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The entire country is in a voyeuristic mood. Following the sporadic terrorist attacks, the government has drawn up blue-prints to implement large surveillance projects across the length and breadth of the country to strengthen internal security. Various civic bodies are chalking plans to make it statutory for just about any business entity to set up surveillance cameras in their premises. Enterprises are thinking beyond security and are using surveillance technology for energy management, building automation, asset management, productivity improvement and much more. Home owners too are worried about their security, and are using IP-based cameras to secure their homes and monitor their assets remotely.
It’s estimated that over the next five years around Rs 20,000 crore worth of business opportunity exists in and around surveillance, including services and IT deployment. While earlier surveillance was largely the domain of non-IT resellers and physical security companies, with the rapid changes in technology the market is opening up for IT systems integrators (SIs).
According to a recent Frost & Sullivan report on the video surveillance market in the Asia Pacific, the market has evolved beyond analog systems and is emerging as a hotbed for IP solutions. This shift in focus is mainly due to the rising preference of governments for IP; the research firm estimates a CAGR growth of over 18.2 percent from 2010 to 2017 for the video surveillance market.
“A need for high security and better quality recording has prompted many countries to seek IP solutions,” notes Parul Oswal, Senior Research Analyst, Industrial Technology Practice, Frost & Sullivan, APAC. “Moreover, there’s a desire among companies to install surveillance infrastructure on their IP network.”
The report sees huge opportunity for IT SIs across Asia. “IP is evolving because many IT professionals are available to help set up the required infrastructure. This availability of skills is likely to encourage numerous verticals to take up IP, thus leading to exponential market growth. In the long term, a complete shift from analog to IP video surveillance will happen,” forecasts Oswal.
As per the IMS Research report (2010 edition), the total market for video surveillance in Asia was estimated to have been worth over $3.3 billion in 2009 and forecast to grow at a CAGR of 15.2 percent to be worth over $6.7 billion in 2014. The network video surveillance equipment market was estimated to have been worth $511.4 million in 2009 and forecast to grow at a CAGR of 32.8 percent to be worth over $2.1 billion in 2014.
Sudhir Puthran, CEO, Field Services, Intarvo Technologies, agrees. “In terms of business opportunity we have seen just the tip of the iceberg. This is the best time to enter the domain for an IT SI who understands the concept of IP technology. We have been focused on the surveillance-related business, and hope to net 12-15 percent of our revenue from this market.”
IT resellers too are eying the opportunity with a lot of seriousness. “Surveillance is a big opportunity, and we are seeing a number of projects being floated especially in the north-east where counter-insurgency actions are on. There’s also security awareness among private business owners,” says Ajay Maitin, CEO, Graphic Trades, Patna.
Major drivers
Apart from the shift in technology—which requires SIs with skill-sets ranging from core networking to software systems—one factor driving growth is the change in mindsets among large enterprises and governments.
“From implementing piecemeal projects on security, the enterprise approach has become more holistic. We are seeing customers employing a unified approach on all matters of security, whether physical or IT. Since they are prepared to bet more on technology, it’s easier for an IT SI rather than a traditional security vendor,” says Vishak Raman, Regional Director, Saarc & Middle East, Fortinet.
The biggest chunk of investment is expected from governments, largely as part of their counter-terrorism initiatives. While surveillance cameras have already been installed at likely targets such as airports, stock exchanges and places of worship, new tenders are being floated to revamp other infrastructure. “If you look at some of the implementations that have happened, they were almost as a knee-jerk reaction to the 9/11 attack or some other terrorist attack. But I think that with the changes in policy our internal security think-tank is moving from a reactive mode to a proactive mode, hence fresh investments in the latest IP-based technologies can be expected,” says Rivi Varghese, CEO, CustomerXPS, Bengaluru.
Several tenders are being floated individually by temple trusts and by the entities that run major tourist spots. Since these organizations are traditionally cash-rich, they are able to invest in the latest technologies.
“Indian temples are now looking at highly advanced security systems. We have integrated solutions comprising surveillance systems, smart cameras and CCTVs for such high-traffic zones,” informs Hemendu Sinha, Business Head, B2B, LG Electronics. LG has also signed on partners across the country to implement onsite projects. The company has already signed up with the Devasthan Vibhag of Rajasthan to provide integrated solutions (with products like CCTVs and cameras) for its 22 temples. According to Sinha, LG sees an opportunity of at least Rs 800 crore from the surveillance systems business.
One major tender floating is for wiring and installing IP cameras across the entire Tirupati town where approximately 20,000 IP cameras are likely to be deployed for tracking people and vehicles. Similar projects have been announced for Shirdi, Sabarimala and Guruvayoor.
A key driver for the adoption of IP-based cameras has been the drop in their prices. “The prices of IP-based cameras have dropped to a point of comparison with analog cameras,” notes Vikas Chadha, Director, Honeywell Security, South Asia.
City-based surveillance projects are also in full swing. “Apart from civic bodies we have large private citizen groups participating in such projects. For example, in Mumbai, one of our leading partners is working on a project for a private citizen forum in a posh locality which wants to set up an IP camera network over wireless to monitor the surroundings,” says Sudarshan Boosupalli, GM, India operations, Ruckus Wireless.
The Bruhat Bengaluru Mahanagar Palike, which governs the affairs of Bengaluru city, recently issued a diktat to all shop owners and shopping complex owners to install CCTV cameras in their premises. The administrative body is contemplating a fine for defaulters unwilling to deploy surveillance systems. “Like fire-fighting equipment, surveillance systems are going to be statutory everywhere,” opines Puthran.
The home surveillance market is certainly emerging as one of the biggest markets, especially in large metros. “When both the husband and wife are working, and when children and old parents are at home, surveillance cameras at home are becoming a reality. We have camera phones that can be hooked 24 hours to the net, so you can browse and see exactly what is happening at home,” says VR Kirubakaran, Director, Microvillage Communications.
Meanwhile, D-Link has already launched IP cameras with a smartphone application that lets consumers keep a watch via the phone and monitor.
Thinking beyond security
While security remains the primary reason for setting up surveillance systems, enterprises have also started using IP-based surveillance technologies, not necessarily with video, for a number of productivity-enhancing initiatives.
The biggest emerging markets are energy management and building automation systems. “Energy costs have risen, and surveillance systems based on video or alternate technologies are being deployed to lower these costs,” says Puthran. Surveillance systems are also being used for tasks such as double-checking card-based attendance management systems. While smart cards are being used for monitoring the movement of staff, video surveillance systems are being used to check whether any malpractice has occurred.
AL Srinath, CEO, Shell Networks, sees potential in the manufacturing segment. “We see manufacturers using surveillance systems to monitor their shop-floor specifically to check errant staff but also to monitor any wastage and even check on machines. Simple surveillance systems can thus be used to increase productivity, enforce discipline and even detect production issues.”
Video analytics is a key driver for IP, with customers starting to realize the importance of obtaining detailed information. Although price is still an issue for most end-users, they will be persuaded by technology developments in facial recognition, license plate recognition, and language capability and motion detection.
Asset management is another area where surveillance systems are being considered. “Customers have started discussing surveillance-based tagging of assets. However, the technology is still perceived to be very expensive, and is not accurate,” says Satheesh Nair, CEO, Unified Stickman, Bengaluru.
In terms of target verticals, the transport segment promises to be the biggest market. Frost & Sullivan estimate that this segment will spend $3.6 billion on security by 2017. The infrastructure sector also looks promising with rising investments in airports, seaports and metros.
Surveillance means additional business for the SI. Storage vendors are betting that video surveillance will be one of the main growth drivers in the coming years. Following the recent terrorist attacks, governments have recommended that hotels should store six months of surveillance footage instead of the present one week. “With the new directives, surveillance will create new markets for storage,” points out Atul Jain, Country Manager, Netgear India. “With the prices of network attached storage also dropping, it would be cheaper for users to use direct disk-based storage.”
Network infrastructure may also be revamped, creating fresh opportunities. “Currently we have at least five reference cases in the country, and over 20 where wireless networks are being deployed specifically for surveillance projects,” says Boosupalli. However, Srinath is quick to point out that with IP-based video solutions most customers need not invest in separate infrastructure. “Most verticals already have IP-based LANs and WANs. As in the case of IP telephony, IP-based video surveillance can happen over the same infrastructure.”
Surveillance-as-a-service
“Surveillance-as-a-service is an idea that’s taking shape fast,” says Chadha. “Working like the SaaS model, someone in the home or office will be able to use surveillance solutions just the way they make use of the telephone, electricity and other utilities.” In 2010 IMS Research predicted that surveillance on the SaaS model would take off by 2012.
Such a model offers several advantages over traditional video surveillance. In the traditional way, users view video by connecting directly to onsite recorders; this requires networking changes and additional software on the viewing PC. The SaaS model negates that—there’s very little upfront cost. Since the model works as a service the customer needn’t worry about thefts, damages and breakdowns. Besides, the content is safe because it does not reside locally but in the secure infrastructure of the service provider.
Over the past few years a number of vendors have joined the surveillance product marketplace. “There are already specialized security vendors such as Honeywell and Axis. Apart from them, vendors such as Panasonic, Sony and Canon have also stepped in,” says Maitin.
Some partners view the market with a lot of enthusiasm, but are reluctant to enter it because of the lack of skill-sets. “We see the opportunities, but are not very sure about the right approach. Skill-sets are also a concern,” admits Subbaram Gowra, Managing Partner, Gowra Bits & Bytes, Secunderabad. Others disagree, and say there’s nothing specific which an SI needs to work on as far as skill-sets are concerned.
“We are keen to work with Indian IT SIs,” says Oh Tee Lee, Regional Director, Axis Communications. “We have our technology partner program and engineering program specifically for the SI. It will be easy for an existing IT solutions provider to build solutions on our platform.”
Conclusion
Surveillance represents yet another business opportunity for IT SIs to tap. With surveillance being used for a number of areas other than security—such as performance efficiency, building automation and energy management—the size of the market is increasing.
source : crn
It’s estimated that over the next five years around Rs 20,000 crore worth of business opportunity exists in and around surveillance, including services and IT deployment. While earlier surveillance was largely the domain of non-IT resellers and physical security companies, with the rapid changes in technology the market is opening up for IT systems integrators (SIs).
According to a recent Frost & Sullivan report on the video surveillance market in the Asia Pacific, the market has evolved beyond analog systems and is emerging as a hotbed for IP solutions. This shift in focus is mainly due to the rising preference of governments for IP; the research firm estimates a CAGR growth of over 18.2 percent from 2010 to 2017 for the video surveillance market.
“A need for high security and better quality recording has prompted many countries to seek IP solutions,” notes Parul Oswal, Senior Research Analyst, Industrial Technology Practice, Frost & Sullivan, APAC. “Moreover, there’s a desire among companies to install surveillance infrastructure on their IP network.”
The report sees huge opportunity for IT SIs across Asia. “IP is evolving because many IT professionals are available to help set up the required infrastructure. This availability of skills is likely to encourage numerous verticals to take up IP, thus leading to exponential market growth. In the long term, a complete shift from analog to IP video surveillance will happen,” forecasts Oswal.
As per the IMS Research report (2010 edition), the total market for video surveillance in Asia was estimated to have been worth over $3.3 billion in 2009 and forecast to grow at a CAGR of 15.2 percent to be worth over $6.7 billion in 2014. The network video surveillance equipment market was estimated to have been worth $511.4 million in 2009 and forecast to grow at a CAGR of 32.8 percent to be worth over $2.1 billion in 2014.
Sudhir Puthran, CEO, Field Services, Intarvo Technologies, agrees. “In terms of business opportunity we have seen just the tip of the iceberg. This is the best time to enter the domain for an IT SI who understands the concept of IP technology. We have been focused on the surveillance-related business, and hope to net 12-15 percent of our revenue from this market.”
IT resellers too are eying the opportunity with a lot of seriousness. “Surveillance is a big opportunity, and we are seeing a number of projects being floated especially in the north-east where counter-insurgency actions are on. There’s also security awareness among private business owners,” says Ajay Maitin, CEO, Graphic Trades, Patna.
Major drivers
Apart from the shift in technology—which requires SIs with skill-sets ranging from core networking to software systems—one factor driving growth is the change in mindsets among large enterprises and governments.
“From implementing piecemeal projects on security, the enterprise approach has become more holistic. We are seeing customers employing a unified approach on all matters of security, whether physical or IT. Since they are prepared to bet more on technology, it’s easier for an IT SI rather than a traditional security vendor,” says Vishak Raman, Regional Director, Saarc & Middle East, Fortinet.
The biggest chunk of investment is expected from governments, largely as part of their counter-terrorism initiatives. While surveillance cameras have already been installed at likely targets such as airports, stock exchanges and places of worship, new tenders are being floated to revamp other infrastructure. “If you look at some of the implementations that have happened, they were almost as a knee-jerk reaction to the 9/11 attack or some other terrorist attack. But I think that with the changes in policy our internal security think-tank is moving from a reactive mode to a proactive mode, hence fresh investments in the latest IP-based technologies can be expected,” says Rivi Varghese, CEO, CustomerXPS, Bengaluru.
Several tenders are being floated individually by temple trusts and by the entities that run major tourist spots. Since these organizations are traditionally cash-rich, they are able to invest in the latest technologies.
“Indian temples are now looking at highly advanced security systems. We have integrated solutions comprising surveillance systems, smart cameras and CCTVs for such high-traffic zones,” informs Hemendu Sinha, Business Head, B2B, LG Electronics. LG has also signed on partners across the country to implement onsite projects. The company has already signed up with the Devasthan Vibhag of Rajasthan to provide integrated solutions (with products like CCTVs and cameras) for its 22 temples. According to Sinha, LG sees an opportunity of at least Rs 800 crore from the surveillance systems business.
One major tender floating is for wiring and installing IP cameras across the entire Tirupati town where approximately 20,000 IP cameras are likely to be deployed for tracking people and vehicles. Similar projects have been announced for Shirdi, Sabarimala and Guruvayoor.
A key driver for the adoption of IP-based cameras has been the drop in their prices. “The prices of IP-based cameras have dropped to a point of comparison with analog cameras,” notes Vikas Chadha, Director, Honeywell Security, South Asia.
City-based surveillance projects are also in full swing. “Apart from civic bodies we have large private citizen groups participating in such projects. For example, in Mumbai, one of our leading partners is working on a project for a private citizen forum in a posh locality which wants to set up an IP camera network over wireless to monitor the surroundings,” says Sudarshan Boosupalli, GM, India operations, Ruckus Wireless.
The Bruhat Bengaluru Mahanagar Palike, which governs the affairs of Bengaluru city, recently issued a diktat to all shop owners and shopping complex owners to install CCTV cameras in their premises. The administrative body is contemplating a fine for defaulters unwilling to deploy surveillance systems. “Like fire-fighting equipment, surveillance systems are going to be statutory everywhere,” opines Puthran.
The home surveillance market is certainly emerging as one of the biggest markets, especially in large metros. “When both the husband and wife are working, and when children and old parents are at home, surveillance cameras at home are becoming a reality. We have camera phones that can be hooked 24 hours to the net, so you can browse and see exactly what is happening at home,” says VR Kirubakaran, Director, Microvillage Communications.
Meanwhile, D-Link has already launched IP cameras with a smartphone application that lets consumers keep a watch via the phone and monitor.
Thinking beyond security
While security remains the primary reason for setting up surveillance systems, enterprises have also started using IP-based surveillance technologies, not necessarily with video, for a number of productivity-enhancing initiatives.
The biggest emerging markets are energy management and building automation systems. “Energy costs have risen, and surveillance systems based on video or alternate technologies are being deployed to lower these costs,” says Puthran. Surveillance systems are also being used for tasks such as double-checking card-based attendance management systems. While smart cards are being used for monitoring the movement of staff, video surveillance systems are being used to check whether any malpractice has occurred.
AL Srinath, CEO, Shell Networks, sees potential in the manufacturing segment. “We see manufacturers using surveillance systems to monitor their shop-floor specifically to check errant staff but also to monitor any wastage and even check on machines. Simple surveillance systems can thus be used to increase productivity, enforce discipline and even detect production issues.”
Video analytics is a key driver for IP, with customers starting to realize the importance of obtaining detailed information. Although price is still an issue for most end-users, they will be persuaded by technology developments in facial recognition, license plate recognition, and language capability and motion detection.
Asset management is another area where surveillance systems are being considered. “Customers have started discussing surveillance-based tagging of assets. However, the technology is still perceived to be very expensive, and is not accurate,” says Satheesh Nair, CEO, Unified Stickman, Bengaluru.
In terms of target verticals, the transport segment promises to be the biggest market. Frost & Sullivan estimate that this segment will spend $3.6 billion on security by 2017. The infrastructure sector also looks promising with rising investments in airports, seaports and metros.
Surveillance means additional business for the SI. Storage vendors are betting that video surveillance will be one of the main growth drivers in the coming years. Following the recent terrorist attacks, governments have recommended that hotels should store six months of surveillance footage instead of the present one week. “With the new directives, surveillance will create new markets for storage,” points out Atul Jain, Country Manager, Netgear India. “With the prices of network attached storage also dropping, it would be cheaper for users to use direct disk-based storage.”
Network infrastructure may also be revamped, creating fresh opportunities. “Currently we have at least five reference cases in the country, and over 20 where wireless networks are being deployed specifically for surveillance projects,” says Boosupalli. However, Srinath is quick to point out that with IP-based video solutions most customers need not invest in separate infrastructure. “Most verticals already have IP-based LANs and WANs. As in the case of IP telephony, IP-based video surveillance can happen over the same infrastructure.”
Surveillance-as-a-service
“Surveillance-as-a-service is an idea that’s taking shape fast,” says Chadha. “Working like the SaaS model, someone in the home or office will be able to use surveillance solutions just the way they make use of the telephone, electricity and other utilities.” In 2010 IMS Research predicted that surveillance on the SaaS model would take off by 2012.
Such a model offers several advantages over traditional video surveillance. In the traditional way, users view video by connecting directly to onsite recorders; this requires networking changes and additional software on the viewing PC. The SaaS model negates that—there’s very little upfront cost. Since the model works as a service the customer needn’t worry about thefts, damages and breakdowns. Besides, the content is safe because it does not reside locally but in the secure infrastructure of the service provider.
Over the past few years a number of vendors have joined the surveillance product marketplace. “There are already specialized security vendors such as Honeywell and Axis. Apart from them, vendors such as Panasonic, Sony and Canon have also stepped in,” says Maitin.
Some partners view the market with a lot of enthusiasm, but are reluctant to enter it because of the lack of skill-sets. “We see the opportunities, but are not very sure about the right approach. Skill-sets are also a concern,” admits Subbaram Gowra, Managing Partner, Gowra Bits & Bytes, Secunderabad. Others disagree, and say there’s nothing specific which an SI needs to work on as far as skill-sets are concerned.
“We are keen to work with Indian IT SIs,” says Oh Tee Lee, Regional Director, Axis Communications. “We have our technology partner program and engineering program specifically for the SI. It will be easy for an existing IT solutions provider to build solutions on our platform.”
Conclusion
Surveillance represents yet another business opportunity for IT SIs to tap. With surveillance being used for a number of areas other than security—such as performance efficiency, building automation and energy management—the size of the market is increasing.
source : crn
