a&s asia janfeb 2012 (trial version)

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Booth No.C81-3 March 2012

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WEBGATE Div.

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14 JAN / FEB 201222 www.asmag.com 22

Special Feature

As 2012 approaches, the world is watching as events unfold in Europe and the U.S. All industries are connected by the world of finance, and all people are affected by the global economic situation.

Forces That Are Shaping the Security Industry in 2012

46 2012 Market Preview by Product Segment48 Security Industry Builds on Value and Service in 201258 Johnson Controls: 12 Building Automation and Security

Trends for 201259 Schneider Electric: 12 for 201260 Siemens Building Technologies: 15 Trends in Security and

Building Automation

38

Contents Jan/Feb 2012

Vertical Market

82

104

Security Rings Up Sales for Retailersa&s examines the market for retail security, as well as how security is evolving. We look at how solutions are deployed, what the hallmarks of strong performance are and where the future is headed.

90Tailored Solutions Cater to Shopper Needs

96Security Systems: Controlling Losses and Increasing Profits for Retailers

NewS Feature

32 Financial Trouble Ahead?ViewpoiNt

34 Video Surveillance Trends for 2012applicatioN caSe

100 Korean Songdo ConvensiA Capitalizes on Bosch Converged Solution

102 High-End Apartment in Vietnam Relies on Bosch Building Solution

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Product ExPloration

Video surveillance is undergoing a transition. HD video offers clearer and smoother pictures, which in turn enable

a whole new batch of use cases, such as more practical video analytics. The benefits are clear. What is not clear is

how users should approach this new technology and what they should expect from it, especially when the lack of

universal standards is not helping at all.

68Stepping Back From the Edge71Product Showcase

Practical Considerations for

Pretty Pictures

Contents

14 Contents 18 Editor’s Note 20 Corporate News 20 Market Observer

30 Products of the Month113 Show Calendar 114 New Products117 Companies in This Issue

BusinEss talk

104Say Hello to Security in Hollywood Productions

advErtorial

108 Note of Appreciation110 After the Flood, Vast Opportunities

Abound in Thailand and Vietnamshow PrEviEw

112 Intersec 2012

Jan/Feb 2012

rEgional PErsPEctivE

74After strong sales growth for the first half of 2011, the Vietnamese security market was affected by national economic issues. However, experts remain optimistic about 2012, as opportunities abound.

Vietnam Ready for New Spring in Security

62

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Happy New Year!

Thank you for your continued support of our editorial efforts over the last year, and we shall continue to serve you with the latest from the global physical/electronic security industry and regional markets. If you have any comments or suggestions, please feel free to get in touch with us anytime. Our contact details can be found in the margin on the right.

The security industry usually finds itself at a crossroads when market forecasts of the world’s major economies become murky, given how closely investments in government and large-scale projects are interconnected. Manufacturers and solution providers become uncertain as to where to go in terms of product and market development: IP HD or HD-SDI, hardware or software, sophisticated or simple, high-end or entry-level, mature markets or developing economies. Some would end up splitting the wager among different product lines and standards, without the financial backing of that of the Tycos and UTCs, as they are concerned about losing market share (or worse, going bust) should one product feature or standard prevail. The same level of uncertainty, as to where growth might come from, can also be palpated in the sales and marketing community.

Clearly, this more or less conservative industry needs more dialog among the friends and foes, in different geographical/vertical markets and in the trade press, to get a clearer picture of what the real, current market needs are more quickly and to better facilitate convergence and differentiation. Look at the dwindling sales of iPhones in Western Europe — those who refuse to adapt to macroeconomic conditions or diversify their solutions and geographical/vertical market segments will find it increasingly challenging to stay afloat in security. At the end of the day, reliability is required of all security solutions, and resilience of the industry.

Our cover story this issue focuses on the 2012 Preview, dissecting worldwide security markets (by region and by vertical), product and solution needs, industry developments and trends, as well as words of advice from the movers and shakers of the integration and automation realm. Product Exploration looks at the latest advances in HD video and presents the how-to’s of hardware and system components selection and network setup. Vertical Market discusses security and management needs and solution requirements under different scenarios in retail, while touching on cost-effectiveness and integration issues. Also in this issue are Viewpoint on 2012 forecasts for video surveillance; Business Talk on the “rights and wrongs” of Hollywood-ish marketing in security; and Regional Perspective on Vietnam’s ups and downs. Enjoy the read!

Hayden [email protected]

Building on Resilience

EDITOR'S NOTEa&s Asia, published by Messe Frankfurt New Era Business Media

Ltd., is a bimonthly professional publication for channel players

in the regional electronic security industry. It caters to importers,

distributors, OEM/ODM searchers, system integrators and other

product purchasers to get updates on product sources and

developments in CCTV, Digital Surveillance, Access Control,

Biometrics, Intrusion Alarm, Intercom/Video Doorphone, Home

Automation and other fields relevant to electronic security.

ISSN 1997-6259中華郵政台北雜字第1570號執照登記為雜誌交寄

Messe Frankfurt New Era Business Media Ltd. Taiwan Branch: 2F, No. 8, Lane 360, Sec. 1, Nei-Hu Rd.,Taipei 114, TaiwanPhone/886 2 2659 9080Fax/886 2 2659 9069Web site/www.mfnewera.com

Messe Frankfurt New Era Business Media Ltd., a company formed by Messe Frankfurt (HK) Ltd. and former A&S Group in 2009, is an integrated media service provider in the security industry. Our service covers magazines, Web sites, events and trade shows. The portfolio of a&s Magazine includes a&s International, a&s International China Best Buys, a&s Asia (above published in English), a&s China, a&s Installer, a&s Taiwan, a&s Solution, Fire & Safety and Info Security (above published in Chinese). a&s Turkiye, a&s Adria, a&s Italy, a&s India, a&s Japan and a&s Vietnam are licensed editions.

Advertisers are responsible for their own advertisement content. The publisher is not liable for any legal, image, patent or trademark disputes from advertisements or among advertisers.Legal consultant: Julia S.H. Yu, Attorney at Law, First Law & IP Offices

Copyright© 2012 Messe Frankfurt New Era Business Media Ltd. All rights reserved. No part of this magazine may be republished, reprinted or redistributed in any forms, including electronic, without written consent from the publisher.

For changes of address or subscription problems, contact us at [email protected]

Parson Lee Publisher & Managing Director Joseph Lee General Manager John Shih General Manager Regina Tsai General Manager Editorial General Press [email protected] Hsu editor in chief [email protected] Chang senior consultant [email protected] Wong Reporter [email protected] Tang Reporter [email protected] Wang Reporter [email protected] Kao Reporter [email protected] Tsui coordinator [email protected]

Art Design

Gaven Lee executive designer [email protected] Chang designer [email protected] Wu designer [email protected]

Circulation & Subscription Collins Yuan group Manager [email protected] Shih coordinator [email protected]

Corporate Management

Vivien Hsiu Project Manager [email protected] Lin Assistant to [email protected] Managing director Annie Yu Accounting Manager [email protected] Lee iT Manager [email protected]

asmag.com Collins Yuan group Manager [email protected]

Secutech & Events (Overseas) Echo Lin Trade Fair Manager [email protected] Yang Project Manager [email protected] Chen Project Manager [email protected] Pan Assistant Manager [email protected]

Secutech & Events (Domestic) Veronica Chen group Manager [email protected]

International Advertising [Headquarters] Echo Lin Manager [email protected] Wu officer [email protected] Kay Yang operation officer [email protected] Fang coordinator [email protected] Yeh coordinator [email protected] Chen coordinator [email protected] Lee Assistant [email protected]

[Branches & Representatives] Bobbie Ferraro usA/canada [email protected] Pattuelli europe (italy) [email protected] Ilkan europe (Turkey) [email protected] Consolos europe (u.K.) [email protected] Hadzic southeast europe [email protected] Gandhi india [email protected] Shen china [email protected]. C. Suh Korea [email protected] Komori Japan [email protected]

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Corporate News

Tyco Completes Acquisition of Visonic for $100 Million

Tyco International announced that the company has completed the acquisition of Visonic, a manufacturer of electronic security systems and components, for approximately US$100 million in cash. The acquisition was first announced on Sept. 15, 2011.

Visonic's portfolio includes wireless communications technologies that offer increased range and secure communica-tions. These technologies are in use in more than 1 million wireless installations around the world.

"The addition of Visonic to the Tyco Security Products portfolio advances our strategy to provide our global customer base with broad-based security solutions," said Mark VanDover, President of Tyco Security Products. "The company's technological capabilities and strong presence in markets such as Europe enable us to further enhance the solutions and reach of our intrusion security portfolio."

Th e Vi s o n i c b u s i n e s s , w h i c h h a s annualized revenues of more than US$75 million, will be integrated into Tyco's Security Products unit, a global provider of access control, video and intrusion solutions.

Seagate Technology, a provider of hard-disk drives (HDD) and storage solutions, announced the closing of the transaction to acquire the HDD business of Samsung Electronics, a provider of digital consumer electronics and information technology.

Under the terms of the transaction, Seagate has gained select elements of Samsung's HDD business, including assets, infrastructure and employees that enable Seagate to drive scale and innovation. Samsung employees joining Seagate include a number of senior managers and design-engineering employees from Samsung's Korean facility, who will focus on development of small form-factor products for the mobile computing market.

"Together, Seagate and Samsung have aligned our current and future product development efforts and road maps in order to accelerate time-to-market efficiency for new products and position

us to better address the increasing demands for storage," said Steve Luczo, Chairman, President and CEO of Seagate. "It is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage."

This transaction was announced in April 2011 along with a series of other agreements between Seagate and Samsung. Seagate is supplying disk drives to Samsung for PCs, notebooks and consumer electronics devices. Samsung is supplying its semiconductor products for use in Seagate's enterprise solid state drives, solid-state hybrid drives and other products. The companies have also extended and enhanced their existing patent cross-license agreement and have expanded cooperation to codevelop enterprise storage solutions.

IMS Research: Network Video to Grow 25 Percent in 2012 Despite Uncertainty

IMS Research estimated that the demand for video surveillance equipment will remain strong through 2012 despite the economic uncertainty; growth for network surveillance equipment sales is forecast to exceed 25 percent.

Looking back at what happened during the last global recession, despite the economic turbulence, the global video surveillance equipment market continued to grow throughout the downturn. “The world market for video surveillance equipment continued to achieve strong growth in 2010, in excess of 10 percent, despite the persistent after-effects of the global economic downturn,” said Gary Wong, Senior Analyst at IMS Research. “While the global analog market was relatively depressed in 2010, the network video surveillance market continued to grow almost three times as fast as the total market in 2010, more than 30 percent.”

A report from IMS Research has identified the latest in a long line of evolving trends in the enterprise and IP video surveillance storage market.

“The trend towards higher resolution security cameras will continue to impact the storage market over the short to medium term” said Sam Grinter, Market Analyst of IMS Research. “By 2015, IMS Research forecasts that megapixel security cameras will account for more than 70 percent of network security cameras shipped.”

Lo o k ing for ward, IM S R e se a rch predicts that cloud based video surveil-lance storage, or video surveillance as a service, will be the next big trend, gaining acceptance as a viable option in storing video surveillance data. “Cloud-based storage will likely see the largest traction of enterprise solutions by providing centralized off-site storage for critical surveillance footage,” Grinter said.

Seagate Completes Acquisition of Samsung’s Hard-Disk Drive Business for $1.4 Billion

US$1.6 Billion

US$364.4 Million2009

2016

25% Growth in 2012 CAGR of 11% until 2016

$181 Million

$123 Million

2010 2016

Analog

IP

2014

SaaS1.3 Million

1.8 Million in 2011

Others

Source: IMS Research

Sales of Network Video Surveillance Equipment

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Corporate News

March Networks, a provider of intelligent IP video solutions, announced that it has entered into a definitive agreement with Infinova and Shenzhen Infinova, a company listed on the Shenzhen Stock Exchange, majority owned by US shareholders and with US headquarters in New Jersey. The total value of the transaction is approximately US$88.2 million.

"The combined companies will create one of the 10 largest global players in the video surveillance industry and is well positioned for the expected industry consolidation over the next five years," said Peter Strom, President and CEO, March Networks. “Infinova offers March Networks a broader geographic footprint, access to the world's fastest growing market and a complementary fit with our

respective product lines. This deal is consistent with our strategy to accelerate growth and expand in the Asian market.”

"March Networks has established itself as one of the leading and most innovative players in the video industry and Infinova is proud to combine forces to take the company to the next level, said Jeffrey Liu, Chairman of Infinova. The acquisition provides scale in all critical markets, as well as access to March Network's proven and innovative IP technology.”

“March will continue to operate independently from its headquarters in Canada, maintain its name and brands, and deliver on all of its commitments to customers, while taking full advantage of Infinova's manufacturing expertise and R&D scale,” Liu said.

ABI Research: Business Intelligence With Video Analytics to Reach $900 Million by 2016

The video analytics market is expected to grow by 21 percent year-over-year in 2011. This surge in demand will drop to a more sustainable growth of 13.9 percent in 2012 and will stabilize at a CAGR of near 11 percent until 2016, driven by the emergence of innovative use cases such as business intelligence (BI) tools and the maturing of product offerings.

“Video analytics, used as a BI tool, is currently experiencing a growing demand,” said George Kraev, Senior Analyst, Security and ID for ABI Research. “That growth will continue for the next couple of years, with a slight drop off at the end of 2013 due to the cyclical nature of the demand. 2014 will see a reinvigorated demand for BI video analytics solutions, with the BI type reaching a 38.4 percent market penetration by 2016. The BI video analytics market is projected to grow a little more than 2.5 times from 2011 to 2016.”

South America will more than double its global video analytics market share, reaching 12 percent by 2015. Meanwhile, the U.S. and EMEA will lose some of their global dominance due to the high demand for video analytics in other regions. The market dynamics will be driven by multina-tional corporations and the adoption of high-end systems by affluent customers in the BRIC regions.

W h i l e t h e i n d u s t r y i s seeing a general shift toward edge devices, there are still limitations to digital signal p r o c e s s i n g p o w e r a n d the ability to run complex detection algorithms. The transit ion to edge -based analyt ics wi l l be s low for the next three or four years with I ntel-based systems maintaining their market share lead.

Infinova to Acquire March Networks for $88.2 Million

Bosch Secures Shanghai Oriental Sports Center With Comprehensive Video and Audio Coverage

Shanghai Oriental Sports Center has installed a range of Bosch solutions to safeguard operations in its venues. The implemented products were already functioning reliably during the 14th FINA World Championships in 2011. Going forward, they will continue to secure and ensure smooth operations.

The center is an integrated sports venue mainly used for aquatic activities. It covers an area of almost 35 hectares and contains an arena with 18,000 seats. In order to assure sound operations when hosting large events, the primary considerations that were taken into account were security factors and an efficient contingency plan in the case of an emergency.

Shanghai Oriental Sports Center was equipped with a network sound reinforcement system that can be remotely controlled. It features horn-loaded speakers as the main sound system.

Bosch also provided the center with advanced public address solutions including digital public address and evacuation systems, ceiling speakers and other cabinet loudspeakers which allow audiences in all sections to enjoy clear broadcasts.

US$1.6 Billion

US$364.4 Million2009

2016

25% Growth in 2012 CAGR of 11% until 2016

$181 Million

$123 Million

2010 2016

Analog

IP

2014

SaaS1.3 Million

1.8 Million in 2011

Others

Video Analytics Market

Source: ABI Research

Correction NoteThe Nov/Dec 2011 edition of a&s Asia misidentified a

photo on p. 63. Pictured is Bong-Hoon Yu, CEO of CNB Technology. a&s sincerely regrets the error.

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Corporate News

HID Global, a provider of solutions for the delivery of secure identity, announced that the Beijing Metro has deployed an access control system consisting of network access controllers and contactless readers to help ensure the safety of its passengers and staff. Beijing Metro is using HID Global's network access controller and readers to monitor and control access to a variety of facilities along its nearly 25-kilometer long, 11-station Fangshan line. The system makes it easier for staff to prevent unauthorized access to electrical substations, parking lots and other key metro facilities, offices and equipment areas at its stations, most of which are

remotely managed.“There has been substantial investment in metro system

development across China, which drives the need for advanced, Web-based access control solutions,” said Eric Chiu, Director of Sales, Identity and Access Management for China, HID Global. “We are proud of our showcase installation for Beijing Metro, which demonstrates our continuing commitment to providing first-class access control solutions that are helping to fuel the growth of critical transportation infrastructure throughout China.”

Severneftegazstro is a systems integrator based in Russia, specializing in installation, repair and dismantling of oil and gas pipelines. During low seasons, there are only a few guards stationed to look after company equipment in geographically isolated towns. Satcom, Vivotek‘s local partner, provided surveillance solutions that could monitor the equipment via satellite for remote viewing in Moscow.

Satcom carried out the full-fledged remote surveillance solution via satellite.

The most challenging part of this project was the coordination between the high-voltage line and the highway gas pipeline. The high-voltage line also supplies power to the town by using the same electrical transformer substation. It is imperative the machines remain functional at all times for stable, uninterrupted connections. In order to monitor the machines, two Vivotek network cameras were installed between overhead poles and high-voltage wires. The cameras play a vital role in monitoring the setting and decoding the footage.

One of Satcom‘s goals for the project was to minimize the use of the expensive satellite channel. With two 2-TB hard drives, the NVR provides continuous recording for the cameras that can store up to 30 days of footage. The system operator can view the real-time footage in medium quality or select footage within a specific time frame to view at a higher quality.

HID Global Access Control Solution Helps Beijing Metro Ensure Safety

Indian Schools Select Comprehensive Video Solution from Verint Systems

Verint Systems announced that G.D. Goenka Public School in India has deployed an IP video solution across its campuses to help enhance the safety and security of students, faculty and assets.

G.D. Goenka Public School is part of the G.D. Goenka Group, an educational institution with more than 17 years of excellence in the field of education, and operates campuses in Delhi and throughout India.

To help meet stringent security requirements for its educational campuses, the G.D. Goenka Group selected Kochhar Security Solutions to design the architecture of the video surveillance system, source the technology, provide systems integration and implementation services, and deliver post-implementation service and support. Verint's IP video platform was selected for use in the system.

Installed in April 2011, the three G.D. Goenka Public School campuses are benefiting from Verint's IP video platform capabilities such as video management software, network cameras and encoders, enabling a powerful, reliable and highly scalable security solution based on leading-edge IP video technology.

Russian Town Deploys Remote Monitoring Solution via Satellite With Vivotek Cameras

IT Reseller in Thailand Improves Accountability and Reduces Theft With Axis Surveillance Solution

SiS Distribution Public is an IT reseller and distributor in Thailand, representing more than 60 manufacturers of computer systems, software, peripherals, networking and smart-phone products. When the company built a new warehouse, one of the company's key objectives was to enhance physical security systems to guard against theft and other losses.

SiS Distribution selected Axis’ HD network cameras for indoor surveillance that feature resolutions of up to 1 megapixel and have intruder alarm capabilities. The fixed day and night cameras are both indoor and outdoor ready, and can support digital PTZ functions.

“Network cameras have an obvious application in warehouses,” said Somchai Sittichaisrichart, MD of SiS Distribution. “Without a reliable surveillance system, the responsibility for any damaged or missing products can be hard to place.”

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Corporate News

Russian Railway Production Park Deploys AxxonSoft Video Management

Uralvagonzavod is a corporation that has strengths in railway cargo machine engineering with presence in Russia and Europe.

The company decided to set up an enterprise security control center. AxxonSoft's enterprise VMS suite was chosen as the platform for the video surveillance system. The VMS suite is a modular suite which allows the system’s capability to expand as required for project implementation. The system also employs IBM servers and data storage, and Cisco network equipment.

The system currently employs around 50 cameras. Plans include establishing several new peripheral hubs equipped with data storage, integrated in the overall system, to be centrally managed and controlled. They will later be connected to the existing local systems. As a result, the system will have almost 400 video channels and they will all be viewed, managed and archived from the control center.

Hsing Tian Kong Temple in Taiwan, is devoted to Kuan Yu, the patron god of businessmen. The popular Taoist temple is located on a street corner near the center of Taipei, Taiwan, occupying more than 7,000 square meters.

The temple's large number of visitors suggested the need to add to the existing analog surveillance system installed at the large facility. Given that the temple is a cultural site, installation of the system had to be as simple and non-invasive as possible to preserve the building’s architectural design elements.

The use of digital video encoders enabled the

system to preserve the temple's previous investment in analog cameras, which are now also tied into the network.

“Arecont Vision cameras are a great addition to boost the effectiveness of an IP-based system, and the cameras integrate easily with other system components while lowering overall system costs,” said Steven Chen, VP of Alpha Pricing, solution provider for the temple. “The enhanced details of megapixel images are a big improvement over analog images as details can be critical to some security applications.”

India's Inaugural Formula One Race Deploys AMG Transmission

AMG systems announced that they have supplied their transmission solution for the new Indian Formula One circuit which hosted the inaugural Indian Formula One Grand Prix. The project has seen India establish itself on the map of Formula One with an investment of around US$215 million, thus creating a 5.14 kilometers circuit over an area of 875 acres. The initial seating capacity is 110,000 and will later be increased to 200,000.

Indian based Pan Intellecom is responsible for implementing the surveillance project for the F1 project.

“AMG Systems has enjoyed a reputation for delivering products of high quality. The company is also highly acclaimed for their technical support and training, said Harbir Singh, MD of Pan Intellecom. “The AMG transmission solution is taking video signals with associated data from 225 PTZ cameras back to the on-site control room.”

Arecont Vision Megapixel Cameras Monitor Crowds at Hsing Tian Kong Temple in Taiwan

Secutech 2012 Features the World's Largest One-Stop Shop for HD Surveillance

Leading IP and HD surveillance manufacturers and suppliers will display their latest products and turn-key solutions at more than 750 booths on an expected floor area of 35,873 gross square meters at Secutech, held April 20 to 22, 2012 at the Taipei World Trade Center Nangang Exhibition Hall, Taiwan. The show is organized by Messe Frankfurt New Era Business Media, an integrated media company dedicated to the security industry.

The 2012 event features the world's largest high-end HD surveillance display, including representation from three categories: IP megapixel/IP-based HD, HD-SDI and high-resolution analog. A comprehensive compilation of products and services, ranging from lenses, IP megapixel, HD SDI and 960H cameras, transmission devices, DVR, NVR to video content analysis, VMS software and other HD video accessories will be showcased by original manufacturers from Taiwan, Korea, China, Japan and leading international brands from other regions.

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Products of the month

Dermalog Identification Systems, Germany's largest biometrics manufacturer, has set a new world record in the identification of fingerprints. The Dermalog Next Generation AFIS is capable of correctly identifying 10 fingerprints for one individual within a second from a database of more than 129 million fingerprints. This corresponds to the approximate population of Portugal or the Czech Republic. The SGS INSTITUT FRESENIUS has tested the product and found the combination of speed and accuracy

was unique throughout the world. The 10 scanned fingerprints were correctly identified

within just 0.89 seconds on a standard blade server with 12 cores, making it a world record without compromising the FAR and FRR rates. The new software is not only accurate and fast but also easy to install and requires no special hardware. It is suitable for standard PCs and standard blade servers, such as ones typically used today for data processing. This achievement has set a new standard for speed and accuracy in fingerprint identification.

ipConfigure’s Gigapixel Wide Area Surveillance (GWAS) is an advanced optical array designed to monitor hundreds of acres from a single high-resolution surveillance platform. While being able to monitor the visible light and thermal spectrum, GWAS covers the job of several cameras.

While traditional surveillance solutions require many cameras, multiple operators and large infrastructure investments, GWAS consolidates this capability into a single platform. By leveraging a 16-megapixel visible light camera and optional VGA thermal imager, the system supports day, night and low visibility operations while offering the highest optical advantage commercially available.

Continuous horizontal and vertical scanning collects high-resolution images from the visible and optional thermal sensors for enhancement and motion analysis. Through an intelligent stitching process, a seamless panoramic image is continuously refreshed

with a high-resolution deep-zoom image for monitoring and playback. If the operator requires higher frame rates on a particular area, the panoramic array can transition to manual pan/tilt/zoom mode.

The Precision Array incorporates a highly sophisticated video analytics engine capable of map-based geo-tracking and classification of humans, vehicles, aircraft and vessels. With each automated map update, objects are visually depicted on a map with latitude, longitude, and altitude reference data and can be selected for real-time tracking.

Dermalog Next-Generation AFIS

Key Features•Matching:1:N,1:1,uptomorethan10,000matchespersecond

•Typesofsearches:10-printandlatentsearches,alongwithtwo-printandsinglefingerprints

•Operatingsystems:Windows,Unix,Linux•Systemdesign:Modularandexpandable,withcentralandremotesites

•Livescanners:Severaldevicesavailablewithopticalandchiplivescannersasstand-alone,mobileandnetworkversions(palmandcontrolprintsalsoavailable)

Supplier•DermalogIdentificationSystems

URL•www.dermalog.de

Key Features•Situationalawarenessfrom2billionpixels•Visibleandthermalimagingoptions•High-resolutiondeepzoom•Map-basedgeo-trackingandclassification

Supplier•ipConfigure

URL•www.ipconfigure.com

ipConfigure Gigapixel Wide Area Surveillance

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News Feature


The changing of a year is always a time for reflection. Security players have made many attempts recently to look for new market opportu-

nities, as well as where innovations could use more work. Predictions this year cannot be untangled from the financial troubles facing the Eurozone. Though the security industry is not extremely sensitive to economic cycles, a recession will impact the industry. Yet so far, it does not seem like the economic situation is reflected in security players' numbers. Examination of quarterly reports from Bio-key, Flir Systems, Digital Barriers and Axis Communications shows that sales revenue look steady compared to previous quarterly reports.

Yet companies are still trying to reduce risk from a European presence by being more proactive in other regions. Digital Barriers made some of its first advanced sales to the Americas and Middle East recently, while also expanding sales in the APAC. Axis Communications also talked of increasing its global sales force, and presence in countries like Hungary, Turkey and Saudi Arabia.

Given that the recent economic turmoil is attributed to lack of government resources, there is evidence that public spending is down. Flir’s recent quarterly reports state differences in revenue growth between its

commercial and government systems division. Its 2011 Q3 report states that its commercial systems division increased 16 percent from the same period in 2010, while government systems divison increased by only 8 percent.

Historically, however, recessions have also been one of the best times to invest in a business. Axis agrees, as it spent much energy in the past year hiring employees. Originally under 800 employees, its last quarterly report shows an increase to more than 1000 employees. Investing served Axis well when the economy receded in 2008, and perhaps it will do the same wonder this time around.

Acquiring new knowledge is always a good survival strategy for businesses, as it will enable businesses to better cater to customer needs. The trend of acquisitions in the security industry continues. Digital Barriers has made several acquisitions in the past few months. In June 2011, it purchased Zimiti, an unattended ground sensor technology company. In August 2011, it acquired Keeneo, a pioneer of 3-D video analytics. In November 2011, it acquired Stryker, an engineering firm that specializes on redeployable integrated wireless surveillance systems. By acquiring these companies, Digital Barriers is gaining access to knowledge that will help it strengthen its own security offerings.

Another way that companies try to collect knowledge and compete with others is through partnerships. Bio-key recently announced a partnership with Authentec to develop mobile identification solutions for platforms such as Android. As people become accustomed to mobile devices in their daily lives, they will require this from security players. By collaborating, Bio-key and Authentec are trying to cater to the needs of end users.

For the time being, security players are still trying to protect their market positions and prepare for impending trouble by minimizing regional risk, investing, acquiring necessary knowledge and responding to customer demands. In the ever-changing security landscape, it will be interesting to see how the next few months pan out.

By Jessica Kao

Financial Trouble Ahead?a&s takes a closer look at a few publically listed security companies to see whether they are ready for the new year.

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Refocusing on image Quality We forecast that by 2015, more than 70 percent

of all network camera shipments will be of megapixel resolution. In spite of this, over the last 12 months, manufacturers have continued to push for greater numbers of megapixels. This trend plays to the common misconception that more megapixels/more resolution equates to better image quality. However, video quality is dependent on factors other than the number of megapixels on the sensor, such as the lens and image processing. IMS believes that for the vast majority of manufacturers, there will be a renewed focus on image quality in 2012.

To date, the market opportunity for “high-megapixel” cameras remains relatively niche. Manufacturers will need to further develop their points of differentiation. Likely advancements will be in well-established areas of need, such as low-light capability and wide-dynamic range; we will also see increasing adoption of P-iris lens technology and advances in live video.

fRom the BRics to ciVetsGiven the Eurozone crisis that looks to potentially

dampen global economic growth in 2012, where will video surveillance suppliers find opportunities for growth in the coming year?

Over the last few years, the BRICs have been the countries of choice for video surveillance vendors seeking new growth opportunities. Unlike the more developed markets in EMEA and North America, the BRICs were far less impacted by the recent economic downturn. IMS estimates that the total video surveillance equipment market in the BRICs was worth more than US$2.5 billion in 2010. With a growth rate exceeding 20 percent for the next two years, the BRICs will continue to offer video surveillance vendors solid growth

opportunities, as the more established and mature video surveillance markets feel the impact f rom a potential second downturn.

Beyond the BRICs, where should companies seek out new growth opportunities? The CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are being touted as the next set of tiger economies due

to their rapidly industrializing economies. The indicators appear promising as the current long-term GDP rate for the CIVETS is in line with that for the BRICs.

In terms of spending on video surveillance equipment, the CIVETS are a minnow when compared to the BRICs. However, in the mid- to long-term, as infrastructure development and social mobility increase, the CIVETS will provide a strong opportunity for growth. In terms of market size, the CIVETS will not overtake the BRICs for many years, if at all; however, IMS believes that manufacturers will begin to explore the long-term growth potential of the CIVETS in 2012.

hD oVeR coaxSo, what are the three key things that need to

happen in 2012 to give HD-over-coax (focusing on HD-SDI only) equipment a platform for growth?

stanDaRDizationFor HD over coax to penetrate the existing analog

market, multivendor/brand compatibility is a must. Currently, there is little standardization among HD-SDI video surveillance equipment.

Submitted by IMS ReSeaRch

The following 10 video surveillance predictions for 2012 serve to provide some guidance on the key trends and opportunities in each of these areas, which you might find useful in planning for the year ahead.

▲ Niall Jenkins, Research Manager at IMS Research

Video Surveillance Trends for 2012

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stoRage costHD-SDI cameras transmit uncompressed HD video

which can lead to high storage requirements and cost. For HD-SDI to breach the mainstream analog purchasing market, the price of storage needs to fall. Additionally, the supply of HD-over-coax compression ICs is effectively an oligopoly, as the market is perceived as niche and does not yet warrant other manufacturers entering the fray.

maRket eDucationManufacturers need to engage the correct market

segments and promote HD-over-coax products as a potential alternative to analog or network video surveillance solutions.

IMS predicts that manufacturers will continue to push HD-over-coax equipment to the end user, increasing availability and choice. With the backing from large vendors, it is increasingly likely that a number of other large video surveillance brands will begin to introduce some form of HD-over-coax products into their portfolios in 2012. As with last year’s predictions, we do not believe that 2012 will herald an explosion in demand for HD over coax. However, IMS forecasts that the HD-over-coax category will still see strong growth, with the market size nearly doubling, as increasing numbers of manufacturers begin to push this technology forward.

analytics to the eDgeIMS predicts that in the coming years, the types

of applications that can be performed at the edge on the device’s main processor will increase. This will mainly be driven by the availability of more powerful processors and partly by the refinement of VCA applications to make them less processor-intensive.

Basic analytics will become standard features, and more advanced, “paid for” analytics will be performed at the edge. Over time, an increasing variety of analytics will be added as standard features, at no extra cost to the customer. Moreover, more powerful processors will enable multiple VCA algorithms to be performed at the same time to improve detection capabilities.

VCA is increasingly being used outside of the security realm, such as driver assistance cameras and interactive gaming consoles (such as Microsoft’s Kinect). Some of these new markets for VCA offer high-volume potential, which is attracting the attention of chip makers.

moRe m&a actiVityDespite the economic turmoil, M&A activity in

the security industry has continued over the last couple of years. However, video surveillance acquisitions have not been at the forefront of these deals; generally, M&A activity has been on a much smaller scale. Most recently, March Networks announced its plans to be acquired by Infinova in a deal worth around $90 million.

IMS’ annual report on the global video surveillance equipment market estimated that the market in 2010 was worth more than $9 billion in 2010, with nearly 40 percent of all sales contributed by the top 15. We forecast that network video surveillance equipment sales will exceed 25 percent in 2012, despite uncertainty in the Eurozone. While we will not see a spate of billion-dollar deals in 2012, it is likely that a greater volume of midsized deals will complete in the next 12 months.

looking up to the clouDAt the end of 2010, IMS forecast the increased

traction of cloud-based video surveillance, also known as VSaaS. The market certainly picked up in 2011, with notable sales growth of around 20 to 30 percent. However, the market is still emerging, developing and evolving. IMS believes that there are a number of potential avenues for suppliers of VSaaS to explore in the coming year.

A majority of the security cameras used in small and midsized enterprises are solely used for security reasons. However, some of the more tech-savvy users 4

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▲ Beyond the BRICs, the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are being touted as the next set of tiger economies due to their rapidly industrializing economies.

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are beginning to leverage and monetize video from their existing systems. Rather than simply leaving video dormant on a hard-disk drive (HDD), business owners could post or stream video to the Internet, allowing customers to see real-time footage of the place they intend to visit. Video could be integrated with Groupon, TripAdvisor, Yelp or even Google Street View. Prior investment in security equipment could be transformed from an expense to a revenue-generating tool. IMS estimates that nearly 65 percent of the DVRs sold in 2011 were Ethernet-enabled, demonstrating the potential market for video to be distributed to the cloud and used for nonsecurity purposes.

tuRning point foR spinning DisksThe average price of HDDs has been falling

for more than two decades. Now faced with the consequences of the recent flooding in Thailand, the video surveillance storage industry could well see the effects of a change to this trend.

The reported extent of the disruption to HDD production differs from vendor to vendor. Official statements of predicted price increases vary from 0 to 180 percent. The net result for 2012 is likely to be a softening to the trend of falling storage prices.

Vms, not as We knoW itIMS predicts that 2012 will see a raft of innovation

in the VMS space, as vendors attempt to stave off the threat of commoditization.

For the more established VMS vendors to continue to enjoy the historic high growth rates, they need to accomplish two key things: (1) maintain and increase presence in the upper market tier and (2) grow in the middle and lower tiers of the market.

The key selling feature of many VMS systems has been “openness,” and while the ability to integrate to a broad range of video surveillance brands is still desirable, this has become more of a basic expectation. IMS believes that VMS vendors will work on the following innovations in the next 12 months.

useR inteRfaceWhile different VMS solutions do contain unique

features, user interfaces in general are fairly similar. Manufacturers will seek to develop simpler and more intuitive user interfaces in the coming year.

moBile applicationsApplications for mobile platforms, such as iOS and

Android, will be the front of many VMS manufacturers’ arsenal in the coming year. The market for mobile video surveillance applications is still relatively immature; this is true for both the technology and the market demand. Simple concepts, such as leveraging location services, would provide enhanced user experience.

situational aWaRenessThe integration between access control and video

surveillance systems has been a well-trodden path in the last few years, and this trend will persist through 2012. VMS vendors will look to further develop their offerings from pure-play VMS platforms to security management platforms. VMS vendors have already sought to bridge the gap between supply and demand for situational awareness by implementing “PSIM-like” features in their platforms (such as enhanced functionality with Google or Esri maps). IMS believes that 2012 will see an acceleration of this trend.

BeyonD h.264H.264 has become the de facto compression

technology for video surveillance systems. However, a combination of factors in 2012 could lead to advance-ments in video surveillance compression: (1) the flooding in Thailand; (2) the global economic climate; and (3) the phenomenal growth of HD and megapixel cameras.

In 2012, shipments of HD and megapixel cameras are

▲ IMS estimates that nearly 65 percent of the DVRs sold in 2011 were Ethernet-enabled, demonstrating the potential market for video to be distributed to the cloud and used for nonsecurity purposes.

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forecast to increase by more than 70 percent, compared with the previous year. While the accelerated prolif-eration of high-resolution security cameras provides end users with benefits, such as greater clarity when viewing live video, the storage costs can be significant due to the larger file sizes. Some of the potential compression alternatives are as follows.

h.264 sVcWhile there are many different

variants of H.264 avai lable on the market , the scalable video coding (SVC) variety, despite being well-established in other industries, is still not commonplace in the video surveillance industry. The key benefits of the SVC variant include a reduction in bandwidth (leading to a reduction in storage requirement) and dynami-cally resizable video.

WeBmAn open and royalty-free video compression format

based on VP8, it is debatable whether WebM is more efficient or performs better than H.264. However, WebM is optimized for HTML5 video, which could be a key consideration in VSaaS applications. The stumbling block is that WebM currently does not have an associated real-time streaming protocol.

heVcHigh-efficiency video coding (HEVC) is still under

development and is seen to be the evolution of H.264, providing increased compression efficiency. Ratification of this new standard is not scheduled until late 2012/early 2013.

So, what will happen in 2012? It would be fair to say the video surveillance industry is not on the cutting edge of technology advancements in video compression. Longer term, HEVC is perhaps the most likely successor to H.264, but that will depend on just how much better it performs and its suitability for video surveillance applica-tions.

inteRnet of things in chinaOne trend which is unlikely to have a big impact

on the video surveillance market in 2012 but will receive more publicity and have a longer-term impact is the Internet of Things (IoT).

IoT is a concept in which individual objects are electroni-cally identified and categorized virtually in an Internet-like structure. To be identified, such objects need to contain a tag such as an RFID tag. Once categorized, supply could more easily meet demand, waste would be reduced, and it would be possible to find objects when they become lost.

IoT is receiving a lot of attention in China. The Chinese central government is strategically focusing on the development of seven emerging industries. These industries are expected to enjoy preferential policy treatment in a number of respects. New generation of information technology (NGIT) is one of these industries; and IoT is one of the most important parts of NGIT.

China has installed millions of video surveillance cameras over the past 10 years, and these cameras could provide a source of information to verify the categori-zation of objects for IoT. It is questionable whether IoT will drive new investment into security cameras. However, the expected benefits of IoT will help justify public expenditure on video surveillance equipment.

▲ IoT is a concept in which individual objects are electronically identified and categorized virtually in an Internet-like structure, once categorized, supply could more easily meet demand, and waste would be reduced.

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As 2012 approaches, the world is watching as events unfold in Europe and the U.S. All industries are connected by the world of finance, and all people are affected by the global economic situation. What does shaky world finance mean for security? In this special feature, a&s discusses key market conditions, needs and drivers that are propelling industry movers and shakers to innovate, transform and adapt to a world of uncertainty and a possible second recession in just three years.The security markets in 2012 are being moved by two large trends: first, the need to protect in times of financial uncertainty; and second, a shifting focus from developed to emerging markets. For 2012, security industry players need to focus more on specific applications. Localized R&D and marketing may lead to more favorable results. IP will continue to boom, and channels will be affected, as more try to understand IP and join the movement. Industry players also need to look for the added value in their solutions — why should end users use your security offerings?This 2012 preview feature is composed of five parts. Our first article discusses two trends that are emerging from the global market. Our second article analyzes the security market by product segment. Our third article focuses on security from the manufacturing perspective. Part 4 includes tips, tricks and trends to watch for in 2012, from Johnson Controls, Schneider Electric and Siemens Building Technologies. Our final article contains insight from market researcher Memoori Business Intelligence. We hope after reading this special feature, you will be better prepared for the world of security in 2012.

By Jessica Kao and Ling-Mei Wong

in 2012

Forces That Are

Security Industry Shaping the



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The biggest news i tem in recent months has been the turmoil within the E.U. Many

concerns still remain about the economic situation and the future of Europe. In response to the eurozone crisis, there has been much talk about double-dip recessions and the long recovery ahead. Given the state of the global economy, the greater need to protect assets and the move toward emerging markets are two prevalent drivers behind the world of security.

Greater Perceived Need fOr Security

The security industry is known for its resilience during recessions because of continued security needs in times of financial uncertainty. During a recession, businesses, governments and households find it just as important, if not more important, to protect the assets that they already have. Following the financial turmoil in 2008, Navin Rajendra, Industry Analyst at Frost & Sullivan, noted, “During the last recession, many companies feared that many security projects would be delayed because of the financial crisis; however, these projects continued as planned. During such economic climates, we find that there is even more impetus for security projects globally.”

Protecting what you already have is important for two reasons in this financial climate. First, as the economy tightens, businesses will find it more difficult to earn money, making it all the more important to protect assets that are already in pocket. “While security pressures are greater now than ever before, resources continue to be limited. Improved security is no longer a want, but a mandated need,” said Balaji Srimoolanthan, Program Manager for Aerospace, Defense and Security, Frost & Sullivan. “Squeezing every bit of value out of your facility investments gets tougher by the day.”

Second, crime and events that endanger your assets are more likely

to happen. “The higher concern with more unemployment makes retailers more concerned and gives rise to an increased need for security,” said Barry Shakespeare, MD of Norbain. “So, what you might call the bad times become, for different industries, the good times.”

There is evidence of increasing crime of late. KPMG, an audit, tax and advisory firm, conducts a biennial fraud and misconduct survey for Australia and New Zealand. In its 2010 report, following the global economic downturn, the company found that the total amount of money that had been lost due to fraud increased from US$301.1 million in 2008 to $345.4 million in 2010. A global retail theft barometer

▲Assets need protecting. Thankfully, that is just what the security industry does.

▲�Balaji�Srimoolanthan, Program Manager for Aerospace, Defense and Security, Frost & Sullivan

▲�Barr y� S hakespeare,� MD of Norbain

▲�Debjit�Das, VP of Marketing, Verint Systems

▲�Gar y� Wong, Senior Research Analyst at IMS Research

▲�John�Davies,�MD of TDSi

By Jessica Kao

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study also found that shrink was at its highest levels since 2007, up 6.6 percent from the previous year, and at a value of $119 billion worldwide.

In addition to crime, the world has also seen an increase in social unrest. Demonstrations in Tunisia inspired pol i t ical movements around the Arab world and the overthrowing of governments in Tunisia, Egypt and Libya. Though the causes behind these occurrences are complex, global economics and its role in unemployment rates and commodity prices have played a role. Similarly, the August riots that started in London and spread to other parts of the U.K. were affected by government spending cuts and youth unemployment.

S o c i a l u n re s t i n c re a s e s t h e perceived need for security. As Srimoolanthan put it, “Increasing numbers of terrorist threats, civil unrest and crime rates in Europe will lead to an increase in security spending. While the economic downturn has lead to cuts in defense spending, countries are seeing security investment as a way to proactively safeguard their nations

and infrastructure against threats.”Following the Arab Spring, Egypt

has seen an increase of surveil-lance camera sales and installations, according to the Egyptian Gazette, a local newspaper. In London, burgeoning discussions about privacy rights have been quelled with greater acceptance of video surveillance since the riots. A survey by a member of the British Security Industry Association found that 76 percent of the individuals surveyed feel safer knowing that video surveil-lance is in operation in public areas, and 62 percent of the respondents suggested they would actually like to see more surveillance in their local area.

Though it is difficult to predict events of social unrest, it changes how security players prepare for the future. “We are seeing, as a result of these different types of incidents, that these agencies are being more proactive in planning and financing more projects, so that they have a higher level of readiness,” said Debjit Das, VP of Marketing, Verint Systems.

Preparing for these risks is part of

what is going to drive the security markets forward in 2012. Both Frost & Sullivan and Memoori believe that the global security market will continue to grow over the next five years. Memoori indicates that the security markets are resilient and demand will edge forward at a CAGR of 3.7 percent over the next five-year period. Gary Wong, Senior Research Analyst at IMS Research, agreed, “Even if Greece (or any of the other weaker eurozone members) defaults, we believe that security (more accurately, spending on security) will continue to grow.”

MOviNG tOward eMerGiNG MarketS

O n a m a c ro e c o n o m i c l e v e l , financial uncertainty is also driving security players to different regional markets. Debt troubles in developed countries draw sharp contrast to the strong growth levels found in emerging markets. The World Bank’s “Global Development Horizons 2011 — Multipolarity” report predicts long-term growth to focus on the emerging markets. “As a group, emerging economies

Source: Frost & Sullivan

2010 2012Market Size ($ Millions)

Video Surveillance

Access Control Intrusion Detection & Perimeter Security

Market Size ($ Millions)

Video Surveillance


APAC 1,955.4 655.2 949 APAC 2,714.3 930.5 1,240EMEA 3,171.1 921.9 1,720 EMEA 3,543.3 1,205.2 1,853Americas 5,101.8 1,540.1 1,944 Americas 6,145.7 2,162.0 2,135

2010 2012Market Growth Rate

Video Surveillance


Market Growth Rate

Video Surveillance


APAC 14.8% 19.6% 7.0% APAC 18.4% 18.9% 9.0%EMEA 5.7% 12.6% 5.7% EMEA 5.9% 14.8% 5.9%Americas 9.5% 17.1% 5.5% Americas 9.5% 19.0% 6.0%

estimated Security Market Sizes and Growth rates in 2010 and 2012

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will grow on average by 4.7 percent a year between 2011 and 2025. Advanced economies, meanwhile, are forecast to grow by 2.3 percent over the same period.” 2012 will be a step in that long-term direction. The International Monetary Fund’s (IMF) most recent World Economic Outlook states that they forecast world growth to be at 4 percent for the end of 2011, moving into 2012, though inequitably distributed. “For 2011, we see growth of 6.4 percent for emerging economies, which is a good number, but only 1.6 percent for advanced ones.”

This dichotomous world view of developed versus developing

markets is to be seen in security as well. Traditionally, the U.S. and Western Europe, and especially the U.K., have been the strongholds. However, given that they are more mature markets, most end-users already have security products deployed. Add that to troubling

national debt levels that may affect banking institutions, lending and new construction, and it appears that the developed markets will have less opportunity in 2012.

In security, some players are looking to mitigate risk by increasing focus on the emerging markets, like

▲�Ken�Li, President of Asia Security Technology ▲�Joe� Qiu, Overseas Business Director for TVT Digital Technology

Zooming in on Asia and ChinaWith doubts about the eurozone, many

companies are looking into other markets. This will help businesses diversify their portfolios and minimize regional risk. The spotlight in recent years has focused on Asia — with reason. Asia includes many of the world’s fast-growing, high-potential economies, such as China, Taiwan, Russia, Korea, India and Indonesia.

As Simon Siew, MD for APAC, HID Global (an Assa Abloy company), said, “We are targeting new market segments where we believe have strong growth potential. Since the 2008/9 recession, we have grown considerably in [Asia], which is still

an unsaturated market. There is a lot of room for growth, and I believe with the right solutions, we can spur greater demand and look to surpass the European sales organi-zation in the coming years.”

Guy Chénard, VP of Worldwide Sales and Business Development, Genetec, emphasizes the potential in the APAC markets. “APAC is our ‘ last frontier, ’ accounting for about 6 percent of our total sales. Our overall growth target for 2012 is 36 percent, with video expected to grow by more than 30 percent and access control more than 70 percent.”

Daniel Chau, Marketing Director for APAC, Honeywell Security, explained a little behind the success of Asia. “In APAC, government and police attention, better standards of living, and foreign investment and capital expenditure have been strong driving forces, and the region has actually become the center of IP-based video surveillance.”

Without a doubt, much of the attention on Asia is focused specifically on China. Though uncertainties remain about the Middle Kingdom, its huge market potential has seduced businesses the world over. David Grinstead, VP of Worldwide Sales, Tyco Security Products, said. “China is not an emerging market; it already emerged, and the growth is phenomenal. We have also doubled our investment in China.”

IMS Research explained that the boom

in Chinese security started in 2006 with the government’s launch of its nationwide “Safe City” program. “As a result of this program, the market peaked between 2008 and 2010, during which time the Beijing Olympics, Shanghai Expo and Guangzhou Asia Games were also successfully held, and a massive US$600-billion (RMB$4-trillion) government stimulus funding was injected into the economy,” said Paul Everett, Research Director.

Frost & Sullivan predicts that the video surveillance market in China will continue to grow more than 30 percent year on year to 2015. Speaking about IP video, William Ku, Brand Business Director for Vivotek, said, “We have had very strong growth here from 2009, thanks to ongoing government initia-tives and a complete supply chain. IP video in China is growing at 33 to 35 percent per year.”

One of the major drivers for IP-based video in China is an emerging requirement for HD video. “A good example of this is the Beijing police ordering all supermarkets and shopping malls to install HD security cameras,” said Bo Zhang, Senior Analyst at IMS Research.

Gert van Iperen, Charman and President of Bosch Security Systems, mentioned the meteoric growth of network videos in China. “Four years ago, we were talking about DVRs in China, but the market is moving

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those in Asia and Latin America. China’s enormous potential is enticing investors and businesses, despite some uncertainty. (For a more in-depth look at Asia and China, please refer to the box.) Growth in emerging markets is up and has been the driving force behind global growth in recent years. John Davies, MD of TDSi, talked about TDSi’s decision to focus on China and the Middle East, and push into new markets in West Africa and South East Asia. “We look at per capita GDP numbers as an indicator for the readiness of a market to invest in electronic security systems as well as the growth in GDP.”

Since emerging markets have less penetration of security systems, the

market potential is much larger than in developed markets. Regarding the global electronic access control systems market, Global Industry Analysts said in prepared statement, “Though developed markets such as Europe and North America have been the traditional revenue contrib-utors in the market, developing markets such as APAC, Lat in America and the Middle East are expected to turbo-charge future growth.”

This trend is reflected in the market sizes and growth rates of products in different regions. Since 2010, we see consistently that the Americas have the highest current market size, followed by EMEA and finally APAC, but the reverse is true when

we look at the growth rates. The growth rates show APAC growing faster than EMEA and the Americas, especially in the video surveillance market, where APAC is growing at 14.8 percent versus 5.7 percent in EMEA and 9.5 percent in the Americas. This trend is projected to continue in 2012.

While developed countries are not growing as quickly, it does not mean that their markets will disappear. In fact, access control markets are forecasted to exhibit healthy growth in the Americas in 2012. Also, purely based on market size, Asia is still nowhere near as large as EMEA or the Americas. “Geographically, Europe and North America will continue to drive growth in security,”

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now with increasing speed to IP and HD. Originally, we thought China would become our second largest market in 2013, but It is already in 2011.”

Opportunities also abound in the access control markets. Eric Chiu, Director of Sales for China, HID Global (an Assa Abloy company), said, “Globally, while China is not our biggest market, it does boast one of the highest growth rates, with double-digit CAGRs projected for the next five to 10 years.”

“A significant part of future growth within the Chinese access control market will be generated from mid-end projects (50 to 199 doors) , w i th a focus on port, rail, commercial, government and hospital projects,” Everett agreed. “Large government-led programs are moving aside, giving way to commercial and industrial projects of a much larger size than in previous years.”

Though there has been talk about price sensitivity and decreasing margins in Asia, an interesting phenomenon is emerging from China. “There are two extremes in the Chinese market: one where unit prices are key and changing very fast, and the other where end users are willing to pay $300,000 to $450,000 for consultation just to get system planning right,” said Tyrone Huang, GM for Security and Fire Solutions in China, Siemens Building Technologies.

Given the huge potential, there are still challenges with trying to move into new territories. Siew spoke of problems in China and another rising Asian star, India. “The challenge in these countries is twofold. One of the issues is evangelizing and promoting technology solutions in nascent marketplaces with channels which aren’t very well-developed, but certainly desire to move forward quickly. Secondly, there are intellectual-property challenges that

require additional attention. Despite these challenges, China and India represent tremendous growth opportunities.”

Charles Cousins, MD of APAC, Genetec, echoed similar sentiments. “Our biggest challenges in APAC are network evangeli-zation and customizations. For big systems to work properly, consultants, channel partners and end users need to understand the intricacies of networking and storage technologies.”

However, given the past few years, security players are accustomed to dealing with trouble and are ready for changes in Asia and the rest of the world. Yasushi Matsumoto, Manager for Asia, Global Marketing Group, Security and AV Systems Business Unit, Panasonic System Networks, “After the 2008 recession and 2011 earthquakes and floods, we are as prepared as we can be for any market uncertainty and dynamics.”

▲�Simon�Siew, MD for APAC, HID Global (Assa Abloy)

▲�G u y� C h é n a r d , � V P o f Wo r l d w i d e S a l e s a n d Business Development, Genetec

▲�Daniel�Chau,�Marketing D i r e c t o r f o r A P A C , Honeywell Security

▲�David�Grinstead,�VP of Worldwide Sales, Tyco Security Products

▲�W i l l i a m � K u , B r a n d B u s i n e s s D i re c to r f o r Vivotek

▲�Tyrone� Huang, GM for Security and Fire Solutions in China, Siemens Building Technologies

▲�Yasushi�Matsumoto, Manager for Asia, Global Marketing Group, Security and AV Systems Business Unit, Panasonic System Networks

Srimoolanthan said.By the same token, that does not

mean that developing economies are immune from the troubles in the eurozone. Given that our world has become increasingly interconnected, continuing troubles in the eurozone will affect other regions, including emerging markets, according to the IMF’s World Economic Outlook. “They’re not at the center of the action at this point, but they are clearly affected by it. So far, they have been largely immune to these adverse developments. They have had to deal with volatile capital flows, but in general have continued

to sustain high growth.”An interesting by-product of this

move to emerging markets is higher price sensitivity in security. “The margin game is getting tougher in emerging markets like Southeast Asia and Latin America,” said Ken Li, President of Asia Security Technology. Das agreed. “Emerging markets, including India, China, Taiwan and Southeast Asia, are quite price-sensitive compared to what you would experience in America.”

In the search for lower prices, Joe Qiu, Overseas Business Director for TVT Digital Technology, reminds us that quality should not be sacrificed.

“We are seeing more Tier-2/3 players whose product quality and reliability are really shady. Our stance on quality is nonnegotiable.”

The need to keep people and their assets secure will help keep security markets buoyant in 2012, but the security markets will differ across regions, given the pressures of global economics. Many big players currently have their eye on the potential of certain emerging markets. What does this mean for different product markets in security? Turn to the next article in our 2012 Preview series for more.

M-038-044.indd 44 2012/1/2 下午11:36

a&s asia janfeb 2012 (trial version)

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