IHS Markit identified ubiquitous video as one of its top transformative technologies earlier in 2018. In public safety installations, we are observing this concept converge video surveillance and critical communications technologies as personnel embrace the benefits of ubiquitous video. Examples include the latest deep learning video analytics powering insights in safe city installations, a first responder live streaming body worn video to control rooms using the latest mobile broadband networks, or the closer integration and analysis of video data from multiple sources within software applications.
In the wider video surveillance industry, demand for professional video surveillance cameras has been growing quickly and is forecast to continue in 2019. It is estimated that less than 10 million surveillance cameras were shipped globally in 2006. This grew to over 100 million in 2016. It is forecast that over 180 million will be shipped in 2019. At the same time, the steep erosion in the average price of cameras and other video surveillance equipment is starting to slow. As a result, IHS Markit is forecasting that the world market will grow at an annual rate of over 8% in 2019. Some regional markets, like India and Latin America will grow much faster.
So, what will be the big stories in 2019? Future supply base changes, app stores and use of SaaS in emergency response are just some of the trends discussed in our ninth annual white paper on trends for the year ahead. The predictions on the following are to provide some guidance on opportunities across security technologies.
Supply Base Changes in 2019
Supply to the professional video surveillance market has become more concentrated in recent years. The world’s three largest vendors accounted for 17% of market revenues in 2007 and 18% in 2012. In contrast, the top three accounted for 40% in 2017.
Despite this, the supply base for professional video surveillance equipment remains much more fragmented than the supply base for many other markets. There are still hundreds of relatively small video surveillance equipment vendors, many of them with a market share much lower than 1%.
There have been acquisitions in the past decade. Larger examples include Schneider Electric acquiring Pelco, Hanwha acquiring Samsung Techwin and Canon acquiring Axis Communications. In recent years, many smaller video surveillance software vendors have also been acquired. Examples include Canon acquiring Milestone Systems and Briefcam, OnSSI acquiring SeeTec, Panasonic acquiring Video Insight, and Tyco acquiring Exacq.
Recent years have also seen some acquisitions combining video surveillance vendors and vendors of other security technologies. These have included Hikvision acquiring Pyronix and Avigilon being acquired by Motorola.
There are likely to be further mergers and acquisitions in 2019 as vendors attempt to challenge the three largest vendors – Hikvision, Dahua, and Axis Communications. However, a spree of large scale mergers and acquisitions is not expected.
vendors have themselves largely grown through organic means. The rate at which they have done this has been impressive. None of these companies were among even the ten largest vendors in 2005 and Hikvision and Dahua didn’t yet exist at the turn of the century. This shows just how quickly market shares can change and how quickly new entrants can grow.
There have been several new entrants to the professional video surveillance market in recent years (e.g., Motorola, Eagle Eye Networks, Amazon, Huawei). There will be more new entrants in 2019. Perhaps some of them will be among the market leaders of the future.