What are your views on the Indian Security market? And, your opinion on the shift of analogue to IP-based surveillance trend?
Earlier, the physical security market was being led mainly by analogue technology, also known as CCTVs (closed-circuit television). However, the surveillance industry is now undergoing a major technology shift, i.e., the older, analogue technology based CCTVs are now giving way to IP-based (digital), open source and fully integrated systems. These IP-based surveillance cameras are gaining good momentum for superior technology features and affordability, and are hence preferred over the legacy analogue systems.
Globally, surveillance has been used to gather intelligence on criminal and terrorist activity and help deter untoward incidents. However, an interesting aspect is that surveillance is slowly moving out of the realm of pure physical security.
With network video and remote monitoring capabilities, we can now also react to environmental threats, fire hazards and chemical and nuclear contamination with the right blend of technology. In addition, with the advent of embedded applications in security products, surveillance is now emerging as a tool for gathering business intelligence and other applications.
City surveillance solutions can be used for traffic monitoring and providing traffic updates to commuters. Specialized video analytics, which can enable automatic number plate recognition, congestion monitoring, etc., also have a huge impact in helping manage this sector. IP-based surveillance is also applicable in the surveillance of residences.
For instance, while away on vacation, people can still survey their houses and surroundings for any suspicious activities with remote accessibility to the footage. In sectors such as banking, retail and entertainment complexes, technology such as ATM Integration, footfall measurement, POS integration and crowd monitoring can be implemented on top of the regular surveillance infrastructure.
According to the 2010 edition of the IMS Asia report, the total market for video surveillance in Asia is estimated to have been worth over $3.3 billion in 2009 and is forecast to grow at a compound annual growth rate (CAGR) of 15.2% over the next 5 years to be worth over $6.7 billion in 2014. The network video surveillance equipment market was estimated to have been worth $511.4 million in 2009 and is forecast to grow at a CAGR of 32.8% over the next five years to be worth over $2.1 billion in 2014.
In India, the surveillance market, which is about 30% of the entire security industry, predominantly consists of analogue-based installations. However, a steep shift from analogue to IP-based surveillance is being observed. Further, training and education to the channels through the Axis communications academy has helped to increase the channel confidence in network video.
According to the 2009 edition of the annual IMS Research report, the network video surveillance market in India is currently valued at USD 26.1 million & is poised to grow to USD 89.2 million by 2013. The following are the projections for the Indian network video surveillance market size projections up to 2013, as per the IMS 2009 report:
Axis expects to have a considerable market share of this high growth market, through factors such as increased coverage through the channel partners and the distribution reach, requirement for network video across multiple applications and also considerable improvement of connectivity through the new technologies adopted by service providers.
In which sectors do you see growth happening?
India is witnessing rapid economic growth over the last decade in segments such as Banking, retail, infrastructure and transportation, where physical security is a key concern. Infrastructure projects like Metro and National Highway’s connectivity will further boost demand for surveillance.
Apart from securing the infrastructure, there will also be a thrust on onboard surveillance for public safety. Investments in infrastructure, transportation sectors like airports, railways, and real estate – upcoming gated communities and township projects, have stimulated the demand for security equipment. In transportation, airport modernization projects are a big market.
City surveillance systems are increasingly becoming important as there is heightened awareness after incidents that compromised our public safety in the last year. Government institutions are likely to invest in network video solutions (IP-based video surveillance) as both overt and covert surveillance help in deterrence and crisis mitigation. When the Metro projects are completed, this will present another opportunity.
Any specific vertical that you intend to focus on?
Banking and retail are the key sectors that Axis would like to focus on due to the immense potential for deployment of surveillance technology in these sectors.
Traditionally, banking is the biggest user of surveillance and in many installations it is mandatory for the banks to deploy surveillance as an integral part of their security apparatus. Banking and retail again are the only sectors where you can get a real ROI for the investment in network video surveillance.
With banks spreading everywhere, the concept of self-service banking has caught on. High number of ATM / remote kiosks deployments not only help the banks to spread their businesses but also expose them to possibilities of fraud, potential dangers of hacking, impersonation, phishing and a lot of other white collar crime impacting their NPAs. It is also difficult to provide a safe user environment for their customers when you are thousands of miles away.
Remote surveillance with the right technology platform can help bankers today with the technology to provide remote surveillance and monitoring, ATM integration platform to track and prevent potential fraudsters and also get an investigative trail in case of any incidents.
Today, there is a deluge of large and medium format retail stores in the country, which require in-store surveillance to prevent pilferage and shrinkage. While surveillance footage can be used for counting people to detect loitering and potential criminal activity, it can also provide customer traffic patterns to event planners and coordinators that can help them improve the success of their programs.
Further, nowadays, with the addition of video analytics software, the mall management company monitors patron traffic patterns at every entrance into the complex and uses the data for marketing purposes. Documenting traffic flow also helps management sell future tenants on leasing space in the mall. This same intelligence opens the door to new in store research methods for determining the effectiveness of store layout, display design, and employee behaviour.
Additionally, through advantages in using common networking and digital camera technology, stores can achieve everything from a lower total cost of ownership to higher resolution imagery that improves forensic evidence and repurposing for training and other uses.
What are your plans for India?
Axis Communications is considered as a technology leader in the network video surveillance segment, and the current Axis road map is to introduce better products and onboard intelligence with the recently launched Axis camera application platform.
Axis has also been focused on driving the ongoing shift from analogue to digital video surveillance. Axis Communications established a direct presence in India, with the launch of the Channel Partner Program (CPP), in June 2008. Partner certification is a key focus area.
Our CPP includes technical education for partner certification. Having an Axis certified partner assures the end-customer that their security integrator has a good understanding of technology and solutions to address their requirements.
India is a market dominated by legacy analogue surveillance systems. As a result, we need to engage more closely with the system integrators to hasten adoption of IP based surveillance solutions. As a market leader in IP surveillance, Axis has already and will continue to invest in educating the market.
Our efforts will be channelized in developing registered partners across the partnership model and championing the cause of network video deployment.
How has been the market response to your products?
The response from the buyer community has been quite good since they are based on OPEN Technology platforms, are ease to install and have reliable after sales service and support. In addition, it is preferable to choose security solution providers like Axis Communications who offer open standards in IP-based cameras, which guarantee easy integration with other security systems such as electronic alarms, fire alarm systems, and access control systems over a common IP-based platform, managed by a single application.
Thus using network enabled (IP network) surveillance cameras from Axis help enable a person to receive image and video intrusion alerts on their email and mobile phones, which is a valuable feature.
Globally, we have a large number of installations in the retail industry like TARGET, Golf Mill Shopping Center, USA, SWARAVOSKI, Hugo Boss and Mont Blanc, France to name a few. In India, we are currently engaged in requirement definition at many other locations through our System Integration partners and can share more details of the same once they have been finalized and implemented.
Your investment plans for India?
Axis has also been focused on driving the ongoing shift from analogue to digital video surveillance. Axis Communications established a direct presence in India, with the launch of the Channel Partner Program (CPP), in June 2008. Partner certification is a key focus area. Our CPP includes technical education for partner certification. Having an Axis certified partner assures the end-customer that their security integrator has a good understanding of technology and solutions to address their requirements.
India is a market dominated by legacy analogue surveillance systems. As a result, we need to engage more closely with the system integrators to hasten adoption of IP based surveillance solutions. As a market leader in IP surveillance, Axis has already and will continue to invest in educating the market.
Our efforts will be channelized in developing registered partners across the partnership model and championing the cause of network video deployment.
