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Brighter Times for Security Firms in India

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Oh Tee Lee
Regional Director, South Asia Pacific Region,
Axis Communications

It is exciting times for electronic security and surveillance firms in India due to the increasing demand from government and private companies who are all set to strengthen their security infrastructure to ward off terror threats. 

Surveillance & Security today is a fundamental requirement for every establishment. Security systems must not only help detect and facilitate swift action, but also help design and plan a proactive strategy against future threats. 

According to research and consulting firm Frost and Sullivan, the $650 million Indian electronic security and surveillance market- which includes video surveillance, access control, intrusion detection and metal detectors-is expected to witness a 20-22% compounded annual growth rate (CAGR) till 2016.  

Today, the technology trend is that of IP video surveillance, which is likely to continue to drive the future of the surveillance industry. With specialized video surveillance devices, intelligent video will continue to emerge as a tool for gathering business intelligence. Going forward, our main focus will be building 'intelligence on the edge' in all our solutions. Currently efforts are underway to launch cameras that have the capability to intelligently processing images and sending only relevant information to the security control room or security personnel. 

IP video 'surveillance as a service' is another trend which is slowing gaining momentum. In the coming years, we are likely to experience demand for this concept which is similar to the SaaS (software as a Service) model. People will be able to avail surveillance solutions from a company specializing in the same for their homes and businesses, just the way they make use of telephone, electricity and other utilities. 

"With the addition of video analytics software to the surveillance solutions, enterprises are adopting these solutions to get a new perspective in to their business. With growing number of industry verticals and changing business trends the adoption of surveillance cameras is increasing," says Oh Tee Lee, Regional Director, South Asia Pacific Region, Axis Communications.

Surveillance has become the next growth wave in India. The current technology trend in Surveillance space & some of the recent market reports suggest that, IP video surveillance equipment market globally was estimated to be at over $800 million in 2010-11 & over $45 million in India alone. 

 

Subashini Ramakrishnan Chief Technology Manager Dax Networks Sandeep Deshpande Managing Director, Gunnebo India Ltd Sudhindra Holla
Country Manager Axis Communications
Tushar Sighat
CEO
D-Link (India) Limited

 

As per industry estimates the market is forecasted to grow at a CAGR of 30.2% approximately over the next five years and is likely to be worth over $3 billion by 2015 globally. 

"IP video surveillance is a key business tool for ensuring smooth operations, general security, preventing loss & controls mischievous activity. It is steadily emerging as one of the most compelling investment areas, creating a whole new market for networking resellers and integrators." Says Tushar Sighat, CEO - D-Link (India) Limited.

"We foresee a huge growth potential in the Indian market and are witnessing enormous demand for surveillance equipment in these markets. The need for security has been identified and is given utmost importance in today's time owing to some of the unfortunate incidents in the recent past" says Oh Tee Lee.   

Godrej Security Solutions (GSS), a unit of 115- year Godrej and Boyce Mfg Co. Ltd, is targeting sales of more than Rs.800 crore this year, against Rs.610 crore in fiscal 2012,

GSS is also taking aim at the bigger home security solutions market in India. The company has recently unveiled an array of home security products including ultramodern safe, high-end video door phones and CCTV products. The security solution provider has also launched data storage safes, specifically designed for protecting electronic gadgets like data cards, laptops and microchips.

GSS is targeting a sales growth of 40 per cent in the home security segment in India which is worth around Rs.150 crore. 

Overseas security firms like Honeywell Automation India Ltd, Schneider Electric Infrastructure Ltd and Gunnebo Security Group also see greater opportunity in the Indian security market. 

According to a McKinsey Global Institute report titled, 'India's urban awakening: Building inclusive cities, sustaining economic growth’

Population of India's cities will increase from 340 million in 2008 to 590 million in 2030 – 40 percent of India’s total population. 

In the global context the scale of India's urbanization will be immense. 

India will have 

68 cities with population of more than 1 million

13 cities with more than 4 million, 

6 mega cities with population of more than 10 million or more 

At least 2 of which (Mumbai and Delhi) will be amongst the five largest cities in the world by 2030.

Sweden-based Gunnebo Security group has seen an increase in its growth and profits. The company, which has been present for the last 80 years in India, supplied "entrance control" systems for the first phase of the Delhi Metro. The company's safe and lockers are used by a majority of Indian banks. 

Sandeep Desh pande, Managing Director, Gunnebo India Ltd. says, "Over the years Gunnebo has established itself as a strong contender in the Indian physical security solutions space, catering to a wide range of sectors with global products that are localized to cater to the growing needs of this market. We believe it is this 'glocal' approach that has helped us emerge as a preferred partner for public and private entities, and resulted in India emerging as our second largest market globally."

Gunnebo recently launched a wide range of innovative products at the annual IFSEC 2012. Catering to the exponential growth seen in urban cities, the new range of security solutions will help public and private entities across a wide range of sectors such as infrastructure, banking, retail, etc. and will help the company strengthen its leadership position in the market as a security solutions provider.  

The new range includes Chubbsafes elements of new home and office security solutions; GSL 1000, a modern and competitive high-security electronic lock; Steelage Lumnia a biometric enhanced security solution; ALLTECH series of Entrance Control solutions, Minimax fire-extinguishers which set new standards IS 15683 in the Indian industry supported by a comprehensive offering of security-related services and solutions. The products will be available across India to all the customers 

With an increase of 50% in year on year orders and a 40% increase in revenue, India has recently emerged as a priority market for Gunnebo resulting in the company making extensive investments in the market. The country is not only Gunnebo's second largest market, but also boasts of the company's second largest employee base and largest manufacturing unit at Halol. 

Bharat Khanna, General Manager - Public Safety, NEC India says, "With new challenges in the areas of public safety, citizen services and expanding population there is an urgent need to move away from conventional solutions towards integrated technology solutions."

To address this concern, "We make Cities Safer" is an initiative by NEC for building safe cities by bringing best-of-breed and avant-garde security technologies that would help both the public and private institutions safeguarding lives and property in the real and virtual world."We at NEC shall actively contribute and engage with central & state governments to drive E-gov projects in India, participate in infrastructure security projects and take keen interest in national security initiatives," says Bharat. 

Leveraging on its well-documented operational knowledge and proven records of delivering public safety solutions for over 30 years worldwide, NEC's comprehensive suite of integrated security solutions empower and enable public institutions to take preventive and protective measures to enhance public safety and minimize damage to property. These solutions assist public institutions in the management of people movements across and within borders, enforcement of law and order within a territory, protection of public facilities and vital installations, and ensuring order in the virtual world.

 


Bharat Khanna
General Manager – Public Safety, NEC India

 

Analogue to Digital

With IP surveillance systems becoming more wide spread Sudhindra Holla, Country Manager, Axis Communications India, sees in India a continuous shift from analog to digital in the coming three years to be on par with the matured markets. 

Dax plans to exclusively take IP Surveillance Solutions this particular vertical as "we  believe the Government sector is only sparingly exposed to application benefits  of IP Surveillance," says Subashini Ramakrishnan, Chief Technology Manager, Dax Networks..  

Analog deployments are generally in a disintegrated manner. Although, on first sight, the cost of an IP-based system is higher, over the long term, it is more efficient as compared to analog.  Seamless integration to existing Data network and existing security systems further enhances the benefit of IP to the end-users.

Channel Challenges

Axis Communications has recently announced the Axis Certification Programme to help Axis's partners to benchmark their competence and skills in the IP surveillance area.  Axis is offering the certification programme through external, third-party certification test centres managed by Prometric. 

The certification programme is aimed at system designers and technical sales staff. The partners will be certified on their knowledge of the latest network video technologies, solutions and best-practice design and implementation techniques. In addition, As an Axis Certified Professional, participants will earn Axis' global stamp of endorsement that strengthens both their personal and their company's credentials.

Sudhindra says,"We believe that empowering our partners to deliver the best results for customers is the backbone for our growth. Axis Certification Programme demonstrates Axis's commitment to training and high standards, as well as endorses our position as the global market leader in the network video market. This certification programme will be a unique differentiator and provides the partner a competitive edge over others."