Demand for professional video surveillance cameras has been growing quickly and is forecast to continue growing in 2018. It is estimated that less than 10 million surveillance cameras were shipped globally in 2006, which grew to over 100 million in 2016, and is forecast to make over 130 million during 2018.
Despite this increase in demand, the average price of cameras and other video surveillance equipment will continue to fall quickly. As a result, IHS Markit forecasts that in terms of US dollar revenues the world market for video surveillance equipment will grow at an annual rate of less than 6% in 2018.
It will be challenging for vendors to continue to grow revenues and margins, but there will be opportunities for well-placed vendors. For example, both the South East Asian and Indian markets are forecast to grow at higher than average rates. There is also great potential for the next generation of products powered by technologies like deep learning and cloud computing.
So, what will be the big stories during 2018? Deep learning, GDPR compliance and drone detection technologies are just some of the trends discussed in this eighth annual trends IHS white paper. The following articles are designed to provide some guidance on the top trends for 2018 in the video surveillance industry.
By Jon Cropley
Big Differences between the Chinese Market and the Rest of the World
China is forecast to account for over 46% of global professional video surveillance equipment revenues in 2018. Despite this, the Chinese market has some unique characteristics that make it very different to other regional markets. This has led to the suggestion that there are two markets for video surveillance equipment – the Chinese market and the world market excluding China. Below are 5 ways in which the Chinese market differs from the rest of the world.
- Supply of equipment is more concentrated in China
The two largest vendors of branded video surveillance equipment accounted for over 50% of the Chinese market in 2016. This compares to the world excluding China where the two largest vendors accounted for less than 20% of the market.
- Shipments of deep learning-enabled equipment are much higher in China
It is forecast that three quarters of all deep learning-enabled servers for video surveillance shipped worldwide in 2018 will be shipped in China.
- Domestic vendors dominate supply of equipment in China
Chinese vendors account for more than 80% of Chinese market revenues. There are other countries where domestic brands dominate supply (Germany, Japan and South Korea are all examples). However, in most other country markets, foreign vendors account for a much higher proportion of revenues.
- Shipments of HD CCTV are proportionally lower in China
It is forecast that HD CCTV cameras will account for only around 10% of all cameras shipped in China in 2018. It is forecast they will account for over half of all camera shipments in the world excluding China.
- The market has been growing faster
The Chinese market has grown at an average annual rate of 13.3% between 2012 and 2017. In comparison, the World market excluding China has grown at an average annual rate of 2.6% over this time.
Despite all of this, growth in camera shipments has been slowing in China as the market becomes increasingly saturated. Continued high market growth will increasingly depend on shipments of higher-priced next generation deep learning-enabled equipment.
IHS Analyses
The A to I of Video Surveillance Terminology By – Jon Cropley
General Data Protection Regulation (GDPR) By – Josh Woodhouse
Video Surveillance Fault Tolerance By – Josh Woodhouse
Forensic Video Analytics as a Service By – Josh Woodhouse
The Evolution of Deep Learning in Video Surveillance By – Monica Wang
