2023

2023
SECURITY 50 INDUSTRY
REPORT:
AN INDUSTRY RESHUFFLING
IN THE CARDS?
Table of Contents

Table of Contents 1

Security 50: A security industry reshuffling in the cards? 2

Memoori report: Prevailing physical security trends in 2023 6

2023 Tech Trends Maturity and Suitability Index Survey 11

Securing Asia in 2023: A deep dive into the region's security market
developments 14

MARKET RESEARCH REPORT

1
Security 50: A security industry
reshuffling in the cards?
Looking back, security in 2022 operated in a world that
saw a slowed recovery from COVID due to various
factors, including inflation and geopolitical tensions.
Economically speaking, the world had an average GDP
growth of 4.1 percent in 2022, dropping from 5.5 percent
in 2021, according to the World Bank. Advanced
economies such as the U.S. and the Euro area grew 3.8
percent last year, down from 2021’s 5 percent, while
emerging markets had a growth of 4.6 percent, down
from 2021’s 6.3 percent.

China, meanwhile, registered a 2022 GDP growth of 5.1 percent, down from 9 percent for 2021, due to
challenges on several fronts. Domestically, China issued lockdowns in different cities throughout 2022,
in response to a rise in COVID cases. Then, there is China’s ongoing real estate crisis – the Chinese
government’s effort to regulate the debt limits of major Chinese developers, like the Evergrande Group,
had caused the country’s real estate market to tumble. External factors also played a role. Geopolitical
tensions between the U.S. and China had prompted the U.S. to place severe trade barriers and
restrictions against China.

Impact on security
So how did these factors play out in security last year? Upon first look, they brought little change to this
year’s Security 50. The top 10 global security manufacturers in access control and video surveillance in
our 2023 Security 50 ranking are Hikvision Digital Technology, Dahua Technology, ASSA ABLOY, Axis
Communications, Motorola Solutions, Allegion, Tiandy, Hanwha Vision (formerly Hanwha Techwin),
Uniview Technologies and Aiphone. Hikvision and Dahua remain the world’s largest security companies,
with 2022 security product/equipment sales reaching US$9.8 billion and $4.5 billion, respectively (based
on the IRS’s 2022 average currency exchange rates). There were several new entrants including China-
based smart home solutions provider MEARI and Korean biometric solution provider Union Community.

Yet a surprising part of this year’s Security 50 was the growth list. Of the 17 companies that registered
2022-2021 revenue declines, 12 were Chinese companies. While China companies’ revenue declines
were somewhat expected given the environment, the number of companies that inked sales declines,
and the magnitude of these declines (by as much as 40.2 percent), still caught us off guard.

Indeed, China’s internal and external challenges mentioned earlier – lockdowns, real estate crisis and
tensions with the U.S. – all played a part. “Chinese government spending was diverted away from other
areas, including spending on video surveillance, and towards battling COVID-19 and supporting its
economy during these lockdowns. Restrictions lasted much longer than many observers had anticipated,
with the Chinese government finally easing its ‘zero Covid’ policy in December 2022,” said Jon Cropley,
Principal Analyst, and Josh Woodhouse, Founder of Novaira Insights.

2
 At the same time, U.S.-China tensions, which led to
legislation like the National Defense Authorization
Act (NDAA) that bans the US government from
purchasing video surveillance equipment by
Hikvision and Dahua, had caused Western and non-
China brands to register a proportional growth in
their 2022 revenue. These include VIVOTEK, with a
sales increase of 82.48 percent; Hanwha Vision,
47.52 percent; Axis, 36.01 percent; Milestone
Systems, 30.43 percent; and IDIS, 22.17 percent. It
should be noted that many of the U.S.’s Western
allies, for example U.K., have also enacted NDAA-
like legislation.

At the same time, U.S.-China tensions, which led to

legislation like the National Defense Authorization
Act (NDAA) that bans the US government from
purchasing video surveillance equipment by
Hikvision and Dahua, had caused Western and non-
China brands to register a proportional growth in
their 2022 revenue. These include VIVOTEK, with a
sales increase of 82.48 percent; Hanwha Vision,
To see the full ranking, click the link 47.52 percent; Axis, 36.01 percent; Milestone
below or scan the barcode:
https://www.asmag.com/rankings/securit Systems, 30.43 percent; and IDIS, 22.17 percent. It
y50_rankings.aspx should be noted that many of the U.S.’s Western
allies, for example U.K., have also enacted NDAA-
like legislation.

“The shift away from Chinese vendors continued at pace not just in the U.S., but across Northern Europe
and countries in Asia including Japan and South Korea. In part, many organizations and systems
integrators want to standardize on NDAA-compliant equipment to ensure existing and future business in
the U.S., while end users are expressing concerns around looming regulations in the EU and Asia,
cybersecurity weaknesses, and the potential for reputational damage connected to human rights abuses
committed by some of the banned Chinese manufacturers,” said Jamie Barnfield, Senior Sales Director
at IDIS Europe.

As for this year, Chinese companies are expected to fare better, even though they are not completely
out of the woods yet. “The Chinese market is forecast to recover slightly in 2023 but remain well below
its peak in 2021. Growth in demand will be much lower than in the years before the pandemic. At the
same time, a weakening exchange rate between the Chinese yuan and US dollar will also dampen growth
(when measured in US dollars),” Cropley and Woodhouse said.

Yearly review and preview

For the security market in general, growth is expected this year and next, with Novaira Insights
forecasting the market for video surveillance equipment to grow 11.8 percent and 10.2 percent,
respectively, in 2023 and 2024.

3
Industry experts agree with that notion.

“We observed some economic growth and expansion in 2023, although it has been unevenly distributed
across different regions and sectors. This has had a mixed impact on the security industry,” said Choong
Hoon Ha, Chief Sales and Marketing Officer at Hanwha Vision. “Despite the mixed economic impact, the
security demands from society and individuals are still rising with the growing need for advanced
network-based systems, such as intelligent surveillance cameras. Businesses are willing to invest in
security solutions that protect their employees and assets, and even improve business efficiency and
productivity by providing business insight.”

“Long-term, sustainable growth is at the heart of our business planning. We plan for 15 percent growth
per year on average. And while the market itself is forecast to grow, Axis is again set to outpace it. We’ll
achieve this by continuing to broaden our portfolio into new areas, such as intercoms, access control,
audio solutions, and so on,” said Ray Mauritsson, CEO of Axis Communications.

Trends: AI, cloud and mobile access more noticeable

As for predominant trends in security, AI and cloud still rank on top.

“Artificial intelligence will continue to provide opportunities for innovation across the industry.
Application of AI to data streams from sensor fusion – combining and interpreting inputs from cameras
and other sensory devices – will shift security solutions towards proactive capabilities that drive new
value. AI’s influence is still in the transformational stage, for certain, but the applicability to the security
industry is strong and clear,” said Vince Wenos, Senior VP and CTO of Allegion.

“This year, we have witnessed a growing demand from customers to maximize the capabilities of their
cameras and sensors, with a strong emphasis on analytics. The industry continues to embrace the
dominant trend of edge analytics, with an increasing number of camera manufacturers expanding their
support for this technology,” said William Hinton, Product Line Manager for Video at Genetec.

According to Choong, customers are seeking technologies that can help them improve the accuracy of
detection, make their video surveillance systems more scalable and cost-effective, and take benefits
from video analysis.

“In other words, they’re looking for surveillance technology powered by AI and cloud,” Choong said.
“Many customers are still in the early stages of adopting AI and cloud-based video surveillance solutions.
However, the adoption of these technologies is expected to accelerate in the coming years, as
customers see the benefits that they can offer.”

Mobile credentials, meanwhile, have also emerged as a top trend in 2023. “Electronics continue to fuel
significant growth for the industry across both hardware and solutions providers. Increasing adoption of
mobile credentials and associated readers is providing healthy lift,” Wenos said. “Mobile credentials
continue to gain interest from customers, as they provide greater value to end users and system
operators.”

Digital wallets, an offshoot of mobile access, are also gaining traction. “We’re seeing a lot of interest in
digital wallets in large, tech-savvy office buildings. The first European rollout of employee badge in Apple

4
Wallet was at London’s 22 Bishopsgate, touted as the world’s smartest building. 14,000 mobile users at
22 Bishopsgate can now use just their iPhone or Apple Watch to access their offices, plus all the
building’s amenities,” said Prabhu Patel, Commercial Director for Physical Access Control Solutions,
ASEAN and India, at HID.

Cybersecurity continues to be a hot topic now that more and more devices are online. “For several years
we’ve witnessed a growing focus on the cybersecurity of solutions. Customers are aware the risks are
rising, demanding robust processes, vigilance and transparency. When vulnerabilities do occur, vendor
transparency is essential, allowing customers to respond as quickly as possible,” Mauritsson said.

Flexible payment
This year, we’re seeing at least two companies offering flexible payment options. These are i-PRO, who
announced their FlexPay Financing, and Eagle Eye Networks, who launched their Eagle Eye Camera
Direct Complete. The programs aim to help customers achieve more payment flexibility, reduce initial
investment and become more competitive in general.

“In some organizations an increasing amount of security ops fall under the IT department’s responsibility,
and they may have a preference for a greater amount of OPEX compared with the security industry’s
typical preference for capital expenditure purchases,” Cropley and Woodhouse said. “This type of
transition is indicative of a cloud business model transition. However, only the video surveillance vendors
themselves know whether the motive behind this is related specifically to products from specific
competitors.”

Consolidation vs. smaller start-ups

Meanwhile, two competing forces continue to dominate in security. One is the continued consolidation
of the industry. Recent examples include acquisition deals between ACRE and SISCO, Motorola Solutions
and Rave Mobile Safety, and IDIS and Costar. Yet on the other hand, we’re also seeing the emergence of
smaller companies focusing on cloud and AI. How these forces will play out remains to be seen.

Yet according to Cropley and Woodhouse, there are advantages to scale of operation. “Each surveillance
scenario is unique. Variables include the size of installation, whether it is indoors or outdoors, and lighting
and weather conditions. At the same time, the channel varies considerably by geographic location with a
different set of distributors, systems integrators and installers serving its needs. Large vendors have a
range of solutions to meet all scenarios and have the resources to serve different channels in a wide
range of geographies,” they said.

5
Memoori report:
Prevailing physical security
trends in 2023
The physical security market is undergoing a significant
transformation, influenced by a host of factors from
technological advancements to geopolitical shifts. In this
article, drawn from Memoori's latest research into both
the Video Surveillance and Access control markets, we
will explore just a few of the key trends and challenges
our research indicates will be the most influential in
shaping the industry over the coming years.

Current state of the video surveillance market

Memoori's latest report into The Global Video Surveillance Business explores market prospects for
cameras, storage, software & analytics from 2023 to 2028. Our latest estimates, based on a
comprehensive analysis of the performance of a total of 322 companies operating in the global market,
indicate that it generated revenues totalling $30.4Bn in 2022. While the era of double-digit annual
growth appears to be over for video surveillance, factors including AI related innovations, expanding
provision and demand for more sophisticated analytics, the ongoing shift to IP cameras and improving
camera resolution will continue drive market growth. We forecast that this market will experience a
Compound Annual Growth Rate (CAGR) of 5.7% between 2023 and 2028, with revenues totalling
$44.8Bn by 2028.

The AI imperative
The integration of advanced Artificial Intelligence (AI) and Machine Learning into video surveillance is
reaching unprecedented levels of maturity. Key drivers of this trend include:
Practical Implementations: Earlier discussions on AI in surveillance have moved from theoretical to
practical, with more real-world applications coming to the fore.
Sophisticated Analytics: The analytics capabilities have grown increasingly refined and reliable,
reducing false alarms and allowing for more nuanced and actionable insights.
Cost Decline: The falling costs of implementing AI and Machine Learning are making these
technologies accessible to a broader range of applications.
Availability of Edge-Based Analytics: There's a widespread rollout of edge-based analytics, based
on dedicated AI chip System on Chip architectures that offers the ability to process data closer to its
source, alleviating network bandwidth constraints and helping end-users to minimize the risk of
transferring or processing privacy related data.

We forecast that by 2028, the percentage of network security cameras with onboard AI capabilities is
projected to rise from today's 18% to over 50%. These advancements are fuelling new features like

6
object recognition, behavior analysis, and other forms of intelligent monitoring.

However, the growth in AI capabilities comes with its own set of challenges. Infrastructure issues such as
bandwidth limitations, latency, and cyber protections can impede the full utilization of AI-enhanced
cameras. Moreover, the lack of standardized data practices and testing methodology further
complicates the landscape. These challenges necessitate responsible and transparent implementation
of AI technologies.

As data volumes and the demand for analytics rise, we expect the market for Video Management
Software (VMS) & analytics to significantly outpace growth in the wider market, here, we are forecasting
growth at an 8.4% CAGR from 2022-2028. Here, the progressive transition to cloud-based analytics
driven by requirements to amplifying the power of video analytics by leveraging centralized computing
resources is set to continue.

Geopolitical shifts move the goalposts in the video surveillance market

Geopolitical tensions and shifting trade barriers have progressively transformed the global landscape of
video surveillance market over the past five years. While initial moves by the US government imposed
relatively minor tariffs and limited sales to particular US government agencies, more recently blanket
U.S. bans on the sale of equipment in the US by Chinese market giants Hikvision and Dahua enacted
under the National Defense Authorization Act (NDAA), have much more profound impact. These
progressively more stringent restrictions have significantly disrupted supply chains, forcing a
recalibration of power dynamics, and generated growth opportunities for Western, Korean and Japanese
manufacturers such as Axis, Hanwha Vision, IDIS, Secom. These players and others have developed new
strategies and supply chain relationships that seek to fill any voids left by the withdrawal of Hikvision &
Dahua from US markets.

7
For several of these companies, the is already having a major impact on their fortunes. For example
Hanwha Vision reporting 86% sales growth in the Americas from 2021 to 2022, capitalizing on its NDAA-
compliant status, while IDIS saw overseas revenue jump from $50m to over $80m after the NDAA ban.

US manufacturers are increasingly plugging their “Made in the USA” credentials, while Western
manufactures such as Axis Communications are leveraging their NDAA-compliant status to help boost
sales in North American markets. Several are also touting their stringent data security policies and
practices to further reinforce their market positioning for end users that are increasingly cognisant of
cybersecurity and ethics related issues.

Other notable Chinese surveillance companies including Tiandy Technologies, Infinova, TVT Digital
Technology, and Raysharp witnessed revenue declines between 3% and 40% in 2022 compared to 2021.
While much of this decline might be attributed to the adverse impact of COVID-induced lockdowns in
China, and overall slowdown in the Chinese economy over the period, the trade restrictions have also
undoubtedly been a contributing factor. While they’ve not been as directly impacted as Hikvision &
Dahua, these other Chinese manufactures will be nervously looking on from the sidelines, at the further
adverse impact that potential equivalent restrictions on their US operations could have, moves which are
being advocated for in some quarters.

The political impetus and related media exposure generated by the scale of US regulatory moves is also
having ripple effects beyond the US, for example influencing several major UK retailers to announce
plans to drop Hikvision and Dahua cameras due to ethical concerns, as well as ongoing legislative moves
to restrict usage of the companies’ devices in various public sector bodies in several territories across
Europe and beyond.

This evolving regulatory landscape will require firms to maintain agility, adapting their strategies to
navigate a shifting patchwork of trade barriers and regulations that are emerging in different regions.

Access control: Mobile gains traction

Turning to access control, our market forecasts for this year’s analysis are still being finalized, but initial
indicators are that Electronic Access Control market growth is set to outpace Video Surveillance market
growth for the coming 5 years, reversing the dynamics that have been in play across Physical Security
for over a decade.

Here, the underlying supply chain and security dynamics are similar, geopolitical uncertainties are having
a much more muted impact. Biometrics adoption has been somewhat stalled due to behavioral and
attitude changes resulting from COVID, but we see the primary driver for growth being the progressive
shift to mobile-based access control.

From a user standpoint, the allure of mobile access control lies in its convenience, enhanced security
features, and the flexibility it offers for system administration. Major manufacturers in the access control
space, including HID Global, Brivo, and WaveLynx, have been quick to recognize this shift, announcing
integrations with Apple Wallet and Google Wallet over the past year to capitalize on the momentum.

Customers, too, are taking note. According to a recent survey on access control trends, 42% of
respondents worldwide now have plans in place upgrade to mobile-ready systems. Our preliminary data

8
sentiment, projecting that by the end of 2023, mobile-based systems could constitute around 20% of all
newly issued access control credentials for non-residential buildings.

While the transition to mobile-based systems is underway, it isn't without its own challenges. Privacy and
cybersecurity remain as key concerns amongst many end users, particularly in cases where personal
devices are proposed as the primary means of access control. For this reasons, some organizations
remain reticent to back the shift, still preferring the use of physical cards to mitigate the risks associated
with personal data exposure on mobile devices.

Infrastructure is another consideration. The shift to mobile-based systems often necessitates upgrades
to existing hardware, such as the incorporation of Bluetooth or NFC readers, adding an extra layer of
complexity and cost to the transition.

Additionally, some vendors have expressed concerns over the complexity of Apple's process for wallet
integration, citing it as cumbersome and potentially slowing down the pace of adoption. It's also worth
noting that Apple Wallet incurs additional credential fees, which could be a factor for organizations
considering the switch.

Despite these challenges, the trend toward mobile-based access control is unmistakable and shows little
sign of abating. As manufacturers continue to innovate and as customers become increasingly aware of
the advantages, we can anticipate this segment to carve out a significant share of the access control
market in the coming years.

Tying it all together

As the physical security industry evolves, integration continues to move to the forefront as a business
imperative. Rather than maintaining each individual security components (video surveillance, access
control, or intruder detection) in individual silos, companies are now looking for new cross-functional
efficiencies and value add opportunities across the BIoT. There's a burgeoning demand from both users
and vendors for unified platforms that not only streamline workflows but also enrich data insights by
correlating information across domains. Deeper forms of interoperability that spans data structures,
analytics, identity management, and automation capabilities are emerging, fostered by expanded cross-
domain partnering networks and improving APIs functionality.

One of the key enablers in this transformation is improving standardisation of security data and its
metadata. Providing more contextually rich data is needed to inform more intelligent decision-making
across these previously siloed systems, and can be invaluable when integrated into a broader security or
building management system, enabling more nuanced and responsive actions like selective door locking
or lighting adjustments based on occupancy, or scheduling elevator movements to match patterns of
people movement within a building, saving energy and enhancing building user experiences.

While the promise of integration is compelling, successful delivery is not always straightforward.
Appropriately skilled systems integrators, endowed with the cross-domain knowledge across IT and OT
technologies, video systems access control and even building protocols like BACnet will be essential for
implementing complex unified security and BIoT solutions.

Legacy systems, proprietary protocols, and the absence of standardized data formats will also continue

9
to act as common roadblocks to integration until such systems are progressively phased out.

As the industry moves toward more standardized solutions, and cross functional expertise grows, we can
expect deeper, more seamless integrations to become the norm rather than the exception.

Looking forward
The physical security market clearly remains in a state of flux, influenced by technological
advancements, geopolitical shifts, and an increasing focus on integration and ethics. Companies that can
adapt to these changes, innovate, and offer intelligent, integrated solutions are likely to thrive. But this is
not a market for the complacent; staying ahead will require constant innovation, ethical considerations,
and perhaps most crucially, the ability to adapt to ever-changing conditions.

Other trends which merit consideration and are explored in our reporting include shifts towards multi-
sensor in both video surveillance and access control for multi-factor authentication, ongoing skills
shortages (especially those with expertise in cross-sectoral applications and artificial intelligence),
increased focus on environmental sustainability, and the ever-present influence of cybersecurity risk on
products, regulations, policies and end user priorities. These factors are not just affecting the cost
structures and policies but are being taken more seriously across the board, influencing both supply and
demand dynamics.

Ongoing market success will hinge on continual innovation, ethical vigilance, and a nimble approach to
the ever-changing landscape. Firms that keep their finger on the pulse of these multiple factors, and
remain open to new ideas and pragmatic investments, will be better positioned to dominate in this
evolving market.

About Owen Kell

Owen Kell is a seasoned business intelligence professional with
nearly two decades of expertise in market research into how
industry leaders are applying emerging technologies to enhance the
efficiency, sustainability, and intelligence of buildings and urban
environments. He is recognized for his deep understanding of
markets for IoT, Big Data, AI, Machine Learning, and Physical & Cyber
Security in the Smart Building sector. Kell has empowered global
blue-chip giants and innovative startups alike with strategic insights,
actionable intelligence, and innovative solutions. He is a thought
leader in the industry, having authored over 20 insightful market
reports that have shaped the discourse in the Smart Building Owen Kell,
Senior IoT & Security Research
landscape. Associate, Memoori

10
2023 Tech Trends Maturity
and Suitability Index Survey
The “2023 Tech Trends Maturity and Suitability Index
Survey," sponsored by ZKTeco, garnered responses
from 633 channel players offering validated insights into
the technologies significantly impacting the video
surveillance and access control industry. This year's
survey includes a closer look at biometrics, with insights
on industry and emerging trends from key market
players and a comprehensive analysis of the survey
results. The full survey results and discussion can be
found here.

Ongoing and emerging trends

Mature and suitable: Radar and LiDAR (2), edge
processing/storage (3), unmanned security platforms
(4), artificial intelligence (5) and 5G wireless
communications (6); Mature but not as suitable: Li-Fi
(1)

5G ranks high in the survey and for good reasons too;

the technology with its fast speed and low latency has
been a key enabler in AIoT and is now increasingly seen
in video surveillance with more cameras being 5G-
enabled. Also ranking high are edge processing/storage, unmanned security platforms (robots and

11
drones) and radar/LiDAR, the latter of which are companion detection technologies to video surveillance,
being able to detect objects in inclement conditions. LiFi or light fidelity is becoming mature yet is still
deemed unsuitable as a transmission solution.

Access control
Mature and suitable: Touchless biometrics (7) and
building/property management integration (8); Mature
but not as suitable: Unimodal biometrics (1), touch
biometrics (2), wireless locks (3), cloud access control
(4) and digital twins (5); Not as mature nor suitable:
Multimodal biometrics (6)

Touchless biometrics such as face and palm recognition

are gaining ground post-pandemic, while building
management integration suits the current green and
sustainability trends well. Unimodal biometrics and touch biometrics, while technologically mature, rank
lower in suitability as organizations attach a stronger importance to the security, safety and health of
their workers. Multimodal biometrics, on the other hand, is moving up along the suitability index due to
the extra layer of security it offers. Click here for the full result of our access control survey.

Access control
Mature and suitable: Mobile apps for video surveillance
(7), lowlight color cameras (6), 4K resolution (5), cloud
video surveillance (4) and bi-spectral camera (3); Not so
mature nor suitable: 8K resolution (1) and tri-spectral
camera (2)

Lowlight color cameras offer good color-capturing

capabilities in lowlight conditions and continue to gain
ground in video surveillance thanks to more advanced
lenses and image processors available. 4K allows users
to zoom in and still see clear images, making it useful in large-scene environments such as city
surveillance. Bi-spectral cameras whereby visible light and thermal camera units are combined into one
device are beneficial in industrial settings. By comparison, 8K resolution and tri-special cameras (with UV
combined) are not as suitable, at least at this point in video surveillance. Click here for the full results of
our video surveillance survey.

12
Featured articles
2023 video surveillance tech trend survey: AI
dominance continues
In this year’s asmag.com video surveillance technology
survey, sponsored by ZKTeco, lowlight color cameras, 4K
and bi-spectral solutions all ranked high in both market
suitability and technical maturity, while AI continues to
gain traction as a solution that fulfills users’ security and
operational needs. This article takes a closer look at the
results.
To read the full article, click the link
below or scan the barcode:
https://www.asmag.com/showpost/33
827.aspx

2023 access control trend survey: Touchless,

multimodal biometrics gain ground
Sponsored by ZKTeco, this year's Security 50 access
control technology survey sees building management
integration and touchless biometrics both ranking high in
terms of technical maturity and market suitability.
Meanwhile, multimodal biometrics, where users are
authenticated by more than one biometric modality, are
gaining ground. This article takes a closer look.
To read the full article, click the link
below or scan the barcode:
https://www.asmag.com/showpost/33
833.aspx

13
Securing Asia in 2023:
A deep dive into the region's
security market developments
The Asian security market has witnessed significant
growth and transformation in the years 2022-23, driven
by technological advancements, government initiatives,
and evolving market demands. With the region's diverse
landscape, encompassing both developed and
developing economies, the security industry has had to
adapt and innovate to meet the unique needs of each
market.

From high-definition video surveillance systems to AI-powered analytics and facial recognition, the Asian
security market is now at the forefront of embracing cutting-edge technologies to ensure the safety and
security of its people, assets, and infrastructure.

This article delves into the current market conditions, key trends, and comments from some of the major
players shaping the Asian security market in 2022-23, providing a comprehensive overview of this
dynamic and rapidly evolving industry.

Trends shaping the industry’s future

The Asian security market is evolving rapidly, with several key trends shaping its future. Adoption of
newer technology is at the forefront, followed by policy changes and socio-economic factors.

Integration of AI and edge computing

Some of the major companies are leading the way in integrating AI and edge computing into their
security solutions, creating smarter and more efficient systems that are user-centric and aimed at
improving living environments.

“We are experiencing double digit growth in physical security market, especially market acceptance of
new technologies i.e., biometric and AI-based face authentication and analytics is leading growth of the
market,” said Hanchul Kim, CEO of Suprema.

Vivianna Wang, GM of Marketing & Channel Development at Hikvision said that looking forward, in the
next five years, this landscape could be profoundly influenced by a few key trends.

“Digitization will spearhead this change, followed by the integration of innovative technologies like
artificial intelligence and IoT,” said Wang. “Additionally, we anticipate a more significant role for
sustainable and eco-friendly security solutions, adapting to global green and low-carbon initiatives.”

14
High-definition video surveillance
There is a growing demand for high-definition video surveillance systems, with a shift from 2MP to 5MP
resolution in IP cameras becoming the new norm. These systems provide clearer and more detailed
images, essential for effective monitoring and security.

“Currently, the market trend for IP cameras has shifted from 2MP to 5MP resolution, making it the
mainstream,” explained Alex Kuo, APAC regional business head at Vivotek. Hardware specifications
among various brands have also become quite similar. Therefore, product added value is crucial. This is
an important factor contributing to Vivotek's continuous growth in the Asia-Pacific region. For example,
through Vivotek's smart stream 3 feature, not only is image quality and resolution maintained at a high
level, but it also effectively conserves bandwidth. Additionally, the AI analysis and VCA capabilities allow
for quicker resolution of customer pain points, thereby enhancing operational efficiency.”

AI-Powered analytics and facial recognition

AI-powered analytics and facial recognition technologies are becoming more sophisticated and
accurate, revolutionizing the way surveillance is used. These technologies enable real-time monitoring
and provide operators with highly accurate alerts, enhancing overall security capabilities.
“In technologically advanced countries and those investing in large-scale projects, we’re already seeing
rapid adoption of artificial intelligence (AI),” said Alex Lee, Senior Sales Manager for MEA & Asia at IDIS. “It
is revolutionizing the way surveillance is used by enabling more accurate and efficient monitoring of
large-scale environments, such as transportation hubs, hospitals, government facilities, shopping malls,
and public spaces.”

AI-powered functionality such as facial recognition and object detection has become increasingly
sophisticated and accurate with more companies able to justify adoption. AI technologies enable video
surveillance systems to not only capture and record footage but also analyze it in real-time, providing
operators with highly accurate alerts and enhancing the overall security capabilities. Metadata search
functions also speed up investigations from days to hours or even minutes, and Asian companies are
looking for the operational efficiencies AI can deliver.

“The same is true when it comes to business intelligence, particularly in retail where we’re seeing high-
demand for AI-powered and highly accurate people counting, heat maps, occupancy monitoring, and
queue management to boost profits with actionable insights,” Lee added. “There’s also a lot of demand
for high-definition and high-performance cameras supporting loss prevention strategies.”

Increased interest in cloud solutions and mobile credentials

Cloud solutions are gaining popularity, providing more flexibility and scalability for security systems.
Mobile credentials are also becoming more common, offering a convenient and contactless solution for
access control.

Government Initiatives and Investments

Governments across Asia are investing heavily in security infrastructure, driving significant growth in the
market. Large infrastructure projects, such as the security and safety upgrade of India's rail network, are
examples of how government initiatives are shaping the industry's future.

15
“The physical security market is booming in Asia with many greenfield construction projects and
infrastructure investments happening, especially in the developing markets in Southeast Asia,” David
Thean, GM for Asia at Gallagher Security said. “As many of these developing economies in Asia expand,
demand for top tier security solutions is growing as well.”

Wang too pointed out that, considering the vast number of countries in Asia, there is some
differentiation.

“There’s a considerable surge in developing markets, like Southeast Asian region, showcasing great
potential and growth, while for some developed countries which are relatively saturated markets, gaining
modest growth,” Wang said.

Government investment is driving significant growth in developing countries, including Bangladesh,

India, Thailand, and Vietnam. India’s economy remains bullish with large infrastructure projects. One
example is the security and safety upgrade across its rail network, the largest in Asia.

“To date, IDIS India has upgraded close to 3,700 Railtel railway stations,” explained IDIS. “Hardware is
seamlessly monitored and managed by IDIS Solution Suite VMS with Railtel adopting service modules
including IDIS Critical Failover and IDIS Deep Learning Analytics as well as integration with third-party
facial recognition.”

Ahead of the Olympics in Tokyo, IDIS saw significant demand in Japan for surveillance upgrades
following a partnership agreement signed in 2019 with JVC to sell IDIS branded products across its
distribution network. It’s a winning strategy, particularly since Japan is known to prefer its own tech after
decades-long global prowess of its electronics brands.

“We’re more realistic in terms of the wider region and expecting a CAGR over the next five years of 10 to
15 percent,” IDIS said. “Yet Asia is dynamic with varying factors impacting the economic landscape in
each of our focus countries and core markets. Like many other parts of the world, we’re seeing sustained
demand for end-to-end solutions in the retail, banking, healthcare, hotels and hospitality, logistics, and
manufacturing sectors across the region.”

There are some common factors shaping each of these markets such as the rising need for enhanced
security and safety measures combined with a drive to increase operational efficiency. With increasing
incidents of crime, terrorism, and public safety concerns, governments and organizations are investing
heavily in high-definition video surveillance systems as well as analytics to monitor and protect their
facilities, people, and assets and address specific operational challenges. It’s a trend that is accelerating
as the demand for real-time monitoring and proactive security and safety measures grows.

Government Initiatives and Investments

With the increasing importance of cybersecurity in physical security products, companies are
implementing various cybersecurity techniques to protect privacy and data. This trend is particularly
evident in societies where privacy is paramount, such as South Korea.

“A significant trend is the need for high security to protect the growing infrastructures and modern
buildings in the region,” Thean added. “Cybersecurity requirements are also increasing for physical

16
security products, and smarter access controls – like facial recognition and iris scanners – and
contactless solutions such as mobile credentials are other trends in the region’s market. I’d also say
cloud solutions are gaining popularity.”

Demand for end-to-end solutions

There is a sustained demand for end-to-end solutions across various sectors, including retail, banking,
healthcare, hotels, and hospitality. These solutions provide enhanced security and safety measures while
also increasing operational efficiency.

“Asia is dynamic with varying factors impacting the economic landscape in each of our focus countries
and core markets,” IDIS’ Lee said. “Like many other parts of the world, we’re seeing sustained demand for
end-to-end solutions in the retail, banking, healthcare, hotels and hospitality, logistics, and
manufacturing sectors across the region.”

Adoption of contactless and biometric solutions

Contactless solutions and biometric authentication, such as facial recognition and iris scanners, are also
gaining some traction according to some of the interviewers. These technologies provide a secure and
convenient way to control access and are particularly relevant in the current global health landscape.

Conclusion
In conclusion, the Asian security market has undergone significant transformation, adapting to the
evolving demands of a diverse landscape that encompasses both developed and developing economies.
The integration of cutting-edge technologies such as AI, edge computing, and high-definition video
surveillance has revolutionized the industry, providing more sophisticated and efficient security
solutions.

These advancements, coupled with government initiatives and investments in infrastructure, have
propelled the market to new heights. The increasing importance of cybersecurity in physical security
products, along with the adoption of contactless and biometric solutions, reflects the industry's
commitment to addressing the modern challenges of safety and security.

As the market continues to grow and evolve, we can expect to see further innovation and development
of comprehensive end-to-end solutions that cater to the specific needs of the Asian region, ultimately
leading to safer and more secure environments for all.

17
Featured articles
Security in North America 2023: Advanced tech
shaping the way forward
The 2023 North American physical security market is
dynamic and rapidly changing, reflecting the complex
and ever-changing threats organizations and individuals
face. Physical security, including surveillance cameras,
access control systems, security personnel, and barriers,
is more important than ever to protect assets, people,
and information. This article will examine the North
To read the full article, click the link
American physical security market in 2023, including its
below or scan the barcode:
https://www.asmag.com/showpost/33 key trends and future challenges and opportunities.
834.aspx

Securing Europe in 2023: navigating threats,

technology, and regulations
The physical security market in Europe has witnessed
significant developments and transformations in recent
years, positioning itself as a crucial component in
addressing the contemporary geopolitical and economic
challenges faced by the region. This article delves into
the current state of the physical security market in
Europe, exploring the factors that are shaping its future
To read the full article, click the link
and the opportunities and challenges that lie ahead in
below or scan the barcode:
2022-23. https://www.asmag.com/showpost/33
836.aspx

18