By Jon Cropley, principal analyst for video surveillance at IHS Markit
Highlights
- In 2016, 59 percent of all security cameras shipped were network cameras.
- A number of Chinese vendors continue to gain market share in regions outside China.
- Supply base for professional video surveillance equipment is becoming more concentrated, in general.
Our Analysis
The world market for professional video surveillance equipment grew 3.9 percent in 2016. This is according to recently-published estimates from IHS Markit through its Video Surveillance Intelligence Service. This is a higher rate of growth than in 2015 (1.9 percent), but still low by historical standards.
Accounting for over 40 percent of global revenues measured in US dollars, the Chinese market grew 7.2 percent in 2016. However, exchange rate changes did play a role in suppressing a higher calculated growth in that currency (as the average annual exchange rate of the Chinese Yuan Renminbi to the US dollar fell by 6.6 percent in 2016).
The world market excluding China grew just 1.6 percent in 2016. Demand for security cameras grew rapidly but prices fell considerably, affecting revenues. In fact, revenues declined in a number of countries.
IHS Markit has just added new global and regional market statistics, forecasts and market share estimates to its Video Surveillance Intelligence Service. In addition to the above, key findings include:
- Slightly higher growth in the global market is forecast for 2017, at 5.5 percent. As a result, the world market will be worth $16.2 billion in 2017.
- The supply base for professional video surveillance equipment is gradually becoming more concentrated (although it remains highly fragmented compared with supply to many other markets). The top 15 vendors accounted for 58 percent of revenues in 2016.
- In 2016, a number of Chinese vendors continued to gain market share rapidly in regions outside China. They tend to offer products with low prices and this has been a major factor in average price erosion in those regions.
- 59% of all security cameras shipped in 2016 were network cameras.
- Shipments of HD CCTV cameras more than doubled.
- Less than 1 percent of network cameras shipped were 4K-compliant.
