Network Products and Solutions Drive Growth of China Video Surveillance Branding Equipment Market

Network Products and Solutions Drive Growth of China Video Surveillance Branding Equipment Market

Network Products and Solutions Drive Growth of China Video Surveillance Branding Equipment MarketShipments of network cameras in China will grow six fold from 2012 to 2017 and proceed to surpass analog counterparts in terms of revenue before the end of the period, according to a new report from IHS Inc., a global source of critical information and insight.

Network products will be responsible for driving the growth of the China video surveillance equipment market within the five-year, forecast window. While shipments for China’s total video surveillance equipment are expected to enjoy a compound annual growth rate (CAGR) of 19.5 percent from 2012 to 2017, the shipment CAGR for network cameras is projected at double the rate for the same period, topping out at 43.6 percent. High-definition (HD) network cameras will be especially successful with the highest shipment CAGR of all segments, equivalent to a remarkable 56.3 percent.

The market will owe its expansive growth to a number of drivers. For one, the incidence of domestic religious and ethnic conflicts has increased, compelling the government to expand its investment into safe-city projects. In another, intelligent traffic systems will make up one of the few applications that can guarantee stable investment returns. Both safe-city applications and traffic monitoring are the two hottest vertical markets in which network products are the prime choice. HD and high-megapixel network cameras, in particular, will be very popular for their capabilities in providing clear images.

“A better IT infrastructure, more widespread technical awareness in the market and stronger chipset performance are among the factors providing a supportive environment for video surveillance manufacturers in China, allowing them to take on equipment manufacturing while also providing network-based solutions,” said Harry Cai, IHS security analyst and author of the report, “China Video Surveillance Branding Equipment Market, 2013.”

“With four of the Top 5 video surveillance manufacturers in China local companies and all four of them solution providers, the domestic players are shifting the competitive focus from purely cost-driven mechanisms toward a more comprehensive value-add approach," Cai noted. And, with fresh network- and telecom-based players joining the game, the new entrants can encourage even more local competition to take place to help strengthen the market, IHS believes.

IHS has been studying the China video surveillance market for many years. A new report on the subject will be published by the end of September, which will also examine semiconductor usage in the space and its effect on the video surveillance industry as a whole.

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