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Security And Surveillance - India - Sample

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India is a frequent target of terrorists and has borne the maximum number of attacks in the world. Following the November 2008 attacks in Mumbai, all quarters of society, including the government, businesses and individuals are investing significant amounts in installing and upgrading their security infrastructure. The heightened awareness is providing an added boost to the security and surveillance systems industry, which has historically grown at 20-30 per cent annually.

The report provides a snapshot of the market indicating the estimated size, growth, and segments by product, customer type and geography. Since imports play a major role in the market, a brief on the typical sales method in each customer segment, and the role of distributors provides an introduction to companies seeking to do business in India.

A discussion on demand from various customer segments shows the impact of recent attacks. Challenges such as attitudes toward security, a disorganized marketplace, and high import duties are also illustrated. The structure of competition followed by a product-matrix of major players and snapshots of their strategies completes the picture of the market as it is today.

The future outlook in the market suggests that high import duties and taxes may be reduced in wake of increasing security concerns while IP and video analytics technologies will see greater adoption. The participation of private equity in the broader security systems and services market is also covered and is an indicator of growing investment interest in the industry.

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Security And Surveillance - India - Sample

  1. 1. Security & Surveillance Market - India January 2009
  2. 2. Executive Summary SAMPLE <ul><ul><li>Drivers: Significant boost in demand from government and businesses post Nov-08 attack </li></ul></ul><ul><ul><li>Challenges: Lack of awareness ; Disorganized industry; High import duties and taxes; Lack of many comprehensive solution providers </li></ul></ul>Market Drivers & Challenges Business model Competition <ul><ul><li>Market size : Estimated at ~USD XX mn in 2008; x% of total security market (incl. services) </li></ul></ul><ul><ul><li>Growth : Historic rate of y%: Forecast z% till 2010; x% p.a. until 2012 </li></ul></ul><ul><ul><li>Import driven market </li></ul></ul><ul><ul><li>CCTV and access control systems are major segments </li></ul></ul><ul><ul><li>Northern region is the largest market followed by South India </li></ul></ul><ul><ul><li>Government and industrial are largest customer segments; residential is very small </li></ul></ul><ul><ul><li>Government and large enterprises purchase primarily through tenders while most private companies solicit quotations or consider referrals; retail is a recent new format </li></ul></ul><ul><ul><li>The distributor model is important in the Indian market </li></ul></ul><ul><ul><li>Organized sector : Estimated ~x players (y major and z mid-sized) </li></ul></ul><ul><ul><li>Unorganized sector : Estimated at x units but concentrating on basic, low-end products </li></ul></ul><ul><ul><li>Despite many unorganized players, organized sector accounts for x% of industry revenue </li></ul></ul>Segments Future Outlook <ul><ul><li>Demand for reduction in import duties and taxes may materialize </li></ul></ul><ul><ul><li>IP and video analytics technologies are important in the future </li></ul></ul><ul><ul><li>Private equity investment is expected to increase significantly at least till 2010 </li></ul></ul>
  3. 3. <ul><li>Market Overview </li></ul><ul><li>Segments </li></ul><ul><li>Business Model </li></ul><ul><li>Drivers & Challenges </li></ul><ul><li>Competition </li></ul><ul><li>Future Outlook </li></ul><ul><li>Key Developments </li></ul>
  4. 4. The Indian market for security and surveillance products is robust and growth is expected to accelerate in the future <ul><li>The Indian security market including human guards, electronic security systems, intelligence systems, fire protection and detection systems is worth ~USD XX mn </li></ul><ul><li>Security and surveillance systems account for ~USD XX mn in 2008, according to estimates of industry experts </li></ul><ul><li>Historic and forecast growth rates were earlier estimated at x% </li></ul><ul><li>However, following the Mumbai terror attacks, security spending is expected to surge by y% over the next two years at the least </li></ul><ul><li>India is an import-driven market with ~z% of security and surveillance equipment imported by foreign manufacturers with local presence or domestic importers/distributors </li></ul>SAMPLE A 2006 B 2007 C 2008 E 2009 F 2010 G 2011 H 2012 +x% USD mn Overview Estimated Market Size and Growth Source: <ul><li>Assumptions & factors </li></ul><ul><li>Consensus on 2007 market size: USD XX mn </li></ul><ul><li>2006-2008 growth rate: x% </li></ul><ul><li>2008-2010: Average growth of y% </li></ul><ul><li>Post-2010: Average growth of z% </li></ul>Terror attacks in Nov-08 spurring growth in 2009 and 2010
  5. 5. CCTV followed by access control systems are products that have the maximum demand <ul><li>CCTV </li></ul><ul><ul><li>Cameras, housings, monitors, DVRs and NVRs </li></ul></ul><ul><ul><li>Accounts for large share of security budgets </li></ul></ul><ul><ul><li>Expected to continue growing the fastest </li></ul></ul><ul><li>Access Control </li></ul><ul><ul><li>Becoming a norm in most organizations </li></ul></ul><ul><ul><li>Cost inhibits sale of quality products </li></ul></ul><ul><li>Intrusion detection </li></ul><ul><ul><li>Small market due to lack of awareness </li></ul></ul><ul><ul><li>Cultural factors such as community living and reliance on human security inhibit market growth </li></ul></ul><ul><li>Intercom (Audio and Video) </li></ul><ul><ul><li>Used primarily in apartments </li></ul></ul><ul><ul><li>Retrofits negligible; mostly sold through builders offering it as a value add feature </li></ul></ul><ul><li>Others (X-rays, metal detectors etc.) </li></ul><ul><ul><li>Greater demand from government & retail establishments as security efforts are stepped up </li></ul></ul>SAMPLE Product Categories Share of total market Source: Security Today “The Indian Security Industry Market”, May 2007 CCTV Z% Access Control y% Others x% Intercom w% Intrusion Detection v% Proximity Cards a% Swipe Cards d% Smart Cards c% Biometrics b%
  6. 6. Drivers & Challenges Rise in terrorist attacks and the November 2008 attack in Mumbai significantly pushing demand Retail and residential sector demand Corporate demand Government demand Drivers Lack of end-to-end solution providers High duties and taxes inflating prices Disorganized market Lack of awareness and attitude toward security Challenges
  7. 7. The market includes many unorganized participants but sales is concentrated with the largest players due to their capabilities <ul><li>The competitive landscape comprises organized and unorganized players </li></ul><ul><li>Organized sector is estimated to comprise of ~x players including y major and z medium-sized manufacturers </li></ul><ul><li>In comparison the informal or organized is estimated at x units </li></ul><ul><li>However, industry estimates indicate that the organized sector accounts for bulk of sales </li></ul><ul><li>Prominent organized players are </li></ul><ul><ul><li>Foreign companies with Indian subsidiaries </li></ul></ul><ul><ul><li>Local companies in partnership with foreign firms </li></ul></ul><ul><li>Manufacturers of high-end security systems are few in number with the informal sector geared toward manufacturing basic, cheap equipment </li></ul>SAMPLE Competitive Landscape Market Structure 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” y% b% a% Revenue Organized x% Players Unorganized 19%
  8. 8. The future will likely see reduction of duties and taxes, shift toward IP and video analytics technologies, and PE investment Future Outlook Government may accede to industry demand for reduction in import duties and taxes to reduce cost and give citizens affordable access to security IP-based surveillance and video analytics are considered to be the future in India Private equity investment is expected to increase significantly at least till 2010 Duties & taxes Private Equity Products
  9. 9. Thank you for the attention 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. The Security & Surveillance report is a special feature from Research on India. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, 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 prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on

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