This presentation sheds light on some of the key trends witnessed across the video surveillance and electronic security market in India and mentions some of the top end-user infrastructure development segments which are expected to provide sales opportunities for security providers.

1. Market Snapshot
Video Surveillance and Integrated Electronic Security
Markets in India
Infrastructure Developments to Drive Growth

2. Overview
India has witnessed a rise in the amount of crimes as well as their brutality over the
past decade. Horrific crimes such as the 26/11 attacks and the Delhi gang rape incident
have questioned the efficacy of public safety on an individual and national level.
Crimes against women and children, and surprise terrorism attacks are two of the main
types of threats that have been given visibility and that are faced in the subcontinent.
However, with the increasing geopolitical instability and the rise of terrorism groups,
the region faces a range of threats that are capable of disrupting national security and
economic well-being.
Threats to critical infrastructure such as mass transportation, airports, power plants,
and public buildings pose a significant opportunity for terrorist groups to disrupt the
country’s financial health and position the country as unstable on a global level. To
cope with the inevitability of such threats, efforts are made by the government and
owners of such infrastructure to integrate the best of security systems for their safe-
guarding.
This presentation will shed light on some of the market and technology trends being
witnessed in the video surveillance market and provide a perspective on how new
infrastructure developments as well as other initiatives will result in growth
opportunities for security OEMs and integrators. Source: Secondary Research Articles and Publications, Runaway Insights Analysis

3. However, the nature of threats are evolving over the past few years from
surprise bomb attacks to well-planned mass shootings causing major loss of
lives, and spreading wide-spread the fear amongst the people.
Although the nation has effective counter-terrorism tactics, the rogue nature
of the attacks and lower quality of gear in comparison to terrorist groups have
resulted in greater civilian and police casualties.
The country has thus been focusing on improving preventive measures by
focusing on integrating higher-end ICT-reliant technology in cities and critical
infrastructure installations to ensure better monitoring of activities.
Surprise terrorism attacks at public places by explosions causing mass damage
to property and loss of human lives have been an issue plaguing the nation
over the last 2 decades.
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2
3
4
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
Overview – Security Threats in India: Terrorism

4. As per the crime rate graph (See next slide), theft, criminal
trespassing/burglary, and grievous hurt comprise a majority of crimes in the
country.
Although incidents of grievous hurt have declined in 2015, it nonetheless
poses a threat due to its high occurrence. Crimes like attempt to commit
murder, rape, and kidnapping/abduction are less apparent but on a rise.
However, it is estimated that the occurrence of crimes against women and rape
may be much higher due to many cases being unreported and no complaints
being made.
Apart from Terrorism, significant threats to the nation and its people range
from murder, attempted murder, rape, kidnapping and abduction, assault on
women, robbery, burglary and trespassing, and theft.
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6
7
8
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
Overview – Security Threats in India: Other Crimes

5. Overview – Security Threats in India: Other Crimes
Source: National Crime Records Bureau

6. Part of this investment’s focus is to enhance communication and surveillance
infrastructure to improve first responder effectiveness as well as support the
country’s gradual adoption of smart technologies.
The country’s recent focus on programs such as Crime & Criminal Tracking
Network & Systems (CCTNS) are aimed at increasing visibility of occurrence of
crimes as well as prevention.
These trends signify that the country is poised for immediate to long-term
adoption of a range electronic security systems thus, presenting a significant
sales opportunity for OEMs and integrators.
In light of this scenario, the government as well as private organizations are
taking initiatives to improve public safety and security by driving investment in
smart city projects and other critical infrastructure.
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10
11
12
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
Overview – Security Threats in India: Conclusion

7. • The Indian Video Surveillance Market is expected to reach close to USD 1 Billion by
the end of 2016 and is forecasted to more than double its size by 2020,
demonstrating a CAGR of close to 24% during the forecast period.
• The government has outlined plans to heavily invest in modernizing infrastructure
to be ICT-friendly enable closer monitoring and reporting of public incidents,
thereby, enhancing the country’s proactive and reactive security response systems.
• Some of the key developments that are expected to be witnessed in the country
over the next decade include airports, smart cities, seaports, as well as a number
of other residential, commercial, retail constructions.
• To keep up with these ambitious plans, the government is increasingly encouraging
private sector participation from major national and international investment
bodies, and EPC (Engineering Procurement Construction) contractors.
• This in turn is leading to an increasing penetration of a few major foreign as well as
national electronic security OEMs building strong relationships with infrastructure
developers and the government to identify and bag security contracts well in
advance.
Executive Summary
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

8. Executive Summary
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
• However, in-spite of this competition, the breadth of infrastructural development
still presents a major opportunity for security providers to expand their footprint in
the industry by targeting developments which have not had their security needs
catered to.
• Operators and owners of newly established infrastructure are expected to demand
higher-end, state-of-the-art electronic security systems which are scalable,
technologically advanced, as well as cost-efficient.
• The demand and willingness to spend on these latest technological upgrades and
newer systems by end-users thus, represents a significant sales opportunity to
providers of such systems.
• As such, product innovation and breakthrough surveillance technologies is
expected to gain speed as procurement budgets increase.
• In light of these opportunities, the following few slides will shed light on some of
the key market and technological trends that are shaping the video surveillance
industry as well as highlight some key success factors that customers look for while
choosing a solution provider.

9. Key
Market
Trends
M&A Activity
Dominated
by Pure-Play
Companies
Varied
Security
Solutions
Integrated
Systems
Key Market Trends
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

10. Key Market Trends
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
• M&A activity has been generally witnessed amongst larger foreign
integrators and OEMs with Indian giants. For example, TATA’s alliance
with AGT International (TAS-AGT) to cater to the security market.
M&A
Activity
• The video surveillance industry in India is mainly dominated by pure play
companies such as CP Plus, Dahua, Zicom, and Hikvision in certain
segments.
Dominated by
Pure-Play
Companies
• However, the presence of larger OEMs with a wider range of security
offerings also permeates the security industry in India and has presence
in critical infrastructure and mass transport projects.
Varied Security
Solutions
• The need for video surveillance systems to be integrated with other
complementary security and building automation systems is enabling
larger OEMs with diversified products to gain a stronger footprint.
Integrated
Systems

11. Key
Technology
Trends
IP-Based
Surveillance
Systems
Video Surveillance
as a Service
(VSaaS)
Video Analytics
and Integration of
Big Data
Automation as a
Result of Big Data
Integration
Automatic
Number Plate
Recognition
(ANPR)
Uptake of Remote
Access Capabilities
Key Technology Trends
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

12. Key Technology Trends
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
• A majority of the surveillance systems currently being used are analog-based IP
systems. Albeit effective and still contributing to a large proportion of market share,
these systems are not technologically advanced enough to deal with threats in a
proactive manner.
• In light of certain drawbacks such as low scalability, inability of complementary high-
tech solutions to be integrated, and demand for remote access, many end-user
segments have started migrating towards IP-based surveillance infrastructure which is
highly scalable at a comparatively lower Total Cost of Ownership (TCO).
IP-based
surveillance
systems
• Cloud-based VSaaS solutions allow users a higher degree of flexibility as these solutions
exhibit features such as lower ownerships costs, higher scalability, secure remote access
and management via internet.
• One of the factors driving the migration towards IP based surveillance systems is the
relative ease of being able to integrate IP based surveillance systems into a VSaaS based
solution in comparison to other systems in place.
Video
Surveillance as
a Service
(VSaaS)
• Video Analytics software allows automated monitoring and reporting of suspicious
behavior based on algorithms input into the system. A certain combination of
movements or actions detected by a CCTV camera can trigger an alert if they are
deemed as suspicious.
• Such technologies are being increasingly adopted in light of the need for better
monitoring of activity. These systems also allow for facial recognition of persons
detected on video. Systems such as facial recognition are expected to continue
witnessing strong adoption in light of increasingly sophisticated threats.
Video Analytics
and Integration
of Big Data

13. Key Technology Trends
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
• The integration of surveillance systems with the latest technology capable of analyzing
large chunks of data is leading to lesser reliance on systems requiring human
monitoring. As such, these systems are increasingly being automated.
• This is driving ICT spending in the security segment and is expected to gradually lead to
an industry characterized by data providers / server storage providers working closely
with surveillance providers.
Automation as
a Result of Big
Data Integration
• The increasing traffic density, mild to serious infractions, and hit & run cases have
prompted the government to take stronger measures to smoothen the flow of traffic
and curb such violations.
• ANPR technologies are being integrated with CCTV surveillance systems which capture
number plates of traffic violators and thus, deter such offenders. Smart city
developments across India are expected to drive the uptake of such solutions.
Automatic
Number Plate
Recognition
(ANPR)
• When customers are out of town or away from their business / residential premises,
they wish to monitor their facilities remotely to ensure timely reporting of any incidents
of theft or break-ins.
• Further, the increasing prevalence of theft and crimes is prompting customers from the
retail, corporate, and residential end-user segments to adopt surveillance technology
which gives 24/7 remote monitoring facilities.
Uptake of
Remote Access
Capabilities

14. Key Success Factors
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
Customer Preferences – Key Criteria Exhibited by Security Providers
R&D Capabilities
After-Sales Support
Technological Innovation and Product Interoperability
New Product Development
Cost Efficiency and Affordability
The following are some of the key success factors that customers place emphasis
on while choosing security providers and integrators to fulfill their requirements.
Varying security needs tend to drive end-users to place preference on adoption of
newer, sophisticated electronic security technologies and solutions which are
highly scalable and customizable. This is leading security OEMs and integrators to
focus on some of the above-mentioned key criteria in their efforts to improve the
customer experience. The following are some of the major infrastructure
developments across key end-user segments which are expected to provide sales
growth opportunities to security providers.

15. Airports Smart Cities Seaports
• 140 New Airports being
developed from 2016 to 2020.
• As per statement by Indian
President, Pranab Mukherjee,
close to USD 120 Billion is
expected to be the investment
required over the next 10 years.
• Expected demand for
surveillance, scanning/detection,
access control/biometrics, and
perimeter intrusion detection.
• 100 Smart Cities being
developed over long term period.
• Close to USD 21 Billion
outlined for current medium
term investment on 60 cities.
• Expected demand for
Automatic Number Plate
Recognition Systems (ANPR),
Intelligent Traffic Management
Systems, and video analytics.
• 12 Seaports being modernized
and Coastal Economic Zones
developed over next 5 – 10 years
• Close to USD 10 Billion being
invested over next 5 years.
• Expected demand for weather-
resistant CCTV and video
surveillance systems, perimeter
intrusion detection, and scanning
and detection systems.
Three major end-user segments have been identified as potential areas of sales opportunities.
Source: Secondary Research Articles and Publications, Runaway Insights Analysis
Three Major End-User Segments Identified

16. In light of these developments and trends, the country is poised to
witness a surge in demand for video surveillance solutions over the
next decade as well as an increasing adoption of newer,
sophisticated electronic security technologies and solutions.
Taking heed of these developments, security providers are focusing
on improving product innovation, R&D, and customer value and
service to remain competitive.
However, one of the key success factors that will contribute to
security providers’ success in increasing sales and market presence
is in the timely identification of selling opportunities across key end-
user segments as shown in the previous slide.
In light of this, Runaway Insights offers Sales Opportunity Alerts
(SOAs) to enable your company achieve optimization of sales efforts
and increase probability of closing sales.
Growth Opportunities for Security Providers
Source: Secondary Research Articles and Publications, Runaway Insights Analysis

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