Security Systems News

DEC 2017

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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Page 6 of 36 December 2017 S ec U r ITY SYST em S N e WS Security Stat S 2 By Spencer Ives LONDON—According to IHS Markit, a research firm based here, there have been more start-up companies for consumer grade cameras, DIY systems and smart home solutions. The com- pany detailed the nature of these start-ups and contributing fac- tors to their increased numbers in a report, "Security Start-Up Numbers Soar – Have the Barri- ers to Entry Ever Been So Low?" Jim Dearing, IHS Markit senior analyst and the author of the report, talked with Security Sys- tems News about it. Within IHS Markit, Dearing focuses on elec- tronic access control and con- sumer video. "According to IHS Markit consumer video surveillance research, in 2015 companies that were two years old or less accounted for 6 percent of global consumer video-camera market revenues. By 2016, this had grown to over 9 percent," the report read. Additionally, IHS Markit pre- dicts that the global market for DIY intrusion equipment will "grow at an average of nearly 20 percent per year from 2016 to 2021." IHS gathers data on companies throughout a space—such as the consumer video market—and gathers data directly from c o m p a n i e s , or it estimates c o m p a n i e s ' re v e n u e s o r units to get an idea of the overall market and the share one company might have. "From that database, I can pull out how much of the market those young companies represent," Dearing said. "There are a number of smaller companies cropping up that are essentially OEMing from Asia consumer video equipment, and not just standalone network cameras," Dearing said. OEMs have become "larger and more diverse," which means they can lower their minimum-order requirements, making it easier for entrepreneurs to enter the space. "They're able to quietly build some reasonable, respectable sales numbers and that is one of the reasons why that proportion is increasing," said Dearing. IHS Markit divides the global market into four geographic regions when it segments the market to look at cameras trends: the United States, the rest of the Americas, EMEA and Asia. The United States' market for consumer video is more mature than the professional video sur- veillance market, Dearing said. The adoption of higher resolu- tion cameras, such as 1080p cameras, is "vastly higher" in the U.S. and, "The adoption of cloud storage use for consumer video surveillance is also higher," he said. Crowdfunding has had an impact on start-ups, Dearing said, lowering the barrier for entry. "The thing about the crowd- funding is that it's essentially made it easier for more potential entrepreneurs to get that fund- ing," Dearing said. "The reason why is because they can just post their idea on one of these crowdfunding web- sites, and because it's the con- sumer market, they can promise to deliver a product or a proto- type in exchange for funding. So, in the mind of a consumer, they are simply purchasing a product in the future and also helping the company grow. It's a IHS Markit looks at the rising number of security start-ups Jim Dearing OEMs play a factor in increased entrants, according to IHS Markit senior analyst Jim Dearing Stat S see page 7

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