Security And Surveillance India Sample


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Security And Surveillance India Sample

  1. 1. Security & Surveillance Market - India January 2009
  2. 2. Executive Summary Market size: Estimated at ~USD XX mn in 2008; x% of total security market (incl. services) Market Growth: Historic rate of y%: Forecast z% till 2010; x% p.a. until 2012 Import driven market CCTV and access control systems are major segments Segments Northern region is the largest market followed by South India LE Government and industrial are largest customer segments; residential is very small Business model P Government and large enterprises purchase primarily through tenders while most private companies solicit quotations or consider referrals; retail is a recent new format M The distributor model is important in the Indian market Drivers & Challenges SA Drivers: Significant boost in demand from government and businesses post Nov-08 attack Challenges: Lack of awareness ; Disorganized industry; High import duties and taxes; Lack of many comprehensive solution providers Organized sector: Estimated ~x players (y major and z mid-sized) Competition Unorganized sector: Estimated at x units but concentrating on basic, low-end products Despite many unorganized players, organized sector accounts for x% of industry revenue Demand for reduction in import duties and taxes may materialize Future IP and video analytics technologies are important in the future Outlook Private equity investment is expected to increase significantly at least till 2010 SECURITY AND SURVEILLANCE - INDIA.PPT 2
  3. 3. •Market Overview •Segments •Business Model •Drivers & Challenges •Competition •Future Outlook •Key Developments SECURITY AND SURVEILLANCE - INDIA.PPT 3
  4. 4. The Indian market for security and surveillance products is robust and growth is expected to accelerate in the future Overview Estimated Market Size and Growth •The Indian security market including human Terror attacks in guards, electronic security systems, intelligence USD mn Nov-08 spurring systems, fire protection and detection systems is growth in 2009 and H 1,500 2010 worth ~USD XX mn +x% LE G •Security and surveillance systems account for 1,000 F P ~USD XX mn in 2008, according to estimates of industry experts E estimated at x% S M •Historic and forecast growth rates were earlier A •However, following the Mumbai terror attacks, 500 0 A B C security spending is expected to surge by y% 2006 2007 2008 2009 2010 2011 2012 over the next two years at the least •India is an import-driven market with ~z% of Assumptions & factors • Consensus on 2007 market size: USD XX mn security and surveillance equipment imported by • 2006-2008 growth rate: x% foreign manufacturers with local presence or • 2008-2010: Average growth of y% domestic importers/distributors • Post-2010: Average growth of z% Source: SECURITY AND SURVEILLANCE - INDIA.PPT 4
  5. 5. CCTV followed by access control systems are products that have the maximum demand Product Categories Share of total market •CCTV CCTV Cameras, housings, monitors, DVRs and NVRs Z% Accounts for large share of security budgets Expected to continue growing the fastest LE •Access Control Becoming a norm in most organizations Cost inhibits sale of quality products MP Intrusion Detection w% Intercom v% x% A •Intrusion detection Others y% Small market due to lack of awareness S Cultural factors such as community living and reliance on human security inhibit market growth •Intercom (Audio and Video) Access Control a% Used primarily in apartments Proximity Cards Swipe Cards Retrofits negligible; mostly sold through builders Smart Cards offering it as a value add feature Biometrics d% b% c% •Others (X-rays, metal detectors etc.) Greater demand from government & retail establishments as security efforts are stepped up Source: Security Today “The Indian Security Industry Market”, May 2007 SECURITY AND SURVEILLANCE - INDIA.PPT 5
  6. 6. Drivers & Challenges Rise in terrorist attacks and the November 2008 Challenges attack in Mumbai Lack of awareness and attitude toward significantly pushing security demand Disorganized market High duties and taxes inflating prices Drivers Government demand Lack of end-to-end solution providers Corporate demand Retail and residential sector demand SECURITY AND SURVEILLANCE - INDIA.PPT 6
  7. 7. The market includes many unorganized participants but sales is concentrated with the largest players due to their capabilities Competitive Landscape Market Structure •The competitive landscape comprises organized and unorganized players Organized •Organized sector is estimated to comprise of y% Unorganized ~x players including y major and z medium- LE sized manufacturers •In comparison the informal or organized is estimated at x units MP b% A •However, industry estimates indicate that the x% organized sector accounts for bulk of sales •Prominent organized players are Foreign companies with Indian subsidiaries S Local companies in partnership with foreign firms a% •Manufacturers of high-end security systems Players Revenue are few in number with the informal sector geared toward manufacturing basic, cheap equipment Source: US Commercial Service “Surveillance Equipment – India”, Nov 2007; US Commercial Service “Safety and security for corporates – India”, Nov 2007; Business Standard “There's no business like security business”, Jan 2008; Israel Economic Mission in India “India Security Market 2004” SECURITY AND SURVEILLANCE - INDIA.PPT 7
  8. 8. The future will likely see reduction of duties and taxes, shift toward IP and video analytics technologies, and PE investment Government may accede to industry demand for reduction in import Duties & taxes duties and taxes to reduce cost and give citizens affordable access to security IP-based surveillance and video Future Outlook Products analytics are considered to be the future in India Private equity investment is Private Equity expected to increase significantly at least till 2010 SECURITY AND SURVEILLANCE - INDIA.PPT 8
  9. 9. Thank you for the attention The Security and Surveillance market report is a special feature from Netscribes. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Subhash Chennuri Phone: +65 9651 6382 Phone: +91 98190 59664 E-Mail: E-Mail: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and no part may be reproduced without prior written permission. SECURITY AND SURVEILLANCE - INDIA.PPT 9