly fragmented. 18

19 Questions? 19

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