This report is not an exhaustive report but a combination of various sets of findings and inernal ana

1. Indian CCTV Market – A Birds Eye view

2. TABLE OF CONTENT
1. Global CCTV Market 03
2. Indian CCTV Market
3. CCTV Business Distribution Structure in India 05
4. Price range for Cameras and DVRs in Indian Market(Dealer price). 06
5. Manufacturers for CCTV in India and their Area Of Expertise 07
6. CCTV Market and Major Challenges 08
7. Major Geographical Markets in India 11
8. CIKR of India 12
9. CCTV Market Security Estimation 16
10. Future Outlook 18
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3. 1. Global CCTV Market
The global video surveillance market has been experiencing
significant growth for the past few years on the back of rising
The global CCTV
concerns for security and safety across the globe. This, in turn, has market is projected
resulted in the increased demand for technically advanced to reach around US$
surveillance system, thereby creating huge growth opportunities 19 billion by the
end of 2013, growing
for CCTV manufacturers, operators and distributors.
at a CAGR of around
• The global CCTV market is projected to reach around US$ 19
21% since 2011.
billion by the end of 2013, growing at a CAGR of around 21%
since 2011. This growth rate undoubtedly points out that the
global market has vast potential for CCTV consumption, especially in countries where security
has become a major area of concern.
• Asia will gain significant share in the global CCTV market by 2013 end, accounting for over 34%
of the total market, close to American and European markets.
• Developing countries like India and China with huge population bases will be the key drivers in
the Asian market. Additionally, three major economies, viz., Malaysia, Thailand and Taiwan will
be the key drivers for CCTV growth in the region.
• The government authorities are heavily investing in the security market, including CCTV (video
surveillance) market due to the rising number of security breaches worldwide.
• Further, continuously declining prices of CCTV devices are also anticipated to add to the
growth of the CCTV market, making it affordable for even smaller firms to embrace CCTV
technology.
• Additionally, various innovations, including the introduction of small network cameras or
cameras with remote surveillance capabilities (also known as IP CCTV surveillance) will spur
the uptake of CCTV cameras. They are expected to remain at the forefront of the CCTV market
during the forecast period, as evident from the rapid replacement of analogue CCTV cameras
with the IP-based CCTV systems.
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4. 2. Indian CCTV Market
• Indian CCTV Market is currently estimated at over INR 18,800 Crore (USD 4 billion), is
00
growing at a CAGR of more than 34% during 2010-2012.
• The Indian CCTV market is witnessing a slow but healthy growth, attracting bigger
companies like Godrej, Canon, Samsung, Panasonic, Sony, Honeywell and many others,
small and medium scale system integrators and resellers into the sector.
• Demand for IP-based or digital or network video surveillance technology will emerge as fast
d
growing in comparison of analog technology.
• Government/public sector demand remains high for overall security systems followed by
overnment/public
industrial and commercial sector
sector.
• Indian market is largely unorganized and is reportedly flooded with inferior security
products from Taiwan, China and other Southeast Asian countries.
• The security market, however, does hold immense potential for those playe who manage
players
to find the right mix of price, technology and market awareness the synergies of which will
awareness—the
pay rich dividends to a company’s investments in the electronic security industry in India.
Figure 1- CCTV Market Growth Sector in India
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5. 3. CCTV Business Distribution Structure i India
usiness in
Manufacturer System
(Mostly Integrator / Superstockiest
Exported) Importer
Wholesale
Retailer
Dealer
Figure 2 - Distribution Structure for CCTV Market In India
I
• Indian CCTV market is mostly unorganized but the whole distribution structure can be
ndian
broadly classified as mentioned above.
• Manufacturing of security products in India is a big challenge, as none of the components
are available locally or available at higher cost hence 70 % - 100% of the components are
from other countries (mostly China and Tiwan)
Tiwan).
• 2nd Category in the distribution chain is an system integrator who imports components and
assemblies or customizes accordingly and forward to the market with his preset margins. Or
margins
would be a complete importer of goods who pushes the products into the market with his
margins.
• A Super Stockiest Enjoys a Margin anywhere between 25- 35% of the actual sales price of
the component.
• In an organized structure Wholesaler enjoys a margin between 15- 20 % and sometimes
more than 20 % also. But now a day’s mostly more and more companies are experiencing a
tendency to evade superstockist and make a direct supply to Wholesaler with a margin up to
supply
30 % of the sales price .
• Last but not the least in our distribution chain would be the Retailers who are offered a
margin anywhere between 10 – 20 %. Retail market is affected in India as these retailers
prefer to acquire products from grey market as they reap them a better margin on their
sales.
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6. 4. Price range for Cameras and DVRs in Indian Market(Dealer price).
Price Range Starts
Sl.No. Particulars Basic Specifications from
( in INR)
1/3" Color CCD image sensor,Standard resolution of 420TVL,
Box Satisfactory minimum illumination of 0.3 Lux/F2.0
1 1,000 and above
Camera Audio function supported,Auto Electronic Shutter built-in Signal-to-
noise ration of 48dB
Pickup element:1/3" Color CCD Image Sensor Number of
Pixel:512(H)X492(V)/ 512(H)X582(V) 1,500- 2000 and
2 IR Camera
Resolutions:420 TVLines, Min illumination:0.5 LUX/F2.0, OLUX(IRON) above
Effective Range:Max 15 Meter, IR LEDs:21 Unit
Image Sensor:1/, Effective Pixels:PAL:500(H), Lens:3.5 ~
9mm@F1.2/14/ Manual, Electronic Shutter:1/50(1/60)s to 1/100,000s,
S/N Ratio:48dB, Video Compression:H.264 (32 K ~ 8M), Audio 6000 -7000 and
3 IP Camera
Compression:OggVorbis, Protocol Above
Support:TCP/IP,HTTP,DHCP,DNS,RTP/RTCP, PPPoE, Max. Image Res.:Up
to 704x576 Pixels, Frame Rate:Up to 30fps, Power Supply:12VDC.
• Audio Input / Output:In: RCA 4CH Out: RCA 1CH,
• VGA Output
• Display Resolution:NTSC: 720 x 480; PAL: 720 x 576
• Display Resolution:NTSC: 720 x 480; PAL: 720 x 576
• Playback Resolution:PAL: 25fps/1CH(CIF), 100fps/4CH(CIF)
• Compression Format:Video :H .2 64 Baseline Compressio n ; Au d io :
G.72 6 8k*16 b it ADPCM Mo n o
DVR 4 • Hard Disk Capacity: Up to 1TB, SATA interface HDD x 1
4 5000 and Above
channel • Sensors, Alarm:4 Input, 1 Output
• Network Interface:1 R J45 10/100Mbps Ethernet Connector
• Media Backup:1 USB 2 .0 port for USB flash disk.
• PTZ Control:RS-485
• IR Remote Control Unit
• Operating Temperature:10%~+40
• Dimensions (LxWxH):315x2 24x52 mm
• Power Supply:DC 12 V
• Compression Format:Video: H.264 Baseline Compression & Audio:
G.726 8K/16K bit ADPCM Mono.
• Video Input:8 Ch. BNC, Audio Input:8 Ch. RCA, Video Output:1 Ch.
BNC, Audio Output:1 Ch. RCA, VGA Output.
• Recording Resolution: zNTSC: 240fps@ CIF, PAL: 200fps @ CIF.
• Playback Resolution:PAL: 25fps/1CH(CIF), 100fps/4CH(CIF).
• Hard Disk Capacity:Up to 1TB, SATA HDD x 2 or 1 x HDD + DVDRW.
DVR 8
5 • Recording Mode:Manual/ schedule/sensor trigger/motion 7000 and above
Channel
detection /power-on auto record.
• Sensors, Alarm:8 Input, 1 Output.
• Network Interface:1 RJ45 10/100Mbps Ethernet Connector,
• Media Backup:USB flash disk, DVDRW & Network
• IR Remote,PTZ control, USB Mouse.
• Power Supply:DC 12 V,
6
• Dimensions:436(W)x340(D)x64.2(H) mm
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7. 5. Manufacturers for CCTV In India and Their Area of Expetise
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8. 6. CCTV Market and Major Challenges
There is a huge untapped market comprising micro/small businesses that have an urgent need
for CCTV security products. Hence, there is a good business opportunity for manufacturers,
integrators as well as solution providers. However, these players face quite a lot of challenges,
which seem to hamper their business to some extent.
6.1 Threat from Chinese products
• Indian market is largely unorganized and is reportedly flooded with inferior security
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products from Taiwan, China and other Southeast Asian countries.
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9. • These products score in terms of price when compared to the products sold by Indian
players. The Indian market has been flooded with Chinese products, which are
inferior in quality. We find it hard to
compete with these low priced
Competition is hard with these low
products, and we are all aware that priced products, and we are all aware
the Indian market is very price that the Indian market is very price
sensitive.”
sensitive.”
• Also challenge prevails on how to
educate customers about buying genuine products from genuine companies.
6.2 Non-availability of components
• Manufacturing of security products in India is a big challenge, as none of the
components are available locally. India source 70 % of the components from other
countries(China and Tiwan).
• Moreover, the grey market is another deterrent to growth. Despite the demand,
however, there is negligible manufacturing of CCTVs within the country. Instead of
manufacturing, people prefer importing because the product is available at cheap
rates outside India.”
• The problem, of course, is the dependence on the foreign suppliers, and the fact that
sometimes complete dependence on imports can lead to logistical problems which
snowball into the manufacturing schedules going awry. In case the components are
available locally at a fair price and quality, the manufacturers would benefit a lot.
6.3 High import duties
• CCTV is no more a luxury item, yet manufacturers and distributors are paying hefty
taxes on it. The category of Import tax in India also include basic duty which is zero for
certain import items, however, the maximum basic duty imposed on an imported
item is 65 %. Countervailing duties, excise duties and regulatory duties in addition to
basic duty also form apart of the Import tax in India. The total import tax levied on
luxury items may rise as high as 150 %.
• Lack of government support in this area has been encouraging unorganized players to
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evade taxes and dump inferior security products in India. Moreover, the government
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should pull down import tariffs to less than 20%, which will enable easy access to

10. security products at an affordable cost. These initiatives will also encourage the local
manufacture of security products.
6.4 Lack of standards, industry association and awareness
• Although the security market in India has been growing steadily, there is a lack of a
regulatory framework. Many are still unaware of the benefits of installing security
products. Also, there isn’t any legislative support from the government for local
manufacturing. The government is yet to establish any quality and safety standards
for security products.
• Unfortunately, we do not have any standards for To make this
security products. Lack of standards is also paving industry more
streamlined, there is
the way for more imports and countries like China an immediate need
and Taiwan are dumping products without any set for an association,
specifications and standards. It is a threat to our which can raise its
voice and fight for
security. The day the government sets some the rights of the
standards for these products; these unorganised organised players.
players will find it hard to sell substandard products.”
• There is no regulatory body to keep a check on the industry’s activities, which is a bad
situation for a business like ‘security’, which requires sincerity and knowledge. The
association can also encourage local manufacturing. Moreover, there is a need to
educate customers not to compromise on security by using inferior quality products.
• Indian customers are very price sensitive and just to save a nominal amount, they
compromise on the quality of products, even though it involves their own security.
Due to their lack of awareness, customers get mislead by any unorganised player.
“The key issue is the unorganised sector and the low customer awareness of quality
products available in the market. It is important that the mindset move from just having a
surveillance system in place to having a working system that takes care of the predictable
threat as well as works well over a period of time. Here, the role of the consultant
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whether it is an architect or interior designer is also critical as they too should focus on
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quality and durability as against a price point alone.”

11. 7. Major Geographical M
Markets in India
At the regional front, industry trends reveals that the North India including Delhi, NCR, Haryana,
Punjab, Uttaranchal & West UP, Rajasthan, has the largest proportion of security installations with
Southern India closely following it at second place. West region comprising of Maharashtra,Gujarat
and Madhya Pradesh falls into the third place as far as the security Requirement goes.
Requirement
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16. 9. CCTV Market Security Estimation.
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17. Figure 3:- CCTV Market Sector wise estimation in INR Crores
Figure 4:-CCTV Market Sector wise estimation in %
CCTV
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18. 10. Future Outlook
• In future, network IP technology will emerge as the leading CCTV technology. Various
factors that will drive the IP technology market in the near future have been covered in the
report. It also details the potential growth areas for the CCTV market along with the major
roadblocks.
• Sectors such as retail, transportation and healthcare have immense potential to drive the
growth of the CCTV market. Moreover, government initiatives in various countries are
expected to provide a significant impetus to market growth.
• If we consider the negative impact, there has been an increase in crime rate at all levels of
the society. This economic development and security threats have been, and continue to be,
the largest factors contributing to the growth of security systems industry.
• Falling prices of electronic systems is the second most critical factor boosting the Indian
electronics security industry.
• According to our studies India’s electronic security market has seen growth at 30%-35%
annually in recent years. A couple of terrorist attacks in the past have fueled up the demand
for 24x7 surveillance mechanism in the country. CCTV will continue to lead the overall
market by accounting for around 40% share in the Indian electronics security market by
2012 end.
• Our report finds that rapid growth in sectors such as Telecom, Ports, Airports, Aviation,
Railways, Roads, Energy, Construction and Retail, coupled with the influx of multinational
companies, have been driving demand for safety and security equipments in the country.
• Apart from this, the government agencies are gearing up to install video surveillance
systems at public places and sensitive government buildings.
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