Macro trends driving global demand for network security solutions
Editor / Provider: Axis Communications | Updated: 6/29/2015 | Article type: Hot Topics
The global market for network cameras is expected to grow by between 16 to 22 percent annually in the next three to four years, according to reports by market research companies TSR and IHS. A large part of the growth is expected to be in the Asian and Latin American markets. The Chinese market for CCTV and video surveillance equipment, which also includes analogue cameras, amounted to 33 percent of the total global market in 2013, which was then worth USD 13.5 billion.
Axis has an indirect distribution model and a network of more than 75,000 partners in 179 countries. Axis' sales are made to distributors, who in turn sell to system integrators and resellers, who sell to the end customer. Axis offers a broad portfolio of network-based products and solutions to enterprise, medium and small customers in nine different customer segments: transportation, retail, bank & finance, city surveillance, critical infrastructure, education, manufacturing, healthcare and public sector.
Axis' competitors are large international vendors as well as small niched companies, in total over 400 competitors globally. Mature markets are characterized by competiveness around quality and new technology while some emerging markets are instead characterized more by price competitiveness.
Urbanization and rapid developments in IP-connectivity are driving the continuously growing demand for network security solutions
The latest World Economic Forum's Global Risks Report identifies failure of critical infrastructure and severe social unrest as two main global risks during 2015. The need to create a safer and more secure society continues to be the overarching driving force behind continued strong growth in the global video surveillance market.
The demand for IP-based security solutions continue to grow in all market regions and the most prominent driving forces for this are urbanization and technology development,
both global in nature.
On the one hand, continued strong market demand is tied to dynamic macroeconomic factors having to do with social- and economic development, especially rapid urbanization. On the other hand, rapid developments in IP-technology and the rise of hyper-connectivity, often referred to as the Internet of Things, are creating new areas of use for network video in areas not typically associated with video surveillance, namely visual and business intelligence.
Urbanization drives the need for intelligent security solutions
With ongoing rapid expansion of urban areas in Asia, Africa and other areas, pressure on transportation and other critical infrastructure is mounting. The latest World Economic Forum's Global Risks Report identifies failure of critical infrastructure and severe social unrest as two main global risks during 2015.
Prevents and solves crime
Growing population density in urban areas across the world increases the need to build smarter cities that can meet the security needs of its citizens, who have a right to feel safe. Surveillance camera technology is increasingly viewed as a critical component for law enforcement's ability to solve and prevent crime. There is growing public acceptance for video surveillance and mounting societal willingness in general to use technology to help ensure the safety of citizens.
Innovations in network video technology have led to a number of advanced privacy protection solutions that can be used to ensure that cameras only record what's necessary and that the material is protected and safely stored. For example, functions such as privacy masks that automatically blur faces or configurable pan, tilt and zoom limits can provide additional privacy protection while encryption and IP address filtering enable increased data protection.
Developing cities require more intelligence
Large scale investments in infrastructure such as public transportation systems, new housing developments, energy infrastructure and industries are all driving global demand for smart and effective security solutions.
Network solutions for smart cities
Intelligent security solutions are crucial building blocks for constructing the environmentally and socially sustainable cities of the future. Network camera solutions can for example measure traffic flows and provide real-time intelligence to traffic controllers, carefully monitor large areas around power plants, ports and other critical infrastructure to help protect against sabotage and terrorist attacks, help protect passengers and employees of public transportation systems, prevent vandalization and protect government buildings and schools.
The hyper-connected world/Developments in IP-based technology
New technology and the rise of the hyper-connected world is another main driving force for the global network video market. Increasingly sophisticated network camera technologies are allowing cameras to be integrated with physical access control systems and used together with software solutions, mobile devices and cloud technology. Integrated security systems that combine network cameras with physical access control systems and software solutions, are now used to heighten security in for example schools, hospitals and government buildings.
The development of advanced video analytics solutions has created a new area of use, namely around video as visual intelligence, commonly referred to as business intelligence. Network camera end-users who want to optimize their business processes are increasingly looking to surveillance solutions for answers. Whether it is to optimize cost, functionality, efficiency or security, customers are increasingly relying on network video and thus demanding various new innovative solutions.
Today, customers in both private and public sector segments request solutions that are tailored for their specific needs. Whether it is to enable people to create a smarter, safer world or to find new business opportunities through visual intelligence, innovations combining network camera and IP-technology have opened the door for highly advanced and specialized solutions.