Small distributors dominate Asian surveillance market

According to a new report from IHS, the video surveillance market in Asia is highly fragmented and served primarily by small distributors. Although large distributors such as ADI, Anixter and Ingram Micro operate in some Asian countries, the majority of the market is made up of a multitude of small, privately-owned distribution companies.

In fact, “The Asian Distribution Market for Video Surveillance Equipment” report estimates that the top 10 distributors in the region accounted for just over a tenth of the market in 2012.

“There are some exceptions. For example, Aditya Infotech has a relatively high share of the Indian distribution market and Pacific Communications has a relatively high share of the Australian distribution market. However, the Asian market as a whole is mainly served by smaller players,” wrote Jon Cropley, principal analyst for IHS Inc. in a statement.

According to IHS, China is the largest distribution market for video surveillance equipment in Asia. However, the research firm said that Chinese vendors often have a large sales team of their own and they operate numerous branch offices. These sales teams tend to sell direct to systems integrators and installers for big projects. They also manage relationships with small distributors. 

IHS predicts that the Asian distribution market for video surveillance equipment will grow at annual rate of almost 15 percent over the next five years.