By Benjamin Low, Vice President, APAC, Milestone Systems
Jan. 5, 2017
In Asia, many cities are already embracing the concept of the smart city, where advanced technology is integrated with city administration to boost efficiency, thus driving video usage upwards. Yinchuan city in China is a stellar example of one of the most advanced smart cities in Asia, with everything from buses to dustbins integrated into a unified system. As Singapore moves towards its goal of becoming a Smart Nation, video surveillance and analytics can be integrated into our smart city to provide a more holistic solution.
IoT - new market opportunities for VMS
The rise of IoT has opened a potential avenue of application for VMS and video technology. In Asia Pacific, the number of devices used is expected to grow from 3.1 billion to 8.6 billion by 2020, creating a US$583 billion market opportunity.This presents the exciting opportunity to apply VMS beyond security. Video can be integrated with IoT systems to, for example, provide information for corporate or operational needs. In addition, video analytics such as heat mapping and people-counting can enable more organizations to gather business intelligence, which further strengthens the effectiveness, value proposition and profitability of video surveillance.
Increasing competition and consolidation
The CCTV and Surveillance market saw a strong trend of consolidation in 2016, and shows no sign of slowing down. Driven by multiple mergers and acquisitions, as well as bigger market players eliminating smaller companies, market share of the top 15 market players has increased by 11 percent from 2011 to 2015, and is further expected to become significantly higher by 2020.As a result, these current market conditions have made it very difficult for smaller players to withstand the price pressures and grow their revenue, while larger companies have gained significantly better market positions. Thus, it is clear that the manufacturers still standing at the end will be huge winners, with a much less fragmented market.
More choice from solutions integration
Solutions integration saw large strides in 20166, which allowed VMS businesses to create more conducive ecosystems for the deployment of the best and most fitting video technologies to each individual consumer. This is all thanks to the development of the ONVIF standard in 2016, which is designed to make life easier for people who use different products, resulting in greater freedom of choice for end users.
This is particularly important with the growth of the smart city and surveillance. Without integration, end users could be "locked in" using solutions from a single manufacturer, or adopt a "build once and maintain forever" approach. Integration thus allows end users to choose from the wide variety of available hardware and software to ensure that their needs are best met, while ensuring network design compatibility.