Global Video Surveillance Equipment Market Slowed Significantly in 2015, Report Says

Last year, video surveillance equipment revenues barely made it into the black, following a strong 2014.

ENGLEWOOD, Colo. – The global market for professional video surveillance equipment increased by 1.9% in 2015, far below the rate of growth in 2014 (14.2%) and 2013 (6.8%), according to estimates by IHS (NYSE: IHS).

Lower revenue growth of 4.9% in the Chinese market was a major factor for the slower pace of growth; the Chinese market grew by 26.7% in 2014. The slowdown of the market in China in 2015 was largely due to price erosion.

Unit shipments of security cameras in China grew quickly, but the average prices of cameras and recorders fell sharply, according to IHS. The Chinese-branded supply base became more consolidated, with the two largest estimated suppliers, Hikvision and Dahua, accounting for 47.2% of the market in 2015 compared with 42.8% in 2014.

Slightly higher revenue growth in both the global market and the Chinese market is forecast for 2016 at rates of 6.4% and 11.6%, respectively. Product demand will continue to grow quickly and price erosion, though high, is forecast to ease somewhat. IHS projects the world market for video surveillance equipment will be worth $15.8 billion in 2016.

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Following are newly released findings from IHS’s video surveillance intelligence service:

  • The supply base for professional video surveillance equipment is gradually becoming more consolidated (although it remains highly fragmented compared with the supply base in many other markets). The top 15 vendors accounted for 55% of revenues in 2015.
  • A number of Chinese vendors continued to rapidly gain market share in regions outside China in 2015. They tend to offer products with low prices, which has been a major factor in the erosion of average prices in those regions.
  • China is estimated to have been the largest regional market for video surveillance equipment, accounting for over 40% of global revenues in 2015.
  • Network cameras accounted for 53% of all security cameras shipped in 2015.
  • Less than 1% of network cameras shipped were 4K compliant.
  • There has been a rapid transition from standard definition analog cameras to high definition security cameras (most notably HD-CVI, TVI and AHD).

In 2016, for the first time, there will be more high definition security cameras shipped globally than standard definition analog cameras, according to the research firm. Only 24% of HD security cameras sold in 2015 were sold in China.

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