2. Executive Summary
Market size: Estimated at ~USD XX mn in 2008; x% of total security market (incl. services)
Market Growth: Historic rate of y%: Forecast z% till 2010; x% p.a. until 2012
Import driven market
CCTV and access control systems are major segments
Segments Northern region is the largest market followed by South India
LE
Government and industrial are largest customer segments; residential is very small
Business
model P
Government and large enterprises purchase primarily through tenders while most private
companies solicit quotations or consider referrals; retail is a recent new format
M
The distributor model is important in the Indian market
Drivers &
Challenges
SA
Drivers: Significant boost in demand from government and businesses post Nov-08 attack
Challenges: Lack of awareness ; Disorganized industry; High import duties and taxes; Lack of many
comprehensive solution providers
Organized sector: Estimated ~x players (y major and z mid-sized)
Competition Unorganized sector: Estimated at x units but concentrating on basic, low-end products
Despite many unorganized players, organized sector accounts for x% of industry revenue
Demand for reduction in import duties and taxes may materialize
Future IP and video analytics technologies are important in the future
Outlook Private equity investment is expected to increase significantly at least till 2010
SECURITY AND SURVEILLANCE - INDIA.PPT 2
4. The Indian market for security and surveillance products is
robust and growth is expected to accelerate in the future
Overview Estimated Market Size and Growth
•The Indian security market including human Terror attacks in
guards, electronic security systems, intelligence USD mn Nov-08 spurring
systems, fire protection and detection systems is growth in 2009 and H
1,500 2010
worth ~USD XX mn +x%
LE
G
•Security and surveillance systems account for
1,000 F
P
~USD XX mn in 2008, according to estimates of
industry experts E
estimated at x%
S M
•Historic and forecast growth rates were earlier
A
•However, following the Mumbai terror attacks,
500
0
A B
C
security spending is expected to surge by y% 2006 2007 2008 2009 2010 2011 2012
over the next two years at the least
•India is an import-driven market with ~z% of Assumptions & factors
• Consensus on 2007 market size: USD XX mn
security and surveillance equipment imported by
• 2006-2008 growth rate: x%
foreign manufacturers with local presence or • 2008-2010: Average growth of y%
domestic importers/distributors • Post-2010: Average growth of z%
Source:
SECURITY AND SURVEILLANCE - INDIA.PPT 4
5. CCTV followed by access control systems are products that have
the maximum demand
Product Categories Share of total market
•CCTV
CCTV
Cameras, housings, monitors, DVRs and NVRs
Z%
Accounts for large share of security budgets
Expected to continue growing the fastest
LE
•Access Control
Becoming a norm in most organizations
Cost inhibits sale of quality products
MP Intrusion Detection w%
Intercom
v%
x%
A
•Intrusion detection Others y%
Small market due to lack of awareness
S
Cultural factors such as community living and
reliance on human security inhibit market growth
•Intercom (Audio and Video)
Access Control
a%
Used primarily in apartments Proximity Cards
Swipe Cards
Retrofits negligible; mostly sold through builders
Smart Cards
offering it as a value add feature Biometrics d%
b% c%
•Others (X-rays, metal detectors etc.)
Greater demand from government & retail
establishments as security efforts are stepped up
Source: Security Today “The Indian Security Industry Market”, May 2007
SECURITY AND SURVEILLANCE - INDIA.PPT 5
6. Drivers & Challenges
Rise in terrorist attacks
and the November 2008 Challenges
attack in Mumbai Lack of awareness and attitude toward
significantly pushing security
demand
Disorganized market
High duties and taxes inflating prices
Drivers
Government demand Lack of end-to-end solution providers
Corporate demand
Retail and residential sector demand
SECURITY AND SURVEILLANCE - INDIA.PPT 6
7. The market includes many unorganized participants but sales is
concentrated with the largest players due to their capabilities
Competitive Landscape Market Structure
•The competitive landscape comprises
organized and unorganized players
Organized
•Organized sector is estimated to comprise of y%
Unorganized
~x players including y major and z medium-
LE
sized manufacturers
•In comparison the informal or organized is
estimated at x units
MP b%
A
•However, industry estimates indicate that the x%
organized sector accounts for bulk of sales
•Prominent organized players are
Foreign companies with Indian subsidiaries
S
Local companies in partnership with foreign firms
a%
•Manufacturers of high-end security systems
Players Revenue
are few in number with the informal sector
geared toward manufacturing basic, cheap
equipment
Source: US Commercial Service “Surveillance Equipment – India”, Nov 2007; US Commercial Service “Safety and security for corporates – India”, Nov 2007; Business
Standard “There's no business like security business”, Jan 2008; Israel Economic Mission in India “India Security Market 2004”
SECURITY AND SURVEILLANCE - INDIA.PPT 7
8. The future will likely see reduction of duties and taxes, shift
toward IP and video analytics technologies, and PE investment
Government may accede to industry
demand for reduction in import
Duties & taxes duties and taxes to reduce cost and
give citizens affordable access to
security
IP-based surveillance and video
Future Outlook Products analytics are considered to be the
future in India
Private equity investment is
Private Equity expected to increase significantly at
least till 2010
SECURITY AND SURVEILLANCE - INDIA.PPT 8
9. Thank you for the attention
The Security and Surveillance market report is a special feature from Netscribes.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Subhash Chennuri
Phone: +65 9651 6382 Phone: +91 98190 59664
E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com
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SECURITY AND SURVEILLANCE - INDIA.PPT 9
