Cracks in Foundations of the Video Surveillance Business could be Cause for Concern

The last two years has seen a slowing down in revenue growth of the world’s video surveillance business, whilst at the same time the supply structure has become unbalanced as two Chinese companies that were only formed relatively recently (and not even regarded as serious competitors by most suppliers only six years ago), are now starting to dominate the market. There is little indication that leading western manufacturers will soon find a solution to redress this balance. Hikvision and Dahua are going for volume business and are backed up by a profitable home market and copious financial resources (in the case of Hikvision the Chinese government are a major shareholder). They are able to continue reducing prices and adding further market share. Hikvision is by far the larger of the two companies with a world market share of around 26%, whilst Axis Communications the largest western manufacturer of IP video surveillance equipment in 2015 had […]

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