The growth of global video surveillance market slowed in 2015 compared to the previous years as low-cost products from China hurt revenues.
The growth of global video surveillance market slowed in 2015 compared to the previous years as low-cost products from China hurt revenues.
According to a report from the research firm IHS, the world market for professional video surveillance equipment grew by 1.9 percent in 2015, much lower than the 14.2 percent and 6.8 percent growth posted in 2014 and 2013.
The main reason for the weak figures was the lower growth in the Chinese market, which grew 4.9 percent in 2015, down from the 26.7 percent posted in 2014. China is estimated to have been the largest regional market for video surveillance equipment, accounting for over 40 percent of global revenues in 2015. However, the report pointed out that this did not mean unit shipments were slowing down.
“The slowdown of the market in China in 2015 was largely because of price erosion,” said Jon Cropley, Principal Analyst for Video Surveillance & Security Services at IHS. “Unit shipments of security cameras in China grew quickly but the average prices of cameras and recorders fell sharply.
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“The slowdown of the market in China in 2015 was largely because of price erosion. Unit shipments of security cameras in China grew quickly but the average prices of cameras and recorders fell sharply.”
-Jon Cropley, Principal Analyst - Video Surveillance & Security Services, IHS.
He added that the Chinese branded supply base has become more consolidated with the two large players, Hikvision and Dahua, accounting for 47.2 percent of the market in 2015 compared to 42.8 percent in 2014.
Better expectations from 2016
However, despite the weak figures for 2015, the current year looks promising. IHS forecasts the global market to grow at 6.4 percent and Chinese market at 11.6 percent in 2016. Demand for products will continue to rise rapidly while the price erosion could ease.
“This will mean that the world market for video surveillance equipment will be worth $15.8 billion in 2016,” Cropley noted.
The report further gave some insights into regional and global market statistics. The supply base for professional video surveillance equipment is becoming more consolidated than before. Top 15 vendors accounted for 55 percent of revenues in 2015. More and more Chinese vendors continued to gain market share outside China, offering products at low prices.