"BPO centers will need centralized access control that offers management to obtain a level of reassurance and event recording at each checkpoint, enabling a higher intensity of protection for physical facility and virtual data. The implementation of a personalized smart identification system in an office would also help carry out accurate monitoring of employee activity."
——Wei Jin Lee, Director of Sales for ASEAN, HID Global
"The skyline of Metro Manila will be changing at least for the next two years; there are many constructions of high-rise buildings as the economy is good. As the Philippine economy continues to grow vibrantly, the investment in security technologies will be rising together with its skyline."
——Toby Koh, Group Managing Director, Ademco Security Group
"Banks are mandatory to have surveillance put to place, and some banks have already changed to IP cameras as high resolution images are desired. Banks are also looking into alternative ways to enhance security for the ATMS to double verify if the person withdrawing money is really the authorized person but not someone with a cloned card. However, although face recognition could be a good verification, banks have not yet established database."
——Max Chayco, GM, Netdoc IT Solutions
"When it comes to large systems, the scales have already tipped far in favor of IP-based systems. In mid-size systems, the choice of IP-based versus analog typically comes down to customer needs and infrastructure, however IP-based systems are making strides. But so far IP-based video has seen very little traction in small systems – the 16 cameras or less market. Reasons for this are perceptions of high cost, complex instal- lation, and usage. This is quickly changing with new IP-based innovations."
——Ivan Tjahjadi, Country Manager of ASEAN & Indo China, Axis Communications
"The Philippines has been a key market for Sony. In the recent years, more people in the Philippines can afford IP solutions. Therefore, we are positive that Sony is onto more than 10 percent growth in the Philippines."
——Riki Nishimura, General Manager of Visual Security Solutions, Professional Solutions Company (PSAP), Sony Electronics Asia Pacific
2014/10/31
What is there in the Philippines for security and safety?
The flourishing economy of the Philippines gives rise to a wide range of markets demanding for various security and safety products. Here are some hot verticals and their demands in the Philippines.
Public-Private-Partnership (PPP)
With the public-private-partnership (PPP) investments upgrading the transportation infrastructure in the Philippines city surveillance is gaining more attention as a solution for road congestion monitoring and the dispatch of police officers to solve road incidents. This often requires real-time monitoring of traffic. In Makati City, mesh technology is being used for stable transmission for signals from HD ip cameras to the command center, allowing for quick reaction to any incident or alleviation of traffic congestion to be carried out.
Many PPP projects are also pursuing for integrated transportation systems. Electronic ticketing systems with the "tap-and-go" concept is needed to increase passenger flow efficiency, and minimizing fraud, and lowering maintenance costs.
Business Process Outsourcing (BPO) Centers
The security systems for these off-shore operation centers must be high to minimize, if not eliminate, all possible data breaching possibilities. Some BPO centers are very strict with their security and safety and would not let staff bring in pencil or pens.
Having an employee card that is pre-programmed with access permission can restrict unauthorized persons from entering specific rooms. The same card can be used as a log-in key for a personal computer, providing the control center with a record of who processed which files at what time.
Currently, the adoption of access control is still in its early stages in the Philippines. As network surveillance gains ground in the country, it will not be long until mobile access control guards the doors of the Philippines.
Construction of High-Rises
As BPO firms scale up and expand from Makati City to Cebu, Bacolod, Dumaguete, and Iloilo, the sustained growth of BPOs also fuelled the construction boom of high-rise buildings that accommodate offices and high-end residential condos.
In fact, other than conventional industries with high-rises, there is a demand for high-rise schools to address the classroom shortage problem in Metro Manila. The Department of Education and the Department of Public Works and Highways hopes that high-rise classrooms can solve the shortage problem for the 4.6 million youths that would otherwise be kept out of school.
As a security solution and service provider that targets mid- to large-scale projects, Ademco is optimistic that the Philippines can offer many projects that demand a great amount of integrated security solutions to protect the expanding BPOs, hotel industry, and residential condominiums.
"NO CCTV, NO Permit"
The "No CCTV, no permit" policy was first strictly implemented in Quezon City - the largest city in Metro Manila. Now, this policy is being proposed for both private and public sectors throughout the Philippines by congressmen the Rodriguez brothers.
The high crime rate in the Philippines has taken a serious toll on the economy, especially the country's tourism industry. The "No CCTV, no permit" ordinance requires businesses wishing to apply for or renew a business permit to install CCTV system. The "high-risk" businesses identified include restaurants, retail stores, theaters, office buildings, hotels, gas stations, and warehouses. Through the mandatory surveillance system, the country wishes to deter crime especially theft and robbery, and to enhance the quality of life.
Gaming Industry: Big Bets on the Philippines
The Philippines hopes to join Macau and Singapore to become one of Asia's top three gambling destinations with the opening of the $1.2 billion Solaire Casino in 2013. In order to do so, the Manila Bay Project was approved to set up a gaming and entertainment strip called the Pagcor Entertainment City. Gambling has in fact long been legalized in the Philippines, but most exisiting casinos are run by the Philippine Amusement and Gaming Corporation (PAGCOR), and lack the glamorous points and hotel capacity to attract both foreign investors and players.
The dazzling Solaire Casino, opened by the international shipping tycoon Enrique Razon, is the first of four large-scale gaming resorts to open in the Entertainment City at Manila Bay. The four resorts are all going to be multi-purpose complexes with shopping malls, movie theatres, and other entertainment facilities to go with the casinos.
In the most ideal situation, the surveillance system in a casino should not just be recording for evidence, but be an intuitive tool that alerts management when something is wrong. There are constant interactions at the gaming tables, at the cashier's box, the slot machines, everywhere. In fact, a casino needs cameras to not just monitor if players are acting suspiciously with cash and chips, but also keep an eye on employee's behavior and how operations in general are being enforced to meet gaming regulations.
"Before the casinos were hesitant to use IP because of the latency problem caused by the low frames-per-second; however, as most IPs are standardized with 30 fps, latency should not be too much of a concern now. Some video content analysis are desired if casinos have databases of the frequent players," said distributor Max Chayco, GM, NETDOC IT SOLUTIONS.
Although functions such as facial recognition could be really useful in terms of identifying unwanted guests, casinos have yet to embrace this technology full heartedly, as they are afraid of mistaking innocent customers (or worse, VIPs) for cheating. Other video content analysis functions such as people counting and crowd flow analysis are more acceptable as tools that can actually relieve some burden from old-school man guarding.
To really attract foreigners to the Philippine gaming strip, it is very important that the Philippines is perceived as a safe country, with friendly transportation. Hence, again, the government is working hard toward bettering much-needed infrastructure and security measures to sustain economic growth.
Ademco's subsidiary Esscor was awarded in 2009 to secure the Resort World Manila. The complex, comprised of a hotel and casino, required a fully integrated access control management system, including intrusion detection, video surveillance, and attendance system. Approximately 140 doors and 300 panic buttons were installed for this security system.
Financial Industry
The Philippines' banking industry has been highly reliant on remittance by overseas Filipino workers (OFW). In 2012, $21.39 billion was remitted to the Philippines. In order to cater to this large need, banks in the Philippines are seeking aggressive expansions.
In the mean time, the banking industry is also consolidating, as seen with the merger of Philippine National Bank (PNB) and Allied Bank. The central bank, the Bangko Sentral ng Pilipinas (BSP) said that having fewer but stronger banks can lead to more competitive growth. The Philippines has approximately 700 banks, of which 37 are considered as universal or commercial banks, and some 600 more as rural banks. Rural banks are privately owned and serving the inhabitants of a specific area within a certain boundaries; owners of rural banks are usually known and trust by the local community.
The Philippines' heavy reliance on manned guarding is now shifting towards electronic access control systems, as the synergy of technology has proven to be cost effective for 24/7 crime prevention and evidence recording. Visitors of facilities can be tracked electronically as well by scanning an ID such as a driver's license, replacing the old-school paper logbook that is less secure. Also, due Korean & Japanese factories moving to the Philippines to the rising occurrences of ATM hacking and fraud, BSP has ordered that all ATM cards in the Philippines be replaced between 2015 and 2017. The new cards will have new security features such as Europay MasterCard Visa (EMV) electronic chips. An EMV-enabled card is preferred because the data is stored on a chip instead of the magnetic strip on the back of the card. By storing information on a chip card, the data is dynamic. It is estimated that 25 to 30 million ATM cards will need to be replaced. Currently, very few ATMs in the country can read EMV-enabled cards, so the machines will also need to be upgraded or replaced should the change be made. The 12,285 ATMs nationwide will have to be equipped with the 3DES system.
Manufacturing
In 2012, FDI in manufacturing rose to $1.03 billion from $119.4 million in 2011. The manufacturing industry is especially attracting Japanese and Korean investments as they look at the Philippines as an alternative to China, regardless of political issues and minimum wage differences.
Koh from Ademco noted that when providing solutions to manufacturing plants it is very crucial to customize a value-added security platform that enhances business operations. For example, a centralized management system for surveillance and time attendance is greatly sought after in enterprises.
Currently, analog technology still dominates the market because cabling is inexpensive. However, the security industry in the Philippines is picking up IP-based technology quickly. Many engineers in the Philippines have received education or training abroad, and are quite keen on improving security with IP-based solutions.
Outlook for Security Market
Manufacturers should take advantage of the Philippines' prosperous economy and lack of security solutions, as installation of suitable modern technologies for surveillance and property protection are needed. Having set up in the Philippines for almost two years, GKB Security's marketing team said that to compete in the Philippines, it is very important to showcase the ability to plan and deploy a security platform with all the key elements such as integrated and easy-to-use surveillance cameras and access control.
Many local channel players are good engineers with academic degrees and field experience, so as long as manufacturers are providing some training for new technologies, the Philippines will not have problem catching up to modern technologies.
Many international players have their mind set on the government, manufacturing, and bank business in the Philippines. Axis said that they are determined that now is the time to be more aggressive in these sectors, as competition from Taiwanese and Chinese products are prevalent when expanding business in the Philippines.
Mobile-enabled surveillance is on the rise, too. With wireless infrastructure improving and 3G and 4G coverage being tested by local telecoms, remote surveillance as a method to secure and protect will be pursued.
Public-Private-Partnership (PPP)
With the public-private-partnership (PPP) investments upgrading the transportation infrastructure in the Philippines city surveillance is gaining more attention as a solution for road congestion monitoring and the dispatch of police officers to solve road incidents. This often requires real-time monitoring of traffic. In Makati City, mesh technology is being used for stable transmission for signals from HD ip cameras to the command center, allowing for quick reaction to any incident or alleviation of traffic congestion to be carried out.
Many PPP projects are also pursuing for integrated transportation systems. Electronic ticketing systems with the "tap-and-go" concept is needed to increase passenger flow efficiency, and minimizing fraud, and lowering maintenance costs.
Business Process Outsourcing (BPO) Centers
The security systems for these off-shore operation centers must be high to minimize, if not eliminate, all possible data breaching possibilities. Some BPO centers are very strict with their security and safety and would not let staff bring in pencil or pens.
Having an employee card that is pre-programmed with access permission can restrict unauthorized persons from entering specific rooms. The same card can be used as a log-in key for a personal computer, providing the control center with a record of who processed which files at what time.
Currently, the adoption of access control is still in its early stages in the Philippines. As network surveillance gains ground in the country, it will not be long until mobile access control guards the doors of the Philippines.
Construction of High-Rises
As BPO firms scale up and expand from Makati City to Cebu, Bacolod, Dumaguete, and Iloilo, the sustained growth of BPOs also fuelled the construction boom of high-rise buildings that accommodate offices and high-end residential condos.
In fact, other than conventional industries with high-rises, there is a demand for high-rise schools to address the classroom shortage problem in Metro Manila. The Department of Education and the Department of Public Works and Highways hopes that high-rise classrooms can solve the shortage problem for the 4.6 million youths that would otherwise be kept out of school.
As a security solution and service provider that targets mid- to large-scale projects, Ademco is optimistic that the Philippines can offer many projects that demand a great amount of integrated security solutions to protect the expanding BPOs, hotel industry, and residential condominiums.
"NO CCTV, NO Permit"
The "No CCTV, no permit" policy was first strictly implemented in Quezon City - the largest city in Metro Manila. Now, this policy is being proposed for both private and public sectors throughout the Philippines by congressmen the Rodriguez brothers.
The high crime rate in the Philippines has taken a serious toll on the economy, especially the country's tourism industry. The "No CCTV, no permit" ordinance requires businesses wishing to apply for or renew a business permit to install CCTV system. The "high-risk" businesses identified include restaurants, retail stores, theaters, office buildings, hotels, gas stations, and warehouses. Through the mandatory surveillance system, the country wishes to deter crime especially theft and robbery, and to enhance the quality of life.
Gaming Industry: Big Bets on the Philippines
The Philippines hopes to join Macau and Singapore to become one of Asia's top three gambling destinations with the opening of the $1.2 billion Solaire Casino in 2013. In order to do so, the Manila Bay Project was approved to set up a gaming and entertainment strip called the Pagcor Entertainment City. Gambling has in fact long been legalized in the Philippines, but most exisiting casinos are run by the Philippine Amusement and Gaming Corporation (PAGCOR), and lack the glamorous points and hotel capacity to attract both foreign investors and players.
The dazzling Solaire Casino, opened by the international shipping tycoon Enrique Razon, is the first of four large-scale gaming resorts to open in the Entertainment City at Manila Bay. The four resorts are all going to be multi-purpose complexes with shopping malls, movie theatres, and other entertainment facilities to go with the casinos.
In the most ideal situation, the surveillance system in a casino should not just be recording for evidence, but be an intuitive tool that alerts management when something is wrong. There are constant interactions at the gaming tables, at the cashier's box, the slot machines, everywhere. In fact, a casino needs cameras to not just monitor if players are acting suspiciously with cash and chips, but also keep an eye on employee's behavior and how operations in general are being enforced to meet gaming regulations.
"Before the casinos were hesitant to use IP because of the latency problem caused by the low frames-per-second; however, as most IPs are standardized with 30 fps, latency should not be too much of a concern now. Some video content analysis are desired if casinos have databases of the frequent players," said distributor Max Chayco, GM, NETDOC IT SOLUTIONS.
Although functions such as facial recognition could be really useful in terms of identifying unwanted guests, casinos have yet to embrace this technology full heartedly, as they are afraid of mistaking innocent customers (or worse, VIPs) for cheating. Other video content analysis functions such as people counting and crowd flow analysis are more acceptable as tools that can actually relieve some burden from old-school man guarding.
To really attract foreigners to the Philippine gaming strip, it is very important that the Philippines is perceived as a safe country, with friendly transportation. Hence, again, the government is working hard toward bettering much-needed infrastructure and security measures to sustain economic growth.
Ademco's subsidiary Esscor was awarded in 2009 to secure the Resort World Manila. The complex, comprised of a hotel and casino, required a fully integrated access control management system, including intrusion detection, video surveillance, and attendance system. Approximately 140 doors and 300 panic buttons were installed for this security system.
Financial Industry
The Philippines' banking industry has been highly reliant on remittance by overseas Filipino workers (OFW). In 2012, $21.39 billion was remitted to the Philippines. In order to cater to this large need, banks in the Philippines are seeking aggressive expansions.
In the mean time, the banking industry is also consolidating, as seen with the merger of Philippine National Bank (PNB) and Allied Bank. The central bank, the Bangko Sentral ng Pilipinas (BSP) said that having fewer but stronger banks can lead to more competitive growth. The Philippines has approximately 700 banks, of which 37 are considered as universal or commercial banks, and some 600 more as rural banks. Rural banks are privately owned and serving the inhabitants of a specific area within a certain boundaries; owners of rural banks are usually known and trust by the local community.
The Philippines' heavy reliance on manned guarding is now shifting towards electronic access control systems, as the synergy of technology has proven to be cost effective for 24/7 crime prevention and evidence recording. Visitors of facilities can be tracked electronically as well by scanning an ID such as a driver's license, replacing the old-school paper logbook that is less secure. Also, due Korean & Japanese factories moving to the Philippines to the rising occurrences of ATM hacking and fraud, BSP has ordered that all ATM cards in the Philippines be replaced between 2015 and 2017. The new cards will have new security features such as Europay MasterCard Visa (EMV) electronic chips. An EMV-enabled card is preferred because the data is stored on a chip instead of the magnetic strip on the back of the card. By storing information on a chip card, the data is dynamic. It is estimated that 25 to 30 million ATM cards will need to be replaced. Currently, very few ATMs in the country can read EMV-enabled cards, so the machines will also need to be upgraded or replaced should the change be made. The 12,285 ATMs nationwide will have to be equipped with the 3DES system.
Manufacturing
In 2012, FDI in manufacturing rose to $1.03 billion from $119.4 million in 2011. The manufacturing industry is especially attracting Japanese and Korean investments as they look at the Philippines as an alternative to China, regardless of political issues and minimum wage differences.
Koh from Ademco noted that when providing solutions to manufacturing plants it is very crucial to customize a value-added security platform that enhances business operations. For example, a centralized management system for surveillance and time attendance is greatly sought after in enterprises.
Currently, analog technology still dominates the market because cabling is inexpensive. However, the security industry in the Philippines is picking up IP-based technology quickly. Many engineers in the Philippines have received education or training abroad, and are quite keen on improving security with IP-based solutions.
Outlook for Security Market
Manufacturers should take advantage of the Philippines' prosperous economy and lack of security solutions, as installation of suitable modern technologies for surveillance and property protection are needed. Having set up in the Philippines for almost two years, GKB Security's marketing team said that to compete in the Philippines, it is very important to showcase the ability to plan and deploy a security platform with all the key elements such as integrated and easy-to-use surveillance cameras and access control.
Many local channel players are good engineers with academic degrees and field experience, so as long as manufacturers are providing some training for new technologies, the Philippines will not have problem catching up to modern technologies.
Many international players have their mind set on the government, manufacturing, and bank business in the Philippines. Axis said that they are determined that now is the time to be more aggressive in these sectors, as competition from Taiwanese and Chinese products are prevalent when expanding business in the Philippines.
Mobile-enabled surveillance is on the rise, too. With wireless infrastructure improving and 3G and 4G coverage being tested by local telecoms, remote surveillance as a method to secure and protect will be pursued.
2014/10/30
Security outlook 2014: Eyes on the game-changing trends
Looking ahead at the game-changers for the security and safety industry, we can expect that there be more changes coming from the industry itself than from the market. In other words, new business operation strategies will soon come into play. From manufacturers to SIs and distributors, all need to stay high-on-alert in the game. Without making themselves versatile enough to respond to the changes quickly, there will hardly be any chance for survival.
Coming from a spectator's viewpoint, the products or technologies that came out in the recent years could barely be called innovative. Market-wise speaking, even though the demands from the emerging markets had been high, the growth somehow hit a plateau in 2013. Therefore, we can only expect a slow growth in 2014, but there will not be anything too exciting from the products or the markets.
The Two Turbulences Shaping The New Rules in the Industry
The excessive supplies and low demands directly cut down the profit of manufacturers, distributors, and SIs. To stand strong and offer professional consultation and services in this unprofitable environment, the key players need to give a thorough consideration on what their core competence is, and what are the necessary adjustments to redefine their positions in the industry, including scale, role, and the involvement of people.
As more applications become network based, suppliers in the market cannot purely sell products or simple systems alone. Instead, they are often forced to provide "total solutions" to meet the complex system needs with IP technology. From manufacturers to channel players, everyone should invest in the know-how of network technology, system application, services, and the special needs of different vertical markets. In addition, as the new survival rules are being structured, the trial-and-error stage could cost a great amount of resources. It is also a critical time to see if companies can reflect how well they have grasped the new needs of the market through their marketing strategies. If the players are not careful enough with their management, they could be easily knocked out of the game altogether.
The Three New Markets To Look Forward To:
The first market to look forward to is the small and medium business (SMB) market. Judging from the present economic situation, the high-end markets are rather loaded, forcing the battleground to be fought in the SMB level. The manufacturers could now be working with SIs who may not be exposed and equipped with the knowledge of IP application. To ease the transition and deployment for the new SIs, plug-and-play products became ultimately important at this level. Only then, clients would request the total solutions covering from the front to the back ends be provided by the same manufacturer. All leading international manufacturers are taking eager approaches to secure a piece of the SMB pie, such as sector-featured product-lines or expanding partnerships with new channels. The manufacturers in Asia especially are advantageous in this field, because they offer better price performance product. I am certain that the SMB will be the combat zone for the security industry; let us keep an eye out for who stands or fades out in this heated competition.
The second market highly sought-after is the consumer market driven by the widespread usage of smart phones and smart devices in the past two years. Before then, the concept of Smart Home was not an easy one to promote to consumers because the link between the application on a computer and its value was not apparent. But ever since smart phones and smart devices became a tangible part of our lives, video surveillance can also be tangible, allowing customers to appreciate the intrinsic value of monitoring shops or homes in their palms. Hence, remote surveillance suddenly becomes a desired tool to protect and manage properties and valuables. This is such an exciting new territory for the security solution providers to shine and prosper. Going from "professional" to "consumer" security means going from "high customization & small quantity" to "low customization & large adaptation." In consumer security where the concept of 3C applies, a particular security function could be used in quantities 10 times or 100 times larger than that in professional security. The trajectory of the consumer security market is still full of uncertainties; however, new business ventures will certainly offer exciting changes to the industry.
Last but not least, the video-surveillance-as-a-service application (VSaaS) market is rising on a similar cause. For those smaller-scale businesses that lack professionals to design and maintain the system, VSaaS could be an ideal solution to solve the need of securing and protecting assets easily from afar. For example, VSaaS will keep the video recordings on file during a robbery situation; owners of retail shops do not need to worry that evidence could be compromised due to damages to DVRs by the perpetrator. Furthermore, by incorporating VCA to VSaaS, intelligent analysis could be done more conveniently and promptly. In malls, this analysis results can be used in decisions regarding marketing and management-security solutions can actually help businesses improve their sales strategies,generating a larger return of investment.
The Fast Consolidation of the Industry Ensues
Ever since the security technology shifts towards IP, the structure of the channel-end has undergone some drastic changes. The first problem surfaced when the channel players showed their insufficient knowledge of IP technology, and when the existing infrastructure turned out unsuitable for the IP technology. All SIs were highly dependent upon distributors' planning and technical support for a system, but when distributors could not handle the problems, the manufacturers are forced to involve more extensively in the projects. As a result, the tighter and the more direct cooperation between manufacturers and the SIs squeezed the distributors out of the system. Those distributors, who wished to survive, were quickly turning themselves into value-added service providers. This consolidation trend at the channel-end will become ever more noticeable in 2014.
Another force restructuring the channel came from the Chinese products. Chinese products usually come with a cheaper price tag- a massive disruption to the existing game rules. I was told by many installers, that under the circumstance where product price is lowered and the amount of work carried out remains unchanged, they are really yielding less profit to survive. The installation work is still as complex as no steps of a project should be reduced, and the man power and time needed are not cut down either. With a diminished total capital to begin with was so much less than what it had always been, hence yielding a much smaller margin and a greater amount of management pressure.
I have also heard from a key Russian importer/distributor that when he did not have Chinese products to offer to the market, his business was so quiet as he would not get any enquiry phone calls. In order to stay competitive in the market, he decided to import some Chinese products. However, he then found out that as soon as he stocked up with one batch of products, he would need to sell them ASAP to avoid a desperate clearance sale because newer versions would be launched soon. It seems that there is just no win either way with Chinese products.
Yet we cannot deny that Chinese products have made security more affordable for the entry-level market. As if the Pandora box were opened up, you just need to play by the new rules to survive in this new world.
When talking about Chinese products, we cannot avoid Hikvision and Dahua. In the Security 50 rankings of 2013 assembled by a&s magazine, these two Chinese trendsetters both moved one rank up from last year's ranking, and are among the top 10 competing with others scaled above US$ 500million. These two companies are still growing robustly in China at a pace way above the average. Their growth means the loss of market share by other smaller companies. Therefore, we can expect that the Chinese security industry will soon be consolidated. Those smaller in scale or those without a clear vision will be out of the game in 2014. Soon, this restructuring of the industry will be expanded to Korean and Taiwan. We can also expect that in the next two years, the diversity of Asia manufacturing will disappear. Only those bigger in scale or those with distinct positioning, technology, or service, and can quickly adapt to the market, can survive.
Products and Technologies Worth Noticing in 2014
Intelligence is the breakthrough in surveillance
In the early years when video content analysis (VCA) was introduced to the market, it created a ripple of excitement. However, when the high expectation was not met by the technology, the excitement was chilled quickly. In the recent years, we have seen many applications been adapted to different vertical markets. For example, people counting is highly used in the retail sector for flow management or distinguishing out the hot selling products in malls. Another practical usage is to use VCA as a filter, to isolate suspicious activities for further determination by people. This application can be programmed to the hd ip cameras at the front end as an activity detector. If it is to be used at the back end as an intelligent analytic tool, then the pictures will become information-rich tool for further applications.
As to the improvements of VCA, there are two ways to go. One is through adding in the three-dimension (3D) technology-by incorporating determining factors such as height measured from the ground, the accuracy of the image analysis could be highly enhanced, becoming a more reliable application. Another improvement is through self-learning technology. The precision of VCA is dependent on how well the VCA corrects its mistakes through multiple trial-and-errors.
IP Security Cameras are like the human eyes. If the image registered by the eyes is not just "seen" but "comprehended," then the application will become more valuable to the system. The hottest topic in IT now is the big data. If combing intelligent surveillance and big data, security will definitely be brought to a higher level.
Higher resolution, clearer images
Recently, we have heard the coming of 4K images or H.265 compression technology - the revolution of visual demands is stimulated by the consumer market. As a product, HD can be described as mature; however, if we are talking about a system or an environment, then it is yet to be accomplished. From my point of view, it is very difficult to find new marketing topics for the IP market that is heavily competed for. In order to stay ahead in the industry, many manufacturers will pioneer into incorporating the 4K and H.265 technologies into their products despite that the environment is not mature yet.
Entry-level markets' rising demands
As mentioned, security has become more affordable and much accepted in the consumer markets. Many leading players such as AXIS, BOSCH, and SONY continuously introduce new entry-level products specially designed for this market. Similarly, the cost-downed made-in-Asia products from both IT and security industries all have something to offer to the entry-level market. To offer a stage for manufacturers to showcase their consumer-defined products, the 2014 Secutech International Expo, organized by Messe Frankfurt New Era Business Media (a&s company), is going to launch a concurrent SmaHome show, to greet the coming of age of the new security market.
Analog - bullish with upgrades
The analog technology still dominates the security market in terms of quantity with an 80 percent share even in 2013. Although the competition is so intense that little profit can be generated, the cheap pricing will still affect the market for another while. However, if manufacturers can take advantage of the large need for analog upgrades and produce some innovation for improving the existing technology, profits can certainly be yielded. Hence, we should pay attention to those solutions designed for the upgrade of the existing analog systems, such as the highly developed 960H, HD-SDI to be lowered in price, or the 800TVL products hot in China. These upgrades will aggressively seize the large analog market.
Access control onto a steady rise
Access control applications has followed closely with the IP trend, and can go along with other mature technologies such as biometrics, RFID, wireless electric lock, IP video door phone. As IP continues to excel, access control is definitely going on a stable growth for the following years.
Biometrics be lifted up outside security
In the previous issue, we have picked out iPhone 5s as the product of the month due to its selection of fingerprint technology. Biometrics will definitely be riding an upward spiral with consumer 3C products - free from the constraints of the security market. Applications such as facial recognition, voice identification, and many more will also be in demand. Some of the technologies that were unable to be supported by the surveillance industry could possibly find a new stage to shine through 3C.
Video verification enhancing applications
False alarm has always been a headache for the alarm providers. Some of the countries now have regulations requesting all alarm services to add in video images to enhance verifications that alleviate the burden of police on duty. Some alarm service providers add in the video verification to reduce the unnecessary dispatch of guards. This is even more appreciated in Asian countries, where people are accustomed to image viewing. Although alarm is not highly requested in India, perhaps more can be secured through the combination of alarm and video.
Looking Ahead the Transition Phase of Security
The most exciting trajectory of security is pointed towards to follow the path of 3C, as the value of surveillance becomes tangible through mobile devices. The untapped opportunities in the security industry will lure both geniuses and funds as how it is in the Silicon Valley! There is going to be a fiery image revolution changing the old professional security. I myself am very curious, just how will the core value of professional security - "trust" - be redefined in the consumer-driven new markets? Maybe we can hold on to this thought, and come back to examine it in 2016.
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Coming from a spectator's viewpoint, the products or technologies that came out in the recent years could barely be called innovative. Market-wise speaking, even though the demands from the emerging markets had been high, the growth somehow hit a plateau in 2013. Therefore, we can only expect a slow growth in 2014, but there will not be anything too exciting from the products or the markets.
The Two Turbulences Shaping The New Rules in the Industry
The excessive supplies and low demands directly cut down the profit of manufacturers, distributors, and SIs. To stand strong and offer professional consultation and services in this unprofitable environment, the key players need to give a thorough consideration on what their core competence is, and what are the necessary adjustments to redefine their positions in the industry, including scale, role, and the involvement of people.
As more applications become network based, suppliers in the market cannot purely sell products or simple systems alone. Instead, they are often forced to provide "total solutions" to meet the complex system needs with IP technology. From manufacturers to channel players, everyone should invest in the know-how of network technology, system application, services, and the special needs of different vertical markets. In addition, as the new survival rules are being structured, the trial-and-error stage could cost a great amount of resources. It is also a critical time to see if companies can reflect how well they have grasped the new needs of the market through their marketing strategies. If the players are not careful enough with their management, they could be easily knocked out of the game altogether.
The Three New Markets To Look Forward To:
The first market to look forward to is the small and medium business (SMB) market. Judging from the present economic situation, the high-end markets are rather loaded, forcing the battleground to be fought in the SMB level. The manufacturers could now be working with SIs who may not be exposed and equipped with the knowledge of IP application. To ease the transition and deployment for the new SIs, plug-and-play products became ultimately important at this level. Only then, clients would request the total solutions covering from the front to the back ends be provided by the same manufacturer. All leading international manufacturers are taking eager approaches to secure a piece of the SMB pie, such as sector-featured product-lines or expanding partnerships with new channels. The manufacturers in Asia especially are advantageous in this field, because they offer better price performance product. I am certain that the SMB will be the combat zone for the security industry; let us keep an eye out for who stands or fades out in this heated competition.
The second market highly sought-after is the consumer market driven by the widespread usage of smart phones and smart devices in the past two years. Before then, the concept of Smart Home was not an easy one to promote to consumers because the link between the application on a computer and its value was not apparent. But ever since smart phones and smart devices became a tangible part of our lives, video surveillance can also be tangible, allowing customers to appreciate the intrinsic value of monitoring shops or homes in their palms. Hence, remote surveillance suddenly becomes a desired tool to protect and manage properties and valuables. This is such an exciting new territory for the security solution providers to shine and prosper. Going from "professional" to "consumer" security means going from "high customization & small quantity" to "low customization & large adaptation." In consumer security where the concept of 3C applies, a particular security function could be used in quantities 10 times or 100 times larger than that in professional security. The trajectory of the consumer security market is still full of uncertainties; however, new business ventures will certainly offer exciting changes to the industry.
Last but not least, the video-surveillance-as-a-service application (VSaaS) market is rising on a similar cause. For those smaller-scale businesses that lack professionals to design and maintain the system, VSaaS could be an ideal solution to solve the need of securing and protecting assets easily from afar. For example, VSaaS will keep the video recordings on file during a robbery situation; owners of retail shops do not need to worry that evidence could be compromised due to damages to DVRs by the perpetrator. Furthermore, by incorporating VCA to VSaaS, intelligent analysis could be done more conveniently and promptly. In malls, this analysis results can be used in decisions regarding marketing and management-security solutions can actually help businesses improve their sales strategies,generating a larger return of investment.
The Fast Consolidation of the Industry Ensues
Ever since the security technology shifts towards IP, the structure of the channel-end has undergone some drastic changes. The first problem surfaced when the channel players showed their insufficient knowledge of IP technology, and when the existing infrastructure turned out unsuitable for the IP technology. All SIs were highly dependent upon distributors' planning and technical support for a system, but when distributors could not handle the problems, the manufacturers are forced to involve more extensively in the projects. As a result, the tighter and the more direct cooperation between manufacturers and the SIs squeezed the distributors out of the system. Those distributors, who wished to survive, were quickly turning themselves into value-added service providers. This consolidation trend at the channel-end will become ever more noticeable in 2014.
Another force restructuring the channel came from the Chinese products. Chinese products usually come with a cheaper price tag- a massive disruption to the existing game rules. I was told by many installers, that under the circumstance where product price is lowered and the amount of work carried out remains unchanged, they are really yielding less profit to survive. The installation work is still as complex as no steps of a project should be reduced, and the man power and time needed are not cut down either. With a diminished total capital to begin with was so much less than what it had always been, hence yielding a much smaller margin and a greater amount of management pressure.
I have also heard from a key Russian importer/distributor that when he did not have Chinese products to offer to the market, his business was so quiet as he would not get any enquiry phone calls. In order to stay competitive in the market, he decided to import some Chinese products. However, he then found out that as soon as he stocked up with one batch of products, he would need to sell them ASAP to avoid a desperate clearance sale because newer versions would be launched soon. It seems that there is just no win either way with Chinese products.
Yet we cannot deny that Chinese products have made security more affordable for the entry-level market. As if the Pandora box were opened up, you just need to play by the new rules to survive in this new world.
When talking about Chinese products, we cannot avoid Hikvision and Dahua. In the Security 50 rankings of 2013 assembled by a&s magazine, these two Chinese trendsetters both moved one rank up from last year's ranking, and are among the top 10 competing with others scaled above US$ 500million. These two companies are still growing robustly in China at a pace way above the average. Their growth means the loss of market share by other smaller companies. Therefore, we can expect that the Chinese security industry will soon be consolidated. Those smaller in scale or those without a clear vision will be out of the game in 2014. Soon, this restructuring of the industry will be expanded to Korean and Taiwan. We can also expect that in the next two years, the diversity of Asia manufacturing will disappear. Only those bigger in scale or those with distinct positioning, technology, or service, and can quickly adapt to the market, can survive.
Products and Technologies Worth Noticing in 2014
Intelligence is the breakthrough in surveillance
In the early years when video content analysis (VCA) was introduced to the market, it created a ripple of excitement. However, when the high expectation was not met by the technology, the excitement was chilled quickly. In the recent years, we have seen many applications been adapted to different vertical markets. For example, people counting is highly used in the retail sector for flow management or distinguishing out the hot selling products in malls. Another practical usage is to use VCA as a filter, to isolate suspicious activities for further determination by people. This application can be programmed to the hd ip cameras at the front end as an activity detector. If it is to be used at the back end as an intelligent analytic tool, then the pictures will become information-rich tool for further applications.
As to the improvements of VCA, there are two ways to go. One is through adding in the three-dimension (3D) technology-by incorporating determining factors such as height measured from the ground, the accuracy of the image analysis could be highly enhanced, becoming a more reliable application. Another improvement is through self-learning technology. The precision of VCA is dependent on how well the VCA corrects its mistakes through multiple trial-and-errors.
IP Security Cameras are like the human eyes. If the image registered by the eyes is not just "seen" but "comprehended," then the application will become more valuable to the system. The hottest topic in IT now is the big data. If combing intelligent surveillance and big data, security will definitely be brought to a higher level.
Higher resolution, clearer images
Recently, we have heard the coming of 4K images or H.265 compression technology - the revolution of visual demands is stimulated by the consumer market. As a product, HD can be described as mature; however, if we are talking about a system or an environment, then it is yet to be accomplished. From my point of view, it is very difficult to find new marketing topics for the IP market that is heavily competed for. In order to stay ahead in the industry, many manufacturers will pioneer into incorporating the 4K and H.265 technologies into their products despite that the environment is not mature yet.
Entry-level markets' rising demands
As mentioned, security has become more affordable and much accepted in the consumer markets. Many leading players such as AXIS, BOSCH, and SONY continuously introduce new entry-level products specially designed for this market. Similarly, the cost-downed made-in-Asia products from both IT and security industries all have something to offer to the entry-level market. To offer a stage for manufacturers to showcase their consumer-defined products, the 2014 Secutech International Expo, organized by Messe Frankfurt New Era Business Media (a&s company), is going to launch a concurrent SmaHome show, to greet the coming of age of the new security market.
Analog - bullish with upgrades
The analog technology still dominates the security market in terms of quantity with an 80 percent share even in 2013. Although the competition is so intense that little profit can be generated, the cheap pricing will still affect the market for another while. However, if manufacturers can take advantage of the large need for analog upgrades and produce some innovation for improving the existing technology, profits can certainly be yielded. Hence, we should pay attention to those solutions designed for the upgrade of the existing analog systems, such as the highly developed 960H, HD-SDI to be lowered in price, or the 800TVL products hot in China. These upgrades will aggressively seize the large analog market.
Access control onto a steady rise
Access control applications has followed closely with the IP trend, and can go along with other mature technologies such as biometrics, RFID, wireless electric lock, IP video door phone. As IP continues to excel, access control is definitely going on a stable growth for the following years.
Biometrics be lifted up outside security
In the previous issue, we have picked out iPhone 5s as the product of the month due to its selection of fingerprint technology. Biometrics will definitely be riding an upward spiral with consumer 3C products - free from the constraints of the security market. Applications such as facial recognition, voice identification, and many more will also be in demand. Some of the technologies that were unable to be supported by the surveillance industry could possibly find a new stage to shine through 3C.
Video verification enhancing applications
False alarm has always been a headache for the alarm providers. Some of the countries now have regulations requesting all alarm services to add in video images to enhance verifications that alleviate the burden of police on duty. Some alarm service providers add in the video verification to reduce the unnecessary dispatch of guards. This is even more appreciated in Asian countries, where people are accustomed to image viewing. Although alarm is not highly requested in India, perhaps more can be secured through the combination of alarm and video.
Looking Ahead the Transition Phase of Security
The most exciting trajectory of security is pointed towards to follow the path of 3C, as the value of surveillance becomes tangible through mobile devices. The untapped opportunities in the security industry will lure both geniuses and funds as how it is in the Silicon Valley! There is going to be a fiery image revolution changing the old professional security. I myself am very curious, just how will the core value of professional security - "trust" - be redefined in the consumer-driven new markets? Maybe we can hold on to this thought, and come back to examine it in 2016.
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Riding Safe and Sound in Asia
In-vehicle security system is not new to the industry, but it has yet to become a prevalent surveillance tool in places outside North America. According to a recent IHS report, North America accounts for 70 percent of the revenue for mobile surveillance with a total of US$346.6million, way ahead of the EMEA at $83.3million and Asia at $68.7 million.
However, the growth in the Asian market is projected to be high for reasons such as building an image of being a safe tourist destination. In this issue, a&s explores the demands of onboard monitoring in Asia, particularly in public transportation, school bus, and police car.
Let's take a step back before we delve into the technology aspect of mobile surveillance, but just think about the role of transportation first. Transportation by means of vehicles is an integral part of modern lifestyle, and it has the purpose of making travelling from place to place more convenient for people. Whether transporting people or valuables, users bestow a great amount of trust on these transportation tools. If the perceived level of safety and reliability with the transportation tool used is improved, the utilization will definitely be elevated.
Therefore, the implementation of mobile surveillance has three important goals to achieve:
1. To optimize operation by minimizing disturbances for operators;
2. To really make passengers feel that they are riding in a safe environment;
3. To record evidence in case of any incidents.
With these goals in mind, the design of mobile surveillance should be tailored to fit the different vehicles. Factors to consider include who the operators and passengers are, and what kind of integration can greater convenience and safety be achieved.
General Trends
To fulfill the first goal of minimizing disturbances, there is a need for accurate and prompt action to be taken when something irregular takes place. Such demand is deliverable through the implementation of network-based surveillance systems.
Through wireless connection between the cameras on the vehicles to a command center, video can be streamed in real-time for concerted management from the back end to the front end.
In places where the wireless infrastructure is less developed, an alternative connection through mesh technology could come into rescue. A wireless mesh system is a multipoint-to-multipoint network configuration. In Southeast Asia, the two key factors driving this demand include the need for greater bandwidth, and the relatively easy and inexpensive deployment in comparison to laying fiber optics.
According to Jeremy Koh, VP of Sales in APAC at Firetide, a mesh application is particularly preferred as an alternative to wired applications in mobile surveillance, where private broadband communication is desired for the transmission and storage of extensive amounts of high-definition video data from surveillance. Also, because it can withstand disruptions such as single-point failure and obstacles along the line-of-sight.
One challenge for mesh network business expansion in Asia is that many local integrators still choose lower cost point-to-point (PTP) or point-to-multipoint (PTMP) options. Demonstrating to local integrators through success stories and by showing which wireless solution is most suitable for them is crucial because it is very important to implement a right system from the start to avoid unnecessary maintenance. "Every re-visit to an outdoor location or accessing a lamp pole means potentially a non-profitable project," said Koh.
Other reasons why network surveillance is gaining ground in Asia's transportation systems include that network cameras can yield high resolution images, cost-effective installation with Power over Ethernet (PoE), high compatibility with other auxiliary products, easy system expansion, a centralized management for dispersed vehicles, and the lowered price of network cameras.
However, as pointed out by Tony Lin, Manager of Product Marketing, EverFocus Electronics, certain methods of transportation such as public buses and school buses rarely implement a full-on network surveillance system due to budget concerns, but also, to avoid unnecessary rewiring of cables. As a result, most applications still employ hybrid DVRs.
Lin said that considering clients' purpose and budgets, EverFocus would recommend a mixed application with network cameras and analog cameras. Network cameras will be placed at locations such as front and end tails of a bus, for clear image rendition, and analog cameras at the doors to capture the environment and passenger activities during getting on/off the bus.
Video surveillance is nothing without storage, and such mixed use of analog and IP will have the need the hybrid storage devices. The basic function of a DVR/NVR remains the same: recording, playback, and previewing. A hybrid DVR is a great equipment for the transition from DVR to NVR because it can work solely as a DVR, solely as an NVR, or combined to facilitate signal exchange. With this unique feature, hybrid DVR saves the trouble for installing a digital encoder to covert analog to IP stream, and it is an excellent choice for long-term benefits should the system be upgraded from all analog to all IP, there is no need to buy a new NVR recorder.
Smarter Way to Run Buses
A trip on a bus to work may be as mundane as it seems, but quarrels, fights, and thefts do happen onboard while accidents can happen outside the bus. When these unexpected events occur, commuters will not want their mundane routine to be disturbed such that their schedule of the day is delayed. Hence, public buses are equipped with onboard video surveillance systems for monitoring the safety of passengers and drivers, recording evidence for incidents, and enhancing efficiency in operation. With live view of the operation of the buses, the command center can promptly make adjustment to the dispatcher, maintenance personnel, or reroute fleets to avoid accidents. The command center can also check the driving behavior of bus drivers.
In Asia, the degree of utilization of bus surveillance varies upon local law enforcement and infrastructure. Places such as South Korea, Japan, and Taiwan already have a great number of public buses adapting surveillance systems, and according to the regulations by local government or bus companies, there are usually eight to nine cameras on a bus, with 8- or 16-channel DVR/NVR solutions. Nowadays, the standard storage capacity for public buses is said to be 24-hour nonstop for at least 30 days. As Allen Liu, Project Manager from Dahua Technology pointed out, since the machine will be operating for long hours, a hard disk DVR/NVR should be used.
The idea of surveillance on public transportation is yet to be realized in other parts of Asia, but there are steps taken. For example in Thailand and India, the implementation of surveillance systems at bus stops has begun. Soon, it will be mandatory to equip GPS devices on state-enterprise interprovincial buses in Thailand.
In India, though camera surveillance is not popular, the government is proposing to add SOS alert system and GPS tracking in passengers' cell phones as a means to enhance women's safety when travelling on public transportation. Through downloading suitable software to the mobile devices, passengers can alert the police or security staff at stations in case of emergency.
Camera-wise, Axis Communications has stressed that onboard monitoring systems need to have wide dynamic range for clear recording against glares from the sun, low light at night time, and have IP66 or 67 ratings for withstanding fluctuations in environmental factors such as moisture, dust, and temperature. The systems on public buses are generally more rugged than those on school buses.
On the operation level, public transportation also needs to be "intelligent" to achieve the convenience purpose for passengers. For example, when waiting for a bus in Taiwan, the whereabouts of a bus or the bus schedules are right there at passengers' fingertips through apps downloaded onto mobile devices. This is particularly useful when it comes to increasing the perceived level of safety for traveling by bus at night time; passengers can know when to be at the bus stop and spend the waiting time at a more populated area nearby. Other integrations include electronic fare payments, stop announcement, or push-to-talk devices with the staff at the station.
On the management level, the recording can be analyzed and stored in a cloud database for further supervision usage. George Tang, Chairman& CEO of George Tang Industrial said that driver behavior analysis can be done with recordings such as time spent idling or frequency of breaks (creating unpleasant riding experience for passengers). Such data can be used by the human resource department, to manage drivers with inadequate driving conducts such as speeding or delaying of schedule. The insurance companies in the United States have also looked at the data, such as frequency of talking on a cell phone, to adjust premiums for drivers deemed "high-risk."
School Buses Communicate With Parents
The surveillance system used on school buses may not be as heavy duty as that of public buses because the purpose is more to record the events onboard than to dispatch immediate assistant to solve road incidents. Nevertheless, its storage device should be just as good. For the hardware, vibration-proof and self-check functions are ideal to automatically alarm the drivers when any malfunction or manipulation of equipment is detected. It is recommended that an outside shield be placed covering the DVR/NVR to prevent vandalism by students.
For application integration, onboard surveillance system for school buses should be offering a peace of mind for parents. The student-student interaction, student-driver interaction, and student-school interaction ought to be recorded and monitored carefully. Parents should be informed at the soonest when something wrong happens to their children. Therefore, the integration of access control and short message service (SMS) systems are becoming common requests. The access control card allows only the verified students to board the school bus, and the SMS system will send out a text message to parents' cell phones to notify them when their children enter/leave the school and are travelling on the school bus.
China particularly has been hard on school bus regulations due to the strings of deadly school bus accidents that had happened in 2011. Since then, China has ordered nationwide safety inspections on buses, and the local government such as the Beijing government will also order school buses to renew their safety qualification every six months to ensure optimum safety for children. China has also increased the purchase of the American yellow school buses in replacement of the school buses that were made from old farm vehicles.
Surveillance on Police Cars
Police cars are working under great risks when officers patrol the streets or bring in dangerous criminals to the stations. GPS is usually standard equipment to track the whereabouts of the police cars. On the other hand, video recording may not be switched on at all times depending on regulations, but in most cases, there will be automatic recording when the siren is sounded. Given the size of the police vehicle, the surveillance systems usually consist of four channels with a single video output channel.
"When police cars in Thailand are dispatched to areas with unstable 3G coverage, dual-stream transmission should be employed, allowing proactive surveillance for real-time video viewing, and mobile phone monitoring with minimal bandwidth occupation. The built-in 3G module comes into play and sends images back to the command center for further dispatch of back up," said Somchai Prajaksoot, MD, Digital Focus. A common feature integrated to the surveillance system in police cars is automated license plate recognition (ALPR). This function is helpful for police to track drivers against a "hot list" generated from the criminal database. In addition, police cars often need to be in close contact with firefighting units or ambulances. Hence, true real-time video sharing between the emergency response vehicles should be further improved at the software level to assist in critical situations.
Currently, the installation of surveillance system on police cars is not prevalent in Asia, but there are opinions voiced to encourage the equipping of police cars with surveillance systems. For example in Malaysia, the Royal Malaysian Police is urged to install surveillance IP cameras as a mean to increase public trust toward the force, and minimizing accusation of power abuse. The Royal Malaysian Police's 2014 budget is inclusive of such mobile surveillance deployment.
Make the Move to Asia
Asia is a big market for mobile surveillance given that most countries are aiming to increase road safety for public transportation, which is sustaining tourism growth. In addition, as mobile surveillance adds another level of trust for parents sending kids to school via school bus, and ensures the completeness of evidence collection when police is on duty, the demand for mobile surveillance will continue to spiral upwards.
George Tang stressed that "mobile surveillance is highly user-defined. Users should go for the solution that is 'enough' for their needs, but not blindly choosing the 'most advanced one out in the market.' Megapixel is the trend; but do keep in mind that higher resolution means higher storage capacity needed, and larger bandwidth and computing power for playback."
Some general rules when choosing mobile surveillance system commonly suggested are:
1. Cameras with high resolution and wide-angle lens
2. Wireless/3G transmission for real-time monitoring
3. GPS positioning a must
4. Good resistance to shock, temperature, and moisture fluctuations
5. Integration with auxiliary products for multi-layered reassurance
"Each incident, minor or major, has to be evaluated and then there has to be an active decision on what action to take," commented Ivan Tjahjadi, Country Manager of ASEAN & Indo China, Axis Communications.
Such direct decision is made possible with IP-based video surveillance system as images can be shared to both the command center and portable devices. As a result of video surveillance and the accurate evaluation, costs of incident response can be reduced while increasing the level of reassurance among commuters that the vehicles are safe and secure. It is also foreseeable that mobile surveillance will be more accessible remotely through apps on mobile devices.
However, the growth in the Asian market is projected to be high for reasons such as building an image of being a safe tourist destination. In this issue, a&s explores the demands of onboard monitoring in Asia, particularly in public transportation, school bus, and police car.
Let's take a step back before we delve into the technology aspect of mobile surveillance, but just think about the role of transportation first. Transportation by means of vehicles is an integral part of modern lifestyle, and it has the purpose of making travelling from place to place more convenient for people. Whether transporting people or valuables, users bestow a great amount of trust on these transportation tools. If the perceived level of safety and reliability with the transportation tool used is improved, the utilization will definitely be elevated.
Therefore, the implementation of mobile surveillance has three important goals to achieve:
1. To optimize operation by minimizing disturbances for operators;
2. To really make passengers feel that they are riding in a safe environment;
3. To record evidence in case of any incidents.
With these goals in mind, the design of mobile surveillance should be tailored to fit the different vehicles. Factors to consider include who the operators and passengers are, and what kind of integration can greater convenience and safety be achieved.
General Trends
To fulfill the first goal of minimizing disturbances, there is a need for accurate and prompt action to be taken when something irregular takes place. Such demand is deliverable through the implementation of network-based surveillance systems.
Through wireless connection between the cameras on the vehicles to a command center, video can be streamed in real-time for concerted management from the back end to the front end.
In places where the wireless infrastructure is less developed, an alternative connection through mesh technology could come into rescue. A wireless mesh system is a multipoint-to-multipoint network configuration. In Southeast Asia, the two key factors driving this demand include the need for greater bandwidth, and the relatively easy and inexpensive deployment in comparison to laying fiber optics.
According to Jeremy Koh, VP of Sales in APAC at Firetide, a mesh application is particularly preferred as an alternative to wired applications in mobile surveillance, where private broadband communication is desired for the transmission and storage of extensive amounts of high-definition video data from surveillance. Also, because it can withstand disruptions such as single-point failure and obstacles along the line-of-sight.
One challenge for mesh network business expansion in Asia is that many local integrators still choose lower cost point-to-point (PTP) or point-to-multipoint (PTMP) options. Demonstrating to local integrators through success stories and by showing which wireless solution is most suitable for them is crucial because it is very important to implement a right system from the start to avoid unnecessary maintenance. "Every re-visit to an outdoor location or accessing a lamp pole means potentially a non-profitable project," said Koh.
Other reasons why network surveillance is gaining ground in Asia's transportation systems include that network cameras can yield high resolution images, cost-effective installation with Power over Ethernet (PoE), high compatibility with other auxiliary products, easy system expansion, a centralized management for dispersed vehicles, and the lowered price of network cameras.
However, as pointed out by Tony Lin, Manager of Product Marketing, EverFocus Electronics, certain methods of transportation such as public buses and school buses rarely implement a full-on network surveillance system due to budget concerns, but also, to avoid unnecessary rewiring of cables. As a result, most applications still employ hybrid DVRs.
Lin said that considering clients' purpose and budgets, EverFocus would recommend a mixed application with network cameras and analog cameras. Network cameras will be placed at locations such as front and end tails of a bus, for clear image rendition, and analog cameras at the doors to capture the environment and passenger activities during getting on/off the bus.
Video surveillance is nothing without storage, and such mixed use of analog and IP will have the need the hybrid storage devices. The basic function of a DVR/NVR remains the same: recording, playback, and previewing. A hybrid DVR is a great equipment for the transition from DVR to NVR because it can work solely as a DVR, solely as an NVR, or combined to facilitate signal exchange. With this unique feature, hybrid DVR saves the trouble for installing a digital encoder to covert analog to IP stream, and it is an excellent choice for long-term benefits should the system be upgraded from all analog to all IP, there is no need to buy a new NVR recorder.
Smarter Way to Run Buses
A trip on a bus to work may be as mundane as it seems, but quarrels, fights, and thefts do happen onboard while accidents can happen outside the bus. When these unexpected events occur, commuters will not want their mundane routine to be disturbed such that their schedule of the day is delayed. Hence, public buses are equipped with onboard video surveillance systems for monitoring the safety of passengers and drivers, recording evidence for incidents, and enhancing efficiency in operation. With live view of the operation of the buses, the command center can promptly make adjustment to the dispatcher, maintenance personnel, or reroute fleets to avoid accidents. The command center can also check the driving behavior of bus drivers.
In Asia, the degree of utilization of bus surveillance varies upon local law enforcement and infrastructure. Places such as South Korea, Japan, and Taiwan already have a great number of public buses adapting surveillance systems, and according to the regulations by local government or bus companies, there are usually eight to nine cameras on a bus, with 8- or 16-channel DVR/NVR solutions. Nowadays, the standard storage capacity for public buses is said to be 24-hour nonstop for at least 30 days. As Allen Liu, Project Manager from Dahua Technology pointed out, since the machine will be operating for long hours, a hard disk DVR/NVR should be used.
The idea of surveillance on public transportation is yet to be realized in other parts of Asia, but there are steps taken. For example in Thailand and India, the implementation of surveillance systems at bus stops has begun. Soon, it will be mandatory to equip GPS devices on state-enterprise interprovincial buses in Thailand.
In India, though camera surveillance is not popular, the government is proposing to add SOS alert system and GPS tracking in passengers' cell phones as a means to enhance women's safety when travelling on public transportation. Through downloading suitable software to the mobile devices, passengers can alert the police or security staff at stations in case of emergency.
Camera-wise, Axis Communications has stressed that onboard monitoring systems need to have wide dynamic range for clear recording against glares from the sun, low light at night time, and have IP66 or 67 ratings for withstanding fluctuations in environmental factors such as moisture, dust, and temperature. The systems on public buses are generally more rugged than those on school buses.
On the operation level, public transportation also needs to be "intelligent" to achieve the convenience purpose for passengers. For example, when waiting for a bus in Taiwan, the whereabouts of a bus or the bus schedules are right there at passengers' fingertips through apps downloaded onto mobile devices. This is particularly useful when it comes to increasing the perceived level of safety for traveling by bus at night time; passengers can know when to be at the bus stop and spend the waiting time at a more populated area nearby. Other integrations include electronic fare payments, stop announcement, or push-to-talk devices with the staff at the station.
On the management level, the recording can be analyzed and stored in a cloud database for further supervision usage. George Tang, Chairman& CEO of George Tang Industrial said that driver behavior analysis can be done with recordings such as time spent idling or frequency of breaks (creating unpleasant riding experience for passengers). Such data can be used by the human resource department, to manage drivers with inadequate driving conducts such as speeding or delaying of schedule. The insurance companies in the United States have also looked at the data, such as frequency of talking on a cell phone, to adjust premiums for drivers deemed "high-risk."
School Buses Communicate With Parents
The surveillance system used on school buses may not be as heavy duty as that of public buses because the purpose is more to record the events onboard than to dispatch immediate assistant to solve road incidents. Nevertheless, its storage device should be just as good. For the hardware, vibration-proof and self-check functions are ideal to automatically alarm the drivers when any malfunction or manipulation of equipment is detected. It is recommended that an outside shield be placed covering the DVR/NVR to prevent vandalism by students.
For application integration, onboard surveillance system for school buses should be offering a peace of mind for parents. The student-student interaction, student-driver interaction, and student-school interaction ought to be recorded and monitored carefully. Parents should be informed at the soonest when something wrong happens to their children. Therefore, the integration of access control and short message service (SMS) systems are becoming common requests. The access control card allows only the verified students to board the school bus, and the SMS system will send out a text message to parents' cell phones to notify them when their children enter/leave the school and are travelling on the school bus.
China particularly has been hard on school bus regulations due to the strings of deadly school bus accidents that had happened in 2011. Since then, China has ordered nationwide safety inspections on buses, and the local government such as the Beijing government will also order school buses to renew their safety qualification every six months to ensure optimum safety for children. China has also increased the purchase of the American yellow school buses in replacement of the school buses that were made from old farm vehicles.
Surveillance on Police Cars
Police cars are working under great risks when officers patrol the streets or bring in dangerous criminals to the stations. GPS is usually standard equipment to track the whereabouts of the police cars. On the other hand, video recording may not be switched on at all times depending on regulations, but in most cases, there will be automatic recording when the siren is sounded. Given the size of the police vehicle, the surveillance systems usually consist of four channels with a single video output channel.
"When police cars in Thailand are dispatched to areas with unstable 3G coverage, dual-stream transmission should be employed, allowing proactive surveillance for real-time video viewing, and mobile phone monitoring with minimal bandwidth occupation. The built-in 3G module comes into play and sends images back to the command center for further dispatch of back up," said Somchai Prajaksoot, MD, Digital Focus. A common feature integrated to the surveillance system in police cars is automated license plate recognition (ALPR). This function is helpful for police to track drivers against a "hot list" generated from the criminal database. In addition, police cars often need to be in close contact with firefighting units or ambulances. Hence, true real-time video sharing between the emergency response vehicles should be further improved at the software level to assist in critical situations.
Currently, the installation of surveillance system on police cars is not prevalent in Asia, but there are opinions voiced to encourage the equipping of police cars with surveillance systems. For example in Malaysia, the Royal Malaysian Police is urged to install surveillance IP cameras as a mean to increase public trust toward the force, and minimizing accusation of power abuse. The Royal Malaysian Police's 2014 budget is inclusive of such mobile surveillance deployment.
Make the Move to Asia
Asia is a big market for mobile surveillance given that most countries are aiming to increase road safety for public transportation, which is sustaining tourism growth. In addition, as mobile surveillance adds another level of trust for parents sending kids to school via school bus, and ensures the completeness of evidence collection when police is on duty, the demand for mobile surveillance will continue to spiral upwards.
George Tang stressed that "mobile surveillance is highly user-defined. Users should go for the solution that is 'enough' for their needs, but not blindly choosing the 'most advanced one out in the market.' Megapixel is the trend; but do keep in mind that higher resolution means higher storage capacity needed, and larger bandwidth and computing power for playback."
Some general rules when choosing mobile surveillance system commonly suggested are:
1. Cameras with high resolution and wide-angle lens
2. Wireless/3G transmission for real-time monitoring
3. GPS positioning a must
4. Good resistance to shock, temperature, and moisture fluctuations
5. Integration with auxiliary products for multi-layered reassurance
"Each incident, minor or major, has to be evaluated and then there has to be an active decision on what action to take," commented Ivan Tjahjadi, Country Manager of ASEAN & Indo China, Axis Communications.
Such direct decision is made possible with IP-based video surveillance system as images can be shared to both the command center and portable devices. As a result of video surveillance and the accurate evaluation, costs of incident response can be reduced while increasing the level of reassurance among commuters that the vehicles are safe and secure. It is also foreseeable that mobile surveillance will be more accessible remotely through apps on mobile devices.
2014/10/29
Project Tracking - Top 8 big Asian prosperity
CAMBODIA
E-IDs
Scale: 5.5 million Cambodian citizens
The Ministry of Interior will issue electronic identification cards to an additional 5.5 million citizens in the near future as Cambodia makes the transition from regular
identity cards to e-IDs.
Deputy Prime Minister and Minister of Interior Sar Kheng said that up to 2.2 million citizens have received e-IDs in the first phase, according to AKP news agency.
"As we the country moves towards an ASEAN economic integration, effective name registration and identification will facilitate management of the flow of people and goods," he said.
INDONESIA
Hospitality
Scale: 100 hotels
Scheduled Completion: 2015
Hotel giant Accor plans to open more than 200 hotels in the Asia-Pacific in the coming years. A total of 227 hotels should open "in the next 3 to 4 years", meaning more than 49,000 extra rooms, said Michael Issenberg, COO for Asia-Pacific, Accor. Indonesia is the group's second-fastest growing market in the region and 71 of the new hotels are planned for the sprawling. Accor, the 6th biggest hotel group in the world with brands including Novotel, Sofitel, and Pullman, already has 73 hotels in Indonesia.
Gerard Guillouet, senior vice-president for Malaysia, Indonesia, and Singapore, added Accor was on track to have 100 hotels in Indonesia by 2015.
Transportation
Scale:
7 transit-oriented developments,17 park-and-ride centers, 2 MRT routes, 8 busway corridors
Scheduled Completion: 2030
The Jakarta administration had high hopes that the capital’s traffic congestion could be solved over the next 17 years with the integrated transportation system, which had been included in the 2012 bylaw on regional spatial planning.
The plan includes 7 transit-oriented developments (TOD) across the capital region, 17 park-and-ride centers, north-south and east-west MRT routes, and 38 busway corridors. Deputy Governor Basuki Tjahaja Purnama said the city administration had allocated Rp 5.16 trillion ($423 million) in 2014 to develop the transportation system.
Infrastructure
Indonesia announced it will allow increased levels of foreign investment in the country’s airports, power plants, toll roads, and pharmaceutical industries as part of government efforts to boost the slowing economy.
"The commitment is to maintain Indonesia’s economic growth and anticipating a slowdown in the global economy by encouraging investment, particularly in domestic and foreign investment," said Hatta Rajasa, Chief Economic Minister.
Under the new policy, the government increased the maximum foreign investment in pharmaceutical companies to 85% from 75% and advertising to up to 51%, said Mahendra Siregar, Investment Chief.
THAILAND
Transportation
Scale: 209 km
Scheduled Completion: 2020
The bidding to win the Thai high-speed train project would likely be held from Q3 2014 to 2017 while the construction of the railways and the procurement of those trains are scheduled to be completed within 2020, according to Chatchart Sitthipun, Transport Minister.
For the time being, environmental impact assessments are yet to be finished, regarding the planned routes for the high-speed trains with a main station in Bangkok. Those routes include Bangkok – Pitsanuloak; Bangkok – Nakorn Ratchasima; Bangkok – Rayong; Bangkok – Hua Hin.
Transportation
Scale: 4,385 buses and vans and 6,191 trucks
The Transport Co, the state-enterprise interprovincial bus operator, will equip all of its franchise buses and vans with global positioning system (GPS) devices to improve safety measures in 2014.
All the 659 buses of Transport Co and 2,263 trucks for transporting dangerous substances such as chemicals and gas have been equipped with GPS, enabling officials to monitor the speed, location of the vehicles, and monitor the drivers' behavior.
Transport Co has a plan to install GPS in 4,385 privately-licensed buses and vans operating under its authority and 6,191 trucks transporting dangerous substances, according to Chadchart Sittipunt , Transport Minister.
VIETNAM
Oil & Gas
Scale: 24 oil & gas projects
Scheduled Completion: 2014
Vietnam National Oil & Gas Group (PVN) plans to implement 24 oil and gas projects in 2014 to ensure national energy security.
Of the sum, there will be 6 exploitation and exploration projects, 7 projects of petroleum processing and refining, 5 projects of industrial gas, and other 6 projects of petroleum technical services.
In 2013, PVN disbursed total of VND252.2 trillion ($12 billion) for its projects in 2011-2013 period.
Sea port
Scheduled Completion: 2020
The Vietnam Maritime Administration has proposed to develop deep-sea ports in the northern city of Hai Phong, the southern province of Ba Ria – Vung Tau, and the Van Phong Port in the central region as standard access ports for ships of 100,000 DWT from now until 2020. According to the Portcoast Consultant Corporation under the Ministry of Transport, which is in charge of the review, total fund for investment in the development of Vietnam’s seaport system by 2020 is estimated to reach VND 200 to 280 trillion ($9.5 to 13 billion).
THE PHILIPPINES
Power plant
First Gen Corporation, through its wholly-owned subsidiary First NatGas Power Corp (FNPC), signed an equipment supply contract and a construction services contract with Siemens. According to First Gen, the contracts will involve the engineering, design, procurement, construction, and completion of a 414-megawatt power plant in Santa Rita, Batangas.
The power plant, called the San Gabriel Project, is the first of 3 units of the planned 1,350 megawatt San Gabriel Combined Cycle Natural Gas-Fired Power Plant Project. FNPC also signed an operation and maintenance agreement with Siemens Power Operations Inc. Under the agreement, SPOI will operate and maintain the first unit of San Gabriel Combined Cycle Power Plant for 9.5 years.
Casino
The Philippine gaming industry is expected to more than double by 2020, thanks to more tourists and new casino resorts.
Fitch, which analyzes economies as part of its debt-rating business, said Philippine gaming revenue should climb from $1.5 billion to $3.4 billion by 2020.
Airport
Scheduled Completion: December 2014
The Philippine government has awarded the contract to rehabilitate Ninoy Aquino International Airport Terminal 1 (NAIA-1) to DMCI Holdings, Inc.
The infrastructure conglomerate submitted the best bid for the P1.64-billion ($37 million) contract, according to Joseph Emilio A. Abaya, Secretary of Transportation and Communications. The Consunji-led holding firm bested 2 other bidders -- Hillmarc’s Construction Corp. and EEI Corp. -- during the auction. The project involves architectural, structural, mechanical, and electrical works.
MALAYSIA
Transportation
Scale: MRT line
Scheduled Completion: 2019
Approval for the RM25 billion ($7.6 billion) MRT Line 2 project as well as the appointment of MMC Corp Bhd-Gamuda joint venture (JV), as the project delivery partner (PDP), is expected to be out by Q1 2014.
According to Gamuda Bhd, the physical work for the MRT Line 2 or Sungai Buloh-Serdang-Putrajaya Line, could start in early 2016.
With Line 1 worth RM23 billion ($7 billion) currently under construction and Lines 2 and Line 3 worth RM25 billion ($ 7.6 billion) each under planning, this mammoth mega project will keep players busy until 2019.
SINGAPORE
Water plant
Scheduled Completion: 2016
National water agency, PUB, is inviting local and international companies to submit proposals for the construction of the second NEWater Plant at Changi. To be completed by 2016, this plant will add another 50 million Imperial gallons (mgd) water a day to the nation's water supply.
Like the first Changi NEWater Plant, the second plant will be constructed under a Design, Build, Own and Operate (DBOO) arrangement and utilize the same proven NEWater process that was developed by PUB. The plant's main process facilities will be built mostly on the rooftop of the Changi Water Reclamation Plant. This not only saves land but also the cost of laying pipes to convey the treated used water from the water reclamation plant to the NEWater plant.
The successful bidder will enter into a 25-year NEWater agreement to supply NEWater to PUB, commencing from 2016.
MYANMAR
Thilawa economy zone
Myanmar’s efforts to attract foreign investment would depend on the success of Thilawa special economic zone, which is 20 km from Yangon.
The zone is being developed by a consortium involving the Japan Thilawa SEZ Company, with participation from Mitsubishi, Marubeni and Sumitomo corporations, and the Myanmar Thilawa SEZ Holdings company (MTSH) involving nine Myanmar companies.
U -Set Aung, chair of the Thilawa SEZ management committee, said the first phase of the project would be implemented in 2015 with the construction of automobile and electronics factories.
According to the METI website, Japan will provide $3.28 billion for the related infrastructure, electrical systems, ports, and transportation.
Airport
Scale: 150 acres
Scheduled Completion: 2018
A consortium led by Incheon International Airport Corporation (IIAC) has been named as the preferred bidder for the construction and operation of a new international airport in Myanmar. If finalized, the agreement will see the consortium build the $1.1 billion airport, located in Yangon, with the goal of opening it in 2018. IIAC would then operate the airport for up to 50 years.
Other parties in the IIAC-led consortium include Halla Engineering & Construction Corp, Lotte Engineering & Construction Co, POSCO ICT, and Kumho Industrial Co.
Hospitality
Scale: 350-room hotel
Hong Kong-based Shangri-La International Hotel Management has announced an investment of $115 million to build a 350-room Lakeside Shangri-La hotel near Kandawgyi Lake. The hotel, which will be located near the Shangri-La residences that were opened recently, will be the second, after Traders Hotel, to be operated in Yangon by Shangri-La.
"We expect the second phase to be completed by late 2016," said Kuok Koon Kwong, the director of Shangri-La Yangon. According to recent government data, although there are more than 200 hotels and guesthouses together offering more than 9,000 guestrooms throughout Yangon, the city still faces an accommodation shortage for visitors.
More Articals
E-IDs
Scale: 5.5 million Cambodian citizens
The Ministry of Interior will issue electronic identification cards to an additional 5.5 million citizens in the near future as Cambodia makes the transition from regular
identity cards to e-IDs.
Deputy Prime Minister and Minister of Interior Sar Kheng said that up to 2.2 million citizens have received e-IDs in the first phase, according to AKP news agency.
"As we the country moves towards an ASEAN economic integration, effective name registration and identification will facilitate management of the flow of people and goods," he said.
INDONESIA
Hospitality
Scale: 100 hotels
Scheduled Completion: 2015
Hotel giant Accor plans to open more than 200 hotels in the Asia-Pacific in the coming years. A total of 227 hotels should open "in the next 3 to 4 years", meaning more than 49,000 extra rooms, said Michael Issenberg, COO for Asia-Pacific, Accor. Indonesia is the group's second-fastest growing market in the region and 71 of the new hotels are planned for the sprawling. Accor, the 6th biggest hotel group in the world with brands including Novotel, Sofitel, and Pullman, already has 73 hotels in Indonesia.
Gerard Guillouet, senior vice-president for Malaysia, Indonesia, and Singapore, added Accor was on track to have 100 hotels in Indonesia by 2015.
Transportation
Scale:
7 transit-oriented developments,17 park-and-ride centers, 2 MRT routes, 8 busway corridors
Scheduled Completion: 2030
The Jakarta administration had high hopes that the capital’s traffic congestion could be solved over the next 17 years with the integrated transportation system, which had been included in the 2012 bylaw on regional spatial planning.
The plan includes 7 transit-oriented developments (TOD) across the capital region, 17 park-and-ride centers, north-south and east-west MRT routes, and 38 busway corridors. Deputy Governor Basuki Tjahaja Purnama said the city administration had allocated Rp 5.16 trillion ($423 million) in 2014 to develop the transportation system.
Infrastructure
Indonesia announced it will allow increased levels of foreign investment in the country’s airports, power plants, toll roads, and pharmaceutical industries as part of government efforts to boost the slowing economy.
"The commitment is to maintain Indonesia’s economic growth and anticipating a slowdown in the global economy by encouraging investment, particularly in domestic and foreign investment," said Hatta Rajasa, Chief Economic Minister.
Under the new policy, the government increased the maximum foreign investment in pharmaceutical companies to 85% from 75% and advertising to up to 51%, said Mahendra Siregar, Investment Chief.
THAILAND
Transportation
Scale: 209 km
Scheduled Completion: 2020
The bidding to win the Thai high-speed train project would likely be held from Q3 2014 to 2017 while the construction of the railways and the procurement of those trains are scheduled to be completed within 2020, according to Chatchart Sitthipun, Transport Minister.
For the time being, environmental impact assessments are yet to be finished, regarding the planned routes for the high-speed trains with a main station in Bangkok. Those routes include Bangkok – Pitsanuloak; Bangkok – Nakorn Ratchasima; Bangkok – Rayong; Bangkok – Hua Hin.
Transportation
Scale: 4,385 buses and vans and 6,191 trucks
The Transport Co, the state-enterprise interprovincial bus operator, will equip all of its franchise buses and vans with global positioning system (GPS) devices to improve safety measures in 2014.
All the 659 buses of Transport Co and 2,263 trucks for transporting dangerous substances such as chemicals and gas have been equipped with GPS, enabling officials to monitor the speed, location of the vehicles, and monitor the drivers' behavior.
Transport Co has a plan to install GPS in 4,385 privately-licensed buses and vans operating under its authority and 6,191 trucks transporting dangerous substances, according to Chadchart Sittipunt , Transport Minister.
VIETNAM
Oil & Gas
Scale: 24 oil & gas projects
Scheduled Completion: 2014
Vietnam National Oil & Gas Group (PVN) plans to implement 24 oil and gas projects in 2014 to ensure national energy security.
Of the sum, there will be 6 exploitation and exploration projects, 7 projects of petroleum processing and refining, 5 projects of industrial gas, and other 6 projects of petroleum technical services.
In 2013, PVN disbursed total of VND252.2 trillion ($12 billion) for its projects in 2011-2013 period.
Sea port
Scheduled Completion: 2020
The Vietnam Maritime Administration has proposed to develop deep-sea ports in the northern city of Hai Phong, the southern province of Ba Ria – Vung Tau, and the Van Phong Port in the central region as standard access ports for ships of 100,000 DWT from now until 2020. According to the Portcoast Consultant Corporation under the Ministry of Transport, which is in charge of the review, total fund for investment in the development of Vietnam’s seaport system by 2020 is estimated to reach VND 200 to 280 trillion ($9.5 to 13 billion).
THE PHILIPPINES
Power plant
First Gen Corporation, through its wholly-owned subsidiary First NatGas Power Corp (FNPC), signed an equipment supply contract and a construction services contract with Siemens. According to First Gen, the contracts will involve the engineering, design, procurement, construction, and completion of a 414-megawatt power plant in Santa Rita, Batangas.
The power plant, called the San Gabriel Project, is the first of 3 units of the planned 1,350 megawatt San Gabriel Combined Cycle Natural Gas-Fired Power Plant Project. FNPC also signed an operation and maintenance agreement with Siemens Power Operations Inc. Under the agreement, SPOI will operate and maintain the first unit of San Gabriel Combined Cycle Power Plant for 9.5 years.
Casino
The Philippine gaming industry is expected to more than double by 2020, thanks to more tourists and new casino resorts.
Fitch, which analyzes economies as part of its debt-rating business, said Philippine gaming revenue should climb from $1.5 billion to $3.4 billion by 2020.
Airport
Scheduled Completion: December 2014
The Philippine government has awarded the contract to rehabilitate Ninoy Aquino International Airport Terminal 1 (NAIA-1) to DMCI Holdings, Inc.
The infrastructure conglomerate submitted the best bid for the P1.64-billion ($37 million) contract, according to Joseph Emilio A. Abaya, Secretary of Transportation and Communications. The Consunji-led holding firm bested 2 other bidders -- Hillmarc’s Construction Corp. and EEI Corp. -- during the auction. The project involves architectural, structural, mechanical, and electrical works.
MALAYSIA
Transportation
Scale: MRT line
Scheduled Completion: 2019
Approval for the RM25 billion ($7.6 billion) MRT Line 2 project as well as the appointment of MMC Corp Bhd-Gamuda joint venture (JV), as the project delivery partner (PDP), is expected to be out by Q1 2014.
According to Gamuda Bhd, the physical work for the MRT Line 2 or Sungai Buloh-Serdang-Putrajaya Line, could start in early 2016.
With Line 1 worth RM23 billion ($7 billion) currently under construction and Lines 2 and Line 3 worth RM25 billion ($ 7.6 billion) each under planning, this mammoth mega project will keep players busy until 2019.
SINGAPORE
Water plant
Scheduled Completion: 2016
National water agency, PUB, is inviting local and international companies to submit proposals for the construction of the second NEWater Plant at Changi. To be completed by 2016, this plant will add another 50 million Imperial gallons (mgd) water a day to the nation's water supply.
Like the first Changi NEWater Plant, the second plant will be constructed under a Design, Build, Own and Operate (DBOO) arrangement and utilize the same proven NEWater process that was developed by PUB. The plant's main process facilities will be built mostly on the rooftop of the Changi Water Reclamation Plant. This not only saves land but also the cost of laying pipes to convey the treated used water from the water reclamation plant to the NEWater plant.
The successful bidder will enter into a 25-year NEWater agreement to supply NEWater to PUB, commencing from 2016.
MYANMAR
Thilawa economy zone
Myanmar’s efforts to attract foreign investment would depend on the success of Thilawa special economic zone, which is 20 km from Yangon.
The zone is being developed by a consortium involving the Japan Thilawa SEZ Company, with participation from Mitsubishi, Marubeni and Sumitomo corporations, and the Myanmar Thilawa SEZ Holdings company (MTSH) involving nine Myanmar companies.
U -Set Aung, chair of the Thilawa SEZ management committee, said the first phase of the project would be implemented in 2015 with the construction of automobile and electronics factories.
According to the METI website, Japan will provide $3.28 billion for the related infrastructure, electrical systems, ports, and transportation.
Airport
Scale: 150 acres
Scheduled Completion: 2018
A consortium led by Incheon International Airport Corporation (IIAC) has been named as the preferred bidder for the construction and operation of a new international airport in Myanmar. If finalized, the agreement will see the consortium build the $1.1 billion airport, located in Yangon, with the goal of opening it in 2018. IIAC would then operate the airport for up to 50 years.
Other parties in the IIAC-led consortium include Halla Engineering & Construction Corp, Lotte Engineering & Construction Co, POSCO ICT, and Kumho Industrial Co.
Hospitality
Scale: 350-room hotel
Hong Kong-based Shangri-La International Hotel Management has announced an investment of $115 million to build a 350-room Lakeside Shangri-La hotel near Kandawgyi Lake. The hotel, which will be located near the Shangri-La residences that were opened recently, will be the second, after Traders Hotel, to be operated in Yangon by Shangri-La.
"We expect the second phase to be completed by late 2016," said Kuok Koon Kwong, the director of Shangri-La Yangon. According to recent government data, although there are more than 200 hotels and guesthouses together offering more than 9,000 guestrooms throughout Yangon, the city still faces an accommodation shortage for visitors.
More Articals
Great Low-light Performance & WDR IP Camera - Fine TCP-MZ6022-megapixel IP Camera
Great Low-light Performance & WDR IP Camera - Fine TCP-MZ6022-megapixel IP Camera
Fine's TCP-MZ602 adopts Sony's EXMOR CMOS, which enables enhanced image resolution in low-light environments. We find that in 1080P (1920x1080), the EIA resolution chart shows clearly vertical lines over 1100 TVLs (shown in picture 1). When viewed with the standard 24-color rendition chart, TCP-MZ602 shows great color rendition of the CMOS sensor. When further tested in different light modes, it still provides accurate color rendition and stable auto while balance capability (show in picture 2).
The camera is built on Sony Xarina high performance SoC processor and CMOS sensor, so it does not generate too much low light noise caused from the shutter adjustments. Furthermore, when we monitor the moving object in a dynamic scene, the target shows little image smear.
Fine TCP-MZ602 supports the wide dynamic range (WDR) and black light compensation (BLC) features to enhance good image quality and is able to identify corners of the backlight scenes in difficult light environments (shown in picture 3).
SMOOTH STREAMING AND DELAY CONTROL
The resulting lag is 190 milliseconds under H.264 compression and 1080P/30fps condition. Generally, a delay within 500 milliseconds is acceptable, so this camera can maintain ideal streaming with low latency in various resolutions and frame rates to further enhance the good transmission of image packets.
Fine's TCP-MZ602 adopts Sony's EXMOR CMOS, which enables enhanced image resolution in low-light environments. We find that in 1080P (1920x1080), the EIA resolution chart shows clearly vertical lines over 1100 TVLs (shown in picture 1). When viewed with the standard 24-color rendition chart, TCP-MZ602 shows great color rendition of the CMOS sensor. When further tested in different light modes, it still provides accurate color rendition and stable auto while balance capability (show in picture 2).
The camera is built on Sony Xarina high performance SoC processor and CMOS sensor, so it does not generate too much low light noise caused from the shutter adjustments. Furthermore, when we monitor the moving object in a dynamic scene, the target shows little image smear.
Fine TCP-MZ602 supports the wide dynamic range (WDR) and black light compensation (BLC) features to enhance good image quality and is able to identify corners of the backlight scenes in difficult light environments (shown in picture 3).
SMOOTH STREAMING AND DELAY CONTROL
The resulting lag is 190 milliseconds under H.264 compression and 1080P/30fps condition. Generally, a delay within 500 milliseconds is acceptable, so this camera can maintain ideal streaming with low latency in various resolutions and frame rates to further enhance the good transmission of image packets.
2014/10/27
Tried and Tested: Secutech Excellence Awards 2014 Winners are Real McCoy!
The Secutech Excellence Awards keeps getting bigger and better each year. Besides best-of-breed manufacturers from Germany, Japan, Taiwanm and China, Korea and US elites join the competition this year. This year, our low-lux curveballs are hard to handle and all participants push their solutions to the limit in order to hit a home run.
Major challenge to the Secutech Excellence Awards 2014 is the low-light environment. The demo area is set with light temperature of 2300 to 5400 degree k (0 to 400 lux). The main purpose of this event is to help buyers acquire the purchasing know-how when sourcing low-light cameras and swiftly select the right products which suit their needs. During demos, each participant reacted to low-light environment differently. Here are some of the key finds from the entries and winners.
LOW-LIGHT MEGAPIXEL CAMERAS SHINE: 7 TRENDS
1. HD and UHD are to become the norm. The security industry has been migrating to HD. All entries ranging from 1.3 to 8 megapixel put serious thoughts choosing CMOS as Image sensors boast more pixels, sensitivity, and dynamic range, thus becoming the deciding factor for image and frames.
2. 60 to 120FPS video may sacrifice WDR, 2/3DNR features due to CPU loading. With the advance of CMOS, some entries are capable of push FPS to 60 and even 120, which presents clearer image and less ghost images. However, due to the loading of CPU, in order to have high frames, some features have to be switched off, such as digital noise reduction or WDR features. Since sensors are not the only deciding factor for low-light performance, coordination with ISP and CPU is equally crucial. In this case, specs can be misleading and when comparing and testing low-light HD cameras, each camera must be measured under the same conditions.
3. Advance and larger sensors have a large effect on color saturation. HD low-light camera performance depends a great deal on components. Larger image sensors boast more pixels and sensitivity, which bring more hues and color saturation to video image.
4. There are a great numbers of IVS items. It’s getting more and more common to see features like AGC, AWB, AES, 2DNR embedded in low-light cameras.
5. PoE and ABF (auto back focus) have become a necessary function for IP cameras. These features help to focus adjustment and installation of IP cameras.
6. Compatibility and IR lens selection remain crucial. Despite the various additional features now available with IP-based cameras and solutions, products that are ONVIF compliant still manage to encounter difficulties when connecting to one another. For instance, some require username-password key-in while others do not. Also, the selection of lens in order to match low-light cameras is very important as the iris is the opening that allows light to pass through the lens and to the camera. It controls the amount of light that strikes the sensor. The type of iris in the lens should
match low-light cameras.
7. GB-28181 is the Chinese standard for security video surveillance network information transmission, exchange, and control technology requirements. Cameras from many international brands support GB-28181, which implies the importance of Chinese market.
NVR: 6 IMPROVEMENTS
NVRs are starting to be used in more scenarios, especially with the launch of 4 and 16 channel units that look and feel much like analog DVRs. Standalone NVRs are gaining traction in the market. In response, several manufacturers are hearing this call and offering attractive standalone NVRs.
1. Easy does it.
NVR setup and installation used to require high IT network know-how, which was a challenge for traditional security installers. This year, however, NVRs’ GUIs are much improved, which boast ease-of-use features, such as auto search, playback, and backup recording.
2. Linux triumphs.
Unlike a PC-based unit which is likely to run a range of Windows applications, standalone NVRs benefit from the stability that comes with Linux code which is optimized to run only applications relevant to the surveillance tasks required. They are stable, secure, and less prone to viruses and hacks, as opposed to a Windows-based system.
3. Auto camera search function is improved for some.
There is still plenty of room for improvement as camera compatibility is still an issue for NVRs. It could be a problem of ONVIF versions. However, some manufacturers are bypassing compatible issues by offering SDK and RSTP for third party integration.
4. HD recording and playback is workable for NVRs.
5. NVRs have a self-check and self-monitoring function for system health.
Some feature dual power supplies for backup, which send warnings in case there are redundant power errors. One of the NVR winners has put self-monitoring analysis and reporting features in its NVRs, doing disk checking and bad blocks scanning.
6. Some NVRs go virtual.
By leveraging the technologies in the virtualized system, some entries pilot their virtualized NVRs with servers and cloud storage.
UNIQUE PERSPECTIVES ON PROBLEM SOLVING
A total of 37 entries from 27 elite manufacturers participated in this event and presented their IP surveillance solutions, at a dedicated zone, to purchasing decision makers from renowned brands and distributors/importers around the world. Over 500 international buyers joined to vote for the best performing products based on their perspectives. It is the biggest showground featuring a wide range of IP surveillance.
The main purpose of this event is to help buyers acquire the purchasing know-how when sourcing IP surveillances and swiftly select the products which suit their needs. Sometimes, products specification and functions can’t completely reflect the product performances. During the three-day show, over 1000 visitors stopped at this event to explore the product difference and strength. Many system integrators or installers recognize the significance of this event which assists them to discover the core technology of IP surveillance. This event gives the audience and judges a clearer picture of what can be achieved today and what storage/architecture options might suit their own needs better.
Major challenge to the Secutech Excellence Awards 2014 is the low-light environment. The demo area is set with light temperature of 2300 to 5400 degree k (0 to 400 lux). The main purpose of this event is to help buyers acquire the purchasing know-how when sourcing low-light cameras and swiftly select the right products which suit their needs. During demos, each participant reacted to low-light environment differently. Here are some of the key finds from the entries and winners.
LOW-LIGHT MEGAPIXEL CAMERAS SHINE: 7 TRENDS
1. HD and UHD are to become the norm. The security industry has been migrating to HD. All entries ranging from 1.3 to 8 megapixel put serious thoughts choosing CMOS as Image sensors boast more pixels, sensitivity, and dynamic range, thus becoming the deciding factor for image and frames.
2. 60 to 120FPS video may sacrifice WDR, 2/3DNR features due to CPU loading. With the advance of CMOS, some entries are capable of push FPS to 60 and even 120, which presents clearer image and less ghost images. However, due to the loading of CPU, in order to have high frames, some features have to be switched off, such as digital noise reduction or WDR features. Since sensors are not the only deciding factor for low-light performance, coordination with ISP and CPU is equally crucial. In this case, specs can be misleading and when comparing and testing low-light HD cameras, each camera must be measured under the same conditions.
3. Advance and larger sensors have a large effect on color saturation. HD low-light camera performance depends a great deal on components. Larger image sensors boast more pixels and sensitivity, which bring more hues and color saturation to video image.
4. There are a great numbers of IVS items. It’s getting more and more common to see features like AGC, AWB, AES, 2DNR embedded in low-light cameras.
5. PoE and ABF (auto back focus) have become a necessary function for IP cameras. These features help to focus adjustment and installation of IP cameras.
6. Compatibility and IR lens selection remain crucial. Despite the various additional features now available with IP-based cameras and solutions, products that are ONVIF compliant still manage to encounter difficulties when connecting to one another. For instance, some require username-password key-in while others do not. Also, the selection of lens in order to match low-light cameras is very important as the iris is the opening that allows light to pass through the lens and to the camera. It controls the amount of light that strikes the sensor. The type of iris in the lens should
match low-light cameras.
7. GB-28181 is the Chinese standard for security video surveillance network information transmission, exchange, and control technology requirements. Cameras from many international brands support GB-28181, which implies the importance of Chinese market.
NVR: 6 IMPROVEMENTS
NVRs are starting to be used in more scenarios, especially with the launch of 4 and 16 channel units that look and feel much like analog DVRs. Standalone NVRs are gaining traction in the market. In response, several manufacturers are hearing this call and offering attractive standalone NVRs.
1. Easy does it.
NVR setup and installation used to require high IT network know-how, which was a challenge for traditional security installers. This year, however, NVRs’ GUIs are much improved, which boast ease-of-use features, such as auto search, playback, and backup recording.
2. Linux triumphs.
Unlike a PC-based unit which is likely to run a range of Windows applications, standalone NVRs benefit from the stability that comes with Linux code which is optimized to run only applications relevant to the surveillance tasks required. They are stable, secure, and less prone to viruses and hacks, as opposed to a Windows-based system.
3. Auto camera search function is improved for some.
There is still plenty of room for improvement as camera compatibility is still an issue for NVRs. It could be a problem of ONVIF versions. However, some manufacturers are bypassing compatible issues by offering SDK and RSTP for third party integration.
4. HD recording and playback is workable for NVRs.
5. NVRs have a self-check and self-monitoring function for system health.
Some feature dual power supplies for backup, which send warnings in case there are redundant power errors. One of the NVR winners has put self-monitoring analysis and reporting features in its NVRs, doing disk checking and bad blocks scanning.
6. Some NVRs go virtual.
By leveraging the technologies in the virtualized system, some entries pilot their virtualized NVRs with servers and cloud storage.
UNIQUE PERSPECTIVES ON PROBLEM SOLVING
A total of 37 entries from 27 elite manufacturers participated in this event and presented their IP surveillance solutions, at a dedicated zone, to purchasing decision makers from renowned brands and distributors/importers around the world. Over 500 international buyers joined to vote for the best performing products based on their perspectives. It is the biggest showground featuring a wide range of IP surveillance.
The main purpose of this event is to help buyers acquire the purchasing know-how when sourcing IP surveillances and swiftly select the products which suit their needs. Sometimes, products specification and functions can’t completely reflect the product performances. During the three-day show, over 1000 visitors stopped at this event to explore the product difference and strength. Many system integrators or installers recognize the significance of this event which assists them to discover the core technology of IP surveillance. This event gives the audience and judges a clearer picture of what can be achieved today and what storage/architecture options might suit their own needs better.
SMAhome International Conference & Exhibition 2014 Review - Asia, a sourcing hub for smart home cameras
Asia is the largest manufacturing base of home security cameras and surveillance kits, with hundreds of competing suppliers. For these suppliers, the major export markets for smart home security cameras and surveillance kits are areas with well-developed network infrastructures, such as Europe and the U.S.
Asian suppliers at the SMAhome International Conference & Exhibition 2014 (powered by Secutech) are primarily traditional surveillance, telecommunication and multimedia companies. For them, it is a new business opportunities. However, it is a whole new market, with different priorities and demands. Therefore, no player in each industry has an extreme advantage. The smart home market is new for the surveillance industry in terms of applications and user experiences. From the interviews, no killer application is mentioned so far. Not all surveillance companies are enthusiastic about this market. Nevertheless, some companies plan to enter the smart home market with DIY offerings and a new brand for their smart home product lineup.
Home security cameras require network connectivity and easy-to-use software in addition to reliable hardware. The telecommunications-based companies like Sercomm, Zinwell and Senao Networks boast their strong cloud services and high Quality of Service (QoS) for networks. As for the companies who are experts in audio and video processing, like DXG and PiXORD, they aim for high-quality images through IC, digital image processing and optical designs as their core competencies. Those companies are strong competitors to traditional surveillance companies in the smart home market. As for brand-centric companies, foreign companies like Bosch, Axis and ADT may be their greatest competitors. We explore export markets, business models, sales channels, and major applications along with major product features we've seen at SMAhome 2014.
US LEADS THE MARKET
North America is still the largest export market for Asian manufacturers, followed by Europe. Market acceptance,
mature network infrastructure and consumer affordability are three major factors to boost the market. For some interviewees, more than 50 percent of sales revenue is contributed by the US market. In the U.S., the DIY market is booming. Alan Chang, Vice President of International Sales & Marketing Dept of DXG, whose major export markets include Europe and North America, thinks that the ubiquity of smartphones and proliferation of 4G network are two driving forces of the market.
William Ku, Vice President of International Business Div. of Vivotek mentioned that TV and door are two key positions for the smart home market.
Russia, Brazil and Southeast Asia are viewed as three export markets with a lot of potential. Emerging countries are considered to be the next promising areas. Russia and Brazil are said to be two fast-growing regions over the next to three years. The improved network infrastructure, strong buying power, and conversion from analog signals to digital are three major factors. Russia is a potential market due to its high consumption capability, said Bruce Wang, Marketing Manager of Compro.
China is another promising area, but will likely see less growth compared to the above-mentioned regions, some exhibitors said. In China, India and the Middle East, home security still caters to the high-end market. As for India, wealth inequality and low profit from channels can be two reasons that make foreign suppliers reluctant to enter the market.
BUSINESS TYPES DIFFER BY REGIONS AND CUSTOMERS
Asian manufacturers' security cameras are distributed under their own names or customers'. OEM, ODM and private label businesses are major types for manufacturers of electronics products. For home security cameras and surveillance kits, OEM and ODM are two major business types. A few companies emphasize on own-brand business. For example, 3S PocketNet emphasizes its own-brand business, selling its network cameras and bundled software to end users and SIs. With strong design and manufacturing capabilities, Asian suppliers work with SIs and distributors via private label business for global project cases. Of course, there are also companies that offer only OEM and ODM services, like Sercomm and Zinwell.
To stay competitive, some Asian suppliers strengthen their vertical integration capability via in-house design capability or upstream subsidiaries. For instance, Vatics, a spin-off from the SoC solutions department of Vivotek, offers SoC for network cameras. PiXORD, a subsidiary of ELAN Microelectronics, prides itself on image processing from the side of IC design.
Due to geographical differences and consumer behaviors, own-brand products are distributed via distributors or companies' local branch offices. Some companies of professional surveillance products offer smart home products under new brands—for example, Hikvision thinks this is a better approach because it sees the smart home market as a new market, rather than an extension of traditional surveillance. The company released smart home related products and solutions under the its EZVIZ brand so that consumers can differentiate its smart home business from its professional surveillance segment.
MAJOR CHANNELS
When in comes to product distribution, online and retail stores are two major sales channels of branded products for the DIY market, especially in North America and Europe. For DIY users, online stores are important channels due to the convenience of direct ordering. In the U.S., there is a large market of DIY consumers who prefer to shop online or at retail stores.
Distributors are important to enter the European market. Own-brand products are mostly sold to European online shops and retailers through distributors. The distributors are also important for Asian makers to enter the South American market. Dylan Tseng, Senior Sales Manager of Sales Center Business Unit of Pixord stated that the company entered the Brazil market through partnerships with local distributors.
As for manufacturers, home security cameras are distributed all over the world primarily by branded companies, SIs, telcos and distributors. ost of the manufacturers rely on SIs, value-added resellers (VAR), dealers and distributors to distribute products overseas. Allan Chien, Associate Vice President of Branding Business Dept of Senao Networks said VARs could be major partners.
Telcos like AT&T, SFR, Qivicon and Verizon offer home monitoring and control, as well as home security and automation services. Offering home surveillance services with free or rented network cameras is one of the approaches for telcos to spur market growth. Apart from European and US telcos, there are also opportunities in emerging markets like Southeast Asia and South America. Southeast Asia is one of Zavio's major export markets. Shauchau You, Vice President of Zavio indicated that it is a common for manufacturers to sell home cameras or solutions to telcos in Southeast Asia through local SIs and distributors.
To approach telcos, most Asian manufactures work with SIs, distributors or branded companies by private-label business for telco projects. They take the same approach as they do with alarm monitoring and security service providers. Only a few large-sized companies like Sercomm or those whose specialty is in telephony or set-top boxes, like Zinwell, can approach the telcos directly by offering value-added services like free small cell or provision of total solutions. Almost all of their products are sold through OEM and ODM projects.
SECURITY TAKES THE FIRST PLACE
The smart home market comprises home security, automation and energy management. For suppliers at the show, the home security market is their main battlefield, generating the most profit. Home automation is a space they are targeting next, although they position these products and services for the high-end market.
Network cameras are major contributors to the home security market, in terms of sales revenue. The products can also be used for small offices and retail stores. Ben Huang, Digital Product Marketing Specialist of Product Dept of Zinwell Corporation indicated that the home security camera is the first product line to target for entering the smart home market.
Interviews conducted at the show reveal that Chinese companies tend to offer surveillance kits that consist of cameras and 4-channel NVRs or home NAS for the home security market. Moreover, the consumer-centric smart home market forces manufacturers to focus on user-friendly software and user application to make their products more appealing in a highly competitive market.
Home automation is the next focus for Asian makers after security. Bruce Wang of Compro said that home automation is a value-added feature for home security cameras. Compro offers a cloud camera based on ZigBee technology, featuring power saving features and a long life cycle. So far, home automation solutions are considered as the high-end segment of the smart home market. Most Asian network camera manufacturers enter the market by providing video door phone cameras, peephole cameras or indoor cameras with motion detection. Products like Brinno's PHV MAC feature easy DIY and senior-friendly setup. Video surveillance, video recording and DIY alarm monitoring are common features. They co-work with leading companies like Control4 to enter the market.
The other way to enter the market is to release network cameras with simple home control functions. The providers are required to have design capability in software integration and wireless networks. Take Compro for example, its cameras are bundled with C4Home software to enable home automation by remotely controlling home appliances with the built-in IR remote control.
Energy management is becoming more important, too, especially in Europe. Only a few companies offer simple functions like indoor temperature alarm and control through PIR or temperature sensor. For instance, StarVedia released its Temperature Alarm System (TAS), which offers intelligent surveillance for homes and stores. Users can ask the babysitter to turn off the air conditioner through the built-in speaker and infrared thermometer of its network cameras. We can expect more and more new network cameras that support simple energy management functions like temperature control as value-added features.
USER-FRIENDLINESS IS KEY
Smart home product features are simple, useful and affordable. For home users, user-friendly software and experience are two decisive factors before making a purchase. Home security cameras, mostly referring to those network cameras, are ranked as entry-level products, in terms of hardware specs. Makers don't emphasize on advancements in technology, but on practical and fascinating user experiences.
Cloud services are a selling point when talking about storage among Asian makers. At present, both local and cloud storage media are available. SD memory cards can be one major adoption for alarm-triggered recordings. Some choose NVRs as the recording bank, although a home NAS may be a more affordable alternative. Cloud storage saves costs for the user, with many manufacturers offering free-of-charge storage. However, privacy can be an important issue to notice when it comes to any free service. Therefore, personal cloud storage consists of free space at Amazon server, Dropbox and Google Drive for privacy. Traditional surveillance companies prefer to promote surveillance kits with local storage solution; new entrants like telecommunications-based companies tend to promote cloud storage solutions.
Of course, any home device requires a trendy exterior, and home security cameras are no exception. Sleek design and compact size are two distinguishing features for the home-use models among network cameras. Regarding form factor, cube models are currently the mainstream. This year, suppliers promoted models that support PTZ functionality, along with mini dome and bullet models for outdoor use. Models with fish-eye lenses are also promoted.
Moreover, Asian manufacturers promote new value-added features, such as waterproof (IP66) and ROI (region of interest). ROI offers bandwidth and storage optimization through targeted image capturing of specific important areas for preview and recording. H.264 is the mainstream video streaming format. Models supporting H.265, which was approved by ITU in 2013, can be seen as early as late 2014.
Asian suppliers at the SMAhome International Conference & Exhibition 2014 (powered by Secutech) are primarily traditional surveillance, telecommunication and multimedia companies. For them, it is a new business opportunities. However, it is a whole new market, with different priorities and demands. Therefore, no player in each industry has an extreme advantage. The smart home market is new for the surveillance industry in terms of applications and user experiences. From the interviews, no killer application is mentioned so far. Not all surveillance companies are enthusiastic about this market. Nevertheless, some companies plan to enter the smart home market with DIY offerings and a new brand for their smart home product lineup.
Home security cameras require network connectivity and easy-to-use software in addition to reliable hardware. The telecommunications-based companies like Sercomm, Zinwell and Senao Networks boast their strong cloud services and high Quality of Service (QoS) for networks. As for the companies who are experts in audio and video processing, like DXG and PiXORD, they aim for high-quality images through IC, digital image processing and optical designs as their core competencies. Those companies are strong competitors to traditional surveillance companies in the smart home market. As for brand-centric companies, foreign companies like Bosch, Axis and ADT may be their greatest competitors. We explore export markets, business models, sales channels, and major applications along with major product features we've seen at SMAhome 2014.
US LEADS THE MARKET
North America is still the largest export market for Asian manufacturers, followed by Europe. Market acceptance,
mature network infrastructure and consumer affordability are three major factors to boost the market. For some interviewees, more than 50 percent of sales revenue is contributed by the US market. In the U.S., the DIY market is booming. Alan Chang, Vice President of International Sales & Marketing Dept of DXG, whose major export markets include Europe and North America, thinks that the ubiquity of smartphones and proliferation of 4G network are two driving forces of the market.
William Ku, Vice President of International Business Div. of Vivotek mentioned that TV and door are two key positions for the smart home market.
Russia, Brazil and Southeast Asia are viewed as three export markets with a lot of potential. Emerging countries are considered to be the next promising areas. Russia and Brazil are said to be two fast-growing regions over the next to three years. The improved network infrastructure, strong buying power, and conversion from analog signals to digital are three major factors. Russia is a potential market due to its high consumption capability, said Bruce Wang, Marketing Manager of Compro.
China is another promising area, but will likely see less growth compared to the above-mentioned regions, some exhibitors said. In China, India and the Middle East, home security still caters to the high-end market. As for India, wealth inequality and low profit from channels can be two reasons that make foreign suppliers reluctant to enter the market.
BUSINESS TYPES DIFFER BY REGIONS AND CUSTOMERS
Asian manufacturers' security cameras are distributed under their own names or customers'. OEM, ODM and private label businesses are major types for manufacturers of electronics products. For home security cameras and surveillance kits, OEM and ODM are two major business types. A few companies emphasize on own-brand business. For example, 3S PocketNet emphasizes its own-brand business, selling its network cameras and bundled software to end users and SIs. With strong design and manufacturing capabilities, Asian suppliers work with SIs and distributors via private label business for global project cases. Of course, there are also companies that offer only OEM and ODM services, like Sercomm and Zinwell.
To stay competitive, some Asian suppliers strengthen their vertical integration capability via in-house design capability or upstream subsidiaries. For instance, Vatics, a spin-off from the SoC solutions department of Vivotek, offers SoC for network cameras. PiXORD, a subsidiary of ELAN Microelectronics, prides itself on image processing from the side of IC design.
Due to geographical differences and consumer behaviors, own-brand products are distributed via distributors or companies' local branch offices. Some companies of professional surveillance products offer smart home products under new brands—for example, Hikvision thinks this is a better approach because it sees the smart home market as a new market, rather than an extension of traditional surveillance. The company released smart home related products and solutions under the its EZVIZ brand so that consumers can differentiate its smart home business from its professional surveillance segment.
MAJOR CHANNELS
When in comes to product distribution, online and retail stores are two major sales channels of branded products for the DIY market, especially in North America and Europe. For DIY users, online stores are important channels due to the convenience of direct ordering. In the U.S., there is a large market of DIY consumers who prefer to shop online or at retail stores.
Distributors are important to enter the European market. Own-brand products are mostly sold to European online shops and retailers through distributors. The distributors are also important for Asian makers to enter the South American market. Dylan Tseng, Senior Sales Manager of Sales Center Business Unit of Pixord stated that the company entered the Brazil market through partnerships with local distributors.
As for manufacturers, home security cameras are distributed all over the world primarily by branded companies, SIs, telcos and distributors. ost of the manufacturers rely on SIs, value-added resellers (VAR), dealers and distributors to distribute products overseas. Allan Chien, Associate Vice President of Branding Business Dept of Senao Networks said VARs could be major partners.
Telcos like AT&T, SFR, Qivicon and Verizon offer home monitoring and control, as well as home security and automation services. Offering home surveillance services with free or rented network cameras is one of the approaches for telcos to spur market growth. Apart from European and US telcos, there are also opportunities in emerging markets like Southeast Asia and South America. Southeast Asia is one of Zavio's major export markets. Shauchau You, Vice President of Zavio indicated that it is a common for manufacturers to sell home cameras or solutions to telcos in Southeast Asia through local SIs and distributors.
To approach telcos, most Asian manufactures work with SIs, distributors or branded companies by private-label business for telco projects. They take the same approach as they do with alarm monitoring and security service providers. Only a few large-sized companies like Sercomm or those whose specialty is in telephony or set-top boxes, like Zinwell, can approach the telcos directly by offering value-added services like free small cell or provision of total solutions. Almost all of their products are sold through OEM and ODM projects.
SECURITY TAKES THE FIRST PLACE
The smart home market comprises home security, automation and energy management. For suppliers at the show, the home security market is their main battlefield, generating the most profit. Home automation is a space they are targeting next, although they position these products and services for the high-end market.
Network cameras are major contributors to the home security market, in terms of sales revenue. The products can also be used for small offices and retail stores. Ben Huang, Digital Product Marketing Specialist of Product Dept of Zinwell Corporation indicated that the home security camera is the first product line to target for entering the smart home market.
Interviews conducted at the show reveal that Chinese companies tend to offer surveillance kits that consist of cameras and 4-channel NVRs or home NAS for the home security market. Moreover, the consumer-centric smart home market forces manufacturers to focus on user-friendly software and user application to make their products more appealing in a highly competitive market.
Home automation is the next focus for Asian makers after security. Bruce Wang of Compro said that home automation is a value-added feature for home security cameras. Compro offers a cloud camera based on ZigBee technology, featuring power saving features and a long life cycle. So far, home automation solutions are considered as the high-end segment of the smart home market. Most Asian network camera manufacturers enter the market by providing video door phone cameras, peephole cameras or indoor cameras with motion detection. Products like Brinno's PHV MAC feature easy DIY and senior-friendly setup. Video surveillance, video recording and DIY alarm monitoring are common features. They co-work with leading companies like Control4 to enter the market.
The other way to enter the market is to release network cameras with simple home control functions. The providers are required to have design capability in software integration and wireless networks. Take Compro for example, its cameras are bundled with C4Home software to enable home automation by remotely controlling home appliances with the built-in IR remote control.
Energy management is becoming more important, too, especially in Europe. Only a few companies offer simple functions like indoor temperature alarm and control through PIR or temperature sensor. For instance, StarVedia released its Temperature Alarm System (TAS), which offers intelligent surveillance for homes and stores. Users can ask the babysitter to turn off the air conditioner through the built-in speaker and infrared thermometer of its network cameras. We can expect more and more new network cameras that support simple energy management functions like temperature control as value-added features.
USER-FRIENDLINESS IS KEY
Smart home product features are simple, useful and affordable. For home users, user-friendly software and experience are two decisive factors before making a purchase. Home security cameras, mostly referring to those network cameras, are ranked as entry-level products, in terms of hardware specs. Makers don't emphasize on advancements in technology, but on practical and fascinating user experiences.
Cloud services are a selling point when talking about storage among Asian makers. At present, both local and cloud storage media are available. SD memory cards can be one major adoption for alarm-triggered recordings. Some choose NVRs as the recording bank, although a home NAS may be a more affordable alternative. Cloud storage saves costs for the user, with many manufacturers offering free-of-charge storage. However, privacy can be an important issue to notice when it comes to any free service. Therefore, personal cloud storage consists of free space at Amazon server, Dropbox and Google Drive for privacy. Traditional surveillance companies prefer to promote surveillance kits with local storage solution; new entrants like telecommunications-based companies tend to promote cloud storage solutions.
Of course, any home device requires a trendy exterior, and home security cameras are no exception. Sleek design and compact size are two distinguishing features for the home-use models among network cameras. Regarding form factor, cube models are currently the mainstream. This year, suppliers promoted models that support PTZ functionality, along with mini dome and bullet models for outdoor use. Models with fish-eye lenses are also promoted.
Moreover, Asian manufacturers promote new value-added features, such as waterproof (IP66) and ROI (region of interest). ROI offers bandwidth and storage optimization through targeted image capturing of specific important areas for preview and recording. H.264 is the mainstream video streaming format. Models supporting H.265, which was approved by ITU in 2013, can be seen as early as late 2014.
2014/10/23
How to Choose Megapixel IP Camera?
The choice of Megapixel high-definition 1080P WDR IR Dome fixed IP camera depends on your specific needs, from the choice of irradiation distance, the choice of different environment. The choice all need to consider.
If take the price performance ratio as consideration: it need to pay attention to the following these parameters,
First, the sensor size (1/2.7 the greater the more expensive, the mainstream are 1/2.7，1/3，1/3.2，1/4, etc.), manufacturer (SONY, sharp, etc., SONY is good, also relatively expensive);
Second, the processing chip solution (different solution, the price is different, it is different form image processing, fever is different);
Third, the comparison of the lowest illuminance (determine the sensitivity of the camera to light);
Fourth, the signal-to-noise ratio that determines the image quality;
Fifth, whether has wide dynamic effect (indoor and outdoor scene need to be considered);
All of these are a personal experience, the hope can help you.
Reference:
1. Common Sense to Choose and Buy DVR
2. How to choose and buy NVR
If take the price performance ratio as consideration: it need to pay attention to the following these parameters,
First, the sensor size (1/2.7 the greater the more expensive, the mainstream are 1/2.7，1/3，1/3.2，1/4, etc.), manufacturer (SONY, sharp, etc., SONY is good, also relatively expensive);
Second, the processing chip solution (different solution, the price is different, it is different form image processing, fever is different);
Third, the comparison of the lowest illuminance (determine the sensitivity of the camera to light);
Fourth, the signal-to-noise ratio that determines the image quality;
Fifth, whether has wide dynamic effect (indoor and outdoor scene need to be considered);
All of these are a personal experience, the hope can help you.
Reference:
1. Common Sense to Choose and Buy DVR
2. How to choose and buy NVR
2014/10/22
Italian Security Leaders - Top 25 Notable Results in a Difficult Time
a&s Italy, in conjunction with financial analyst KF Economics (K Finance Group), recently released the second edition of the Italian Security 25 following the hugely successful first edition. The survey investigates the state and health of the Italian security industry in 2012 by analyzing data on 227 companies, which were divided into four operational categories: manufacturers, distributors, systems integrators, and manufacturers/distributors.
It needs to be pointed out that, to reflect the reality of the Italian security market as faithfully as possible, only firms, Italian or multinational, that had an Italian value-added tax (VAT) number and that were entirely dedicated to security were included. Also, all monetary figures have been converted from the euro to the U.S. dollar at 1:1.38, the exchange rate on April 16 when this report was compiled.
Based on 2012's revenue, the top five of the Italian Security 25 were Notifier Italia, Project Automation, Hesa, Saima Sicurezza and Tecnoalarm. It is worth noting that their rankings either stayed the same or, in the case of Notifier, Hesa and Tecnoalarm, rose from 2011. Of the top five, three were manufacturers, one was a distributor, and one a systems integrator. This discernibly reflects the distribution of revenue across the supply chain, with sales generated by manufacturers, distributors, systems integrators and manufacturers/distributors accounting for 46 percent, 23 percent, 22 percent and 9 percent of the total, respectively.
Overall, the average turnover of the Top 25 in 2012 was US$28.19 million, a decline of 13 percent compared with 2011 when the 25 made $32.94 million. This was hardly a surprise due to the overall gloomy macroeconomic conditions in Italy. Similarly, the average turnover f all firms included in the sample declined, from $7.64 million to $5.78 million. The ratio of the average revenue of the Top 25 to that of the entire sample was 4 to 1.
REVENUE VS. REVENUE GROWTH
An examination of the Top 25 by revenue growth between 2011 and 2012 results in a reshuffling of rankings, with Laserline Safety & Security Systems, INIM Electronics, Pilomat, Combivox and Atral Italia at the top five positions. On average, the Top 25 grew 9 percent, significantly lower than the 19 percent for the entire sample. The discrepancy might have resulted from the decision to include in the survey only companies that were small-medium enterprises (with sales above $6.9 million) or corporations (with sales above $69 million) to prevent a skewing of the survey by smaller companies, which had the most striking percentage variations in their revenues.
PROFITABILITY
When EBITDA margin was used as the perimeter, the Top 25 had an average of 16 percent, compared to the 4 percent for the entire sample. This finding confirms the notion that the Top 25 had better performances and overall health than the rest of the group, since EBITDA, which measures a firm's earnings before payable interest, taxes and amortization, is a fundamental indicator of profitability.
Manufacturers
It is also interesting to note that for the Top 25 by EBITDA margin, those on the top were mostly manufacturers as opposed to distributors. Overall, manufacturers registered an average EBITDA margin of 11 percent.
Distributors
Distributors, on the other hand, had a mere average margin of 5 percent. This figure is fully in line with the global trend that sees "pure" and traditionally oriented distributors attempting to recover profit margins by absorbing business units dedicated to integration.
Systems Integrators
Systems integrators, meanwhile, led distributors in profitability with an overall 2012 EBITDA margin of 7 percent, same as the figure for 2011.
These findings were consistent with the distribution of EBITDA margin according to typology of activity. Distributors in general report margins of 4 to 8 percent. A similar margin for a manufacturer, on the contrary, would produce completely negative results since it would be unable to recover the necessary investments, which are much lower for distributors.
REVENUE GROWTH VS. PROFIT
It could be said that companies across the supply chain were able to maintain their positions in 2012 in spite of Italy's macroeconomic deterioration that resulted in a decline in revenue. EBITDA margins for manufacturers, distributors, systems integrators and manufacturers/distributors stood at 11 percent, 5 percent, 7 percent and 1 percent, respectively, while growth figures for these players were -1 percent, 2 percent, -3 percent and -14 percent. The figures also confirmed the notion, as they did in the previous report, that it doesn't pay to be a "jack of all trades." For producers operating in several segments and companies with a mixed production and distribution operations, they saw declining turnovers and modest profitability.
On the contrary, companies focusing on specific operative segments seemed to have elivered much better results. Even more than in the previous report, the "specialist" image was key to driving a company's business and promoting its know-how.
Anti-intrusion
Among manufacturers, those making anti-intrusion devices were the most profitable, with average EBITDA margin of 15 percent, followed by fire-fighting products, video surveillance and access control, whose margins were 11 percent, 5 percent and 3 percent, respectively. The reason for the wide gap between the margins of anti-intrusion and surveillance manufacturers is twofold. First, as mentioned, the survey excluded certain multinationals, most of which were decidedly devoted to surveillance technologies. Second, surveillance was a rising market where manufacturers were subject to intense competition and price wars.
Anti-intrusion players, on the other hand, has long developed good customer fidelity, a feature that sets them apart from the CCTV segment where the supply is continually growing and operators sprout up like mushrooms. The presence of Italian and European companies in the anti-intrusion business has also avoided an excessive lowering of prices, limiting
any contraction of profit margin.
Video Surveillance
Video surveillance manufacturers saw 2012 revenue decline by 11 percent, as opposed to growth of more than 30 percent back in 2011. Their profitability was nevertheless moderate, with EBITDA margin of 5 percent, which might have been contributed by a strong and constant increase in supply and the contemporaneous reduction in the costs of the items sold, especially with regard to new-generation technologies such as IP video.
Access Control
Access control operators posted revenue growth of 10 percent in 2012 yet saw moderate profit margin of 3 percent. This was a sharp reversal from 2011, when they had high profitability (10 percent) yet did not grow.
VALUE GENERATORS
The Italian security industry in 2012 generated truly genuine values, as indicated by its index of financial value (IFV) of 43 percent, which means that for every 100 euros ($138) of turnover generated in these companies, 43 euros ($59.34) of financial value was created. The figure was higher than the 30 percent for the entire manufacturing sector. Meanwhile, the security industry earned a KF rating of KR5. The KF rating measures an industry's financial solidity and employs a scale that goes from KR1 (companies at high risk of insolvency) to KR7 (companies at low risk of insolvency).
In terms of value generation and financial solidity, the anti-intrusion sector was definitely the most brilliant, with an IFV of 88 percent and KF rating of KR6, thanks to a renaissance of the residential market in 2012. Buzzwords such as "wireless," "remote control of mobile devices," "touch," "home automation" and "IP platforms" deluged the housing market as people utilized more advanced technologies to make their homes safe and secure.
Things were also pretty good for surveillance players, which had IFV of 49 percent and KF rating of KR6 in 2012, a year that saw a rise in the following: video intelligence, unification between video surveillance and access control under a single platform, network cameras used for perimeter protection, and integration between vendors to create increasingly complete and unified solutions. It was also the year of video management software, especially open-platform ones. But above all, 2012 was the year of IP video, which established itself as a preferred technology across the board and enabled videos with high-quality and multi-megapixel resolutions.
MANUFACTURERS
Among manufacturers, those making anti-intrusion devices led in both total revenue and revenue growth. Together, these players churned out total turnovers of $315.26 million, followed by physical security, fire prevention, video surveillance and access control. By revenue growth, anti-intrusion makers grew nearly 8 percent between 2011 and 2012, while all the others experienced negative growth, with video surveillance manufacturers losing 11 percent compared to 2011. The top five manufacturers by turnover were Notifier Italia, Saima Sicurezza, Tecnoalarm, Bentel Security and Selesta Ingegneria.
DISTRIBUTORS
Distributors, specifically those distributing video surveillance products and solutions, struggled to stay profitable in 2012. While the Top 25 distributors (the first five being Hesa, Sicurtec, DIAS, S&A and Sicurtec Brescia) saw revenue growth of 94 percent compared to the 31 percent for the entire sample, their average EBITDA margin was 4 percent, only 1 percent above the 3 percent for the entire group. Meanwhile, distributors showed less financial solidity in 2012, earning a rating of KR4+, which indicates higher risk of insolvency. Manufacturers, on the other hand, had a rating of KR5. This indicated that distributors bore the risk of unsold items in their warehouses and faced intensifying competition, which mostly came from IT distributors who worked with lower margins. Making matters worse, other players also entered the fray. These included systems integrators, who oftentimes worked as distributors as well. Distributors indeed had a rough 2012.
SYSTEMS INTEGRATORS
The high revenues generated by the Top 25 systems integrators had benefited them at an economic-financial level. The top five by 2012 revenue were Project Automation, which retained its No. 1 position from 2011, followed by Sistemi Integrati, DAB Sistemi integrati, Consorzio Nazionale Sicurezza Scarl, and CISA. Overall, the Top 25 saw average turnover of $10.64 million, more than double the figure for integrators as a whole at $4.92 million. In terms of EBITDA margin, the Top 25 averaged at 7 percent, in stark contrast with the 2 percent for the group as a whole. While revenue growth for the Top 25 stayed flat at 0 percent, it was higher than the -2 percent for the entire sample. The overall health of the segment gave them a rating of KR5, putting systems integrators at the top in terms of financial solidity.
MANUFACTURERS/DISTRIBUTORS
By 2012's revenue, the top five manufacturers/distributors, which focused on production and distribution equally, were UTC Fire & Security Italia, Honeywell Security Italia-ADI Global, Gunnebo Italia, Sicurit Alarmitalia and Bettini. For the top manufacturers/distributors, their average turnover was $14.27 million, a decline of 15 percent from 2011, and EBITDA margin averaged 0 percent. Nevertheless, in terms of ratings, manufacturers/distributors garnered KR5+, above the KR5 for manufacturers and KR4+ for distributors. This confirms the notion that, while the "hybrid" formula penalizes profit margins, the financial solidity for these players offsets certain distribution problems, for example financing the supply chain.
CONCLUSION
The survey gave a detailed analysis of the Italian security industry, which showed resilience in spite of ominous macroeconomic conditions in 2012. While the Top 25 firms by revenue reported an overall year-over-year decline in sales, they were able to register average EBITDA margin of 8 percent, compared to the 4 percent for the overall industry in the midst of austerity and tax hike measures at the time. It could therefore be pointed out that Italian security firms gave a performance that was more than remarkable.
It needs to be pointed out that, to reflect the reality of the Italian security market as faithfully as possible, only firms, Italian or multinational, that had an Italian value-added tax (VAT) number and that were entirely dedicated to security were included. Also, all monetary figures have been converted from the euro to the U.S. dollar at 1:1.38, the exchange rate on April 16 when this report was compiled.
Based on 2012's revenue, the top five of the Italian Security 25 were Notifier Italia, Project Automation, Hesa, Saima Sicurezza and Tecnoalarm. It is worth noting that their rankings either stayed the same or, in the case of Notifier, Hesa and Tecnoalarm, rose from 2011. Of the top five, three were manufacturers, one was a distributor, and one a systems integrator. This discernibly reflects the distribution of revenue across the supply chain, with sales generated by manufacturers, distributors, systems integrators and manufacturers/distributors accounting for 46 percent, 23 percent, 22 percent and 9 percent of the total, respectively.
Overall, the average turnover of the Top 25 in 2012 was US$28.19 million, a decline of 13 percent compared with 2011 when the 25 made $32.94 million. This was hardly a surprise due to the overall gloomy macroeconomic conditions in Italy. Similarly, the average turnover f all firms included in the sample declined, from $7.64 million to $5.78 million. The ratio of the average revenue of the Top 25 to that of the entire sample was 4 to 1.
REVENUE VS. REVENUE GROWTH
An examination of the Top 25 by revenue growth between 2011 and 2012 results in a reshuffling of rankings, with Laserline Safety & Security Systems, INIM Electronics, Pilomat, Combivox and Atral Italia at the top five positions. On average, the Top 25 grew 9 percent, significantly lower than the 19 percent for the entire sample. The discrepancy might have resulted from the decision to include in the survey only companies that were small-medium enterprises (with sales above $6.9 million) or corporations (with sales above $69 million) to prevent a skewing of the survey by smaller companies, which had the most striking percentage variations in their revenues.
PROFITABILITY
When EBITDA margin was used as the perimeter, the Top 25 had an average of 16 percent, compared to the 4 percent for the entire sample. This finding confirms the notion that the Top 25 had better performances and overall health than the rest of the group, since EBITDA, which measures a firm's earnings before payable interest, taxes and amortization, is a fundamental indicator of profitability.
Manufacturers
It is also interesting to note that for the Top 25 by EBITDA margin, those on the top were mostly manufacturers as opposed to distributors. Overall, manufacturers registered an average EBITDA margin of 11 percent.
Distributors
Distributors, on the other hand, had a mere average margin of 5 percent. This figure is fully in line with the global trend that sees "pure" and traditionally oriented distributors attempting to recover profit margins by absorbing business units dedicated to integration.
Systems Integrators
Systems integrators, meanwhile, led distributors in profitability with an overall 2012 EBITDA margin of 7 percent, same as the figure for 2011.
These findings were consistent with the distribution of EBITDA margin according to typology of activity. Distributors in general report margins of 4 to 8 percent. A similar margin for a manufacturer, on the contrary, would produce completely negative results since it would be unable to recover the necessary investments, which are much lower for distributors.
REVENUE GROWTH VS. PROFIT
It could be said that companies across the supply chain were able to maintain their positions in 2012 in spite of Italy's macroeconomic deterioration that resulted in a decline in revenue. EBITDA margins for manufacturers, distributors, systems integrators and manufacturers/distributors stood at 11 percent, 5 percent, 7 percent and 1 percent, respectively, while growth figures for these players were -1 percent, 2 percent, -3 percent and -14 percent. The figures also confirmed the notion, as they did in the previous report, that it doesn't pay to be a "jack of all trades." For producers operating in several segments and companies with a mixed production and distribution operations, they saw declining turnovers and modest profitability.
On the contrary, companies focusing on specific operative segments seemed to have elivered much better results. Even more than in the previous report, the "specialist" image was key to driving a company's business and promoting its know-how.
Anti-intrusion
Among manufacturers, those making anti-intrusion devices were the most profitable, with average EBITDA margin of 15 percent, followed by fire-fighting products, video surveillance and access control, whose margins were 11 percent, 5 percent and 3 percent, respectively. The reason for the wide gap between the margins of anti-intrusion and surveillance manufacturers is twofold. First, as mentioned, the survey excluded certain multinationals, most of which were decidedly devoted to surveillance technologies. Second, surveillance was a rising market where manufacturers were subject to intense competition and price wars.
Anti-intrusion players, on the other hand, has long developed good customer fidelity, a feature that sets them apart from the CCTV segment where the supply is continually growing and operators sprout up like mushrooms. The presence of Italian and European companies in the anti-intrusion business has also avoided an excessive lowering of prices, limiting
any contraction of profit margin.
Video Surveillance
Video surveillance manufacturers saw 2012 revenue decline by 11 percent, as opposed to growth of more than 30 percent back in 2011. Their profitability was nevertheless moderate, with EBITDA margin of 5 percent, which might have been contributed by a strong and constant increase in supply and the contemporaneous reduction in the costs of the items sold, especially with regard to new-generation technologies such as IP video.
Access Control
Access control operators posted revenue growth of 10 percent in 2012 yet saw moderate profit margin of 3 percent. This was a sharp reversal from 2011, when they had high profitability (10 percent) yet did not grow.
VALUE GENERATORS
The Italian security industry in 2012 generated truly genuine values, as indicated by its index of financial value (IFV) of 43 percent, which means that for every 100 euros ($138) of turnover generated in these companies, 43 euros ($59.34) of financial value was created. The figure was higher than the 30 percent for the entire manufacturing sector. Meanwhile, the security industry earned a KF rating of KR5. The KF rating measures an industry's financial solidity and employs a scale that goes from KR1 (companies at high risk of insolvency) to KR7 (companies at low risk of insolvency).
In terms of value generation and financial solidity, the anti-intrusion sector was definitely the most brilliant, with an IFV of 88 percent and KF rating of KR6, thanks to a renaissance of the residential market in 2012. Buzzwords such as "wireless," "remote control of mobile devices," "touch," "home automation" and "IP platforms" deluged the housing market as people utilized more advanced technologies to make their homes safe and secure.
Things were also pretty good for surveillance players, which had IFV of 49 percent and KF rating of KR6 in 2012, a year that saw a rise in the following: video intelligence, unification between video surveillance and access control under a single platform, network cameras used for perimeter protection, and integration between vendors to create increasingly complete and unified solutions. It was also the year of video management software, especially open-platform ones. But above all, 2012 was the year of IP video, which established itself as a preferred technology across the board and enabled videos with high-quality and multi-megapixel resolutions.
MANUFACTURERS
Among manufacturers, those making anti-intrusion devices led in both total revenue and revenue growth. Together, these players churned out total turnovers of $315.26 million, followed by physical security, fire prevention, video surveillance and access control. By revenue growth, anti-intrusion makers grew nearly 8 percent between 2011 and 2012, while all the others experienced negative growth, with video surveillance manufacturers losing 11 percent compared to 2011. The top five manufacturers by turnover were Notifier Italia, Saima Sicurezza, Tecnoalarm, Bentel Security and Selesta Ingegneria.
DISTRIBUTORS
Distributors, specifically those distributing video surveillance products and solutions, struggled to stay profitable in 2012. While the Top 25 distributors (the first five being Hesa, Sicurtec, DIAS, S&A and Sicurtec Brescia) saw revenue growth of 94 percent compared to the 31 percent for the entire sample, their average EBITDA margin was 4 percent, only 1 percent above the 3 percent for the entire group. Meanwhile, distributors showed less financial solidity in 2012, earning a rating of KR4+, which indicates higher risk of insolvency. Manufacturers, on the other hand, had a rating of KR5. This indicated that distributors bore the risk of unsold items in their warehouses and faced intensifying competition, which mostly came from IT distributors who worked with lower margins. Making matters worse, other players also entered the fray. These included systems integrators, who oftentimes worked as distributors as well. Distributors indeed had a rough 2012.
SYSTEMS INTEGRATORS
The high revenues generated by the Top 25 systems integrators had benefited them at an economic-financial level. The top five by 2012 revenue were Project Automation, which retained its No. 1 position from 2011, followed by Sistemi Integrati, DAB Sistemi integrati, Consorzio Nazionale Sicurezza Scarl, and CISA. Overall, the Top 25 saw average turnover of $10.64 million, more than double the figure for integrators as a whole at $4.92 million. In terms of EBITDA margin, the Top 25 averaged at 7 percent, in stark contrast with the 2 percent for the group as a whole. While revenue growth for the Top 25 stayed flat at 0 percent, it was higher than the -2 percent for the entire sample. The overall health of the segment gave them a rating of KR5, putting systems integrators at the top in terms of financial solidity.
MANUFACTURERS/DISTRIBUTORS
By 2012's revenue, the top five manufacturers/distributors, which focused on production and distribution equally, were UTC Fire & Security Italia, Honeywell Security Italia-ADI Global, Gunnebo Italia, Sicurit Alarmitalia and Bettini. For the top manufacturers/distributors, their average turnover was $14.27 million, a decline of 15 percent from 2011, and EBITDA margin averaged 0 percent. Nevertheless, in terms of ratings, manufacturers/distributors garnered KR5+, above the KR5 for manufacturers and KR4+ for distributors. This confirms the notion that, while the "hybrid" formula penalizes profit margins, the financial solidity for these players offsets certain distribution problems, for example financing the supply chain.
CONCLUSION
The survey gave a detailed analysis of the Italian security industry, which showed resilience in spite of ominous macroeconomic conditions in 2012. While the Top 25 firms by revenue reported an overall year-over-year decline in sales, they were able to register average EBITDA margin of 8 percent, compared to the 4 percent for the overall industry in the midst of austerity and tax hike measures at the time. It could therefore be pointed out that Italian security firms gave a performance that was more than remarkable.
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