It has been well documented that China is one of the largest and fastest growing markets for video surveillance equipment. To date, much of the narrative on this topic has centered on estimating the market opportunity, identifying the leading local vendors and discussing how western companies can take advantage of this high growth opportunity.
It has been well documented that China is one of the largest and fastest growing markets for video surveillance equipment. To date, much of the narrative on this topic has centered on estimating the market opportunity, identifying the leading local vendors and discussing how western companies can take advantage of this high growth opportunity. There has been little debate on the potential for Chinese video surveillance vendors to take advantage of the growth opportunities in other regional markets.
However, this is beginning to change with the emergence of key Chinese vendors on the world stage. In fact, the publication of IMS Research's latest video surveillance report in May 2012 revealed that two Chinese video surveillance manufacturers were estimated to have been among the top ten suppliers of video surveillance equipment (based on revenue estimates) for the calendar year 2011. This was up from one company in the estimates made for 2010.
Although the video surveillance market in China is forecast to remain strong for the foreseeable future, it stands to reason that local vendors that have benefited from the opportunities in China will look to reinvest these profits in developing their business across Europe and North America. Furthermore, as emerging markets in Latin America, India and Southeast Asia offer new growth opportunities, these vendors are well placed to enter these markets.
That being said, there remains a number of challenges for Chinese video surveillance manufacturers. Size and resource could be a hurdle. Beyond the top four suppliers to the Chinese market, every other vendor had an estimated market share of less than three percent in 2011. These companies may decide to continue concentrating on their local market in the short-term, which continues to offer high growth opportunities. Additionally, for some physical security customers, the history and perceived quality of western brands will be hard to displace. However, it is likely that as Chinese vendors increasingly enter western markets, their reputation will be enhanced through attendance at key events and participation in industry forums and standards organizations.