In the past, IP-based surveillance systems were viewed as overly expensive, with the costs outweighing the benefits. Recently, growth of IP-based video equipment sales has far outstripped that of analog products. This trend is expected to continue and gain momentum.
In the past, IP-based surveillance systems were viewed as overly expensive, with the costs outweighing the benefits. Recently, growth of IP-based video equipment sales has far outstripped that of analog products. This trend is expected to continue and gain momentum.
Japan's security market has been severely impacted by the recession, but there is a silver lining. The video surveillance market is expected to pose single-digit growth, with substantially better growth predicted for IP-based video surveillance systems. Demand is fueled by the enhanced capabilities provided by IP-based solutions, such as remote access, faster search and retrieval, and intelligent video management.
Japan's IP Uptake
Traditionally served by domestic suppliers, the security market in Japan has been slow to change, and Japan has lagged behind the rest of the world in its IP adoption. Recently, however, the growth of IP-based security systems is opening doors for international companies. To this end, Bosch Security Systems and Hochiki Corporation, a local security installer and manufacturer, joined ranks in September.
"Japan is the world's third largest market for video surveillance equipment, and, as such, offers both companies excellent opportunities for growth in IP-based video surveillance, even in a period of economic tension," said Johan Jubbega, Senior VP at Bosch Security Systems, in a prepared statement.
Partnered Strategies
Both companies are reputed for high-quality products, a firm demand of the 
Japanese market. The Bosch product line offers advanced camera imaging performance, compression technology, storage concepts and intelligent video processing. Bosch will adapt its products to meet Japan's certifications and standards. Hochiki is well-established in the local market for installation and maintenance of security and network communication systems.
"In the initial phase, we'll concentrate our efforts on verticals, such as commercial and high-density residential safety and security, where Hochiki is already strong. The breadth of applications that are well-served by the Bosch product line will allow Hochiki to expand into a wide variety of new verticals, such as city surveillance and critical infrastructure protection," said Dan Reese, Director of Business Development for Japan, Bosch Security Systems.
Bosch will penetrate Japan's video surveillance market via Hochiki, capitalizing on Hochiki's existing customer base and local experience. Hochiki will create a new video division and expand into new segments with high demand for IP-based video products, while continuing to offer complete project support — from system design and installation to maintenance, service and support.