The world market for professional video surveillance equipment grew by just 1.9 percent in revenues in 2015, according to newly published estimates from market research firm IHS. That figure stands in stark contrast with the 14.2 percent growth rate recorded just a year prior and the 6.8 percent growth rate the market saw in 2013.
According to IHS, lower growth of 4.9 percent in the Chinese market was one of the biggest contributing factors to slower market growth globally. While the Chinese market grew by 26.7 percent in 2014, the market slowed down last year due largely to price erosion. Unit shipments of security cameras in China grew quickly but the average prices of cameras and recorders fell sharply. The Chinese branded supply base became more consolidated, with the two largest estimated suppliers - Hikvision and Dahua - accounting for 47.2 percent of the market in 2015 compared with 42.8 percent in 2014.
IHS said that slightly higher revenue growth in both the global market and the Chinese market is forecast for 2016, at rates of 6.4 percent and 11.6 percent respectively. Product demand will continue to grow quickly and price erosion, though high, is forecast to ease somewhat. This will mean that the world market for video surveillance equipment will be worth $15.8 billion in 2016.
Other key findings noted by IHS include:
- The supply base for professional video surveillance equipment is gradually becoming more consolidated (although it remains highly fragmented compared with the supply base in many other markets). The top fifteen vendors accounted for 55 percent of revenues in 2015.
- A number of Chinese vendors continued to rapidly gain market share in regions outside China in 2015. They tend to offer products with low prices and this has been a major factor in the erosion of average prices in those regions.
- China is estimated to have been the largest regional market for video surveillance equipment, accounting for over 40 percent of global revenues in 2015.
- Network cameras accounted for 53 percent of all security cameras shipped in 2015.
- Less than 1 percent of network cameras shipped were 4K compliant.
- There has been a rapid transition from standard- definition analog cameras to HD CCTV cameras (most notably HD-CVI, TVI and AHD).
- In 2016, for the first time, there will be more HD CCTV cameras shipped globally than standard definition analog cameras.
- Only 24 percent of HD CCTV cameras sold in 2015 were sold in China.
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