Beware Scam Market 'Research'Author: John Honovich, Published on Mar 15, 2017
The 'data' and 'research' that headlines many articles is a scam, perpetuated by a variety of Indian firms that have exploited the carelessness and ignorance of many companies and the press.
Axis is touting:
By 2020, the market will be worth 6.18 billion U.S. dollars, according to research firm MarketsandMarkets.
According to the Grand View Research firm, the global smart cities market size was valued at $567.45 billion in 2014, with security accounting for $77.19 billion.
According to a report from Technavio, the market will reach US$1,505.64 million, at a CAGR of more than 21 percent from 2017 to 2021.
UPDATE: just this week, IFSEC announced:
Global demand for video surveillance security cameras will reach $2.8bn by 2021, according to Research Nester.
One may wonder: Who are these companies - Markets and Markets, Grand View Research, Research Nester and Technavio?
Indian Book Report Companies
All of these companies share a few common characteristics:
- Make optimistic groundless projections to sell reports for thousands of dollars each
- Have non-experts who repackage Google search results, moving from market to market
- Are primarily Indian based and actively try to obscure that
Technavio is so sloppy that in the press release for the 'security surveillance camera market' they included a sentence declaring 'the report considers the revenue generated from the retail sales of haircare products', which is shown below:
The reality is these companies do 'research' on hair care one day, surveillance cameras the next, MRI machines the following week, etc.
Update November 2017: 7 months after us reporting on this, Technavio contacted us to claim the 'hair care' error was the fault of their partner Reportlinker. Here is Technavio's hair cair report, Technavio's MRI report, Technavio's premium shoe report, Technavio's HVAC report, etc. According to their own about page, they cover more than 100 industries with 300 or so analysts, which is an alarmingly low ratio for conducting 'research'.
Technavio demonstrates not only a complete lack of understanding of the security camera market but also an incredible laziness to not even spend ten minutes googling to figure who is in the market. Here is a great example from their Global Homeland Security Surveillance Camera Market 2017-2021 report:
Any person in the industry knows that Axis, Avigilon, Dahua, Hikvision are clearly 'leading players' globally. The fact none of those companies are even covered while Silent Sentinel, Dedicated Micros, JVC and Vicon, just to name a few, are featured is an obvious signal that Technavio has no basic understanding of this market for which they are selling this report for a mimimum of $2,500 on that page.
For the fools who pay for their reports, they primarily get repackaging of press releases. For example, here is the section on Honeywell video surveillance provided by Markets and Markets and an excerpt shown below:
No insights, no knowledge of Honeywell beyond what they found Googling. And, yes, Honeywell's 'high-quality analog solutions' referred to above is one of the products OEMed and affected by the Dahua backdoor.
Moreover, these companies typically purport to be US or UK based to establish credibility like Grand View on their about page:
However, go to the company's LinkedIn results, though, and 98% of employees report being from India.
Risk - Bad Projections / Bad Reality
We have never heard of anyone buying any of these reports, so the risk is not there.
The problem is that these firms are now literally the most common source cited for market projections yet they are groundless and often wildly wrong.
Beware these reports and projections. Stop citing this as evidence, better serve your audiences and save your credibility.
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