Q1 2017 Video Surveillance Market Review

These are the most notable moves and events for January - March 2017 in the video surveillance market.

Cybersecurity Rising

Cybersecurity, once ignored in physical security, is rapidly gaining interest driven by key Q1 2017 events, with the Dahua backdoor impacting Dahua and dozens of their OEMs including FLIR, Honeywell and Tyco plus Hikvision defaulted device mass hacking, and a new Hikvision vulnerability. This builds on the Mirai botnet attacks of Q4 2016 that were primarily driven by video surveillance products.

Hikvision Hurting

Hikvision had a tough quarter, on multiple fronts:

• Hikvision was removed from US GSA sales and Hikvision products were barred from a US city housing authority bid due to cyber security concerns, a sign of increasing issues.
• Hikvision started discontinuing its insecure online service and started removing its auto 'phone home capabilities' also due to cyber security concerns. The replacement P2P / cloud service is not mature and suffering from problems.
• Meanwhile, Hikvision acknowledged ongoing hacks of its defaulted devices while reporting a new privilege escalating security vulnerability.
• Hikvision has ramped up its marketing efforts to rebut these issues, attacking Genetec, attacking IPVM and now hiring a crisis communications writer.

Looking toward Q2, Hikvision is releasing a slew of new products (including a new VMS, H.265 cameras, deep learning and more) and will be having a dance demonstration in their ISC West booth.

Avigilon Rebounding With Buyout Negotiations

After a rocky last ~2 years, Avigilon has rebounded recently with improved growth numbers and shifted focus on maximizing profitability. We believe this is done in conjunction / helping with Avigilon buyout negotiations that have occurred throughout Q1.

Exacq Challenges

The 'Tyco-fication' (now JCI) of Exacq accelerated in Q1 with Exacq's 3 co-founders exiting and Exacq shutting down US manufacturing. It will be important to see what other changes happen throughout 2017 to see what happens with new management and increased Tyco integration.

Anixter Direct Sales Opposition

Though Anixter has been selling direct to end users for many years, opposition to this boiled over in Q1 after IPVM reported that Anixter was selling direct to Amazon with 82% of integrators voting to boycott Anixter.

Favorability Ranked

IPVM conducted the first ever manufacturer favorability ranking where integrators voted and explained why they had positive, neutral or negative ratings on 20 companies including:

Top Camera Sellers

IPVM also released statistics of Integrator's Top Selling Cameras 2017 showing which camera lines were most commonly the lead offering of integrators.

Company Profiles

In Q1 2017, IPVM did 10 company profiles to help the industry better understand smaller companies or new entrants, including:

• Anvil Traveler Threat Management Offering
• Bill Gates Funded Startup Evolv Gets $18M For The "Most Advanced Threat Detection System"
• Everbridge Mass Notification Service Examined
• Hitachi Taking On Security Industry
• Nightingale Security Drones Profile / Gain Key Legal Clearance
• Milestone App - Parking Spotter
• Milestone App - PSIM Lite (Alesys)
• Security Integrator Franchising (Security101)
• The Hot RMR Company - Electric Guard Dog
• Unikey Smart Phone Access Control Platform