4/9/2015

EvaluatingNewTechnologiesand
GrowthOpportunitiesintheAccess
Control,VideoSurveillanceand
SmartHomeIndustries
JustinSiller

IHS Leadinginformation,advancedanalyticsand
deepexpertise
IHS
Since1959

HeadquarteredinEnglewood,
CO

8,000+colleagues

(tradedontheNYSE)

speaking50+languages

in30+countries

Servebusinessesand
governmentsin165+countries
worldwide
70%oftheUSFortune1000
85%oftheGlobalFortune500
Smallbusinesses&enterprises

IHS is supported by 140+ offices around the world

UnitedStates UnitedKingdom Canada India Singapore Malaysia China
France Germany Switzerland Poland Japan Belarus Brazil SouthKorea
RussianFederation UnitedArabEmirates Norway Australia Spain SouthAfrica
Mexico HongKong Netherlands Thailand Taiwan Italy Denmark Sweden

TechnologyBusinessIntelligence
acrossallkeyindustrysectors
Automotive&
Transportation
Consumer
Electronics
Displays

AutomotiveTechnologyAutomotiveElectronics&SemiconductorsAerospace

ConnectedHomeConsumerDevicesDigitalSignageHomeAppliancesSmartHome
ProfessionalVideo
Small&MediumDisplayLargeDisplayEmergingDisplayTechnologyOLEDPanelTouchPanelDisplay
Materials&ComponentsIntellectualProperty

Industrial,Securityand
Medical

AccessControl&FireVideoSurveillanceDiscrete&ProcessAutomationMotorControl&SwitchgearMotors
&MechanicalPowerTransmissionMachineryMedicalDevices&HealthcareITIndustrialElectronicsLEDs&
LightingBuildingTechnologiesCriticalCommunications

Information
Technology

ComputeElectronicsDataCenter&CriticalInfrastructureBusinessProcessSolutionsConnectivityFinancial&
IDTechnologies

Materials&Cost
Benchmarking
Media
Power&
Energy
Semiconductor&
Components
Telecommunications

TeardownsCostModelingComponentPricingPartsDatabases

AdvertisingBroadbandMedia CinemaGamesTelevisionMediaVideoMedia

SolarDownstream&DemandDynamicsEmergingTechnologySolar/PhotovoltaicComponentsEnergyStorage
WindPowerSupplies&StorageComponentsSmartUtilitiesInfrastructure
ApplicationForecasts&MarketSharesMemory&Storage MEMs&Sensors PowerSemiconductors
SemiconductorValueChain MCUsandMPUs
M2MMobileDevices&NetworksMobileMediaOperators

4/9/2015

EvaluatingNewTechnologiesand
GrowthOpportunitiesintheAccess
ControlEquipmentandResidential
SecurityMarkets
BlakeKozak

Agenda
AccessControlandResidentialSecuritymarket
projections
KeyTechnologyOpportunities
FutureOutlook

Source:VideoSurveillanceIntelligenceService March2015,IHS

AccessControl&ResidentialSecurity 2014

4/9/2015

ElectronicLocksandReaders

GDP BRIC
&BRI

BRI AccessControl

4/9/2015

TraditionalHomeSecurityVs.SmartHomeSecurity

10

10

ResidentialSecurity TrendsbyRegion

11

11

KeyTechnologyOpportunities
1.MobileIdentities
2.ElectronicLocks
3.WebbasedSolutions

12

12

4/9/2015

MobileIdentities(1)
MobileCredentials(NFC,BluetoothSmart)
Wearables(wristbands,watches,beacons)
Alternativeapplications

13

13

MobileIdentities(1)

14

14

ElectronicLocks(2)
Wireless
Transitionawayfrommechanicallocks
MoreDoors

15

15

4/9/2015

ElectronicLocks(2)

16

16

WebbasedSolutions(3)

ACaaS
Webbasedpanels
RemoteManagement

17

17

FutureOutlook
1.
2.
3.
4.
5.
6.

Mobileidentities
Softwareandservicesfocus
ITcentric
Openstandards
Integration
Newapplications

18

18

4/9/2015

EvaluatingNewTechnologiesand
GrowthOpportunitiesintheVideo
SurveillanceEquipmentMarket
JonCropley

19

Agenda
Videosurveillancemarkethistory
Avoidingcommoditization
Growthopportunities

Source:VideoSurveillanceIntelligenceService March2015,IHS

20

20

Residentialvideosurveillanceequipment
Consumer/DIYEquipmentChannel

ProfessionalEquipmentChannel

Americas
EMEA
Asia

$647m
Worldwide
in 2014

$509m
Worldwide
in 2014

Source:VideoSurveillanceIntelligenceService March2015;ConsumerandDIYVideoSurveillanceEquipmentreportNovember2014;IHS

21

21

4/9/2015

Videosurveillancemarkethistory
(2004to2014)

22

22

MarketHistory(1)
GlobalShipmentsofAnalogueCameras
Shipmentsdeclinedin
2014
Networkcamerasand
HDCCTVcamerasbotha
factor

Source:VideoSurveillanceIntelligenceService March2015,IHS

23

23

MarketHistory(2)
GlobalShipmentsofNetworkCameras
Acceleratedgrowthin
2013and2014
Averagepricedeclinesa
majorfactor

Source:VideoSurveillanceIntelligenceService March2015,IHS

24

24

4/9/2015

MarketHistory(3)

Economicdownturn
dampened growth
Priceerosionamajor
factor

25

25

MarketHistory(4)
Theworldmarketforvideosurveillanceequipment
Themarket
continuestogrow

26

Source:VideoSurveillanceIntelligenceService March2015,IHS

26

NetworkcameraASP
Sharpdeclinein
2012and2013

Source:VideoSurveillanceIntelligenceService March2015,IHS

27

27

4/9/2015

AvoidingCommoditization
1.Betterimages
2.Otherproductfeatures
3.Intangiblefeatures

28

28

Avoidingcommoditization(1)

%ofworldnetwork
camerashipments

Betterimages:day/nightandlowlightperformance,
WDR,resolution&videoformat,4k.

29

Source:VideoSurveillanceIntelligenceService March2015,IHS

29

Avoidingcommoditization(2)
Otherproductfeatures:videoanalytics,onboard
storage,onboardaudio,H.265
Embeddedvideo
analyticschannel
shipments

Source:VideoSurveillanceIntelligenceService March2015,IHS

30

30

10

4/9/2015

Avoidingcommoditization(3)
Intangiblefeatures
Fullsystems
Tailorsolutionsfordifferentverticals
Nicheapplications eachscenariounique
Importanceofbrand
Additionalservices

31

Source:VideoSurveillanceIntelligenceService March2015,IHS

31

Marketshareestimates
Roundedtonearest0.5%

Hikvision,11.0%

Dahua,5.5%

AxisCommunicationsAB,5.5%

PanasonicSystems
CommunicationsCompany,4.5%

Others,58.0%

SamsungTechwin,4.0%

BoschSecuritySystems,3.5%
PelcobySchneiderElectric,3.0%
Honeywell,2.0%
SonyElectronics,1.5%
Avigilon,1.5%
Source:VideoSurveillanceIntelligenceService March2015,IHS

32

32

Largestcountrymarkets

Source:VideoSurveillanceIntelligenceService March2015,IHS

33

33

11

4/9/2015

Othergrowthopportunities
Products:360degreecameras,bodyworncameras
Endusersectors:citysurveillance,education,utilities
&energy

Source:VideoSurveillanceIntelligenceService March2015,IHS

34

34

Summaryandkeytakeaways
Themarketcontinuestogrow
TransitiontonetworkandHDCCTVhasaccelerated
Needtoavoidproductsbecomingcommodities
Supplybaseremainsfragmented stilllimited
consolidationdespiterecentdevelopments
ImportanceofChina
Source:VideoSurveillanceIntelligenceService March2015,IHS

35

35

12