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IHS Markit

Smart home growth climbing globally

 - 
Wednesday, August 16, 2017

The global smart home market is forecast to exceed $14 billion in 2017, with 10 percent of homes globally being smart by 2025, according to an IHS Markit report published this week.

“The smart home market has seen significant growth since 2010, when fewer than 0.5 percent of homes in the Americas region had connected devices such as thermostats, lighting, security and entertainment,” Blake Kozak, principal analyst, IHS Technology, said in a summary of the report. “By the end of 2017, nearly 7 percent of households in the region will have a connected home, averaging six devices per home.”

According to IHS, The global market for smart homes is currently worth $14.7 billion, with the Americas region representing 48 percent of global revenues, and by 2021, the EMEA region will represent the largest portion of device revenue with a 42 percent global share.

“When excluding large ticket items, such as major appliances, the global market size for smart home devices is forecast to be worth $3.3 billion by the end of 2017, reaching $9.4 billion in 2021,” Kozak noted. “Although the EMEA and Americas regions are expected to represent more than 70 percent of revenues for smart devices over the next five years, Asia is expected to dominate in terms of unit shipments. In 2021, the Asia region is expected to represent about 46 percent of unit shipments. Leading the unit shipments in Asia in 2021 will include light bulbs, air quality sensors and video cameras.”

The report also found that the top five players account for 36 percent of revenue in the space, including Nest, Amazon, Honeywell, Xiaomi and Netgear, who rounded out the top five for smart home revenue accounting for 36 percent in 2016 when excluding appliances. The top five players for unit shipments in 2016 accounted for 34 percent of global unit shipments and included Xiaomi, Amazon, Honeywell, Nest and Koninklijke Philips N.V.

“Globally, 19 manufacturers had more than 500,000 annual smart home device shipments in 2016,” said Kosak, while “46 manufacturers had more than $10 million in revenue in 2016, when excluding appliances.”

The top smart home devices to watch in terms of unit shipment growth include radiator valves, air quality sensors, smart speakers and appliances.

“Home audio (smart speakers) will continue to be one of the most disruptive trends in smart home through 2021,” Kosak pointed out. “The primary reason voice assistants in the smart home will gain significant traction across all three regions is the ability for these devices to aggregate disparate systems. So instead of using five different mobile applications in order to control the smart home features, voice can be used to aggregate all control, reducing the need to interact with a mobile device once the product is setup.”

Although appliances were the fourth largest device type in terms of unit shipments in 2016, they will be the most shipped device type in 2021, according to IHS, which noted that many appliances are already embedded with Wi-Fi capabilities that only need to be turned on by the manufacturer.

Camera demand growing as prices plummet

 - 
Wednesday, July 5, 2017

The world market for professional video surveillance equipment grew by 3.9 percent in 2016, despite a drop in camera prices, according to recently published estimates from IHS Markit through its Video Surveillance Intelligence Service.

“This is a higher rate of growth than in 2015 (1.9 percent) but still low by historical standards,” Jon Cropley, principal analyst, video surveillance, IHS Markit, said in the announcement.

IHS forecasts a slightly higher growth in the global market for 2017—at 5.5 percent—and as a result, the world market will be worth $16.2 billion in 2017.

Accounting for more than 40 percent of global revenues measured in U.S. dollars, the Chinese market grew by 7.2 percent in 2016, according to IHS, which noted that exchange rate changes did play a role in suppressing a higher calculated growth in that currency (as the average annual exchange rate of the Chinese Yuan Renminbi to the U.S. dollar fell by 6.6 percent in 2016). In the report, Hikvision took the top spot in several categories.

“The world market excluding China grew by just 1.6 percent in 2016,” Cropley pointed out. “Demand for security cameras grew rapidly but prices fell considerably, affecting revenues. In fact, revenues declined in a number of countries.”

IHS also found that 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 fifteen vendors accounted for 58 percent of revenues in 2016,” noted Cropley. “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.”

The report also found that 59 percent of all security cameras shipped in 2016 were network cameras, and shipments of HD CCTV cameras more than doubled. Less than 1 percent of network cameras shipped were 4K-compliant, according to IHS.

Note: Check back for more on this report, including additional comments from IHS’ Jon Cropley.

Hikvision stays on top in 2016 global market share

Company announces sixth straight year at No. 1 in IHS Markit’s video surveillance market report
 - 
07/05/2017

CITY OF INDUSTRY, Calif.—Hikvision, a global supplier of video surveillance products and solutions, has announced that it has again achieved the No.1 position in market share for CCTV and video surveillance equipment worldwide in a recent IHS Markit report.

Smart home product sales soaring

 - 
Wednesday, February 15, 2017

Smart-home product U.S. dollar sales grew 57 percent in 2016 compared with the prior year, according to recent findings from market research firm The NPD Group.

According to the study, security and monitoring products led the category, making up more than 60 percent of dollar share, with smart entry devices, such as smart doorbells, growing 171 percent in dollar sales and 206 percent in unit sales compared with 2015.

The market research firm said awareness levels of smart home devices have fluctuated, but cited the smart doorbell as a category that witnessed growth in both awareness and ownership; ownership of smart doorbells inched up 2 percent while awareness grew 4 percent.

According to IHS Markit, the global market size for video doorbells, which was at $78 million in 2015, is expected to experience a 28 percent CAGR over the next five years, with North America leading the way.

Video doorbells, many times, are a homeowner’s first foray into video surveillance in and around the home.

“Video doorbells are only just beginning to gain traction among residential consumers,” Anna Sliwon, analyst, residential security, IHS Markit, said in the study. “As the market continues its rapid ascension, partnering with video doorbell providers could prove lucrative for home alarm manufacturers and service providers.”

In the NPD study, networked video cameras led as the most commonly found product in smart homes. Nearly one-third of smart homes owned a networked video camera, and demand for multipacks of IP cameras grew 129 percent in dollar sales for the year.

“Network cameras have long been considered the entry point into the smart home, but growing demand for items sold in sets shows that the market is maturing,” Ben Arnold, executive director, industry analyst for The NPD Group, said in a prepared statement. “We fully expect the next two years will see a broadening appeal of smart-home devices and estimate that the category will nearly double in that time.”

Voice command is also becoming more commonplace in smart homes, with nearly half of these homes using voice commands in some manner, and one-quarter using them to control a home-automation device, with Siri being the most commonly used digital assistant, according to NPD.

John Buffone, executive director, industry analyst, NPD Connected Intelligence, said one in five Amazon Echo owners use the device to control another device in their home.

Video rises into the cloud

 - 
Wednesday, December 7, 2016

News continues to pour in on the portential of cloud-based services, especially on the heels of Security Systems News' Cloud+ conference, which brought early adopters of the cloud together in Austin, Texas, to look at how the security industry will continue to adopt and leverage the cloud, not only to increase RMR but to provide better and more cost-effective solutions for customers.

Many of the Cloud+ speakers, from integrators and consultants to end users and manufacturers, highlighted the many challenges of educating people on the benefits and solutions the cloud can provide within security, such as in the management of data and video, two areas expected to see tremendous growth over the next few years.

According to new findings from global research firm IHS Markit, based in London, the video software market is expected to rise from $6 billion in revenue in 2015 to more than $9 billion in revenue by 2021.

According to the new Video Software, Security, and Analytics Intelligence Service from IHS Technology, the atomization of media distribution and the switch from hardware-based technology solutions to cloud implementations are key drivers for the $3 billion in revenue growth over the next five years.

“Taken together, these two forces have created a market where value is shifting towards the frontend,” Cecilia Zhu, analyst at IHS Technology, said in the announcement. “A superior user-experience has become fundamental to securing increased consumer spend.”

Globally, content security accounts for 32 percent of the digital video software market, according to IHS.

“While demand for robust security solutions is unlikely to deteriorate,  particularly in the presence of high-value UHD and HDR content,  the segment is effectively saturated,” Zhu said.

By contrast, Online Video Platform solutions will continue to generate large, year-on-year returns through 2021. “The necessity of online distribution backed by a platform pre-integrated across a rich ecosystem of partners, means demand for OVP solutions will rise over the next five years,” Zhu said.

According to IHS, North America is the key region for the video software market, generating roughly $2.9 billion, and the region’s value relates primarily to confluence of three factors: the presence of large media companies, their outright scale, and their sheer number.

“The region’s economic dominance should not, however, overshadow the existence of cutting-edge video services in Europe, Asia, and the Middle East, and the technology demand that these services generate,” Zhu said.

According to the research firm, Cisco has a 15 percent share of the video software segment, the largest globally. “The company has proven adept at transitioning into the video space, and at using its longstanding presence in core, metro, and access-network infrastructure to cross and upsell video-specific software,” Zhu said.