Cropley adds that the Chinese market grew by 7.2 per cent in 2016, taking into account currency fluctuations between Chinese Yuan Renminbi and the U.S. dollar. Excluding Chinese market growth, the world market only grew by 1.6 per cent. “Demand for security cameras grew rapidly but prices fell considerably, affecting revenues. In fact, revenues declined in a number of countries,” says Cropley.
The global market is predicted to grow at a rate of 5.5 per cent in 2017 and will be worth an estimated US$16.2 billion.
Additional conclusions from the report include:
- The supply base for professional video surveillance equipment is gradually becoming more concentrated (although it remains highly fragmented compared with supply to many other markets). The top 15 vendors accounted for 58 percent of revenues in 2016
- In 2016, a number of Chinese vendors continued to gain market share rapidly in regions outside China. They tend to offer products with low prices and this has been a major factor in average price erosion in those regions
- 59 per cent of all security cameras shipped in 2016 were network cameras
- Shipments of HD CCTV cameras more than doubled
- Less than one per cent of network cameras shipped were 4K-compliant