India is prey to terrorists. The Mumbai attack is the recent case. Infrastructure development is going apace across India and with it comes a demand for security. IP surveillance is emerging as one of the most compelling investment areas, creating a whole new market for networking resellers and integrators.

It is exciting times for detection and surveillance solutions – from biometrics to video surveillance to explosive or hazard sensors. Background screening, data analytics, biometrics, digital video, and sensor-based detection will continue to be major security investments over the next three to five years. The market is currently growing at 30 per cent annually.

A report by IMS Research states that the video analytics market will explode over the next five years, growing from $67.7 million in 2004 to $839.2 million in 2009, at a CAGR of 65.5 per cent.

Downturn and Surveillance Market
There is no structured marketing report available in India, which tells about the exact numbers of the market. However, estimates say that the security and protection market is about Rs.1,000 crore in India today and is growing at 25% CAGR. Out of this, 15–20% is comprised of the security market.–“Today, government and organizations across the board, demand a high-level security solution when investing into a safety management programme, and are open to accepting new technology to help them sleep safe at night,” says Kamal Arora, Head, Marketing and Technical Services, Security South Asia, Honeywell Security & Data Collection.”Honeywell Security is one of the largest security solutions providers in India. The company is a leading partner today providing end-to-end solutions in the security solutions industry. “We have a large focus on investments in R & D to introduce cutting-edge and innovative security products around the globe,” says Kamal Arora.

Despite the global financial crisis affecting many of the world’s leading economies, the prospects for growth in the video surveillance market in the India look very “hot”, according to market analysts, IMS Research.

It says in its latest report that India is expected to see average growth rate over the next five years and is unlikely to be affected by the global recession.

The report concludes that far from a complete market downturn, the world market is still forecast to grow by over 10% in 2009 and, if vendors are savvy enough to fare some bad weather and expand into developing regions, then 2010 onwards promises a return to higher growth.

There are several factors causing the growth of survelliance in India. IMS feels that, far from it being a case of complete market downturn, only select regions and verticals will see a flat or negative growth in 2009. The world market is still forecast to grow by over 10% and, if vendors are savvy enough to survive “some bad weather” and expand into developing regions, then 2010 onwards promises a return to higher growth.

The companies dealing with Surveillance Solutions expect the government and defence forces to further increase investments in surveillance systems. Further, players also expect a renewed impetus from medium-sized commercial enterprises with multiple locations such as banks, hospitals, retail shops, factories, real estate construction sites, restaurants, and malls.

“Today, Security is the paramount. Enterprise and consumers are increasingly becoming aware of security threats as well as anti-social and anti-national elements.  As they say ‘Forewarned is forearmed’, IP surveillance provides the user the correct inputs of the intruders,” says Jayesh H. Kotak, Vice-President – Product Management, D-Link India Ltd. “The significance of security and public safety systems has changed over the years as people are realizing the benefits derived from it. Recent events and terrorist attacks have significantly influenced the way one considers what are adequate levels of security,” says Kamal Arora of Honeywell Security & Data Collection. Surveillance market in India is over Rs.1,000 crore.

The global electronic security market includes intrusion alarms, access control, Closed Circuit Television (CCTV) surveillance, IP-solutions, fire alarm and evacuation systems, and security management systems. Security systems generally include analogue or digital cameras, IP cameras, Video Cassette Recorder (VCR)/ Digital Video Recorder (DVR)/ Network Video Recorder (NVR), encoders, and electronic access control systems. There are different uses and applications for security and public safety equipment. Traditionally, these systems were restricted to a closed circuit where images are seen from a centrally monitored station. However, with advancement in technology, the images can now be viewed from anywhere in the world. This has increased the scope of use of security and surveillance across the world with the Indian market not left far behind. The security equipment find their major applications in important areas like assembly lines in factories; government buildings such as manufacturing units; monitoring of traffic; commercial units such as retail outlets, banks and casinos; transport systems such as railways, airports and ports; educational institutions, etc.

IP and Digital surveillance is the most prominent emerging technology in the space of surveillance in India. Here, the cameras have the capability to operate directly on Local Area Networks (LAN) and Internet. Features like 2 ways audio, Integration with multiple systems like fire alarm, access control, POE, Mobile Phone View Support have made it truly exciting. IP Surveillance, as this segment is called, offers multifold advantages like Mega pixel resolution and Progressive scan which are simply unheard of in the traditional CCTV industry. D-Link has one of the largest ranges of IP cameras in the world. “We have right from a basic MJEPG-based IP camera for a home user to 18X Day and Night Speed dome camera,” says Jayesh of D-Link. D-Link has been among the pioneers in India to sell IP camera.

The company has a complete and a very comprehensive IP Surveillance solution-based 100% on TCP/IP. Go-To-Market Strategy The channel strategies of D-link revolve around customer education on benefits of IP Surveillance along with the training of the IT partners on these products and solutions. Road Shows, Seminars, exhibitions and alliances also form part of the channel strategies of D-link. Security and Surveillance market is a new business opportunity for an additional business in the existing customer base of all the Channel Partners. “Apart from the regular business that the Channel Partners are currently engaged in with their customers, these products will open doors for new business opportunities. Since this will also be more solution-based, a lot of value addition has to be done adding to the service revenues of all the Channel Partners. A lot of new opportunities will also crop up in all the verticals for these products opening further business opportunities,” says Jayesh. Honeywell Security is well positioned to capitalize on opportunities in India, as the country quickly paces towards achieving a world-class infrastructure. “Our objective is to strengthen our position as a leading security solutions provider across residential, government, retail, and city public safety segments,” says Kamal Arora. “To achieve this, we will seek to expand our client base and further develop our industry expertise, enhance our brand to attract new clients, develop organically and make selective acquisitions, if necessary. This strategy is underpinned by several competitive strengths, including an emphasis on industry expertise, operational excellence and our experienced management team,” adds Kamal Arora.