The Biggest Surprises in the Video Surveillance Industry 2015

Author: John Honovich, Published on Nov 13, 2015

100+ integrators told us what the biggest surprise in the video surveillance industry in 2015 was for them.

Inside, we share dozens of comments and reveal the 3 key themes.

3 Themes

The big 3 themes were:

***+ *********** **** ** **** *** ******* ******** ** *** video ************ ******** ** **** *** *** ****.

******, ** ***** ****** ** ******** *** ****** *** * key ******.

3 ******

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

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

  • *** **** / *********: *** *** **** **** ******** ** ** many *********** ***** ********* *** *** **** ********
  • ** ******: *** **** ** **, ** ******, ******** ** its *** *****.

Not ******

* *** ****** ********* *****, **** *** ****** ********* *.***, no *** ********* ***, ** *** ********* **, ** *** mentioned ********* / ***** ******, ***. ** *** ********* *** *** really ******* ** **** ** **** **** *****.

Low ****

*** **** / *** **** ** ******* *** *** ******* overall *****:

  • "****** ******* ** ***** ***** ** *******."
  • "*** **** ** ***** **** ****** ***** ****** **** ************* has **** * ***** *****. * *** ** *** ********* are ***** ********* *** ******* *** **** *** ******* *******."
  • "***** ***** **** *******." [****: ******* *** **** ***** **** 25% **** **** *** ********** **** ***** ******* *** *******, see ******* *** ****** ******]
  • "***** *** **** *** **** ***" [*******, *** *** *** ******** - ***** ** *********]
  • "*** *** *******. ****** ** ** * **** ** *** bottom *** ******* ** *******. ********* *** **** ********* **** low **** *** *********** ** ***** *************. * ********** ******* better ******* *** ********* *** ******* ** ******** **** ***** cameras *** ****** *************** ** ****** ********** ********."
  • "***** ****** *** **** *** ****** *** ********. ********* *** existing ************* **** ************ - ** ******* ***** ******* "****" lower ******. **** ***** ******* **** ******* ** *** **** just ** ***** ******** ***** ***** *******"
  • "*** ******* ** ** *** **** *** ************* ** *********** low *****, *** *** *******. ** *** ****** ***** * toll ** *** ****** ** ****** *** (****, *****) ******* we **** **** **** ** ******. *** **** ********* **** been ********* ** *** ********* ****** **** ************* ***** ****** lines. ** **** *** ** **** **** ****** ** ******* our ****** ** ******* ****** '***** *****' *******."

*********

** *** ******* ************ ** *** *****, ** ** **** **** they ***** ******** **** *** ***** *** **** **** ***** low ****** ********** ***. ********** ********:

  • "****** ******* **** *** ********* ** **** *** ****"
  • "*********, ******* ** *****/*******."
  • "********* ***** ********* ** ***** **. ***** ***** ****** *** crazy. * *** ** *** ********* **** **** **** **** do *** ***** *** ********* ****."
  • "********* ****** ***** ******* ** ****."
  • "*** ********** **** ** ** ********* **** ** *********"
  • "***** ****** ** *********** ********* (*** **** ****** *********) *******.**** are **********."
  • "********* ********* ** ******** ** **** *** **** *******, *** cost ******* ****, *** ***** ********** **** ** ** *** US ******."

*** *********** *** *** ****** ******* *** ****, **** **** noted ***** ********** *** *********** *******: 

  • "***** ********** ** *** *** ******* ********"
  • "********* - ** ********** ** * **** *** *** ****** product - ** *** * ***** ******* ********** & ** were ********* ** *** ******** *********** & *****"
  • "*********** ****** ******* ** ************ **** ******** ** ****/*****."
  • "*********-* **** ******* *** **** ********** ******* *** ******* ***** cameras."

*******, *** ********** **** ** ****** ***********:

"********* ** *** **** *********** ***** ** ******** ********* ******* each *****."

** *** **** ** * *****, ********* *** **** **** rare ** ****** *********. **** **** ** ** *********** ******* as ********* ***** **** ***** ******* ***** ** * **** risky *** ***** ******* ****** **** **** ***** ** *** many *********** *** ******** *** **** *****.

HD ******

**** ** *** ****, ** ****** *** *** **** **** common ***** *****:

  • "******* ********, ** *** *** ******* ** ** ****** ****** images."
  • "*** ****** ** *******. ********* ** *** ******** ***** *** market ******* ** **."
  • "*** ******* **** * ******** ********. *** **** ** *********** for ****** *** ** ***, **** ******* **** ** ** on ******** *** *** ****** ****** ** *** *** ** systems."
  • "******** ** ******* - *** **** *******!!! ******* ** *** crushed *** ****** *** ******. ***** ******** ****** ** **** and **'* ** **** ****."
  • "******** ** ****** ******* *** ********, ** **** *** **** rapidly **** ** ********"
  • "* *** *** ****** ** **** **** ** **** *** as ** *** ******* ***** ****** **** **** ** ************* of *** ************. * ***** ******* ***** ** ***** ** eventually ** * ****-*** ** **-*** ** ******* ** *** type ** ********* ****** ****."
  • "****** **. ******* *** *********** ***** **** **** ******* & this **** **** **** *********** *****"
  • "***/** ** *******, ***** ****** *****"

Notable ***** ********

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

  • "**** ********* ** *** **** **** ***** ******* ***** ** rollout ** *****" - ** **** ******* ** ***** ************ Dahua ** **** *** **** ***** ** ******. *** **** will ** * *** **** *** ****. ** **** ****** get ***** *** ******** *******, ** ***** ** *** **** for **** ** ***** ******* **** ********* ********.
  • "*** **** **** **** ** *** ******* ** **** **** [low ****] ***** ** * **** ******** *** **************." - We ***** ** **************, ****** ***** ***** ******* ***** *** slow ******** ****, ** *******, **** ** ********* ****** *** hard ** *** *** ****.
  • "***** *** ****** ******* **** ********* * *** ******. ***** a *** ** *** ******* ******* ******* ** *** ***?" and "******** ** ****** ******* ********* *** ****** *********." *******, ***** *********** ****** **** **** ****** *******
  • "***** *** ****** *** *** ***. ***** ******* *****-**** ** the ****** **** ******* "***** *****" *** **** *** ***** installations ******* * ***** **** ***** *******. **** ***** ***** managers ***** *** **** * ****** ********** ****** ** ******* either ******** ** *****, ******* **** ** *** ***. *** support *** ******** *** ****** ******* ** ****** ****. *** seriously *********** ********* ****** **** ********* ** ********* ****. ******'* have ******** **** * **** ***..." *******, *****'* *** *** - **********

Comments (12)

Steve Mitchell

11/13/15 06:57pm

Well I guess for me the biggest surprise in 2015 is the fact that the biggest surprise in 2015 is rise of the low cost Asian cameras.

We've been talking about the feature parity, increased capability, quality, compatibility and low cost of Chinese offerings for years, haven't we?

John Honovich

IPVM | In reply to Steve Mitchell | 11/13/15 07:08pm

At least a couple of years. I think the surprise, and I share this, is how far it has gone.

I certainly underestimated Hikvision's willingness to spend on sales and marketing at mega Western brand levels yet sell at Chinese off the boat prices.

Nic Tan

In reply to John Honovich | 11/17/15 09:55am

I know we've talked about this a lot, but how cheap are these guys really? Aren't customers concerned at all about local warranties and support? System integrators make little profits from these Chinese brands, are they just quoting because they had no other choice when competitors are quoting Hik/Dahua?

John Honovich

IPVM | In reply to Nic Tan | 11/17/15 11:56am

"Aren't customers concerned at all about local warranties and support?"

Nic, good question.

As an example, Hikvision has over 200 employees in North America - sales, support, engineering, trainers, marketing people, inventory in local warehouses, etc. It's a lot like Axis but just 30 - 50% lower price.

So, yes, traditionally, those prices came with poor to no local warranty and support but Hikvision has broken this model. How long they continue to do this combo (Western support and Chinese off the boat prices) is a key question. I don't see how this combo is sustainable since the Western expenses (200+ local employees, etc.) are the same for them as they are for any Western incumbent.

Steve Mitchell

In reply to John Honovich | 11/17/15 03:34pm

I don't see how this combo is sustainable since the Western expenses (200+ local employees, etc.) are the same for them as they are for any Western incumbent.

I suspect the cost structure is not the same given "only" 200+ employees at their current/potential sales volume. Their cost of supply chain/production is very very low so there are some margins, and I believe even with local support their cost of that is driven down by their very high MTBF and the commodization trend that says "it will run until it's obsolete." The cost of sales is driven down somewhat by the lack of friction given the price. Marketing/warehousing is spend but doesn't require corporate employee overhead.

An analogy would be ASUS vs Dell here in the US.

John Honovich

IPVM | In reply to Steve Mitchell | 11/17/15 03:39pm

ASUS sells the same spec'd laptop for 50% less than Dell? I'd be fascinating to see the details on that.

Because Hikvision is routinely selling cameras for 50% less than Axis.

Steve Mitchell

In reply to John Honovich | 11/18/15 02:40pm

My point is ASUS had/has a business model that was sustainable even at low prices.

Where I think the analogy is different is Dell was/is still able to drop prices to at least be competitive. Whereas Axis apparently isn't as willing/able to do so.

I always suspected ONVIF was going to be suicide for Axis. But convinced myself Axis was trying to increase the entire size of the pie, and was confident they could still own a big piece of that pie. Apparently that wasn't the case if they cannot come down in price. Whether that's their overhead, production costs, need to preserve margins in the channel or what.

John Honovich

IPVM | In reply to Steve Mitchell | 11/18/15 02:44pm

"Whereas Axis apparently isn't as willing/able to do so."

Neither is (in alphabetical order), Avigilon, Bosch, Panasonic, Pelco, Sony, and pretty much every established company except for Hanwha Techwin (formerly Samsung).

Nic Tan

In reply to John Honovich | 11/19/15 09:38am

Hi John, Thanks for the response.

I think they have the ability to drop prices (their gross margins are way above 50%), but it will mean their margins will be harmed - and also it's easier to drop price than to raise it again. It's a catch-22 where they will harm existing products' profitability at the expense of winning market share in the low-mid end market. The ultimate outcome is they will be a higher niche player in the future - unless if they launch a cheap product under a different brand name (and hide it really well - like how Hikvision TRIED with Ezyview). They will have to disrupt themselves or be disrupted.

Andrew Thomas

11/15/15 07:04pm

To what extend are our trade agreements to blame is the real for this surprise? We have a client with a location in Brazil, and buying the items in the US, and shipping them to their location resulted in a 60+% tariff, plus taxes on all items based on local MSRP pricing of the items.

The bigger scam is that Asian Distributors are shipping volumes of items to the US, with the participation of the recipient, as evaluation or gift items, avoiding all tariffs.

While I'm not an isolationist. However, I do believe they need to index the tariffs based upon the trade imbalances, and with some adjustments for the economic size of the countries. I also think places like EBAY with these pseudo gift / trial imports is a good place to start investigating... My .02 on that...

Undisclosed #1

In reply to Andrew Thomas | 11/17/15 03:54pm

The bigger scam is that Asian Distributors are shipping volumes of items to the US, with the participation of the recipient, as evaluation or gift items, avoiding all tariffs.

To be clear, it's the recipient first who desires to avoid the tariffs.

Andrew Thomas

In reply to Undisclosed #1 | 11/18/15 03:10pm

I am humbly corrected, and completely agree.

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

'Secure Channel' OSDP Access Control Examined on Jun 21, 2018
Despite claiming to be better than Wiegand, OSDP's initial releases did not address the lack of encryption between reader and controller, leaving...
Most Wanted Improvements In Manufacturer Technical Support (Statistics) on Jun 21, 2018
5 key areas of improvement and 1 clear wanted support feature were voiced by 140+ integrator responses to: What improvement in manufacturer...
IFSEC 2018 Final Show Report on Jun 20, 2018
IPVM attended the IFSEC show for the first time this year. The Chinese have taken over the UK, centered on Hikvision, flanked by Dahua, Huawei and...
The Dumb Ones: PSA's Bozeman On Cybersecurity on Jun 15, 2018
The smart ones are the hundred people who flew to Denver and spent $500+ on a 1.5-day conference featuring Dahua as a 'cyber responsible partner',...
Axis Releases First New Access Controller In 5 Years (A1601) on Jun 15, 2018
It has been 5 years since Axis 2013 entry in the physical access control market, with the A1001 (IPVM test). Now, Axis has released its second...
Security Sales Course Summer 2018 on Jun 14, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer...
Access Control - Time & Attendance, Mustering and Mantraps Guide on Jun 13, 2018
Electronic access offers features that traditional mechanical locks cannot. While these features may not be as fundamental as keeping doors secure,...
ReconaSense - The AI / Access Control / Analytics / IoT / Video Company Profile on Jun 12, 2018
One company's ISC West booth stood out for displaying a light-up tower of buzzwords. The company, ReconaSense, pledged to be 'making sense of it...
Introducing Effective PPF (ePPF) - Improving Video Surveillance Designs on Jun 11, 2018
Pixel density (PPF / PPM) is the best metric the industry has to define and project video quality. It allows simple communication of estimated...
The Benefits of An Access Control Test Door on Jun 08, 2018
Security system dealers can benefit from having their own access control test door both for demonstrations and training. Inside, we explain the...

Most Recent Industry Reports

Installation Hardware for Video Surveillance - Indoor Fasteners on Jun 22, 2018
As part of our Installation for Video Surveillance series, in this note, we cover drywall anchors. A key part of installing security hardware is...
Hikvision ColorVu Integrated Visible Light Cameras Examined on Jun 22, 2018
When it comes to low light, infrared light has become the defacto standard in surveillance. But IR is limited to monochrome images, making colors...
Last Chance - Save $50 - July 2018 IP Networking Course on Jun 21, 2018
Today, Thursday the 21st is the last chance to save $50 on registration. Register now and save. This is the only networking course designed...
'Secure Channel' OSDP Access Control Examined on Jun 21, 2018
Despite claiming to be better than Wiegand, OSDP's initial releases did not address the lack of encryption between reader and controller, leaving...
Most Wanted Improvements In Manufacturer Technical Support (Statistics) on Jun 21, 2018
5 key areas of improvement and 1 clear wanted support feature were voiced by 140+ integrator responses to: What improvement in manufacturer...
GDPR / ICO Complaint Filed Against IFSEC Show Facial Recognition on Jun 20, 2018
IPVM has filed a complaint against IFSEC’s parent company UBM based on our concern that the conference violates core GDPR principles on...
IFSEC 2018 Final Show Report on Jun 20, 2018
IPVM attended the IFSEC show for the first time this year. The Chinese have taken over the UK, centered on Hikvision, flanked by Dahua, Huawei and...
Mobotix Releases 'Move' Into 21st Century on Jun 20, 2018
For years, Mobotix stood resolutely against, well, every other manufacturer, selling it as a virtue: MOBOTIX equipment is designed with no...
Cybersecurity Startup VDOO Disclosing 10 Manufacturer Vulnerabilities Starting With Axis And Foscam on Jun 20, 2018
Cybersecurity startup VDOO has uncovered significant vulnerabilities in Axis cameras along with many others not yet disclosed. In this report, we...
Axis Guardian - Cloud VMS And Alarm Monitoring - Released on Jun 19, 2018
Axis has struggled to deliver a cloud-based managed service video platform. Video service providers have utilized AVHS for over a decade, and have...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact