A&s a 111 trial by Messe Frankfurt New Era Business Media Ltd. Taiwan Branch

CONTENTS

INDIA

Apr. 2015

MARKET DYNAMICS

KICKS OFF QUEST FOR

SAFER, SMARTER CITIES

India’s city population is rising quick as more people migrate from the countryside seeking better employment and education opportunities. This has increased urban safety concerns and prompted demands for better security surveillance system. Since the last decade the authorities have been planning this, but not much has materialized. The current government led by Prime Minister Narendra Modi is determined to turn the plans into action, and for once, there is visible progress. BY Prasanth Aby Thomas

COVER STORY

H..Y. Lin H.Y H in, nn, Preessid Pre siiddent e t, ITE TE Teecchno Tec nolog log oggies es

ITE Presents

APR 2015 Ɣ www.asmag.com

ccHDtv: Future-Proof Technology for Video Surveillance ITE Technologies, an experienced IC design company, launched ccHDtv, a HD-over-coaxial solution, featuring high-bandwidth transmission, in 2011. This January, ITE also founded the ccHDtv Alliance, which includes multiple camera and DVR manufacturers from Taiwan, and is ready for its next step in global market expansion. BY Jill Lai

VIEWPOINT

Be a Trendsetter in Japan Opportunities are growing as Japan follows the global trend to solutions, however with insufficient knowledge of IT, implications arise for product driven companies who are struggling to keep up. The time is now to venture in Japan’s security market as service and solution providers are needed in the country. BY Lisa Hsu (Reporting with a&s Japan)

CONTENTS

Apr. 2015

Star, Ring, or Bus: Transmission Equipment PRODUCT EXPLORATION

Makes Sure They Deliver 38

Network topologies are arrangements in which devices are connected in a network. In security, different topologies are employed, supported with various transmission devices and equipment. Since most of the transmission products found in the market have similar features and specs, manufacturers focus on added values, for example stability, reliability, and service extension, to make them stand out.

BY William Pao

SPECIAL REPORT

Drivers to Propel the Smart Home in 2015

The smart home has definitely made its mark as a trend that plans to go nowhere but up. Based on feedback from key industry players, a&s SMAhome has identified five major drivers for the smart home market in 2015: security, DIY, integration, ecosystem expansion, and complementary standards. BY a&s SMAhome

CASE STUDY

Seamless Safety and Security? Not an Issue for

Skytrain

Taiwan Taoyuan International Airport (TPE) is one of five airports in Taiwan with regular international flights, and is by far the busiest. Last year, TPE dealt with approximately 34 million passengers, ranking TPE the 11th busiest airport worldwide in terms of international passengers. BY VIVOTEK

The “Brain” in a Connected Home

As home automation continues to spur to new heights, businesses the world over are all rushing to cash in. According to a recent report by MarketsandMarkets, the global home automation and control market is projected to grow at an estimated CAGR of 11.4 percent beginning this year to 2020.

Contents................................P.14

BY a&s SMAhome

APR 2015 Ɣ www.asmag.com

Editor’s Note .........................P.18 Corporate News ....................P.20 INDUSTRY REPORT

Taiwan: Survive and Succeed Through Differentiation BY John Shi

Products of the Month ..........P.28 Asia at a Glance.....................P.38

Show Calendar ......................P.74 New Products ........................P.82 Companies in This Issue ........P.80

a&s Asia, published by Messe Frankfurt New Era Business Media Ltd., is a bimonthly professional publication for channel players in the regional electronic security industry. It caters to importers, distributors, OEM/ODM searchers, system integrators and other

Hacker Issue Gains Widespread Public Attention ecently, we heard about reports that surveillance equipment in China was attacked by hackers. Since the attacks were launched by the government and were exposed to the public for the first time, they generated much interest and attention. Finally, I thought, the issue of information security has been brought to light and gained public awareness. During the PC era, computer viruses were the main information security concern. After the arrival of the Internet, intrusions by hackers have become a much bigger problem. Before, hackers only sought fame. By creating viruses that attacked PCs, some of these hackers indeed achieved notoriety. Today, hackers are more concerned with money. They scam people out of their money using their personal information, steal from people’s bank or credit card accounts, or worse, steal business secrets or information that can threaten national security.

APR 2015 Ɣ www.asmag.com

The huge profitability has attracted many to enter what is now called the “hacker industry.” With players focusing on various parts of the trade, from the research and development of intrusion tools to the provision of intrusion service, the hacker business generates an unbelievable amount of sales annually. The advanced persistent threat (APT) method of hacking is even harder to protect against, as hackers observe the target for a period of time, find certain vulnerabilities,

and launch the attacks. This is very hard to deal with.

product purchasers to get updates on product sources and developments in CCTV, Digital Surveillance, Access Control, Biometrics, Intrusion Alarm, Intercom/Video Doorphone, Home Automation and other fields relevant to electronic security.

ISSN 1997-6267 中華郵政北台字第1571號執照登記為雜誌交寄 Parson Lee Joseph Lee John Shi

Publisher & Managing Director General Manager General Manager

Editorial

Hackers indeed represent a formidable threat in the Internet community. As we talk about IP surveillance, IP access control, IP intrusion alarms, smart home, and other advanced networked surveillance technology, are we not also subject to this new threat? From now on, I believe for any security product or equipment, two things must be enhanced. One is authentication, which makes sure that only the right people can get access. The other is the system’s own security mechanism to ensure it can withstand hacker attacks. Specifically, securing software that products run on is critical. Any vulnerability in the system is an open door that hackers can exploit. Of course, besides the product itself, any education or training program must include the concept of information security. Users must also remember to change the company’s default setting once the installation is completed. Since security equipment is tasked with keeping places secure, its own security features must be infallible. It looks like this is another area manufacturers can focus on to add value to their products, in the midst of declining profits.

General Press Jill Lai Alf Chang Eifeh Strom William Pao Lisa Hsu Prasanth Aby Thomas Weiting Chen

Editor in Chief Senior Consultant Senior Editor Reporter Reporter Reporter Coordinator

as-pr@newera.messefrankfurt.com jill.lai@newera.messefrankfurt.com alf.chang@newera.messefrankfurt.com eifeh.strom@newera.messefrankfurt.com william.pao@newera.messefrankfurt.com lisa.hsu@newera.messefrankfurt.com prasanth.aby@newera.messefrankfurt.com weiting.chen@newera.messefrankfurt.com

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Corporate Management

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Group Manager Account Manager IT Manager

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Assistant Manager

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Trade Fair Manager Manager Project Manager

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Messe Frankfurt New Era Business Media Ltd. Taiwan Branch: 2F, No. 8, Lane 360, Sec. 1, Nei-Hu Rd.,Taipei 114, Taiwan Phone/886 2 2659 9080 Fax/886 2 2659 9069 Website/www.mfnewera.com Messe Frankfurt New Era Business Media Ltd., a company formed by Messe Frankfurt (HK) Ltd. and former A&S Group in 2009, is an integrated media service provider in the security industry. Our service covers magazines, Web sites, events and trade shows. The portfolio of a&s magazines includes a&s International, a&s Asia (above published in English), a&s China, a&s Installer, a&s Solution, and a&s Taiwan (above published in Chinese). a&s Turkiye, a&s Adria, a&s Italy, a&s India, a&s Japan and a&s Vietnam are licensed editions. For changes of address or subscription problems, contact us at mfne-circulation@newera.messefrankfurt.com Copyright© 2015 Messe Frankfurt New Era Business Media Ltd. All rights reserved. No part of this magazine may be republished, reprinted or redistributed in any forms, including electronic, without written consent from the publisher.

Advertisers are responsible for their own advertisement content. The publisher is not liable for any legal, image, patent or trademark disputes from advertisements or among advertisers. Legal consultant: Julia S.H. Yu, Attorney at Law, First Law & IP Offices

The a&s Editorial Team as-pr@newera.messefrankfurt.com 18

John Shi

CORPORATE NEWS

Bosch at Restaurant in Malaysia osch Video Surveillance cameras are now installed in Yun Lai Huat Dim Sum Restaurant located at Petaling Jaya, Selangor, Malaysia. A popular restaurant that is growing its business, its owners wanted a video surveillance solution that can be used to keep the restaurant safe and improve overall operations, especially during peak hours. With the opening of their newest outlet, the owners wanted a video surveillance solution that can be used to monitor the whole premise, including the cashier counter, kitchen, and dining area. The video footage enables the owners to monitor their business in real time. This helps keep the restaurant safe and ensures that employees are working efficiently. In addition to general security surveillance, the owners wanted to be able to understand their crowd flow better. This would help them improve operations across all their outlets. To meet these requirements, eight Bosch bullet cameras, were installed. These integrated IR bullet cameras can be used both indoors and outdoors, which allows the owners to have a camera installed outdoors to monitor the entrance of the restaurant.

Allegion Completes Safe Campus Construction in Shanghai llegion, a global provider of security products and solutions, has completed the Safe Campus Construction demo project at Jinshan School District, Shanghai, China. Allegion believes the safety of primary and middle school students is of the utmost importance. That’s why, after a safety audit was conducted and found a need, the company sponsored mechanical locks, exit devices, door closers, and other door accessories to both Zhu Hang Primary School and Zhu Hang Middle School. This demo project not only encourages the expansion of the Safe Campus Construction project to other districts of Shanghai and China as a whole, but also encourages safety and security awareness and heightened standards in the community.

APR 2015 Ɣ www.asmag.com

NEC Provides Disaster Control System With Crowd Behavior Analysis in Tokyo EC Corporation has won an order from Toshima Ward, Tokyo, Japan, for a Comprehensive Disaster Control System construction project, which will incorporate one of the crowd behavior analysis technologies that utilizes security camera footage to understand the behavior of crowds and to detect abnormalities. This system is scheduled to come into service in May 2015. NEC’s proprietary crowd behavior analysis technology analyzes changes in crowd behavior without identifying any individuals. Moreover, it estimates the degree of crowd congestion and detects abnormal crowding as well as flow abnormalities in groups of people using images captured with security cameras. NEC’s crowd behavior analysis technology supports the company’s view towards building a safe and secure society and its vision for urban development leading up to and beyond 2020, including busy terminal stations, airports, theme parks, stadiums, and event venues.

Honeywell Selected for Third Vietnamese Offshore Platform oneywell Process Solutions (HPS) announced it has been selected to handle critical project management and engineering for a third oil and natural gas platform that will tap energy reserves off the coast of Vietnam. Hoang Long Joint Operating (HLJOC) will operate the TGT-H5 wellhead platform located in the Te Giac Trang (TGT) Field off the southern coast of Vietnam. HPS served as the main contractor and provided control and safety solutions for HLJOC’s two other platforms that are currently operating in the TGT Field. Along with turnkey project management and engineering of the new platform’s topside structures, HPS will install an integrated Honeywell control and safety solution, including a new fire and gas system, to improve automation, increase cyber and physical security, and improve operator effectiveness. TGT-H5 plans to begin production in fourth quarter of 2015. Total production from the three platforms is expected to be about 50,000 barrels of crude oil per day. The new contract includes engineering management and integration with the two existing TGT platforms, the floating production storage and offloading (FPSO) vessel that processes the hydrocarbons produced by the platforms, and remote monitoring from the HLJOC office in Ho Chi Minh City. Specific technology to be used on the H5 platform includes Experion PKS, C300 controller, and Safety Manager.

ITE Presents

ccHDtv: Future-Proof Technol for Video Surveillance

ITE Technologies, an experienced IC design company, launched ccHDtv, a HD-over-coaxial solution, featuring high-bandwidth transmission, in 2011. This January, ITE also founded the ccHDtv Alliance, which includes multiple camera and DVR manufacturers from Taiwan, and is ready for its next step in global market expansion. BY Jill Lai

4 APR 2015 Ɣ www.asmag.com

K resolution video coupled with advanced analytics are more than just buzz words — it will eventually become a future standard for security. In the meantime, thanks to the increasing adoption of the Internet of Things (IoT) in different industries, more and more high-quality video will be put on the Internet. Then, data storage and transmissions will soon become a major issue for a video surveillance system. H.Y. Lin, President of ITE Technologies, a well-known IC design company and the solution provider of ccHDtv, further emphasized, “The solution which is able to stand out in transmission technologies will define the best video surveillance system in the future.”

The company, therefore, invented the ccHDtv solution to address future transmission problems in a video surveillance system. ccHDtv is an industry-first, pure digital HD video surveillance solution, based on DTV (digital TV) technology, and is able to transmit video and audio data over coaxial cables. ccHDtv leverages the AV transmission capability of DTV technology, featuring high noise resistance and high bandwidth, so it can easily overcome some common transmission challenges of current IP video surveillance and analog technologies.

UNIQUE TRANSMISSION TECHNOLOGIES What makes ccHDtv unique is its “transmission technology,” according to Lin. Based on DTV technology, ccHDtv uses COFDM and radio frequency (RF) transmission technologies, which bring many benefits to the whole system, such as high noise resistance and bandwidth. He further explained that current IP video surveillance systems use TCP/IP transmission technology to transmit digital signals over Ethernet cables. Therefore, an IP video surveillance system usually has image latency problems. It goes without saying that these problems might get worse when transmitting 4K video. However, ccHDtv is different from IP because of the COFDM and RF transmission technologies, which are able to provide high bandwidth at 31.6 Mb/s per channel. Using one single coaxial cable, ccHDtv can connect 16 to 32 cameras in total and transmit signals between 500 meters and one kilometer without using amplifiers or repeaters. Most importantly, “ccHDtv is the one of the kind solution that can transmit 4K video simultaneously via multiple

ogy What Kinds of Projects Need ccHDtv Only? Since ccHDtv is so unique in its transmission technologies, we [ITE] ensure ccHDtv can provide systems integrators unique technologies for a project and most importantly, good profit margin, H.Y. Lin, President, ITE Technologies

ccHDtv can be the only solution in some special occasions. For example, â&#x20AC;&#x153;If you want to have over 16 daisychain surveillance cameras on one coaxial cable, ccHDtv is the only solution. If you have a coaxial cable that is over 1,000 meters long in your installation site and you wish to use it to carry multiple full HD video, with 1080p at 30 frames per second, ccHDtv is the only solution. If your installation has room for only one coaxial cable but you want video, audio, control, and power simultaneously, ccHDtv is the only solution. If you have very poor cabling but you still want crystal clear HD video, ccHDtv is the only solution,â&#x20AC;? H.Y. Lin, President of ITE Technologies emphasized.

Be a Trendsetter in Japan

APR 2015 Ɣ www.asmag.com

Opportunities are growing as Japan follows the global trend to solutions, however with insufficient knowledge of IT, implications arise for product driven companies who are struggling to keep up. The time is now to venture in Japan’s security market as service and solution providers are needed in the country. BY Lisa Hsu (Reporting with a&s Japan)

ven though Japan is a mature security market, the country is still much slower than others to adopt global trends toward solutions. Only in the past few years has Japan moved towards IP, with IP cameras owning a market share of approximately 56 percent, compared to analog cameras’ less than 40 percent as of 2014. The gap will continue to widen as several research centers have forecasted shipments of IP cameras will total 480,000 this year, compared to 260,000 analog cameras. Apart from ongoing market demand, the govern-

ment’s plan to postpone raising the consumption tax rate until 2017 may also be a factor of end users’ move from analog to IP before the 10 percent tax is implemented. When the industry moves to IP-based security products, the demand for more integrated systems or solutions also arises. Japan is now starting to catch up to the global trend for solutions. A more recent and notable example of this is the

employment of video content analysis (VCA), which is an upcoming trend this year in Japan, being able to fulfill end user’s demand for functionality beyond security. In the retail sector, businesses are quite interested in adopting VCA for monitoring customer behavior, which will assist them in providing the best strategies for marketing, and in turn increase their sales. Many industry experts think the retail sector in Japan will probably be the earliest adopter of VCA solutions.

TAKE A PIECE OF THE ACTION Several challenges confront the country as Japan’s security industry steps into a new era of technology, which turn into opportunities for foreign players. Challenges arise for a majority of Japanese companies who are product driven. At the moment, most Japanese companies have yet to catch on to the trend, with companies opting to continue selling hardware in order to save time and labor, resulting in lack of technical services. Furthermore, a number of products on the market are only compatible with products of the same brand and do not allow for seamless integration with other brands, which limits customers' choices. As a result, price competition is heavy in Japan, with companies struggling to beat competitor’s prices to prevent losing business. In some cases, manufacturers even go as far as to ignore business etiquette and compete with their sales partners by going over their heads to sell directly to endusers. Although this allows the company to make more sales, this strategy depletes the trust out of the business partnership, and will be detrimental to the company in the long run. As big and long-established companies gain more market share, and if other small and new companies don’t change their business tactics, it is assumed in a few years, only some of the big companies will stay standing in Japan’s security industry. The implications that Japan currently possess will likely drive customers away to look for solutions elsewhere. Now might be a great time for foreign players who can provide solutions and services to join the market. Companies with a strong IT background, such as AVNET, Buffalo, IO Data, Logitec, and Microsoft Azure, have taken the opportunity to join the competition, due to Japan’s lack of IT knowledge to satisfy customer demand.

RECOGNITION, QUALITY, PRICE Many companies have taken to alter their market strategy in order to adopt to the market change. Understanding customer demand as well as providing a wider selection of quality options is essential. For instance, Canon plans to broaden their product selection, with nine new products expected to roll out this year. Especially after the acquisition of Milestone Systems and Axis Communications, Canon now has higher potential to offer solutions to end users. It is suggested that players should establish a relationship with a partner and gain a certain amount of market share before launching their own branch office in Japan. It is important to build up reputation and brand recognition, as end users and projects will not choose to use products of unknown brands. Hikvision Digital Technology partnered with Digital Max Japan and Security Design, and has established a support and service center and ensured five weeks’ worth of inventory ready to be shipped to customers. The partners have also established a one-stop-shop solution for Hikvision products, creating a wider range of options for

As a mature security market, Japan is changing to catch up with the global trend for solutions.

customers and support when they encounter problems. Companies such as Axis Communications organize educational seminars and training programs for their partners, enabling them to promote awareness and education to end users. Axis is successful in this case as their brand is widely known, and has a variety of products, introducing more than 20 new products every year. However, some other big brands who also organize educational events still have difficulty gaining market share in Japan due to the higher price of their products. It is important to remember, brand recognition, quality products, and price is the key to being successful in Japan.

THE TIME IS NOW Turn challenges into opportunities as now is the time to jump into Japan’s market. For foreign companies who already have a head start on providing solutions and services, Japan is an ideal investment opportunity as solution providers are needed in the market.

INDIA

KICKS OFF QUEST FOR

SAFER, SMARTER CITIES BY Prasanth Aby Thomas

APR 2015 Ɣ www.asmag.com

t present, about 31 percent of India’s 1.2 billion people live in cities, a 9 percent increase over the last 10 years as better economic prospects in the cities attract young people. According to a UN report, India’s urban population will almost double to about 814 million by 2050. Considering this unprecedented increase, the country’s government wants to enhance its city security surveillance projects, and develop smart cities that provide better governance and are conducive to economic growth. When India’s Finance Minister Arun Jaitley took to the stage to

announce the country’s annual budget in February, there was much anticipation of radical economy-boosting measures and tax overhauls, not just because of a growing public impatience to Prime Minister Narendra Modi’s government that came to power last year promising a stronger economy,

Pawan Desai, CEO, Mitkat Advisory Services

Ashish Dhakan, CEO and MD, Prama Hikvision

Nitin Goyal, President and CEO, Tamron India

Sudhindra Holla, Country Manager, Axis Communications

Sajjad Haidar B. Kadri, Product Manager, Ingram Micro

Narendra Kumar, Head of Strategy and Marketing, 2020 Imaging India Prasad Patil, Director and Senior Consultant, MIPL

but also to improve the safety and security of its growing population. But the challenges in front of Jaitley were not small. He had to make sure spending did not widen the fiscal deficit, a tough task considering the global economic climate. Yet, between welfare programs and tax policy changes, the government announced an increased investment in

infrastructure, power generation, and defense among other sectors, helping to keep the spirits high.

GOVERNMENT PROJECTS FINALLY SEE THE LIGHT OF DAY For the security industry though, some of the key developments that have prompted excitement are city surveillance projects that have seen a boost in the recent past and smart city projects that are predicted to be the next big thing. India, which has the largest youth population in the world, is seeing more and more people migrate to cities for education and job opportunities. This has heightened the need for better city governance and surveillance.

Star, Ring, o Transmission Equip Makes Sure They Deliver

APR 2015 Ć&#x201D; www.asmag.com

rment Bus: here are various network topologies that are used in security projects. This article focuses primarily on three of them, namely bus, star, and ring, and discusses how transmission devices help transmit data in each of the topologies. First, some basic understanding towards these three topologies is required.

BUS In a bus topology, all nodes or devices are connected to a main cable called the bus. As each node receives data, it determines whether the recipient address matches its own address. If there is no match, the node will pass the data back to the main cable.

STAR A star topology features a central node — either a hub or switch — that connects to various devices in a point-to-point fashion. All data goes through the switch, which then passes the data to the intended recipient.

RING

Once you take the central hub away from a star topology and connect all nodes together with a cable to form a circle, a ring network is formed. Each device receives the data and passes it on to the next one until the correct recipient is found.

MEDIUM AND PRODUCTS REQUIRED

Bruce Chang, Head of PM, ORing Industrial Networking Peter Chen, Product Development Manager, OT Systems Ben Chiang, Sales Manager, EtherWAN Systems Jakcy Chou, PM, Lantech Communications Global

Most transmission mediums can support these topologies. They include coaxial cables, cat5e and cat6 cables, telephone wires, power lines, and fiber optics. Devices, meanwhile, can include: • Ethernet switch — A device that routes IP data to the intended destination; • Optic switch — A device that routes optic data to the intended destination; • Ethernet extender — A device that converts IP signal to whatever format compatible with the intended medium, for example coaxial cable or telephone wire; • Media converter — A converter that converts IP signals to fiber optic ones; • EoC converter — A converter that converts analog signals to IP.

COST AND EASE OF INSTALLATION The star topology is the easiest to install and expand. “Because of the way it is set up, it is easy to add new nodes to the network,” said Elyse Wang, Sales Manager at Antaira Technologies. However, a star network is costly, due primarily to the cabling: a cable is required for each connection between the central switch and the nodes, for instance the cameras. To save cost, the user

Security Helps Hotels Become Greener and Smarter

APR 2015 Ć&#x201D; www.asmag.com

Security equipment has played a significant role in helping hotel operators secure lives and assets. But, as hotels strive to save energy costs, achieve better management, and provide a greater customer experience, they also turn to security products to accomplish those objectives. BY William Pao

nergy accounts for a major portion of a hotel’s expenditure, and all hoteliers face the need to save on electricity and gas, the primary sources of energy at their operations. “If you look at major hotel chains, in their standards, they all require that certain energy saving levels be met,” said Ilya Umanskiy, Associate Managing Director at Kroll. “Some properties will require certain energy saving certifications.” Electricity is needed to power up air conditioning, lights, and other guestroom amenities, while gas is used to provide heat and hot water. According to Nick Jane, GM of Jin Long System Integration, air conditioning, illumination, and other guestroom facilities contribute about 40 percent, 30 percent, and 30 percent, respectively, to a hotel’s electric bill. Conservation can lead to significant savings, which are important to operators. “If a hotel’s monthly power bill is US$300,000, savings of 5 or 10 percent can pay the salary of several employees,” he noted.

TURNING TO SECURITY To cut down on hotels’ heating, ventilation, and air conditioning (HVAC) expenses, more and more operators are relying on security products, such as motion sensors and video surveillance, which now have better automation and intelligence features. “In fact, (automation and intelligence) are the mode to go in the near future that will revolutionize the security industry and perhaps the hospitality industry, too,” said Joshua Kwai, CEO of JK Consultancy Holdings Group. “The rationale of it becoming the uptrend at hotels and villas is mainly due to the fact that it can integrate numerous different types of security and non-security systems into a single management system platform to save energy and elevate productivity, performance, and output.”

Guestrooms Hotels are typically divided into four parts: guestrooms, corridors, lobby/dining facilities, and the back-of-house (BOH) areas. In the guestrooms, motion sensors and electronic access control can be integrated with HVAC to enable automation. “Intelligent systems will know when a guest has entered or exited the room so that HVAC, lights, TVs, and other appliances can be automatically adjusted,” said Gregory Botsch, Principal of Production Direction at John Portman & Associates. At the same time, controls are still available so that guests can make adjustments based on their preferences. “Even if you want to save

Gregory Botsch, Principal, Production Direction, John Portman & Associates Nick Jane, GM, Jin Long System Integration Joshua Kwai, CEO, JK Consultancy Holdings Group Vinayak Sane, MD and CTA, SI Consult India Adrian Tan, Manager, Business Development, APAC, Bosch Security Systems Ilya Umanskiy, Associate Managing Director, Kroll

Drivers to Propel the

Smart Home in 2015 The smart home has definitely made its mark as a trend that plans to go nowhere but up. Based on fee feedb dbac ackk fr from om key key ind indus ustr tryy pl play ayer erss, a& a&ss SMA SMAho home me has has iide dent ntififie ied d fifive ve maj major or d dri rive vers rs ffor or tthe he smar sm artt ho home me mar marke kett in 201 2015: 5: sec secur urit ity, y, DIY DIY,, in inte tegr grat atio ion, n, eco ecosy syst stem em exp expan ansi sion on,, an and d co comp mple leme ment ntar aryy stan st anda dard rdss. Byy a&ss SMAhome

APR 2015 Ć&#x201D; www.asmag.com

1. Security, the heavyweight in a smart home 2. DIY smart home ascending 3. More integrated, more personalized 4. Expanding ecosystems for better customer satisfaction 5. Complementary, not unified 56

The industry is expanding the ecosystems for the home sector.

h ere e re is i s a co cons nsen ensu suss am amon ongg ind dustry t pllayers tth hatt th the smartt home market is still in its infancy with rapid growth predicted in t h e co ming th i g y ea earss . “T “Th h e s maa rtt home is poised for tremendous growth in 2015 2015, ” said Greg Roberts Roberts, VP of Marketing at Icontrol Networks. “We are seeing significant players in the marketplace. There’s a lot of competition for the home, as with smart home devices and solution providers.” As such, a few key drivers, as discussed with several industry players, have been pointed out as those that will help propel the smart home market in 2015.

SECURITY, THE HEAVYWEIGHT IN SMART HOME Home security tops the requirements of smart home, followed by energy management. In home security, cameras, sensors, and smart locks are among those most sought after. Ranging from multinational brands, IT giants, and networking specialists to Asian makers, the home camera is considered an entry product in the smart home market, featuring aesthetic appeal, functionality, and cloud software deployment. Features such as HD resolution, facial recognition, and 360-degree view have started to see adoption in the new-generation of home cameras. For example, Netatmo and Simplicam are adopting facial recognition to identify family members. These cameras can send alerts and recordings to users’ mobile devices when unfamiliar faces are detected. Camera veterans are also expanding their smart home offerings by adding motion, smoke, door/ window, or CO2 sensors. Swann, launched the SwannOne system that consists of a smart hub, SoundView camera camera, Zen thermostat thermostat, and enables remote control of Philip’s Hue lighting. With the popularity of Phillip’s Hue on the rise, the brand maker is showing its ambition in the smart home by showcasing a range of sensors, including a humidity and temperature sensor, door/window contact sensor, and motion sensor compatible with

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DIY SM DIY SMAR ARTT HO HOME ME A ASC SCEN ENDI DING NG The smart home market mainly goes by two business models: DIY and coonttraact ct. Th Thee former e prooject jectss a on o ee ti timee buy uyou outt of of the h har a dwar dwa e an a d geenerally comes with complimentary cloud or software services, whereas th he latter is bundled with service providers providers’ offerings and requires a monthly feee. Beyond the “ease” of DIY solutions still lay challenges in interoperability, coonnectivity, and simplicity. Michael Mendoza, Business Development Diirector of SmartThings said, “The point of smart home is to make things eaasy and responsive, and to make people more comfortable to use the tecchnology. It’s believed to be a better way to get everything connected to th he ecosystem to ensure better control.” To help manufacturers launch products easier and faster, several product deesign solution providers are “modularizing” their solutions. Joseph Boousaba, Senior Director of Product Management at Qualcomm Atheros nooted, “With our lighting connectivity module, we are making product en ntry easy and enabling manufacturers to ensure that their smart lighting prroducts interoperate with a wide variety of systems and services within th he smart home. The turnkey hardware and open source software make the soolution for lighting manufacturers of any size.”

MORE INTEGRATED, MORE PERSONALIZED Whether it is DIY or offerings from service providers, the smart design is traanslated into more intuitive use cases and intelligent algorithms. Things lik ke personalized temperature preference settings and voice and gesture coontrols are becoming popular. Voice control in particular has gained poopularity due to the number of partnerships with Apple’s HomeKit. Th he Schlage Sense lock provides consumers with key-free convenience byy using Siri. HomeKit technology provides an end-to-end encryption an nd authentication between the Schlage sense lock and an iPhone, iPad, orr iPod touch.Integration with home entertainment has also become more widespread, as the lines begin to blur between automation and en ntertainment. This trend is an important one to watch as A/V systems are noow being integrated with home alarm and security systems, such as Nexia’s paartnership with Sonos and Zonoff’s convergence with Bose. According to Bob Cooper, Chief Marketing Officer at Zonoff, the next in ntegration targets of the smart home are pet care, gardening, and fitness. Wearable devices such as Jawbone will play an important role here. “You You will see more and more specialized integration of these three segments,” he said. “Smart home solutions are all about solving problems. When your Jawbone wristlet senses you awake in the morning, the system tellls the bath system or any other system you set to be ready. We always geet feedback from partners and help them design the products that solve prroblems.”

Through Differentiation

I APR 2015 Ɣ www.asmag.com

n the past, buyers looking for products with excellent design and performance bought from Korea; those looking for high price-performance ratios purchased from Taiwan; and those looking for low prices went to Shenzhen, China. But today, Chinese products have seen significant improvement in quality and functionality, and their lower prices continue to wreak havoc in the global market. Selling Chinese products means the very survival of distributors. Even if they don’t carry Chinese products, they need to lower production cost or cost of goods purchased in response to the price competition. Against this backdrop, the real value of prestigious international brands has been reexamined. Those that had high price-performance ratios were eliminated one by one as the industry went through a reshuffle that affected all players — foreign, Taiwanese, Chinese, and Korean alike. Taiwan security companies agree that no one can compete directly against Hikvision and Dahua. All they can do is differentiate themselves and provide service to customers with specific needs. When low-price Chinese products first entered the market, everyone wanted them, and distributors sold them whether they liked it or not. But when it became more difficult to stay profitable, many people reconsidered their strategy. Some gave up on low-price products to move towards product differentiation, concentrating on delivering value and reliability. This reminds me of the remarks that I heard when I first entered the market. “Security protects lives. Trust is the basis of everything. Security is people business.” This is how I foresee the market will be segmented in the future. Some small- to medium-sized companies are most likely to penetrate all the sectors, except the first one. 1. The high-end competitive bidding market: High prices will continue to dominate to ensure that all stakeholders get their shares of the profit. Of course, how to make sure that the bidding process works in your favor will be a challenge for big vendors. 2. The market sector where users turn to security to create different applications: Price is beside the point. What’s important is the

BY John Shi

Taiwan: Survive and Succeed

With China emerging as a powerful manufacturing base, product differentiation has become a focus for global vendors, channel players, and systems integrators seekin ng to survive and stay profitab blle e. Thiss article lists several Taiw wan wa com co mp paan nies that have succe ee e ede ded in th in hiis effo efff rt e r.

need to turn security into useful applications that create value. 3. The market that only needs surveillance without any other sophisticated functionalities: This market only needs standard security products and devices and will be wholly owned by Chinese companies. 4. The market that needs “video monitoring,” not “security”: Wherever there is a need for video monitoring, there is a demand for security cameras. 5. Home security: A segment that will be dominated by smart home players. Who will win out? It’s hard to say. Many players are present in the market, and the real competition has yet to begin. The final outcome is hard to predict at the present stage. Typically, Taiwan companies respond to the price competition by lowering cost, offering systems/solutions, and engaging in ODM with partners that are also keen on product differentiation. The following are some of the companies that have found new ways to make themselves more competitive.

Taiwan security companies agree that no one can compete directly against Hikvision and Dahua. All they can do is differentiate themselves and provide service to customers with specific needs and demands.

Merit LILIN

D-Link A well-known networking equipment brand, D-Link entered the surveillance industry eight years ago, sensing its potential. The company leveraged its competency in networking equipment and combined it with surveillance and even access control, offering solutions that link networking and security to create extra value. At a time when security is moving towards IP and IoT is developing rapidly, IT and networking SIs will drive customer demand. From D-Link’s perspective, partnering up with these integrators on a long-term basis would be a major plus.

VIVOTEK 2014 was a challenging year for VIVOTEK, and pressure from price competition has forced the company to reassess its cost structure to retain a profit. Adjustment measures included reconstructing the supply chain, establishing an ecosystem, and building a R&D team that focuses on the demands and needs of customers. With these adjustments, the company has become stronger and more competitive. While the company is working to retain its share in the project market, they are also expanding product lines to meet the needs of SMBs who they believe have huge potential. Products include NVRs, free 32-channel VMS, and PoE solutions to help customers lower the cost of storage, software, and installation.

This prestigious video surveillance manufacturer entered IP surveillance two years ago, becoming an excellent example of an old-time player making a successful transition. Merit LILIN sells high-quality products, capitalizing on its vast experience that took years to build up. The company rarely signs OEM deals due to its insistence on the quality of components and materials, which may be too costly for OEM clients. With product reliability and the firm’s many overseas locations, LILIN has jumped on the smart home bandwagon, forging ties with many international firms. This way, the company will have new partners in place once the market finds its new order.

According to the firm, in the face of intense market competition, any company in the ecosystem that doesn’t make money may be driven out from the chain. The company’s goal is to help all players in the system make money. This year, VIVOTEK focuses on H.265 and more complete NVR and fisheye product lines. “2014 was a tough year as we had never experienced this kind of price pressure,” said Owen Chen, President of VIVOTEK. “With the adjustments we made, we can better face the competition. After all, companies shouldn’t be afraid of competition, without which there wouldn’t be progress.”

Seamless Safety and Security? Not an Issue for Skytrain Taiwan Taoyuan International Airport (TPE) is one of five airports in Taiwan with regular international flights, and is by far the busiest. Last year, TPE dealt with approximately 34 million passengers, ranking TPE the 11th busiest airport worldwide in terms of international passengers. TPE comprises two terminals, each harboring roughly half of the passengers. A comprehensive transport system is established within the airport to transport passengers between terminals and in/out of the airport. This system comprises trains, buses, taxis, and the people mover system (PMS), better known as the Skytrain. BY VIVOTEK

HIGH QUALITY SECURITY SYSTEM REQUIRED FOR UNMANNED TRANSPORT SYSTEM

APR 2015 Ć&#x201D; www.asmag.com

The Skytrain is a fully automatic train system that runs between the two terminal buildings at Taiwan Taoyuan International Airport (TPE). The construction of the people mover system (PMS) was initially imitated by the Civil Aeronautics Administration in 1997, and subsequently completed under the collaboration of the China Engineering Consultants, Japan Niigata Transys, and Taiwan Rapid Transit. The PMS was formally launched by TPE on 18 January 2003 and consists of

two parallel tracks, North and South, each providing bidirectional service. A single car serves the north track for airline passengers only. The south track serves both airline passengers and the public, separated by platform dividers between the cars. Because of the increasing number of passengers that use the PMS each year, security within train carriages has become a prevailing problem for the unmanned transport system. Thus, TPE commissioned Apogear, a distributor of VIVOTEK products in Taiwan, and systems integrator Plustek to design and deploy a solution to meet the safety and security demands of TPE.

COMPREHENSIVE MOBILE SOLUTION FOR MOBILE ENVIRONMENTS Taking into account the immense flow of people in an international airport context, as well as the fact that surveillance in mobile environments require specialized products, Apogear and Plustek formulated a comprehensive mobile solution comprising 10 state-of-the-art VIVOTEK cameras. A series of hardware and software comparisons were conducted to identify the ideal device for this setting, where the VIVOTEK MD8562 mobile dome network camera surpassed all established benchmarks and all

competition in its category. Thus, the MD8562 was selected for the in-carriage surveillance of the Skytrain. The MD8562 is a dome network camera geared specifically for mobile applications, such as trains, buses, and other vehicles. This camera model is fully compliant with EN50155 standards and meets all shock and vibration criteria set by EN50155. The camera is housed within a vandal- (IK10-rated) and weatherproof (IP67-rated) dome housing to withstand the harshest environmental conditions. The camera itself features a 2-megapixel CMOS sensor capable of capturing 1080p full HD video at 30 fps and supports real-time H.264, MPEG-4, and MJPEG compression technologies to provide detailed footage whilst reducing file size and conserving network bandwidth. The wide-angle fixed lens and WDR Pro technology exponentially increases the camera’s field of view and ability to capture minute details in extremely bright, extremely dark, or light-fluctuating environments. Therefore, the MD8562 mobile dome network camera is ideal for monitoring the mobile carriage spaces of the Skytrain system.

SAFETY AND SECURITY WELL ENSURED WITHIN THE PMS Sandy Huang, Product Manager at Plustek, stated, “Since the deployment of the new surveillance system in August 2014, a tangible improvement in safety and security within the PMS can be well observed. The cameras installed in each of the train carriages operate seamlessly with the airport’s network video recorder to produce detailed, unobstructed footage. Airport management praised VIVOTEK for the excellent quality of its cameras, anticipating future collaboration in enhancing the security of other sections of the airport.”

Companies in This Issue Cover Story • ITE TECHNOLOGIES Products of the Month • AXIS COMMUNICATIONS • BOSCH SECURITY SYSTEMS • HIKVISION DIGITAL TECHNOLOGY • VIVOTEK Product Exploration • ANTAIRA TECHNOLOGIES

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