isc west_evaluating new technologies and growth opportunities

4/9/2015

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EvaluatingNewTechnologiesandGrowthOpportunitiesintheAccessControl,VideoSurveillanceandSmartHomeIndustriesJustinSiller

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IHS Leadinginformation,advancedanalyticsanddeepexpertise

IHSSince1959

HeadquarteredinEnglewood,CO

(tradedontheNYSE)

8,000+colleaguesin30+countries

speaking50+languages

Servebusinessesandgovernmentsin165+countries

worldwide

70%oftheUSFortune1000 85%oftheGlobalFortune500 Smallbusinesses&enterprises

IHS is supported by 140+ offices around the worldUnitedStates UnitedKingdom Canada India SingaporeMalaysia China

France Germany Switzerland Poland Japan Belarus Brazil SouthKoreaRussianFederation UnitedArabEmirates Norway Australia Spain SouthAfricaMexico HongKong Netherlands Thailand Taiwan Italy Denmark Sweden

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Materials&CostBenchmarking

Media

Power&Energy

Semiconductor&Components

Telecommunications

InformationTechnology

Industrial,SecurityandMedical

Displays

ConsumerElectronics

Automotive&Transportation

TechnologyBusinessIntelligenceacrossallkeyindustrysectors

AutomotiveTechnologyAutomotiveElectronics&SemiconductorsAerospace

M2MMobileDevices&NetworksMobileMediaOperators

ApplicationForecasts&MarketSharesMemory&Storage MEMs&Sensors PowerSemiconductors SemiconductorValueChain MCUsandMPUs

SolarDownstream&DemandDynamicsEmergingTechnologySolar/PhotovoltaicComponentsEnergyStorageWindPowerSupplies&StorageComponentsSmartUtilitiesInfrastructure

AdvertisingBroadbandMedia CinemaGamesTelevisionMediaVideoMedia

TeardownsCostModelingComponentPricingPartsDatabases

ComputeElectronicsDataCenter&CriticalInfrastructureBusinessProcessSolutionsConnectivityFinancial&IDTechnologies

AccessControl&FireVideoSurveillanceDiscrete&ProcessAutomationMotorControl&SwitchgearMotors&MechanicalPowerTransmissionMachineryMedicalDevices&HealthcareITIndustrialElectronicsLEDs&LightingBuildingTechnologiesCriticalCommunications

Small&MediumDisplayLargeDisplayEmergingDisplayTechnologyOLEDPanelTouchPanelDisplayMaterials&ComponentsIntellectualProperty

ConnectedHomeConsumerDevicesDigitalSignageHomeAppliancesSmartHomeProfessionalVideo

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EvaluatingNewTechnologiesandGrowthOpportunitiesintheAccessControlEquipmentandResidentialSecurityMarketsBlakeKozak

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AgendaAccessControlandResidentialSecuritymarketprojections

KeyTechnologyOpportunitiesFutureOutlook

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Source:VideoSurveillanceIntelligenceService March2015,IHS

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AccessControl&ResidentialSecurity 2014

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ElectronicLocksandReaders

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GDP BRIC&BRI

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BRI AccessControl

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TraditionalHomeSecurityVs.SmartHomeSecurity

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ResidentialSecurity TrendsbyRegion

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KeyTechnologyOpportunities

1.MobileIdentities2.ElectronicLocks3.WebbasedSolutions

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MobileCredentials(NFC,BluetoothSmart) Wearables(wristbands,watches,beacons) Alternativeapplications

MobileIdentities(1)

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MobileIdentities(1)

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Wireless

Transitionawayfrommechanicallocks MoreDoors

ElectronicLocks(2)

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ElectronicLocks(2)

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WebbasedSolutions(3)

ACaaS

Webbasedpanels RemoteManagement

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FutureOutlook

1. Mobileidentities2. Softwareandservicesfocus3. ITcentric4. Openstandards5. Integration6. Newapplications

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EvaluatingNewTechnologiesandGrowthOpportunitiesintheVideoSurveillanceEquipmentMarketJonCropley

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AgendaVideosurveillancemarkethistoryAvoidingcommoditizationGrowthopportunities

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Residentialvideosurveillanceequipment

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Source:VideoSurveillanceIntelligenceService March2015;ConsumerandDIYVideoSurveillanceEquipmentreportNovember2014;IHS

Consumer/DIYEquipmentChannel ProfessionalEquipmentChannel

$647m Worldwide

in 2014

$509m Worldwide

in 2014

Americas

EMEA

Asia

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Videosurveillancemarkethistory(2004to2014)

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MarketHistory(1)GlobalShipmentsofAnalogueCameras

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Shipmentsdeclinedin2014

NetworkcamerasandHDCCTVcamerasbothafactor


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MarketHistory(2)GlobalShipmentsofNetworkCameras

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Acceleratedgrowthin2013and2014Averagepricedeclinesamajorfactor


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MarketHistory(3)

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Economicdownturndampened growth

Priceerosionamajorfactor

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MarketHistory(4)Theworldmarketforvideosurveillanceequipment

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Themarketcontinuestogrow


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NetworkcameraASP

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Sharpdeclinein2012and2013


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AvoidingCommoditization1.Betterimages

2.Otherproductfeatures3.Intangiblefeatures

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Avoidingcommoditization(1)Betterimages:day/nightandlowlightperformance,WDR,resolution&videoformat,4k.

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%of

world

netw

ork

cameras

hipm

ents

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Avoidingcommoditization(2)Otherproductfeatures:videoanalytics,onboardstorage,onboardaudio,H.265

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Embeddedvideoanalyticschannelshipments

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Avoidingcommoditization(3)IntangiblefeaturesFullsystemsTailorsolutionsfordifferentverticalsNicheapplications eachscenariouniqueImportanceofbrandAdditionalservices

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Hikvision,11.0%

Dahua,5.5%

AxisCommunicationsAB,5.5%

PanasonicSystemsCommunicationsCompany,4.5%

SamsungTechwin,4.0%

BoschSecuritySystems,3.5%

PelcobySchneiderElectric,3.0%Honeywell,2.0%

SonyElectronics,1.5%Avigilon,1.5%

Others,58.0%

Marketshareestimates

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Roundedtonearest0.5%


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Largestcountrymarkets

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OthergrowthopportunitiesProducts:360degreecameras,bodyworncamerasEndusersectors:citysurveillance,education,utilities&energy

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SummaryandkeytakeawaysThemarketcontinuestogrowTransitiontonetworkandHDCCTVhasacceleratedNeedtoavoidproductsbecomingcommoditiesSupplybaseremainsfragmented stilllimitedconsolidationdespiterecentdevelopmentsImportanceofChina35


isc west_evaluating new technologies and growth opportunities

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