The CCTV industry has remained
technologically stable over several decades.
A stable technology often implies a stable
Entry barriers have remained high and
consequently, CCTV has been dominated by
a few large players…
However, things have started to change with the rise
of digital, IP-based video surveillance.
Companies with a background in IT or electronics
are increasingly entering the industry…
Up until now, the ongoing shift has not created a lot
of industrial turbulence since the analogue players
have still been reasonably well off.
But some more recent events suggest that the
industry structure is about to change…
One such event is GE’s announcement that their
security business is for sale.
player is pulling
out of video
grow a lot over
The only reason for
this must be that GE
does not believe that
business will be
competitive in the
At ASIS 2009, Pelco and Cisco stated that they have
started a collaboration around IP cameras.
Would Pelco have gone into this if they were able to
provide a good IP offer themselves?
Would Cisco have gone into this if they hadn’t
been struggling to develop a competitive
line of IP cameras?
I think this example illustrates that the competence
base of the industry is shifting. Firms with a
background in IT need to learn about surveillance,
and CCTV firms like Pelco need skills in IT and
Some time ago, Pelco stated that they will seek to
enter emerging markets such as China.
In other technological shifts, established firms have
often tried to sell their current products to new
markets as a way to offset declining revenues.
Christian Sandström is a
PhD student at Chalmers
University of Technology in
Gothenburg, Sweden. He
writes and speaks about
disruptive innovation and
christian.sandstrom at chalmers.se