Looking back over the last year, despite experiencing slight slowdown, a stable growth is still seen in the global security market. According to the latest industry report, 2014 Security 50, presented by a&s International last month, the top 50 companies in the ranking this year generated 8.2% growth in average.
Looking back over the last year, despite experiencing slight slowdown, a stable growth is still seen in the global security market. According to the latest industry report, 2014 Security 50, presented by a&s International last month, the top 50 companies in the ranking this year generated 8.2% growth in average.
Network systems take the lead
Although business opportunities of analog upgrades solutions such as HD-over-coaxial are seen in many Asian countries, network camera is still the major market share holder in Japan in terms of shipping quantity and total sales revenue, according to Takashi Komori, the Publisher of a&s Japan. Other than network surveillance camera, resolution requirements of HD and full-HD are trending in the local market. In fact, 1.3-megapixel is the most basic resolution standard currently, and higher demand on 4K technology in next few years is foreseeable. A remarkable sales growth of 18 to 20% is seen in the video content analysis (VCA) systems, as functions such as people counting, license plate recognition (LPR), and flow line analysis are popular in the security market in Japan.
“In 2014, cross-referencing from at least 3 professional research companies in Japan, in terms of the sales volume, about 470,000 units of HD IP cameras are acquired; 250,000 units of analog cameras; 35,000 units of HD-SDI,” Komori said. “Even though it is convenient and easier for the suppliers to provide merely products to the end users, a more comprehensive solution is more desired from the market now.” Facing new business challenges, in order to remain revenue growth, leading channel players has started to provide various solutions instead of single hardware.
Leading players in Japan
A quick review to the security market in Japan in 2014, Panasonic is taking up the largest market share by 55-57%, with Axis Communications coming after by 9-10%. Right behind taking up 6-7% in the Japanese security market is Sony, which has developed well connections with NVR solution providers in the recent years. Hikvision, a rising star in Japan. Besides taking a prominent advantage with its competitive price, Hikvision provides superb delivery service and fully dedicates into establishing local support and service center. Meanwhile, suppliers from Taiwan such as VIVOTEK, Hi Sharp, GeoVision, and DynaColor are starred players in this market as well.
Market prediction for 2015
It is estimated that a growth of 55% will be seen in the network cameras in 2015. As more companies originally from IT industry make their debut in the security sector, cloud services for both private and public cloud solution is going to be one of the key market focuses.
Unlimited opportunities seen in verticals
As for the vertical markets, with dynamic relations with surrounded countries, border and coastal security are bringing out higher demands on security equipments and systems. In the government sector, transportation and city surveillance are highly focused in Japan, in order to maintain public security and social stability and decrease crime rate in the cities. Increasing demand in security applications also comes from commercial sectors, especially in hotel business, retail, and food factory – not only for security concerns but for a more integrated and effective business management model and marketing purposes.
Long-term commitment is the key
Speaking of investing in Japan, Komori pointed out that it usually takes a solid resolution for long-term business commitment for the foreign investor. Despite the fact that Japanese market is relatively tougher for the new comers, if the manufacturers is determined to take part in this soaring security market, OEM and ODM will be an ideal starter.