In Part 2 of the 2015 Security 50 report, a&s reviews how Chinese manufacturers have impacted the market and how multinationals are responding.
The Chinese economy heavily impacts the global security market and the leading Chinese manufacturers, Hikvision Digital Tecnology and Dahua Technology, are about to change the industry landscape, originally led by Western companies. Hikvision made US$2.5 billion in 2014, a 57.5-percent growth rate. The company still grew incredibly at around 60 percent in the first half of 2015. We might see Hikvision become the world biggest security company in 2015 or 2016. In its financial report, the company grew 107.8 percent in overseas markets in 2013 and 37.8 percent in its domestic market, China. In 2014, the growth of its overseas market reduced a bit in 74.9 percent; however, it still grew 56 percent domestically. In the first half of 2015, it was then 41.3 percent versus 47.8 percent.
Even though the total sales revenue of Hikvision and Dahua ranked them in the top 5, their revenue coming from overseas countries only accounts for 20 to 30 percent of their total revenue.
Interestingly, even though the total sales revenue of Hikvision and Dahua ranked them in the top 5, their revenue coming from overseas countries only accounts for 20 to 30 percent of their total revenue. Therefore, we imagine China, as an independent country, will replace the U.S., to become the world’s biggest economy in the near future. Meanwhile, it is also implied Hikvision and Dahua still have room to grow outside of their home market.
Both Hikvision and Dahua are actively involved in worldwide project markets. One of the most significant markets they are involved in is safe/smart cities projects, especially in some developing countries. At the same time, they have also developed their own VMS and total video surveillance solutions. As a result, many other total solution providers have been.
Other Asian companies fight back
Taking a look at the Asian manufacturers’ side, especially from Taiwan and Korea, most of them have been influenced the most by Chinese competition this year. The results are clear from the Security 50 report. Now, these companies expect to gain more growth by partnerships, global expansion, and their newly-developed systems.
“After experiencing the fierce competition from China, in addition, to quickly responding to the fierce price competition in the market, we made many adjustments lately to become more efficient in our internal operations and management. For instance, to adopt the IT business model and increase the strategic cooperation with partners. We learn how to leverage the strengths from each other in order to ensure substantial growth in the market. We care the long-term relationship with our partners, we hope to build up an ecosystem and grow together,” William Ku, Spokesman and VP of the Brand Business Division of VIVOTEK.
According to Tamron’s 2014 financial report, it said “our industrial optic sales were especially weak in the Chinese market due to increased competition, but we posted increased sales in other major markets thanks to global market expansion of surveillance cameras due to our work to expand sales of lenses for surveillance cameras supporting network cameras.”
“Currently, in surveillance field, people are talking about city surveillance will be the fastest growing vertical market for the next years. High growth of demand is also being forecasted in campus, banking, legal force, and utilities. This pushes EverFocus to complete its own integrated platform, CMS, for city surveillance to increase the situational awareness and shorten the response time of the local authorities and managements,” said Jemmy Huang, Chairman and President of EverFocus Electronics.
For the full 2015 Security 50 Rankings, check out the Security 50 microsite!