2016 Security Manufacturer Outlook Revealed

By: John Honovich, Published on Dec 21, 2015

Last year, manufacturers nailed the biggest issue of 2015, as we revealed in the #1 Threat 2015 - China report.

So we went back to the manufacturers and 100+ answered:

"Positive / Negative: Is your outlook for the 2016 video surveillance industry overall positive or negative? Why?"

Unlike last year, where 4 themes emerged, this year had only a big 2 - terrorism and Hikvision. We share their detailed comments and our analysis inside.

**** ****, ************* ****** the ******* ***** ** 2015, ** ** ******** in *** #* ****** **** - China ******.

** ** **** **** to *** ************* *** 100+ ********:

"******** / ********: ** your ******* *** *** 2016 ***** ************ ******** overall ******** ** ********? Why?"

****** **** ****, ***** 4 ****** *******, **** year *** **** * big * - ********* and *********. ** ***** their ******** ******** *** our ******** ******.

[***************]

Dropping *** - ****** ******* *** ** ********

****** **** ****, **** few ************* ***** * strong ******* ** ******** to ** ** * positive *****. ***** **** appear ** ** **** overall ********** ** *** macroeconomy ***** **** **** than ****, **** **** economists projecting * ****** **** for * ********* ** 2016. ** *** ** side, *** ** ****** to ** ********* ** largely ******** *** *** the ***** *** ********** is** ** ** ****** instead ** **.  

Hikvision *****

***** *** **** ******** the #* ******* *** manufacturers *** ** **** in *** ********** ** responses. ******* ***********, ** 2015, **** ** *** references **** ** ***** in *******. **** *** now ******* ** **** specific ********* ****.

**** *** **** *******:

  • "********. * ***'* **** for ********* *** ** not *** ** * scorched ***** ****** ** eliminate *** *** *** competition ******* ********* *******. I ***'* *** *** any ** *** ******** competitors *** ******* **** when *** ********** ** committed ** *** ****** to ****** ****** *** destroy *********** *** ***** to ****."
  • "* ******* ** ** negative *** **** *********. With *** **** ** Chinese **** *************, *** plummeting *** *** ******* and *** ******** ******** alike, *** ******* ** certainly ***** ** ****."
  • "** **** **** ** the ********* ********* **** survive *** ******* *********."
  • "** ** **********. **** in ******. *** ** Hikvision ******** ** *** market **** ********* *** prices. **** **** **** the ******* ** **** profitability"
  • "*** "****** *****" *** market **** ***** ** the ****, *** *** Vision ****** **** **** get ***** **** ***** drops *** ****** **** year"
  • "**** *** ** *** consolidation/acquisitions *** *** ******* invasion, **** ** *** competitors *** *******. ***** this ** ***** *** business ** *** ***** term ** ** *** perceived ** * **** haven, ** ** *** good *** *** ******** in ******* ** ** lowers *** **** ** innovation."
  • "***** *** ** *********** as *** **** ******* manufactures *** ****** ** the ******."
  • "*** **** ** *** bottom *** *** ***** initiated ** *** ******* are ** **** ***** as **** **** **** to **** ***** ********** where **** *** *********** and ********** ** ****** segment."

***** (***-*******) *************, ** particular, *** * ******** outlook *** ****, **** concerns ***** ******* ***********:

  • "********, ******* ********* *** low **** ******* ********* are ********** *** ******"
  • "******** *** ****** ** installations/expansions **** ** ********** better, *** ********* ******* of ****** **** **** out *** **** **** for *********** *************."
  • "**'** ** *** **** Hikvision ***** **** *** world."
  • "*** ******* ******* *** the **** ************ ******** is ********, *** ******* will ******** ** ******* the *******."
  • "************* **********/****** ** "****** end" **** ****** *** to ******* **** *****."
  • "********...**** $*** ** ****** will **** ** $**."

Buying / ******* ******

**** *** ****** ****** under **** ******* ***** pressure, * ****** ** manufacturers ******* *** ******** of ******** ********** ** their ***** ******* *** integrators, **** ******** **** as:

  • "* ******* *** ******** from * ****** *********** is ****** ***** *** security *********** *** ******* with **** ********* *********** and *********** ****** ******."
  • "**** [*** *******] **** continue ** **** **** their *** **** ****** to *** *** **** and *** *** *** their ******* ******** ** compete **** **** ********."
  • "*** ******* ** ******** as ** ******* ********** 3 ***** *** *** have *********** ***** ****** as * ******, *** reliance ** *** *********** channel *** **** ************* reduced."

** ***** ******* ****** will ******** ** (*) manufacturers **** ********* ******* become **** ********* *** (2) ** *** ******* manufacturers ****** ********, ***** the **** ****** ***** is ** **** ****** to *** *****.

*********

*****, *** #* ******** theme *** ************* *** terrorism, ******* ********* ** the ****** ********* ** Paris *** **********. **** manufacturers ***** *** ******** for ********:

  • "*** ********* ****** ** terror ******* **** ***** a ******** **** ** 2016."
  • "********. ***** ****** **** drive ********."
  • "********. ******** ******** *** growing"
  • "********. ******** *** ********* attacks *** ******* **** increase ***** ************ ********."
  • "*** ************** ****** **** all ****** ******** *********** existing ******** ** *****."
  • "*** ************* *** *** technical ******** ******** ** a ***** ** ***** to ******** ***** ** recent ****** *** *** potential ********* ****** ** domestic *********."
  • "************ ****** **** ** be *********** *** ***** of **** ************."
  • "*** ****** **** ******* increase, ** **** *** to *** ********** **** shooting ** ********** ********, schools *** ****** ******."
  • "******** *** ** *** political ********* ** *** world, *** ********* ** the ******** **** *****."
  • "*** *** ********* **** the ******** ** ********* around *** ***** ** driving *** ****** *** quality ***** ************ *******."
  • "** **** *** ****** in *** ***** ************ industry ***** *** ****** terrorist ******* ** ***** and **********."
  • "** *** ****** **** the ***-********** ********** ******* continue ** **** *** to *** *********** ********* both ************ *** ******."
  • "********! **** *** ********* fear ** *** ******* there **** ** ** increased **** *** ******** solutions."

******* ********* ** * major ***** *** ********* video ************ ******** ** 2016 ******* ** **** happens **** *** **** few ******. ********* ** hard ** ******* *** it ** ******** **** no ***** ********* ****** will ***** *** **** time. **** *** ******** has *******, ********** **** 9/11, ** **** ******** spending ********** ** ******* by ********* ******. *******, ** is ********* *********** **** the ******** ******** **** such *******.

 

Warning *** *************** **** * ***** ************

**** ****, *** ************ had ** ********** *** quite ****************** ** *** ******** manufacturers *****. ** ** **** again **** **** ******* and *************** *** *********: 

"* ***** *** ******** will ********** *** ************** to * ******, ************ market ***** **'** ***further ************* ** *************. My guess is that some traditional manufacturers will reduce their efforts or even leave the segment all together. Perhaps Sony is one of these, due to the lower margins and Sony's financial troubles and their history of cutting business areas to reduce cost. The ****** **** ********** ******** ** ****, driven by Hikvision and Dahua. Perhaps we will also see some more Chinese manufacturers such as Uniview start expanding outside China. Most traditional manufacturers will need to lower prices or release sub-brands or special product series, such as Samsung WiseNet Lite, to compete. Some ******* ****** **** ** ****** ** ***** ******** ** *** *******, who will increase their market share in mainstream dramatically. Lower prices will start affecting the quality of the available products, until all manufacturers have adapted to the "new normal" and found ways to make products at low cost with acceptable quality. Some ********* **** *** *** ** ********* ** **** ************** *** *** ********** ** ***** *** ******** ******** **** ********. Chances are that there will be complete "camera platforms", as is offered by suppliers in China, which will almost completely remove the technical entrance barriers for the surveillance industry.... Services *** ***-****-**** ********* **** ** *** ******* **** ***** *** ******** ** *** ******** and we have seen plenty of this already. The recent $3 billion financing Hikvision secured will probably be used to bring their domestic China offering to the global market, with high service levels and complete solutions to all segments of the industry. Without consolidation the western industry will have a hard time meeting this threat. In ***** ********* *** *** * *** ***** ******* *** *** (specialized VMS, cameras, switches, etc) for parking garages, another kit for hospitals, another for retail, another for city surveillance, etc. Smart integrators will start selling to new "low-end" segments that open up due to the new price levels offered by manufacturers. Offering "******** ** * *******" **** ******** **** *** soon, since that will offer increased margins for the integrators and the financial risk will be low with the average camera price even lower than today.... As the market matures further customers will not be happy with a high number of suppliers and will require one supplier to handle all things related to IT. Security managers will more likely be part of the IT department and will **** “***** *********” ************ ******* **** **** ******* * ******* ** *********** *** ******** ******** *********. Video ********* **** ******** *** **** ****-*** and perhaps we'll see some really good analytics in 2016. More and more manufacturers will start offering "apps" to their cameras, possibly based on HiSilicon and other chip architectures than become more and more common across the industry. Sooner or later analytics will be an extremely important part of video surveillance and the newer chipsets provide more computing power and analytics capabilities."

***********

********* *********** ***** ******** across *** ******, ****** by ********* *** ****** matched ** ***** ** they *** ** ***** up, ** *********** **********. Equally ***********, ** *** the ***** ******** ****** up ****** ** **** as ***** ********* ******* their ****** *** ********* that *** ********* **** the ***** ** ******* Axis, ********, ****, *********, etc. *******.

** ********** **** **** manufacturers **** ***** ******* significant ********* ******** ** 2016. Most manufacturers *** * ******* sales ************ ** ****, **** many ******** *********. **** will **** ****** ******** at * ******* **** for ************* ** ****, forcing **** ** ******* what ** ** (******* it ** ** **** out, ***** **********, **** the ******, ***.).

***** ** *** ****** mature ********** ***** **** 2016 ** ****** *** Hikvision / ***** ****. However, ** ************* **** clearly **** ** ***** with *** *********** ******, we ** ******* **** more ******** **** ** placed ** ********** ******** that ****** ** ****** matched ** ********** ** the *******, *.*., ****** analytics, *****, ***.

*******, ** ********** **** Hikvision **** ***** ****** significant **** ****, ***** as **** ******** *** Western ****** *** ******* find ** ****** ** make ***** *** ****, and ********, ** *** industry **** ***** ********************'* ********** *** **********.

Comments (0)

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Dahua Celebrates PRC 70th Wearing Communist Party Hammer and Sickle on Oct 11, 2019
Dahua celebrated the PRC's 70th anniversary with a video of various Dahua employees wearing China Communist Party hammer and sickle pins as shown...
Hikvision And Dahua Sanctioned For Human Rights Abuses on Oct 07, 2019
In a groundbreaking move that will have drastic consequences across the video surveillance market, Dahua and Hikvision have been sanctioned by the...
Crisis At China's Largest VMS Provider, Netposa, Now State-Controlled on Oct 07, 2019
NetPosa, which bills itself as the PRC's largest VMS provider, is in a crisis. The firm is pursuing huge unpaid bills from clients, and its...
US - China Review Commission Cites IPVM on Foreign Provider Threat on Oct 01, 2019
A bipartisan congressional commission cited IPVM twice in its analysis of how the PRC government protects its surveillance firms from foreign...
China Enforces Barriers Against Foreign AI and VSaaS Providers on Sep 30, 2019
While AI and VSaaS is the future of video surveillance, these are obstructed to foreign firms in China (the PRC), where authorities are tightening...
Consumer IP Camera Analytics Shootout - Arlo, Google / Nest, Amazon / Ring, Hikvision / Ezviz, Wyze Cam, Yi Home on Sep 26, 2019
AI analytics are hitting the mainstream in the consumer camera market, with entrants Wyze and Yi Home releasing free people detection on their...
Dahua And Hikvision Accept PRC Government Officials on Sep 26, 2019
Hikvision and Dahua are among the 100 companies accepting PRC government officials as part of a new initiative to boost manufacturing that has...
Critiquing Carnegie's AI Surveillance Paper on Sep 25, 2019
The Carnegie Endowment has issued an ambitious paper on the Global Expansion of AI Surveillance. While its aim is applaudable, the paper has...
US State Department: "Chinese Tech Giants" "Tools of the Chinese Communist Party" on Sep 12, 2019
The US State Department has called out "Chinese tech giants" for being "tools of the Chinese Communist Party" in a blunt new speech that makes...
Hikvision Lobbying Against And Preparing For Potential US Sanctions on Sep 09, 2019
Hikvision has been lobbying against and preparing for potential US sanctions, according to US government records, financial filings and partner...

Most Recent Industry Reports

Axis HD Analog Encoder Tested on Oct 11, 2019
Two years after declaring "Everything is IP", Axis has released their first HD analog encoder, the P7304, with support for AHD, CVI, TVI, and SD...
Dahua Celebrates PRC 70th Wearing Communist Party Hammer and Sickle on Oct 11, 2019
Dahua celebrated the PRC's 70th anniversary with a video of various Dahua employees wearing China Communist Party hammer and sickle pins as shown...
Last Chance - Register Now - October 2019 IP Networking Course on Oct 10, 2019
Last Chance - Register Now - Fall 2019 IP Networking Course. The course starts next week. This is the only networking course designed...
Network Optix NxWitness 4.0 Tested on Oct 10, 2019
Network Optix released Nx Witness 4.0, proclaiming new features like a deep learning analytics metadata SDK, increased H.265 support, and UX...
HID Fingerprint Reader Tested on Oct 09, 2019
HID has released their first access reader to use Lumidigm optical sensors, that touts it 'works with anyone, anytime, anywhere'. We bought and...
ONVIF Suspends Dahua and Hikvision on Oct 09, 2019
Dahua and Hikvision have been 'suspended', and effectively expelled, from ONVIF, immediately following US sanctions being placed on the 2 mega...
Hikvision And Dahua Sanctioned For Human Rights Abuses on Oct 07, 2019
In a groundbreaking move that will have drastic consequences across the video surveillance market, Dahua and Hikvision have been sanctioned by the...
Avigilon H5A Analytic Cameras Tested on Oct 07, 2019
Avigilon has released its H5A analytic cameras, claiming to "detect more objects with greater accuracy even in crowded scenes." We tested the...
Crisis At China's Largest VMS Provider, Netposa, Now State-Controlled on Oct 07, 2019
NetPosa, which bills itself as the PRC's largest VMS provider, is in a crisis. The firm is pursuing huge unpaid bills from clients, and its...
Knightscope Sells Just 1 Net New Robot In 6 Months on Oct 04, 2019
For the first half of 2019, US government records show that Knightscope has sold just 1 net new robots ('machines-in-network'), inching up from 52...