PETROCHEMICAL FACILITIES
Oil is a lucrative business, requiring effective security to guard precious resources. “Oil-related projects in Siberia grew,” said Yoichiro Akahane, Manager of the Project Department for Panasonic Russia. “We delivered a huge shipment for cameras for oil factories.”
Fire solutions are essential for oil and gas projects, which are deployed by Gazprom, said Natalia Novikova, Marketing and PR Manager for ADT Security Solutions. Remote monitoring is also required for pipelines, Ostrovskaya said.
COMMERCIAL
Retail is deploying more security solutions, such as EAS. Retail represents about 80 to 85 percent of ADT Security Solutions' Russian sales, said Alexey Novikov, Sales Manager.
Russian consumers are making retail a top market, filling malls and outlets. “There are more than 15 big shopping centers in Moscow,” Makarov said.
Financial institutions are deploying video surveillance for bank branches and ATMs, although there are no specific mandates governing the amount or type of equipment. One bank is deploying ITV solutions at more than 2,000 ATMs for remote monitoring, Ostrovskaya said.
Retail and private systems are expected to deploy more cameras and alarm systems, said Lev Kabanov, Project Manager for LUIS+Center Security Systems. “People, rather than the government, have more money to spend on security.”
SPORTING EVENTS
Russia will host a number of global athletic events in the next 10 years, requiring a significant security presence at multiple venues. The 2013 World University Games will take place in Kazan, while the 2014 Winter Olympic Games will be in Sochi. Russia will also kick off the 2018 World Cup at several strategic cities.
Each event yields strong potential for security providers. A total of 13 stadiums will deploy Bosch solutions for the World Cup, said Christoph Hampe, Country Director for Bosch Security Systems. Cameras are already being installed at the Winter Olympic venues, said Yamauchi of CBC.
MARKET TRENDS
Russia has a large existing base of analog installations, making IP inroads tough. While network video vendors have certainly tried to change market perceptions, government mandates for real-time images have spurred uptake. “In this time, network cameras became more popular,” Ekaterina said.
IP market growth estimates range from 10 to 40 percent. Axis Communications is No. 1 for network camera market share in Russia, representing a whopping 50 percent of cameras based on local analysis, Guchia said. “Now the IP penetration is 15 percent. Growth in IP is much higher in Russia than in Europe.”
Russian demand is growing for both IP and analog solutions, but IP is growing more rapidly. “The market in Russia is growing, despite some difficulties due to the economy,” Makarov said. “I think IP growth is about 25 to 30 percent, while analog is 15 to 20 percent.”
Local manufacturers are gearing up for IP demand. “We will have our own network camera this summer with video analysis,” said Evgenij Eroshin, Marketing Director of Byterg CCTV Systems.
IP uptake is poised to grow, with the tipping point expected to be reached in five years. “But today for our customers, analog is more popular,” Novikova said. “Cost is the main factor.”
Network infrastructure is also limited outside of Tier One cities such as Moscow. Internet access is limited in remote areas in the north, Ekaterina said.