The overall market in Thailand is strong. 2010 saw steady growth, the pace of which is expected to be maintained in 2011. While the majority of the market continues to be video surveillancedriven, demand for pedestrian barriers and more integrated security systems is increasing. Although integration has been around in other regional markets for a long time, it is only beginning to grow in Thailand, as people are beginning to understand the benefits of an integrated system.
The overall market in Thailand is strong. 2010 saw steady growth, the pace of which is expected to be maintained in 2011. While the majority of the market continues to be video surveillancedriven, demand for pedestrian barriers and more integrated security systems is increasing. Although integration has been around in other regional markets for a long time, it is only beginning to grow in Thailand, as people are beginning to understand the benefits of an integrated system.
Thailand has relatively low security awareness, as the risk is not perceived to be high. Indeed, the national crime rate is lower than that of many other countries.
For example, banks in the U.S. are secured with man-trap doors, armed guards and an abundance of surveillance cameras. In Hong Kong, cash in transit is delivered by armored cars and two men with shot guns, said Henny Beeber, CEO and CTO of AES Group. “But you walk into a bank here in Thailand, and you find unarmed guards and no counter-to-ceiling bulletproof glass — yet they have tens of millions of baht behind the counter.”
OVERVIEW
Research reports provide valuable insight on the overall market, but industry experts recommend doing your own homework. “Market research firms estimate 10- to 12-percent growth. From my own dealings, it is closer to 30 percent, so I generally take market research with a grain of salt,” said Sumrith Ngaochai, GM of Guts Securitech.
However, recovery from the financial crisis was slow for some security players. After five years in the business, last year was the worst one ever, said Somchai Junpuan, Country Manager, AVerMedia Information. “However, we have a positive outlook for 2011. The market and political front will stabilize this year, and we expect a big jump to happen in 2012, as the economy continues to recover.”
The economy and the market were rather slow compared to previous years, but there are good signs for a bright future this year, said Jason Kwan, MD at CommExpress.
With the growing number of companies entering security, the market is becoming competitive. Ultimately, the way to stay ahead in the race is to provide good service, said Kittichai Samittiwuttikul, President of Smart Computer International.
“With branded products, we have been very successful in the past year,” said Dej Churdsuwanrak, MD at Bangkok OA Coms. “People come to us, and we have a competitive edge when it comes to major projects.”
The products selected must perform well and satisfy customers' needs, said Suwich Chitkasemsuk, MD at Digitalcom. “What we try to do now is communicate with the customers for their specs, requirements and budgets before coming up with the solution.”
The market in Thailand is dynamic, and this year new technologies will fight hard to gain a foothold in a sweetand- sour country. “I believe technology is facing an uphill battle, and it is important to not only be able to offer new products, but also understand how the market works in Thailand,” Ngaochai said.
IP VERSUS ANALOG
Many organizations are switching from analog to IP, including airports and international schools, Chitkasemsuk said. “The people writing the specs must consider the life span of the system, and IP is the most future-proof way today.”
Those who are new to video surveillance tend to choose analog systems, especially if they have slim budgets, said Narathip Patcharothai, GM at I Security Center. “Small mom-and-pop shops prefer a US$500 analog system.”
“The market is limited if you aim to offer premium-grade products, which are niche. Government projects tend to adopt IP for new projects, since tech specifiers believe analog systems are not advanced enough,” Ngaochai said. “The general market, however, is very sensitive to price. Sure, you can upgrade systems with IP, but analog use is far higher, at more than 70 percent. Research claims analog has 70 to 80 percent of the market share, but in reality, it's much more.” Customers are very price-sensitive. “Everyone definitely wants the best system they can get, but if you go over their budget, they will want to find a new contractor,” said Arnon Kulawongvanich, GM of Sales and Marketing at Chubb (a UTC Fire & Security company).
While analog still dominates, IP is expected to overtake analog in the next five to 10 years. “It may not be this year or the next, but we have come from pure analog to hybrid and will eventually move to IP,” said Pichai Sihsobhon, MD at Semple Cochrane (Asia).
From a commercial point of view, analog systems are more popular in Thailand and easier to control, Patcharothai said. “Many people don't know about IP solutions. When we propose IP and educate them on the benefits, they are almost always wowed. However, they will still prefer analog because of the price. We need to prepare for IP solutions, but analog will still dominate the market for the next two or three years.”
WIRELESS
Three advantages of wireless infrastructure are mobility, cost and cable elimination, Kwan said. “Customers today are dealing with larger-scale projects, where previous data-driven implementations such as point-topoint (PtP) and point-to-multipoint are no longer sufficient. However, customers are often confused by marketing, so there is still a strong need to educate the market.”
A wireless infrastructure is about three times cheaper than running fiber optics in Thailand, said Jeremy Koh, Regional Sales Manager of APAC for Firetide. “For the traffic-packed streets of Thailand, cabling is probably not even an option. Since video is the most demanding kind of traffic on a network, a reliable network with high throughput is crucial. So, critical wireless infrastructure has huge potential in Thailand.”