frost & sullivan - asia pacific physical security trends & dynamics

Asia Pacific Physical Security Trends and Dynamics

Susan Sahayan

Research AnalystResearch Analyst

Automation and Electronics

October 13, 2011

Asia Pacific

Physical

Security

• Overview of Physical Security

• Introduction to the Asia Pacific PhysicalSecurity Market

• Opportunity Analysis of the Asia PacificPhysical Security Market

Focus Points for Today

2

Security

Trends and

Dynamics

Physical Security Market- Tracing the Market Shifts and Trends

• Future Outlook

OVERVIEW OF PHYSICAL SECURITY

33

Economic growth in the region has attracted various global threats.

Why Security ? - Increasing Threats Pose a Need for Enhanced Security Measures

2008/ 2011 Mumbai Terror Attacks

2006 Train Bombings in Mumbai

2009 Hotel Bombings in Indonesia

4

Source: Frost & Sullivan

Indonesia

2011 Bombings in Thailand

Security as One of The Global Trends - Driving Our Future

Key Takeaway: Threats to our lives, identities and freedom seem to arise from more sources than ever before. As a result, individual and collective focus on security is expected to drive the trends of the future.

5


Mega Trends of the Future

The rise of smart cities

In the Future, Security Systems will Likely become an Integral Part of Building Management Systems and Day to Day Lives

6

Source: Frost & Sullivan.

Geo socialization in 2020 will make online authentication and verification through biometrics a standard

Security Convergence as an Integral Part of the Evolution Towards Smart Cities

7


Challenges in Physical Security

Failure to approach security from an organizational level

Treating security as an expense/

sunk cost

8

Security as pure technology and not as business issue

Purely technology/product-based approach

Failure to integrate people, processes, and products


INTRODUCTION TO THE ASIA PACIFIC PHYSICAL

SECURITY MARKET

9

SECURITY MARKET

9

Market Dynamics – Drivers

These factors provide high demand for security :

High Growth Verticals

Generating Demand

Government

10


Technology Advancements

Shift Toward Security Integration

Government Initiatives

Market Dynamics – Restraints

These factors deter the demand for security :

Issues in Integration

11


Lack of Awareness

Large Capital Requirements Deter Investment

Limited Network Environment

OPPORTUNITY ANALYSIS OF THE ASIA PACIFIC

PHYSICAL SECURITY MARKET

- TRACING THE MARKET SHIFTS AND TRENDS

12

- TRACING THE MARKET SHIFTS AND TRENDS

12

Opportunities in the APAC Video Surveillance Market

• APAC Video Surveillance Market

• 2010 - estimated at US$ 1.5 to 2.0 billion

• 2011 – estimated at US$2.2 to 2.4 billion

• CAGR 2010 – 2015 : Approximately 23%

• APAC video surveillance market segments :

7.0%Analog Cameras

13


22.9%40.0%

13.0%

26.8%

4.2%

9.0%

7.0%

IP Cameras

DVR

NVR

Video Encoders

Surveillance Software

APAC Wireless Video Surveillance Market – Largely Government Driven

City surveillance

Transportationsystem

� City monitoring

using the wireless

video surveillance

� Centralized

� Covers a whole city

� Used at the railway

and highway

� Effective in controlling

the transport

management system

APAC Wireless Video Surveillance Key Applications

14

Construction

• Monitoring the construction

site

� Easy and effective because

of the flexibility of wireless

video surveillance

� Benefit to the site

inspection

� Increases security and

safety awareness Source: Frost & Sullivan

Opportunities in the APAC Electronic Access Control Systems (EACS) Market

• Electronic Access Control Systems (EACS) Market in APAC :

2010 – estimated at US$ 650- 700 million

2011 – estimated at US$ 750- 800 million

CAGR 2010 – 2015 : Approximately 24%

• APAC EACS market segments:

4%Smart Cards and Readers

13%2%

15


18%

31%31%

17%

4% Readers

Proximity Cards and Readers

Biometrics

Controllers

Others

18%

23%

45%

13%2%

2010 2015

Note :Others include keypads, magnetic stripe cards and barcodes

Opportunities in the APAC Electronic Access Control Systems (EACS) Market

Revenues

High

q xxx

Video Surveillance

Biometrics

Manpower security

Keypads

Contactless smart cardsand readers

16


2010 2015

Low

Growth Rate (2010-2020)Low

Proximity cards and readers

High

New Technologies for Biometrics Likely to Evolve

Fingerprint Voice

Physiological Behavioral

Types of Biometric Technology

Iris Signature

Facial Keystroke

Hand Geometry *Gait

73%

14%

6%4%

2%

1%

Fingerprint

Facial

IRIS/Retina

Palm Scanner/Vein Scanner

17


Hand Geometry *Gait

Palm *Typing

*Nail *Accent

*Lip

*Ear

*States the emerging type

ScannerVoice

Others

APAC Radio Frequency Identification

• APAC RFID Market :

2010 – approximately at US$ 900.0 million

2011 – estimated at US$ 1.0 billion

** includes all applications : Security & non-Security e.g. transportation, logistics and supply chain, animal tracking, healthcare, others etc


• APAC RFID market segments :

18


55%

19%

26%Tags

Readers

Middleware/Software

Security, Asset Tracking, and Access Control

Transportation

Healthcare Pharmaceuticals Baggage HandlingSports Timing

Prisoner Tracking Laundry Postal and CourierCasino Chips

Traditional Applications Emerging Applications

Shift from Traditional to Emerging RFID Technologies

19

Livestock

Supply Chain Management

Oil and Gas Documents Bill Boards Vending Machine

APAC Intrusion Detection Market

• APAC Intrusion Detection Market :

2010 - estimated at US$ 300 – 330 million

2011 – estimated at US$ 350 – 380 million


• APAC intrusion detection market segments :

11.0%

20


39.8%

33.4%

15.8%

11.0%

Panels

Detectors

Keypads

Accessories

Emerging Technologies Will Sustain the Future Growth of the Security Industry

Key Takeaway : Increased migration toward network based security systems and convergence in applications are already creating shifts in the market and business models.

21

FUTURE OUTLOOK

2222

Key Verticals to Maintain Healthy Levels of Growth and Remain Attractive

Key Takeaway : These verticals are likely to have security requirement at the personal as well as organization level, using one or more of the many security technologies available.

23


Distribution Channel Trends

PASTDistributor

End

UsersManufacturer

WholesalerSystem Integrator/

Reseller

Key Takeaway : System Integrators will play a key role in ensuring the success of the large-scale projects in terms of interoperability and convergence of security systems/

24

End-

Users

Manufacturer

FUTURE

PRESENT

End UsersManufacturer

System Integrator

/ Reseller

Value-added

Distributors

Value-added

Distributors /

System Integrators

Competitive Points for Success in the Physical Security Market

Feature-rich Products Interoperability

ConvergenceROI

25


Improved Storage

Price / Performance

Shift to network based systems

Frost & Sullivan

• The Growth Partnership Company

• Founded in 1961

• Over 1,700 employees across 35+ global

locations

• 10,000+ clients worldwide including emerging

companies, the Global 1000, and the investment

community

26

community

• Offer the exclusive Growth System including:

• Growth Partnership Services

• Growth Consulting

• Growth Team Membership

Europe Americas

Asia Pacific

Hong Kong

Delhi

Colombo

Chennai

Bengaluru

Beijing

Bangkok

Auckland

Regional Presence – Strong APAC Footprint

27

Africa & Middle East

Tokyo

Sydney

Singapore

Shanghai

Seoul

Mumbai

Kuala Lumpur

Kolkata

Jakarta

Hong Kong

AEROSPACE & DEFENSE

AUTOMOTIVE & TRANSPORTATION

CHEMICALS, MATERIALS &

FOOD

ENERGY & POWER SYSTEMS

Cross Vertical Industry Expertise

28

HEALTHCARE ICTAUTOMATION & ELECTRONICS

ENVIRONMENTAL & BUILDING

TECHNOLOGIES

Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter

http://www.facebook.com/FrostandSullivan

http://www.linkedin.com/companies/4506

29

http://twitter.com/frost_sullivan

http://www.linkedin.com/companies/4506

http://www.slideshare.net/FrostandSullivan

For Additional Information

Donna Jeremiah

Corporate Communications

Asia Pacific

(6) 03-6204 5832

[email protected]

Jessie Loh

Corporate Communications

Asia Pacific

(65) 6890-0942

[email protected]

30

Parul Oswal

Research Manager


(65) 6890-0974

[email protected]

Susan Sahayan

Research Analyst


(6) 03-6204 5826

[email protected]