indian market for video surveillance and electronic security

18
Market Snapshot Video Surveillance and Integrated Electronic Security Markets in India Infrastructure Developments to Drive Growth

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Page 1: Indian Market for Video Surveillance and Electronic Security

Market Snapshot

Video Surveillance and Integrated Electronic Security

Markets in India

Infrastructure Developments to Drive Growth

Page 2: Indian Market for Video Surveillance and Electronic Security

Overview

India has witnessed a rise in the amount of crimes as well as their brutality over thepast decade. Horrific crimes such as the 26/11 attacks and the Delhi gang rape incidenthave questioned the efficacy of public safety on an individual and national level.

Crimes against women and children, and surprise terrorism attacks are two of the maintypes of threats that have been given visibility and that are faced in the subcontinent.However, with the increasing geopolitical instability and the rise of terrorism groups,the region faces a range of threats that are capable of disrupting national security andeconomic well-being.

Threats to critical infrastructure such as mass transportation, airports, power plants,and public buildings pose a significant opportunity for terrorist groups to disrupt thecountry’s financial health and position the country as unstable on a global level. Tocope with the inevitability of such threats, efforts are made by the government andowners of such infrastructure to integrate the best of security systems for their safe-guarding.

This presentation will shed light on some of the market and technology trends beingwitnessed in the video surveillance market and provide a perspective on how newinfrastructure developments as well as other initiatives will result in growthopportunities for security OEMs and integrators.

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Page 3: Indian Market for Video Surveillance and Electronic Security

However, the nature of threats are evolving over the past few years fromsurprise bomb attacks to well-planned mass shootings causing major loss oflives, and spreading wide-spread the fear amongst the people.

Although the nation has effective counter-terrorism tactics, the rogue natureof the attacks and lower quality of gear in comparison to terrorist groups haveresulted in greater civilian and police casualties.

The country has thus been focusing on improving preventive measures byfocusing on integrating higher-end ICT-reliant technology in cities and criticalinfrastructure installations to ensure better monitoring of activities.

Surprise terrorism attacks at public places by explosions causing mass damageto property and loss of human lives have been an issue plaguing the nationover the last 2 decades.

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Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Overview – Security Threats in India: Terrorism

Page 4: Indian Market for Video Surveillance and Electronic Security

As per the crime rate graph (See next slide), theft, criminaltrespassing/burglary, and grievous hurt comprise a majority of crimes in thecountry.

Although incidents of grievous hurt have declined in 2015, it nonethelessposes a threat due to its high occurrence. Crimes like attempt to commitmurder, rape, and kidnapping/abduction are less apparent but on a rise.

However, it is estimated that the occurrence of crimes against women and rapemay be much higher due to many cases being unreported and no complaintsbeing made.

Apart from Terrorism, significant threats to the nation and its people rangefrom murder, attempted murder, rape, kidnapping and abduction, assault onwomen, robbery, burglary and trespassing, and theft.

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Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Overview – Security Threats in India: Other Crimes

Page 5: Indian Market for Video Surveillance and Electronic Security

Overview – Security Threats in India: Other Crimes

Source: National Crime Records Bureau

Page 6: Indian Market for Video Surveillance and Electronic Security

Part of this investment’s focus is to enhance communication and surveillanceinfrastructure to improve first responder effectiveness as well as support thecountry’s gradual adoption of smart technologies.

The country’s recent focus on programs such as Crime & Criminal TrackingNetwork & Systems (CCTNS) are aimed at increasing visibility of occurrence ofcrimes as well as prevention.

These trends signify that the country is poised for immediate to long-termadoption of a range electronic security systems thus, presenting a significantsales opportunity for OEMs and integrators.

In light of this scenario, the government as well as private organizations aretaking initiatives to improve public safety and security by driving investment insmart city projects and other critical infrastructure.

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Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Overview – Security Threats in India: Conclusion

Page 7: Indian Market for Video Surveillance and Electronic Security

• The Indian Video Surveillance Market is expected to reach close to USD 1 Billion bythe end of 2016 and is forecasted to more than double its size by 2020,demonstrating a CAGR of close to 24% during the forecast period.

• The government has outlined plans to heavily invest in modernizing infrastructureto be ICT-friendly enable closer monitoring and reporting of public incidents,thereby, enhancing the country’s proactive and reactive security response systems.

• Some of the key developments that are expected to be witnessed in the countryover the next decade include airports, smart cities, seaports, as well as a numberof other residential, commercial, retail constructions.

• To keep up with these ambitious plans, the government is increasingly encouragingprivate sector participation from major national and international investmentbodies, and EPC (Engineering Procurement Construction) contractors.

• This in turn is leading to an increasing penetration of a few major foreign as well asnational electronic security OEMs building strong relationships with infrastructuredevelopers and the government to identify and bag security contracts well inadvance.

Executive Summary

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Page 8: Indian Market for Video Surveillance and Electronic Security

Executive Summary

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

• However, in-spite of this competition, the breadth of infrastructural developmentstill presents a major opportunity for security providers to expand their footprint inthe industry by targeting developments which have not had their security needscatered to.

• Operators and owners of newly established infrastructure are expected to demandhigher-end, state-of-the-art electronic security systems which are scalable,technologically advanced, as well as cost-efficient.

• The demand and willingness to spend on these latest technological upgrades andnewer systems by end-users thus, represents a significant sales opportunity toproviders of such systems.

• As such, product innovation and breakthrough surveillance technologies isexpected to gain speed as procurement budgets increase.

• In light of these opportunities, the following few slides will shed light on some ofthe key market and technological trends that are shaping the video surveillanceindustry as well as highlight some key success factors that customers look for whilechoosing a solution provider.

Page 9: Indian Market for Video Surveillance and Electronic Security

Key Market Trends

M&A Activity

Dominated by Pure-Play Companies

Varied Security

Solutions

IntegratedSystems

Key Market Trends

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Page 10: Indian Market for Video Surveillance and Electronic Security

Key Market Trends

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

• M&A activity has been generally witnessed amongst larger foreign integrators and OEMs with Indian giants. For example, TATA’s alliance with AGT International (TAS-AGT) to cater to the security market.

M&A

Activity

• The video surveillance industry in India is mainly dominated by pure play companies such as CP Plus, Dahua, Zicom, and Hikvision in certain segments.

Dominated by Pure-Play

Companies

• However, the presence of larger OEMs with a wider range of security offerings also permeates the security industry in India and has presence in critical infrastructure and mass transport projects.

Varied Security Solutions

• The need for video surveillance systems to be integrated with other complementary security and building automation systems is enabling larger OEMs with diversified products to gain a stronger footprint.

Integrated Systems

Page 11: Indian Market for Video Surveillance and Electronic Security

Key Technology

Trends

IP-Based Surveillance

Systems

Video Surveillance as a Service

(VSaaS)

Video Analytics and Integration of

Big DataAutomation as a

Result of Big Data Integration

Automatic Number Plate Recognition

(ANPR)

Uptake of Remote Access Capabilities

Key Technology Trends

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Page 12: Indian Market for Video Surveillance and Electronic Security

Key Technology Trends

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

• A majority of the surveillance systems currently being used are analog-based IPsystems. Albeit effective and still contributing to a large proportion of market share,these systems are not technologically advanced enough to deal with threats in aproactive manner.

• In light of certain drawbacks such as low scalability, inability of complementary high-tech solutions to be integrated, and demand for remote access, many end-usersegments have started migrating towards IP-based surveillance infrastructure which ishighly scalable at a comparatively lower Total Cost of Ownership (TCO).

IP-based surveillance

systems

• Cloud-based VSaaS solutions allow users a higher degree of flexibility as these solutionsexhibit features such as lower ownerships costs, higher scalability, secure remote accessand management via internet.

• One of the factors driving the migration towards IP based surveillance systems is therelative ease of being able to integrate IP based surveillance systems into a VSaaS basedsolution in comparison to other systems in place.

Video Surveillance as

a Service (VSaaS)

• Video Analytics software allows automated monitoring and reporting of suspiciousbehavior based on algorithms input into the system. A certain combination ofmovements or actions detected by a CCTV camera can trigger an alert if they aredeemed as suspicious.

• Such technologies are being increasingly adopted in light of the need for bettermonitoring of activity. These systems also allow for facial recognition of personsdetected on video. Systems such as facial recognition are expected to continuewitnessing strong adoption in light of increasingly sophisticated threats.

Video Analytics and Integration

of Big Data

Page 13: Indian Market for Video Surveillance and Electronic Security

Key Technology Trends

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

• The integration of surveillance systems with the latest technology capable of analyzinglarge chunks of data is leading to lesser reliance on systems requiring humanmonitoring. As such, these systems are increasingly being automated.

• This is driving ICT spending in the security segment and is expected to gradually lead toan industry characterized by data providers / server storage providers working closelywith surveillance providers.

Automation as a Result of Big

Data Integration

• The increasing traffic density, mild to serious infractions, and hit & run cases haveprompted the government to take stronger measures to smoothen the flow of trafficand curb such violations.

• ANPR technologies are being integrated with CCTV surveillance systems which capturenumber plates of traffic violators and thus, deter such offenders. Smart citydevelopments across India are expected to drive the uptake of such solutions.

Automatic Number Plate Recognition

(ANPR)

• When customers are out of town or away from their business / residential premises,they wish to monitor their facilities remotely to ensure timely reporting of any incidentsof theft or break-ins.

• Further, the increasing prevalence of theft and crimes is prompting customers from theretail, corporate, and residential end-user segments to adopt surveillance technologywhich gives 24/7 remote monitoring facilities.

Uptake of Remote Access

Capabilities

Page 14: Indian Market for Video Surveillance and Electronic Security

Key Success Factors

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Customer Preferences – Key Criteria Exhibited by Security Providers

R&D Capabilities

After-Sales Support

Technological Innovation and Product Interoperability

New Product Development

Cost Efficiency and Affordability

The following are some of the key success factors that customers place emphasis on while choosing security providers and integrators to fulfill their requirements.

Varying security needs tend to drive end-users to place preference on adoption ofnewer, sophisticated electronic security technologies and solutions which arehighly scalable and customizable. This is leading security OEMs and integrators tofocus on some of the above-mentioned key criteria in their efforts to improve thecustomer experience. The following are some of the major infrastructuredevelopments across key end-user segments which are expected to provide salesgrowth opportunities to security providers.

Page 15: Indian Market for Video Surveillance and Electronic Security

Airports Smart Cities Seaports

• 140 New Airports beingdeveloped from 2016 to 2020.• As per statement by IndianPresident, Pranab Mukherjee,close to USD 120 Billion isexpected to be the investmentrequired over the next 10 years.• Expected demand forsurveillance, scanning/detection,access control/biometrics, andperimeter intrusion detection.

• 100 Smart Cities beingdeveloped over long term period.• Close to USD 21 Billionoutlined for current mediumterm investment on 60 cities.• Expected demand forAutomatic Number PlateRecognition Systems (ANPR),Intelligent Traffic ManagementSystems, and video analytics.

• 12 Seaports being modernizedand Coastal Economic Zonesdeveloped over next 5 – 10 years• Close to USD 10 Billion beinginvested over next 5 years.• Expected demand for weather-resistant CCTV and videosurveillance systems, perimeterintrusion detection, and scanningand detection systems.

Three major end-user segments have been identified as potential areas of sales opportunities.

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Three Major End-User Segments Identified

Page 16: Indian Market for Video Surveillance and Electronic Security

In light of these developments and trends, the country is poised towitness a surge in demand for video surveillance solutions over thenext decade as well as an increasing adoption of newer,sophisticated electronic security technologies and solutions.Taking heed of these developments, security providers are focusingon improving product innovation, R&D, and customer value andservice to remain competitive.However, one of the key success factors that will contribute tosecurity providers’ success in increasing sales and market presenceis in the timely identification of selling opportunities across key end-user segments as shown in the previous slide.In light of this, Runaway Insights offers Sales Opportunity Alerts(SOAs) to enable your company achieve optimization of sales effortsand increase probability of closing sales.

Growth Opportunities for Security Providers

Source: Secondary Research Articles and Publications, Runaway Insights Analysis

Page 17: Indian Market for Video Surveillance and Electronic Security

TO UNDERSTAND MORE

VISIT:

CONTACT:

https://www.runawayinsights.com/

https://www.runawayinsights.com/contact

Page 18: Indian Market for Video Surveillance and Electronic Security

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