Demand for Physical Security Products is Buoyant but Margins are Reducing Growth

Memoori’s analysis of the world market for Physical Security products in the first quarter of 2017 shows that demand is buoyant but sadly margins are at an all time low particularly for video surveillance. Growth measured by revenue looks like it will struggle to reach an annual growth of 6% based on results for the first quarter of this year. Our 2016 report showed that in the video surveillance business there are a number of reasons for this with the main one being “the Chinese threat”. Hikvision and Dahua now the two largest producers of video cameras dominate the market and are going all out to further rapidly increase market share by drastically reducing their prices. This strategy together with upping the quality of service in western markets has worked well for them and has required the rest of the market to reduce their prices. The consequences of this has caused market growth to significantly […]

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