Video surveillance distributors face increasing competition

February 2013 News & Events

It is not easy being a distributor of video surveillance equipment. They usually finance the supply chain, bear the commercial risk of stock being unsold, and, according to new reports from IMS Research, face increasing competition. Still, at least their market is growing quickly. The reports, 'The EMEA distribution market for video surveillance equipment' and 'The Americas distribution market for video surveillance equipment' forecast that both these markets will grow at an average annual rate of more than 10% to 2016.

Much of the newer competition is coming from IT distributors. The video surveillance market has been gradually migrating from analogue equipment to network equipment. IT distributors have therefore started to recognise video surveillance equipment as IT devices and a potential new revenue stream.

According to report author and IMS Research Analyst Jon Cropley, “It is generally recognised that distributors are responsible for transporting video surveillance equipment from manufacturers to installers and systems integrators. They are less well known for other functions that they sometimes perform like advertising and promoting offers and product announcements, on-going technical support, and operating physical locations where products can be viewed and purchased.”

Distributors reflect the level of their involvement in the price they charge. This price is typically a fixed percentage of the equipment selling price and is known as the ‘distributor margin.’ IT distributors are generally used to operating at lower margins than security distributors (although security distributors claim that IT distributors offer fewer functions). This is placing average margins for distribution of video surveillance equipment under pressure.

IT distributors have already gained a firm foothold in the video surveillance supply chain. It is estimated that they accounted for almost 15% of the distribution market in EMEA in 2011 and an even higher percentage in the Americas. What is more, they are not alone. IT value added resellers and broadline electrical distributors are getting in on the action too. This, combined with the fact that some system integrators try to perform the role of distributor themselves, means that competition for distribution of video surveillance equipment is truly intense.

For more information contact IMS Research, +44 1933 402 255, [email protected], www.imsresearch.com





Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Highest increase in global cyberattacks in two years
Information Security News & Events
Check Point Global Research released new data on Q2 2024 cyber-attack trends, noting a 30% global increase in Q2 2024, with Africa experiencing the highest average weekly per organisation.

Read more...
From the editor's desk: We’ve only just begun
Technews Publishing News & Events
The surveillance market has expanded far beyond the analogue days of just recording and/or monitoring screens. The capabilities of surveillance technology today extend to black screen monitoring with ...

Read more...
SAFPS issues SAPS impersonation scam warning
News & Events Security Services & Risk Management
The Southern African Fraud Prevention Service (SAFPS) is warning the public against a scam in which scammers pose as members of the South African Police Service (SAPS) and trick and intimidate individuals into handing over personal and financial information.

Read more...
Strong industry ties set Securex South Africa apart
News & Events Training & Education
Securex South Africa, co-located with A-OSH EXPO, Facilities Management Expo, and Firexpo, is a meeting place of minds, where leading security, safety, fire, and facilities professionals come together, backed by strong ties with the industry’s most influential bodies.

Read more...
Connected commercial drone market to reach US$37.3 billion
News & Events Commercial (Industry) IoT & Automation
The global market for connected commercial drones is forecast to grow from US$18.6 billion in 2024 at a compound annual growth rate (CAGR) of 15% to reach US$37.3 billion in 2029

Read more...
Phishing attacks through SVG image files
Kaspersky News & Events Information Security
Kaspersky has detected a new trend: attackers are distributing phishing emails to individual and corporate users with attachments in SVG (Scalable Vector Graphics) files, a format commonly used for storing images.

Read more...
Fully-integrated browser AI
News & Events
Opera Mini now provides all its smartphone users with its own free built-in browser AI, Aria, including AI chat, Ask Aria and image generation. According to an Opera survey, 80% of South Africans want AI tools integrated into their browser.

Read more...
Amendments to the Private Security Industry Regulations
Technews Publishing Agriculture (Industry) News & Events Associations
SANSEA, SASA, National Security Forum, CEO, TAPSOSA, and LASA oppose recently published Amendments to the Private Security Industry Regulations regarding firearms.

Read more...
Local innovation driving excellence in FM
Securex South Africa News & Events
As organisations seek cost-effective, sustainable, and high-quality solutions, home-grown facilities management innovation is proving to be a critical driver of operational efficiency and long-term success.

Read more...
PIV-ready High Sec Controller 7000
News & Events
Gallagher Security announced the release of the latest addition to its controller product range; the High Sec Controller 7000, which incorporates all the core functions of the C7000 Standard variant released less than 18 months ago.

Read more...