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

Avigilon Hires Hikvision NA Head of Marketing As VP of Global Marketing on Jan 25, 2019
Avigilon has hired Alex Asnovich [link no longer available], who left Hikvision as Head of Marketing North America, to becomes Avigilon's Vice...
Avigilon USA Factory Visit Report on Apr 01, 2019
In a building that looks more like corporate offices than a 'factory' and just down the road from suburban housing developments is Avigilon's USA...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
China / US Trade War Impact Splits Industry on Jun 04, 2019
As the trade war continues to heat up, 170+ integrators told us "What impact will the US / PRC China conflict have on the industry?" Respondents...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Hikvision USA Giving Free Cameras In Biggest Flash Sale on Jun 26, 2019
Hikvision redefined sales promotions in the US video surveillance market, starting at the end of 2015, with across the board discounts. Now,...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Top Manufacturers Gaining and Losing 2019 on Nov 18, 2019
2019 has been an explosive year for video surveillance, with the world's two largest manufacturers, Dahua and Hikvision, being sanctioned for human...
Anixter Resisting Takeover From Competitor, Bidding War Emerges, Wesco Wins on Jan 13, 2020
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
Positive Outlook for 2020 on Dec 23, 2019
Integrators are overall strongly positive for 2020, according to new IPVM statistics: This continues the trend for integrator sentiment in 2019...

Most Recent Industry Reports

Every VMS Will Become a VSaaS on Feb 21, 2020
VMS is ending. Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn. What does this mean? VMS Historically...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Vulnerability Directory For Access Credentials on Feb 20, 2020
Knowing which access credentials are insecure can be difficult to see, especially because most look and feel the same. Even insecure 125 kHz...
AI/Smart Camera Tutorial on Feb 20, 2020
Cameras with video analytics, sometimes called 'Smart' camera or 'AI' cameras, etc. are one of the most promising growth areas of video...
China Manufacturer Suffers Coronavirus Scare on Feb 20, 2020
Uniview suffered a significant health scare last week after one of its employees reported a fever and initially tested positive for coronavirus....
Cheap Camera Problems at Night on Feb 19, 2020
Cheap cameras generally have problems at night, despite the common perception that integrated IR makes cameras mostly the same, according to new...
Milestone Launches Multiple Cloud Solutions on Feb 18, 2020
Milestone is going to the cloud, becoming one of the last prominent VMSes to do so. Milestone is clearly late but how competitive do these new...
Video Surveillance Architecture 101 on Feb 18, 2020
Video surveillance can be designed and deployed in a number of ways. This 101 examines the most common options and architectures used in...
UK Stands Behind Hikvision But Controversy Continues on Feb 18, 2020
Hikvision is exhibiting at a UK government conference for law enforcement, provoking controversy from the press, politicians, and activists due to...
IronYun AI Analytics Tested on Feb 17, 2020
Taiwan startup IronYun has raised tens of millions for its "mission to be the leading Artificial Intelligence, big data video software as a service...