Security

Physical Security Business Strategies will Need to Make Some Fundamental Changes

This article reviews the 3 main product categories that make up the physical security business. It compares their structures and discusses the technology trends and demand drivers that will bring about further growth in this dynamic business. This analysis highlights what we believe are the 5 most important factors that will determine future strategies. The gap between the major suppliers and the many hundreds of smaller suppliers gets wider every year and this is rapidly increasing the minimum economic size to operate profitably in this industry. We have now reached the stage where the Video Surveillance business requires a strategy that either focuses on volume through the SMB (Small and Midsize Business) market or brand through the enterprise business. We believe that no more than 5 companies by 2023 will thrive by operating in both at the same time. In the video surveillance business 2 Chinese manufacturers (Hikvison and Dahua) have built up volume, initially […]

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