6wresearch middle east electronics security market industry research report white paper

Middle-East Electronics Security Market 2016

Rising Security Concerns and Increasing IT Spending Driving the Market

Contact:

Prijo Samuel

Senior Consultant: GlobalElectronics Security

+91.11.4302 4305

[email protected]

For Consulting Requirement:

[email protected]

+91.11.4905 4190

Middle-East electronics securitymarket is poised to grow at a healthyrate during the period 2015-2021.Major factors which are driving themarket include regulatory environmentand urge to diversify towards othersectors due to declining prices, andattracting investment along withcomplicated geopolitical location. Inthe Middle-East electronic securitymarket, Turkey accounted for thehighest revenue share in the overallmarket in 2014, followed by SaudiArabia, and UAE

Video surveillance systems accountedfor largest of the revenue share,followed by access control systems andintrusion detection systems. In thevideo surveillance segment, IP videosurveillance systems are trending inseveral Middle-East countries primarilyacross Turkey, UAE, Saudi Arabia,Kuwait and Qatar. Other keycontributing countries include- Israel,and Egypt

Amongst all the applications, theGovernment & Transportation sectoraccounted for the highest sharefollowed by Retail & Logistics.Commercial Offices, acquired lion’sshare in the overall market revenue inthe Middle-East market

Middle-East Electronics Security Market

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mailto:[email protected]


Al-Kuwait governorate region being the largest commercial hub in Kuwait, held largest

revenue share in the overall market. Demand for IP video surveillance systems continue

to proliferate over the coming years, owing to construction of three new cities. Growing

trend on hybrid video surveillance solutions and emergence of smart homes, resulting a

steep increase in network electronic security solutions. Banking & financial vertical to

grow nearly twofold by 2021 owing to shift from Analog to IP video surveillance systems.

On the contrary, the Government & Transportation vertical is likely to witness expansion

of Al-Farwaniya International Airport; $3.2 billion to be spent on this project

Country Wide Trends (1/2)


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Kuwait

Qatar

Qatar to register highest growth in the video surveillance systems market over the next

six years attributed to upcoming FIFA World Cup 2022; over $300 billion to be invested.

Qatar mandated installation of video surveillance systems at various verticals,

predominantly across the Government & Transportation, Retail and Banking. Upcoming

Lusail City to cite nearly $45 billion investment, further creating growth opportunities in

video surveillance market. IP video surveillance systems would be installed along the

Saudi Arabian & Qatar border

Saudi Arabia

SMEs accounted for majority of the demand for video surveillance systems in commercial

offices vertical. Around 6 new economic cities are expected over the coming years in

Saudi Arabia amounting for over $100 billion investment. Upcoming Makkah-Madinah

high speed railway and Riyadh metro project to register increase in demand for IP video

surveillance systems. Analog video surveillance systems to continue to witness further

decline over the next six years owing to demand for IP video surveillance systems in

major verticals, primarily across the Government & Transportation and Banking &

Financial verticals.

Rising terrorist attacks to further encourage the demand for video surveillance systems

in the Government & Transportation vertical. The Commercial offices vertical is

witnessing a shift in demand from Analog to IP video surveillance systems. Growing

trend on Pan-Tilt-Zoom (PTZ) HD surveillance cameras segment, exhibiting healthy

demand from Transportation and Retail vertical. Smart city projects in Elazig, Aradhan,

Kirsehir and Istanbul to drive the growth for video analytics software . Axis

Communications held highest market share

Country Wide Trends (2/2)


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Turkey

UAE

Upcoming World Expo 2020 to proliferate the demand for video surveillance systems

along with other security systems. Tourism industry to witness higher growth; nearly 25

million visitors are expected for this event. Government & Transportation vertical

accounted for majority of the market and would continue to register demand for video

surveillance systems over the next six years. Educational institutions vertical to record

higher growth over the coming years owing to government’s mandate on installing prime

security systems predominantly IP video surveillance systems

Iran

Iran registering increase in deployment of IP video surveillance systems after

government’s mandate on installing/ upgrading video surveillance systems in Banking &

Financial vertical. Iran witnessing increase in penetration of Chinese players in video

surveillance systems market. Various manufacturers have already commenced their

assembly units in various parts of Iran.

Market Structure


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Intrusion Detection System

Access Control

Video Surveillance

Middle-East electronic securitymarket has been divided into threesegment markets i.e. VideoSurveillance (Analog Surveillance,and DVRs, IP Surveillance Systems,and Software's), Access Control(Card Reader, Biometrics, andOthers) and Intrusion DetectionSystems.

Amongst all the vertical,Government & Transportationsector acquired lion’s share inoverall market revenue in theMiddle-East market. Over the nextsix years, verticals primarily,Government & Transportation andCommercial offices are anticipatedto grow with relatively higherCAGR during 2015 to 2021

Software (Video Analytics & VMS)

IP / Network

Analog

Keypad Readers

Biometrics

Card Readers (Contact and Contactless)

Electronic Door Locks

Automated Boom Barriers

Figure 1: Type of Electronics Security Systems

Regulatory Overview and Market Structure

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Figure 2: Market Structure and Regulatory Framework

Regulatory Authorities

Security Consultants

Technologyproviders

Systems Integrators/ Contractors

Consumers

Most of the GCC countries have regulations or draft regulation pertaining to theinstallations of CCTV which is further spreading to all the Middle-East countries. The mostcommon framework across all the countries in GCC is to be monitored under Ministry ofInterior (MOI) and its related agencies.

Bahrain Ministry of Interior

Saudi Arabia Ministry of Interior

UAE: Abu Dhabi’s Critical National Infrastructure Authority

UAE: Abu Dhabi Police

UAE: Abu Dhabi Municipality

UAE: Dubai Police Department of Protective Systems

National Assembly of Kuwait

Qatar – Ministry of Interior

Turkey – Ministry of Interior

The previous regulation requires installation of CCTV in critical areas such as ports andoffshore and onshore oil gas facilities. However current regulation mandates itsapplication in other sectors as well such as Banking & Finance, Government &Transportation, Retail & logistics, Commercial offices, Industrial & Manufacturing,Residential, Hospitality & Healthcare, and Educational institutions.

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Market Opportunity Assessment

76.5%

16.0%

7.5%


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With majority of the market has been captured by Turkey on account of increasing

penetration of video surveillance systems, followed by Saudi Arabia and UAE. Electronic

security market in Turkey is driven by growing IT infrastructure and rising physical

security requirements.

Video surveillance systems accounted for the largest of the revenue share, followed byaccess control systems and intrusion detection systems. In the video surveillance segment,IP video surveillance systems are trending across several Middle-Eastern countriesprimarily in Turkey, UAE, Saudi Arabia, Kuwait and Qatar. Other key contributingcountries include- Israel, and Egypt.

Figure 3: Market Opportunity Assessment By Sectors and Regions

2010 2015 2021F

Others

Kuwait

Qatar

UAE

Saudi Arabia

Turkey

Video Surveillance Systems Access Control Systems Intrusion Detection Systems

2021F

$0.71 Bn

$1.17 Bn

$2.29 Bn

CAGR 2010-15: 10.5% CAGR 2015-21F: 11.8%

70.8%

19.1%

10.1%

67.6%

20.5%

11.9%

2010 2015

Market Opportunity Assessment


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Kuwait Qatar

Saudi Arabia

Turkey

CAGR (2015-21)

12.5%

UAE

Others

Figure 4: Market Opportunity Assessment By Countries

The Government & Transportation vertical accounted for majority of the revenue share of

45% during 2014, primarily, owing to numerous government projects pertaining to public

infrastructure in Middle-East

In the forecast period, Government & Transportation vertical is estimated to witness an

increase in its revenue share, on account of upcoming projects such as Kuwait Metro, Doha

metro, Riyadh metro, Lusail City, Silk City, and Qatar FIFA World Cup 2022

CAGR (2015-21)

6.7%

CAGR (2015-21)

15.2%

CAGR (2015-21)

6.9%CAGR (2015-21)

10.7%

CAGR (2015-21)

14.4%

Application Mapping


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National Infrastructure (Homeland Security, Surveillance of City, Seaports and Airports

Critical Industrial Infrastructure such as Utilities ,Oil & Gas, Power and Energy

Commercial Projects (Business Towers, 5- Star Hotels, malls and others

Residential(Housing units and Apartments)

Analog Video Surveillance

IPSurveillance

Intrusion Detection

Access Control

Commonly present Limited Present Minimal Present

In the recent times, Middle-East Security Market has witnessed stringent regulationspertaining to the installation of electronics security devices. Unlike the Commercial andIndustrial sector, the residential sector still under penetrated in terms of installation.Over the last five years, Residential sector cited potential growth in video surveillancemarket attributed to increasing awareness, growing presence of Chinese players coupledwith rising security concerns

Figure 5: Opportunity Mapping By Application

Competitive Landscape


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CompaniesAnalog

CamerasIP

Cameras

Electronic Security Software

Intrusion Detection

Card Readers

BiometricsLocal (ME) Production

Arecont Vision

Avigilon

Axis Communications

Bosch SecuritySystems

FLIR Systems

Hikvision

Honeywell

IndigoVision

Milestone Systems

Panasonic

Pelco by Schneider Electric

Samsung Techwin --

Present Not Present

Figure 6: Competitive Benchmarking

• In Middle-East video surveillance market, around 15% of the revenue share has beenacquired by Axis Communications, Pelco and Bosch Security Systems

• Other major players include Honeywell, Hikvision, Panasonic and Samsungcontributing around 5% to the overall market revenues during 2014

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About Us


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6Wresearch – An Overview

6Wresearch is the premier, one stop market intelligence and advisory center, known for

its best in class business research and consulting activity. We specializes in providing

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Strength in Electronics Security


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Video Surveillance Access Control Intrusion Detection

6Wresearch has published over 150 reports in electronics security (Video Surveillance, Intrusion Detection and Access control) covering more than 100 countries

Video Surveillance, Access Control and Intrusion Detection Market (2015-2021)

Saudi Arabia

UAE

Qatar

Kuwait

Iran

Bahrain

Oman

Israel

Jordon

Asia

China

India

Japan

South Korea

Indonesia

Malaysia

Thailand

Taiwan

Vietnam

Myanmar

Singapore

Middle-East South Africa

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Our Current and Past Publications


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14

Middle East Video Surveillance Market

Saudi Arabia Video Surveillance Market

UAE Video Surveillance Market

Iran Video Surveillance Market

Turkey Video Surveillance Market

Qatar Video Surveillance Market

Kuwait Video Surveillance Market

Oman Video Surveillance Market

Saudi Arabia Access Control Market

UAE Access Control Market

Iran Access Control Market

Turkey Access Control Market

Qatar Access Control Market

Kuwait Access Control Market

Oman Access Control Market

Saudi Arabia Intrusion Detection Market

UAE Intrusion Detection Market

Iran Intrusion Detection Market

Turkey Intrusion Detection Market

Qatar Intrusion Detection Market

Kuwait Intrusion Detection Market

Oman Intrusion Detection Market

Africa Video Surveillance Market

Africa Access Control Market-

Nigeria Video Surveillance Market

Nigeria Access Control Market

Kenya Video Surveillance Market

Kenya Access Control Market

India Video Surveillance Market

India Access Control Market

Indonesia Access Control Market

Vietnam Access Control Market

Indonesia Video Surveillance Market

Vietnam Video Surveillance Market

Vietnam Intrusion Detection Market

Indonesia Intrusion Detection Market

Europe Intrusion Detection Market

Americas Intrusion Detection Market

Europe Video Surveillance Market

Americas Video Surveillance Market

Europe Access control Market

Americas Access Control Market

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Offerings


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