International. Recently, in a report released by IHS on the main trends in video surveillance for the year 2018, Jon Cropley made a compilation of five points in which he lists the main differences between the Chinese market and that of the rest of the world.
Cropley estimates that China will account for more than 46% of the world's professional video surveillance equipment revenue in 2018. Despite this, the Chinese market has some unique characteristics that make it very different from other regional markets. This has led some to suggest that there are two markets for video surveillance equipment: the Chinese market and the world market, not including China. Here are 5 ways the Chinese market differs from the rest of the world market.
1. Equipment supply is more concentrated in China.
The top two suppliers of branded video surveillance equipment accounted for more than 50% of the Chinese market in 2016. This contrasts with the rest of the world, excluding China, where the two largest suppliers accounted for less than 20% of the market.
2. The volume of shipments of equipment with deep learning is much higher in China.
It is estimated that three-quarters of all deep learning servers for video surveillance shipped worldwide in 2018 will be shipped to China.
3. Domestic suppliers dominate the supply of equipment in China.
Chinese suppliers account for more than 80% of the Revenue of the Chinese market. There are other countries where domestic brands dominate the offer (e.g. Germany, Japan and South Korea). However, in most markets in other countries, foreign suppliers make up a much larger share of revenue.
4. Shipments of HD CCTV cameras are proportionally lower in China.
HD CCTV cameras are projected to account for only about 10% of all cameras shipped in China in 2018. It is estimated that they will account for more than half of all camera shipments in the world, excluding China.
5. The market has been growing faster.
The Chinese market has grown at an average annual rate of 13.3% between 2012 and 2017. In contrast, the world market, excluding China, has grown at an average annual rate of 2.6% during this same period.
Despite all this, growth in camera shipments has slowed in China, in the wake of increasing market saturation. The continued growth of the market will increasingly depend on shipments of state-of-the-art equipment with higher-priced deep learning.
