indian market for video surveillance and electronic security

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  1. 1. Market Snapshot Video Surveillance and Integrated Electronic Security Markets in India Infrastructure Developments to Drive Growth
  2. 2. Overview India has witnessed a rise in the amount of crimes as well as their brutality over the past decade. Horrific crimes such as the 26/11 attacks and the Delhi gang rape incident have 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 main types 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 and economic 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 the countrys financial health and position the country as unstable on a global level. To cope with the inevitability of such threats, efforts are made by the government and owners 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 being witnessed in the video surveillance market and provide a perspective on how new infrastructure developments as well as other initiatives will result in growth opportunities for security OEMs and integrators. Source: Secondary Research Articles and Publications, Runaway Insights Analysis
  3. 3. However, the nature of threats are evolving over the past few years from surprise bomb attacks to well-planned mass shootings causing major loss of lives, and spreading wide-spread the fear amongst the people. Although the nation has effective counter-terrorism tactics, the rogue nature of the attacks and lower quality of gear in comparison to terrorist groups have resulted in greater civilian and police casualties. The country has thus been focusing on improving preventive measures by focusing on integrating higher-end ICT-reliant technology in cities and critical infrastructure installations to ensure better monitoring of activities. Surprise terrorism attacks at public places by explosions causing mass damage to property and loss of human lives have been an issue plaguing the nation over the last 2 decades. 1 2 3 4 Source: Secondary Research Articles and Publications, Runaway Insights Analysis Overview Security Threats in India: Terrorism
  4. 4. As per the crime rate graph (See next slide), theft, criminal trespassing/burglary, and grievous hurt comprise a majority of crimes in the country. Although incidents of grievous hurt have declined in 2015, it nonetheless poses a threat due to its high occurrence. Crimes like attempt to commit murder, rape, and kidnapping/abduction are less apparent but on a rise. However, it is estimated that the occurrence of crimes against women and rape may be much higher due to many cases being unreported and no complaints being made. Apart from Terrorism, significant threats to the nation and its people range from murder, attempted murder, rape, kidnapping and abduction, assault on women, robbery, burglary and trespassing, and theft. 5 6 7 8 Source: Secondary Research Articles and Publications, Runaway Insights Analysis Overview Security Threats in India: Other Crimes
  5. 5. Overview Security Threats in India: Other Crimes Source: National Crime Records Bureau
  6. 6. Part of this investments focus is to enhance communication and surveillance infrastructure to improve first responder effectiveness as well as support the countrys gradual adoption of smart technologies. The countrys recent focus on programs such as Crime & Criminal Tracking Network & Systems (CCTNS) are aimed at increasing visibility of occurrence of crimes as well as prevention. These trends signify that the country is poised for immediate to long-term adoption of a range electronic security systems thus, presenting a significant sales opportunity for OEMs and integrators. In light of this scenario, the government as well as private organizations are taking initiatives to improve public safety and security by driving investment in smart city projects and other critical infrastructure. 9 10 11 12 Source: Secondary Research Articles and Publications, Runaway Insights Analysis Overview Security Threats in India: Conclusion
  7. 7. The Indian Video Surveillance Market is expected to reach close to USD 1 Billion by the 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 infrastructure to be ICT-friendly enable closer monitoring and reporting of public incidents, thereby, enhancing the countrys proactive and reactive security response systems. Some of the key developments that are expected to be witnessed in the country over the next decade include airports, smart cities, seaports, as well as a number of other residential, commercial, retail constructions. To keep up with these ambitious plans, the government is increasingly encouraging private sector participation from major national and international investment bodies, and EPC (Engineering Procurement Construction) contractors. This in turn is leading to an increasing penetration of a few major foreign as well as national electronic security OEMs building strong relationships with infrastructure developers and the government to identify and bag security contracts well in advance. Executive Summary Source: Secondary Research Articles and Publications, Runaway Insights Analysis
  8. 8. Executive Summary Source: Secondary Research Articles and Publications, Runaway Insights Analysis However, in-spite of this competition, the breadth of infrastructural development still presents a major opportunity for security providers to expand their footprint in the industry by targeting developments which have not had their security needs catered to. Operators and owners of newly established infrastructure are expected to demand higher-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 and newer systems by end-users thus, represents a significant sales opportunity to providers of such systems. As such, product innovation and breakthrough surveillance technologies is expected to gain speed as procurement budgets increase. In light of these opportunities, the following few slides will shed light on some of the key market and technological trends that are shaping the video surveillance industry as well as highlight some key success factors that customers look for while choosing a solution provider.
  9. 9. Key Market Trends M&A Activity Dominated by Pure-Play Companies Varied Security Solutions Integrated Systems Key Market Trends Source: Secondary Research Articles and Publications, Runaway Insights Analysis
  10. 10. 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, TATAs 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
  11. 11. Key Technology Trends IP-Based Surveillance Systems Video Surveillance as a Service (VSaaS) Video Analytics and Integration of Big Data Automation 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
  12. 12. Key Technology Trends Source: Secondary Research Articles and Publications, Runaway Insights Analysis A majority of the surveillance systems currently being used are analog-based IP systems. Albeit effective and still contributing to a large proportion of market share, these systems are not technologically advanced enough to deal with threats in a proactive 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-user segments have started migrating towards IP-based surveillance infrastructure which is highly 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 solutions exhibit features such as lower ownerships costs, higher scalability, secure remote access and management via internet. One of the factors driving the migration towards IP based surveillance systems is the relative ease of being able to integrate IP based surveillance systems into a VSaaS based solution in comparison to other systems in place. Video Surveillance as a Service (VSaaS) Video Analytics software allows automated monitoring and reporting of suspicious behavior based on algorithms input into the system. A certain combination of movements or actions detected by a CCTV