The asmag editorial team recently spoke with 20 Korean manufacturers to get the latest scoop on industry developments. Key findings include IP movement, HD-SDI’s potential, analog 2.0 and a dichotomized future.
The asmag editorial team recently spoke with 20 Korean manufacturers to get the latest scoop on industry developments. Key findings include IP movement, HD-SDI's potential, analog 2.0 and a dichotomized future.
Providing IP Options = A Must
Known as the key supplies of advanced analog and HD-SDI technologies, Korean players have come to realize that having IP options in their portfolios is a must going forward. For 2014, a number of Korean camera makers are planning to launch 3-megapixel models, while DVR specialists such as ITX will have NVRs ready with PoE switches built in. Facing strong competition from Taiwanese manufacturers, Korean vendors will set themselves apart with CMS software and other value-added features. So far, Hitron, IDIS, Truen, Icantek and about five others are active in the IP field. Take Hitron for example; its IP business has grown by at least 20%, compared to last year, and new IP camera models and proprietary CMS software will be launched soon. IDIS is also aggressive in moving to IP, with its own brand. ” Promoting the construct of “closed IP,” IDIS has been gaining traction in international markets.
Cautiously Optimistic about HD-SDI
Korean HD-SDI enthusiasts include Wonwoo, HDPro, C-pro, Webgate, CTR, Micro Digital, ITX, Rifratron and around 20 other companies. While consensus was that SDI was an ideal substitute for the post-analog world, the market (buyers' side) has been moving too slowly. It was collectively estimated that the related items account for less than 30% of their total revenues in 2013.
Pricing is still a growth inhibitor. Although SDI camera and DVR prices have dropped by about 30% to 40 % (some cost the same as 1.3- or 2-megapixel models), further reductions must take place for greater market adoption. Struggling to identify suitable vertical markets and applications, many Korean solution providers are targeting higher-end SMB, such as banks, shopping malls and offices.
960H, SLOC and More
960H, SLOC and other niched technologies from Korea are supplied by unique players such as Micro Digital and Pinetron. After two years' of promotion, Pinetron finds SLOC to be better fitted for high-end projects, meaning limited buyers and orders. To stay competitive, the company is planning to launch new economic and IP models in 2014.
M-Shaped Industry
Inevitably, Korean solution providers are facing increasingly fierce rivals from China, especially in the analog markets. The once lucrative box-moving or OEM business model is now jeopardizing the survival of some Korean security enterprises. Without reasonable margins and CapEx, those small and midsized companies will have difficulties keeping sustainable product development and corporate management. Large-scale enterprises with rich backings and talents will continue to thrive in the global arena, while small-but-niched ventures may struggle and stand out in particular verticals or regions. Midsized companies are the ones in serious hot waters, resulting in a foreseeable, M-shaped future for the Korean security manufacturing powerbase.