November 2018
Contents
ature
Special Fe
22
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Editor’s Note
10 Application Cases 66 Show Preview/Review 68 New Products 69 Show Calendar 71 Companies in This Issue Cover Story
Genetec Looks Ahead to 2019
Daniel Lee, MD, APAC, Genetec
Sorry!
AI
Whether it’s AI or not, advanced analytics will influence security in the years to come.
a&s speaks to Daniel Lee, MD for the Asia Pacific region at Genetec, about the company’s achievements over the past year as well as security trends that will shape APAC in 2019.
Point Out the Verticals That Video Analytics Has 32 SIs 40 AICrossed Show Most Growth the Rubicon 2018 Security 50 Delivered Improved 42 38 2018 Ranking Growth and the Foundation for an Exciting Future
We believe that Malaysia will continue to grow well given the huge focus on global security, rising investments in this area and technological advances feeding demand for smart security products.” Janesta Woon, Country Manager, Malaysia, Robert Bosch Malaysia Remains Attractive Despite Political Concerns, p. 16
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WEBSITE ARTICLES https://www.asmag.com How IoT Security Issues Can be Dealt With Via Blockchain At a time when devices, including those dealing with security, are becoming more and more connected, their security has become a major concern.
What to Highlight When Selling Smart Building Solutions Convincing end customers of the advantages that smart building solutions bring to their operations is critical.
Editor’s Note Security 50 Ranking 2018 Released: We Can’t Ignore AI This marks the 16th year that a&s has released its Security 50 ranking. We recognize the achievements of video surveillance companies, such as Hikvision Digital Technology, Dahua Technology, Axis Communications, Avigilon, Milestone Systems and VIVOTEK, who were able to maintain double-digit growth and gross margins in 2017 despite the huge pressure from camera price reductions year after year. Because of their continuous efforts in creating solutions and providing value-added services for multiple vertical users, we can foresee their substantial growth in the future. Next, we can probably expect AI to reinvigorate growth and create another peak period for security. The growth forecast for access control companies remains strong with continued demand from office buildings, hotels and homes, as well as a strong push from technology trends — notably the migration from mechanical to electronic locks, mobile keys, and the integration of access control systems with other systems to manage physical and also digital access. The Security 50 ranking also shows that multinational conglomerates, like ASSA ABLOY and Allegion, have also maintained their organic growth in 2016 and 2017. We would like to point out that certain companies were not able to participate in this year’s ranking due to multiple factors. The a&s editorial team has tried its best to provide the most complete ranking possible. We hope the ranking can provide marketers a quick overview of the current global security industry. We urge readers not to overinterpret the figures, but rather focus on how the top 50 companies were able to stand out from the market. We thank all the companies that were willing to share their financial reports with us. Finally, in this issue, we also interviewed some industry experts from Malaysia and India to understand the updates of their local market and industry. Enjoy it!
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EDITOR-IN-CHIEF JILL LAI
jill.lai@newera.messefrankfurt.com
Editorial Team
Global Security News Media Platform FOLLOW US:
SENIOR REPORTER WILLIAM PAO
EXECUTIVE EDITOR EMILY LIN
The APAC is a growth market for security. Growth drivers include strong economic performances, with the World Bank forecasting GDP growth rates to range from 4.1 to 6.9 percent this year. That, coupled with regulation requirements and tourism development initiatives by regional governments, is expected to buoy security in the years to come. See our SI report for more details.
Asia is a high-growth market for industries such as security. However, market penetration can be difficult. Companies need to learn how to navigate the diverse cultures in the region and target the unique needs of customers on a very local level. It is our hope that this month’s articles on the Malaysian and Indian market will shed some light on this matter.
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Products of the Month
Body-Worn Cameras Securely Capture Critical Evidence Light and portable, body-worn cameras are getting popular in police departments worldwide as they can serve as an additional witness when events occur. For convenient operation, most body cameras feature the simplest one-touch start recording or smart event detection to automatically capture vital footage. Further, some camera models support internet connection and multidevice access, allowing users to quickly and efficiently review, categorize and manage their video. Apart from police officers, retail cashiers and supermarkets are also showing interest in body-worn cameras.
Panasonic Arbitrator Body Worn Camera
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rbitrator Body Worn Camera (BWC) captures and collects evidence throughout the entire investigation. It provides recording in 1080p, 720p and 360p formats. Featuring a single or two-piece design, the Arbitrator BWC is IP67 rated to provide police officers with a better way to capture unbiased, tamper-proof video in nearly any condition.
Key Features • Integrates with Panasonic's SafeServ Evidence Management Software • 16:9 & 4:3 aspect ratio • Compatible with 360° HD in-car video systems and Panasonic fixed-surveillance cameras • Built-in GPS, Wi-Fi and Bluetooth • Adjustable LED brightness information panel
Supplier: Panasonic URL: www.panasonic.com
Utility Associates BodyWorn
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odyWorn by Utility Associates is a smart solution for law enforcement with artificial intelligence to create situational awareness and activation. When a gunshot is detected or when an officer becomes prone in the field, BodyWorn automatically begins recording and sends a call-for-help message to AVaiLWeb, which includes reporting the officer’s location to dispatch and to all officers within proximity.
Key Features • Recalls two minutes of audio and video prior to gunshot detection • Vehicle sensors to trigger recordings • Built-in accelerometer to detect when an officer is running and starts a triggered recording • Automatically reacts when the officer enters a pre-defined geographical area
Supplier: Utility Associates URL: www.bodyworn.com
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Reveal Body Cameras D5
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anufacturing body-worn camera for over a decade, Reveal puts AES encryption and the Wi-Fi/Bluetooth connectivity in this police equipment for on-spot security and convenience. The red sliding switch on the side enables one-touch record and is easy to operate for officers on the go. Body Cameras D5 works with DEMS 360 digital evidence management solution to review and categorize video, or create case support. The software allows access from multiple devices with secured storage. Key Features • Articulated camera head to fit on police vests or vehicles, head-mount on a helmet, or to be handheld • Includes GPS information in the video metadata when paired with a smartphone during recording • Bluetooth triggers allow the D5 camera to be activated remotely via a beacon • Ultra-low light • With front-facing screen
Supplier: Reveal URL: www.revealmedia.com
Axon Flex 2
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xon Flex 2 captures video evidence with unlimited HD and a 120-degree field of view. Its dual-channel audio reduces ambient noise for improved sound quality of all video, and the full-shift battery can last for 12 hours of recording. Users can individually configure their pre-event buffer time to capture up to 2 minutes before an event.
Key Features • Wireless activation: Axon Signal reports events, like when users open the car door or activate the light bar, so the camera can detect them and start recording • Mobile compatibility: stream, tag and replay footage on smartphone with the Axon View app • Evidence.com integration: manage, retrieve and share videos online • Protection rating: IP54
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Supplier: Axon URL: global.axon.com
PRO-VISION BODYCAM BC-300
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ODYCAM BC-300 is designed to handle the roughest conditions, record HD night vision video, and provide continuous coverage for up to 12 hours. The users can also ensure every crucial event is not missed with the pre-event recording buffer, which captures video of the occurring events before a recording is manually activated. BODYCAM BC-300 can not only be applied in police departments but be integrated with in-car video or fleet management systems.
Key Features • 150° field-of-view • With built-in dual-channel, noisereducing microphones to reduce noises • One-press-activate flashlight to handle diverse environmental conditions • Works with SecuraMax evidence management solution by PRO-VISION
Supplier: PRO-VISION URL: bodycameras.com
VIEVU LE5 LITE Body-Worn Camera
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E5 LITE body-worn camera is lightweight, weatherproof and Wi-Fi enabled, allowing for livestream of videos and metadata at any time. Police officers can share the digital evidence through a secure and user-friendly interface built on Microsoft Azure Government cloud, which is FBI’s CJIS security standard compliant, simplifying the way dealing with video and data. The camera has 95-degree field-of-view.
Key Features • Video storage capacity of the LE5 LITE is 27 hours at standard definition resolution, and the raw storage capacity of the body-worn camera is 32 GB • Using the LE5 LITE's Wi-Fi, the VIEVU smartphone app enables livestreaming videos and adding metadata to a file while the officers are in the field • Recording speed: 30 FPS • Video resolution: 1920x1080 (FHD), 1280x720 (HD) or 848x480 (widescreen SD)
WatchGuard Video VISTA XLT Two-Piece HD Body-Worn Camera System
Supplier: VIEVU URL: www.vievu.com
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ISTA XLT is a light-weighted two‐piece police body camera with interchangeable head and body to allow officers to adapt to changing assignments and uniform types. When using a backlit LCD, users can have a clue about battery level, recording status or memory space in one glance. With the SmartConnect police app, officers can review footage on their smartphone immediately, categorize events and stream live video from VISTA Wi-Fi at full frame rate during training exercises or anytime needed. Key Features • Supports 12-hours continuous HD recording • Can be flexibly mounted on glasses, clothes or belts • Works with the 4RE in-car video system to synchronize video evidence of an event from multiple vantage points
Supplier: WatchGuard Video URL: watchguardvideo.com
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News Feature
Thailand and the Philippines Invest in Smart Transportation The development of smart cities and connected transport infrastructure in these two countries is being supported by their respective governments. BY the a&s Editorial Team
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ith support from the governments of Thailand and the Philippines to tackle traffic congestion in cities, the tolling and city congestion market in the two countries is forecasted to register a compound annual growth rate of 18.6 percent, reaching US$1,474.7 million in 2025, up from $381.1 million in 2017, according to a report by Allied Market Research. In Thailand and the Philippines, smart transportation is in high demand because local governments want to improve transportation to save on commute time. It is also more secure and more cost-efficient compared to traditional transportation systems. Allied Market Research says the rise in investments in smart cities,
innovation of smart traffic signals and the emergence of the internet of things (IoT) are offering lucrative opportunities in the two countries’ transportation sector in the next five years. Factors hampering the growth, on the other hand, include high capital investment requirements and large database requirements for the road and tolling network. In the Asia-Pacific region, the demand for smart transportation networks is on the rise, as it can help reduce traffic congestion and enhance the safety, sustainability and efficiency of transportation networks. A strong digital infrastructure will facilitate connectivity between vehicles and infrastructure to gather vital information, alleviate traffic
“The tolling and city congestion market in the Philippines and Thailand will reach US$1,474.7 million in 2025.” congestion and make roads safer. The rise in disposable incomes has also resulted in a rapid increase in the sale of vehicles. This increase leads to problems such as car parking space issues along with traffic congestion. Many consumers are thus availing of smart transportation options to direct them toward roads that are less congested. Smart transportation has various types of applications
including parking management and guidance, passenger information and in-traffic management.
Manila Adopts Intelligent Transport System Manila government officials just announced it will adopt an intelligent transport system to ease traffic jams in the city, according to the Philippine News Agency. Named the Transport Operation
APPLICATION CASES Regulatory Body HID STREAMLINES TIME AND ATTENDANCE FOR INDIA COUNCIL HID Global offered a biometric smart card solution to help the Dental Council of India (DCI) with identity authentication and attendance tracking. Each faculty member under DCI was issued a smart card that stored the users’ fingerprint templates and personal data. SmartID biometric readers were installed at faculty offices for recording attendance at every college. Each user had to present both their smart card and fingerprint for identity verification. The biometric readers were connected to EDGEPlus controller via Wiegand. The entry records were then uploaded to the central server through a controller over a TCP/IP network. Featuring an open architecture, the controller was integrated with DCI’s faculty management module using Rasilant Technologies’ software. As a result, all of the RFID readers across all colleges under DCI were integrated on a single network, offering a web-based solution for real-time reporting.
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18.4 % South Korea petrochemical exports rose 18.4% YOY (Jan 2018).
Source: Ministry of Trade, Industry and Energy, Korea
a&s explores topics that are generating interest in the security industry, offering readers important facts and information relevant to their profession.
and Information Service (TOPIS), it is the same system that manages Seoul’s traffic flow. The system integrates data from various traffic management facilities, including the bus management system, transport card system, among other sources. Real-time information is passed to the public facility staff operating buses, subway trains and parking lots, etc. The information can help motorists map out alternative routes in cases of traffic congestion or road accidents. The information may also better predict bus arrival and departure times for commuters. With intelligent transportation systems, innovative services are provided for different modes of transport and traffic management. It increases coordination among various users and allows them to be better informed and make safer and “smarter” use of transport networks.
NEC Expands Ecosystem With Open Innovation Center in Singapore The new facility will foster open innovation and partnerships powered by AI and biometrics BY NEC
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EC announced the opening of the NEC Open Innovation Center (OIC) in Singapore, which forms a part of the wider NEC innovation eco-system. Supported by the Singapore Economic Development Board (EDB), the OIC is part of NEC’s US$100 million investment over the five years from 2017 in research and innovation in the Asia-Pacific region. The center, operated by the Global Safety Division, provides a platform where solutions can be translated into realistic and relatable use cases. It houses various revolutionary thematic zones which allow an immersive experience in AI and biometric solutions within the context of daily life. “We are delighted that NEC has chosen Singapore to establish its first Open Innovation Center outside of Japan. Singapore’s strong base of enterprises, partners and digital talent offer NEC an ideal location to forge collaborations and translate its strong biometric identification technology into new applications for public safety and commercial domains for Singapore and beyond,” said Lily Phua, Director of New Businesses at EDB. Vinoop Goel, Regional Director in Asia-Pacific from the International Air Transport Association (IATA), comments, “With the number of travelers expected to double in 20 years time, the use of technology will be critical for increasing passenger throughput in the existing airport terminals. NEC’s OIC is a good showcase of the technologies that can make air travel more efficient, including IATA’s OneID initiative, and we look forward to implementations of these technologies to improve the passenger experience and enhance the efficiency of airline and airport operations.” “The vision of the Open Innovation Center is to orchestrate a smart and safer city in collaboration with governments and businesses. With a digitally disruptive team at the heart of OIC’s operations, new ideas of approaching public safety can be prototyped and launched within the center and further deployed in global markets. This is only possible with strong support from our industry partners who are already on board the OIC ecosystem,” said Tan Boon Chin, MD for Global Safety Division at NEC. “We believe that a trusted digital identity based on biometrics such as facial recognition technology can transform businesses so as to provide secure and frictionless experience across home, city and aviation.”
Chemical HANWHA TECHWIN KEEPS KOREAN CHEMICAL FACILITIES SAFE The Ulsan 1 production site of Hanwha Chemical, one of Korea’s leading petrochemical companies, decided to adopt video monitoring solutions to ensure the safety of employees and the nearby community as well as protect assets within the facility. Hanwha Techwin Wisenet T series cameras were installed both indoors and outdoors such as in the factory periphery, laboratories and chemical warehouses. These feature stainless steel housing which can prevent the cameras from exploding. Other features include 2 MP resolutions with 32x optical zoom, built-in wiper, 360-degrees endless pan and 180 tilt functions, and intelligent video analytics that can trigger alarms if someone enters restricted areas, allowing users to react early. With the cameras in place, the Ulsan 1 production site can now securely monitor hazardous industrial environments where they deal with gas, petroleum and chemicals.
IDEMIA Sets APAC Headquarters and Innovation Center in Singapore With digital transformation accelerating across Asia, IDEMIA’s APAC headquarters will power the group’s geographical footprint within the region. BY IDEMIA
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ocated at 21 Media Circle, the IDEMIA headquarters also incorporates an Innovation Center highlighting the group’s commitment to the region while reinforcing IDEMIA’s vision of securing identities with convenience in this digital transformation era. The Innovation Center will showcase advanced technologies in identity security to support partners and customers on their digital transformation journey. Featured solutions include an automated air passenger boarding process, advanced mobility solutions, IoT innovation, video analytics, mobile payments and a new generation biometric and display payment card. “We are delighted to strengthen our presence in Singapore as it’s an ideal backdrop for building the future of digital security in APAC. As identity theft is the most common type of cybercrime that transcends borders, it is critical for governments, airports and border controls to bolster national security whenever and wherever security matters. Our next-generation and innovative solutions enable nations and enforcement agencies to substantially improve security capabilities in today’s connected environment, while ensuring convenience and seamless processing of citizens’ identities,” said Didier Lamouche, CEO of IDEMIA. “I am delighted that IDEMIA has chosen Singapore to establish its headquarters and innovation center, as Singapore is in the forefront of introducing new initiatives to steer innovation and digitalization. As identity security is of paramount importance in today’s digital age, IDEMIA is in good stead to boost national and citizen security in Singapore and the region. This announcement is also timely as 2018 has been declared the France-Singapore Year of Innovation which recently led to the signing of a joint roadmap for deepening cooperation in digital innovation, internet governance and cybersecurity during Prime Minister Lee Hsien Loong’s visit to Paris in July 2018. Singapore and France share a synergy in enhancing our innovation ecosystem, and as more French companies continue to establish its presence in Singapore, I am confident that the collaborations between both countries will deepen, to create more opportunities for enterprises and consumers,” said His Excellency Marc Abensour, Ambassador of France to Singapore.
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Cover Story a&s speaks to Daniel Lee, MD for the Asia Pacific region at Genetec, about the company’s achievements over the past year as well as security trends that will shape APAC in 2019. BY the a&s Editorial Team
a&s : WHAT WERE SOME KEY ACCOMPLISHMENTS FOR GENETEC IN THE PAST YEAR?
Daniel Lee, MD, APAC, Genetec
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Lee: As my first-year anniversary a s M a n a g i n g D i r e c t o r fo r t h e Asia Pacific Region at Genetec is approaching, I am delighted to take this opportunity to stop and reflect on what Genetec has accomplished in 2018. 2 0 1 8 h a s b e e n i m p o r t a n t fo r Genetec in this region, as we have seen tremendous growth and market development, particularly in India, Australia and New Zealand (ANZ), Thailand, and Singapore. We have added distributors in Japan, Indonesia, India, and Thailand, and grew our team. Investing heavily in local resources and welcoming new headcount to support these growing markets including; Hong Kong, India, Thailand, Japan, Korea, and ANZ operations with the addition of
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Systems engineers (SE), Regional Sales managers (RSM), Business Development Manager (BDM) and Channel Sales Specialists (CSS). The Singapore gover nment is c u r r e n t ly s p e n d i n g S G D $ 3 0 0 million on manpower-based guarded security. In 2019, we are excited to see the government shifting its focus to incorporate a modernized IP security strategy with the objective of realizing operational efficiency. This updated approach to how both public and private security is managed aligns perfectly with Genetec unified, open-architecture security platforms. We are excited to participate and contribute to this evolution. As one of the top t hree video management (VMS) companies, and one of the top five access control companies, in the world, Genetec is focused on recruiting high performance, high energy and incredibly talented people in APAC. It is our goal to assure our Channel and Technology partners get to interface with the most educated and experienced security professionals in APAC. Finally, with the goal of creating the right environment that nurtures our regional leaders, we are excited to have relocated our Singapore office. This expanded space now houses an experience center that showcases the full catalog of Genetec unified security solutions — featuring many of our strategic technology partners’ hardware and software integrations. Also, with a new training center and client meeting spaces, we are poised to bring world-class security innovations to the APAC region in 2019, and beyond.
a&s: WHAT ARE SOME MAJOR TRENDS THAT WILL IMPACT THE APAC SECURITY INDUSTRY IN 2019? Lee: Looking ahead to 2019, we can clearly see the continuation of several
important trends as well as some new ones that will have an important role to play in the security sector in APAC and beyond.
Continued Focus on Cybersecurity
The first trend we see is a continued focus on cybersecurity. There continues to be a growing number of high-profile breaches in our industry. Along with governmental regulations designed to strengthen security, privacy, and mitigate the damage caused by these increasing cyberattacks, we have to be more vigilant than ever. Cybercrime and criminal cyber activity are not only costly, but they can cause tremendous damage to an organization’s reputation. Just last month, Facebook lost another 50 million users when their data was breached. While the financial cost may not represent a lot in terms of Facebook’s bottom line, the loss of trust and damage to their brand is significant. Recent security breaches in SingHealth, a health care group in Singapore, suffered a massive data breach that allowed hackers to obtain personal information from 1.5 million patients who visited SingHealth clinics between May 2015 and July 2018. This was a severe breach of privacy for the citizens of Singapore who were affected. Another important part of concerns around cybersecurity is the increasing awareness of untrustworthy devices. It has become clear that this lack of trust is not a function of engineering, but more often malicious intent that can come from any number of sources. For our part, we have developed countermeasures that can help isolate untrustworthy devices on the network. Our systems are customized to keep these untrustworthy devices from sending sensitive or private information to unauthorized recipients. It also protects other systems, including command and control systems, from being accessed. All of us have a responsibility
▲Genetec Singapore Experience Center
to protect our security platforms and networks, and all the systems they connect to through vigilance and transparency. As technology providers, we must ensure that we are not only good data stewards, but also upstanding global citizens.
Greater Attention to Risk Assessment
Just last month, the U.S. Government Accountability Office (GAO) released a report stating that some of the Pentagon’s new weapons were vulnerable to attack. According to the report, researchers were able to take control of systems and operate them undetected, using simple tools and techniques. Despite the fact that some believed their networks were secure, the GAO found that, in many cases, it took mere seconds to guess device passwords and gain access to sensitive systems. When gover nments have concer ns about potential risks to their systems, this naturally becomes an indication to other organizations that they too should take a closer look at their vulnerabilities. As a result, we are now seeing large organizations balancing out their risk assessment by leveraging cyber-litigation insurance. And this is surely to increase throughout 2019.
Increased Unification That Leads to Better Understanding
In terms of the technology itself, we are sure to see even more unification of systems in 2019. Organizations are already experiencing the benefits of unifying access control systems with video surveillance, and this will only grow. What will also increase is the ability to employ analytics tools to leverage the vast amounts of data that physical security systems and other devices are already collecting. When organizations are able to understand and leverage their data,
they can use it to improve any number of business functions, including efficiency, operations, customer service and revenue generation. The challenges here will arise around sharing information between stakeholders, par ticularly in terms of maintaining individual pr ivacy and control over sensitive data. But we will see solutions that will allow for disparate organizations to collaborate effectively to achieve even greater understanding.
More Organizations Adopting Hybrid-Cloud Storage
We are seeing an increasing number of organizations moving their storage to hybrid-cloud solutions. This allows them to divide their data between cloud and on-premises options. There are tremendous benefits here as people can take advantage of the greater flexibility and cost-savings associated with cloud solutions — often for long term archival — while maintaining the all-important feeling of control of their data.
Continued Acquisition of Global Players
In recent years, we have seen several companies consolidate as major players acquire other organizations. While the bringing together of technology has the potential to yield compelling advancements, it can also slow test cycles for these businesses. As an independent company for more than 21 years, Genetec has been able to grow organically at a pace where we reinvest heavily in our R&D. This has allowed us to innovate organically and remain a leader in the industry. 2019 will bring many opportunities for Genetec to help its end users and partners put an enterprise-grade security platform in place, with an open-architecture, scalable and extensible solution.
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Country Report
Malaysia Remains Att Despite Political I Concerns With the government planning infrastructure development and customers becoming more and more aware of security needs, the prospects in the Malaysian market continues to remain strong. Here we take a look at the requirements, challenges and opportunities. BY Prasanth Aby Thomas, Freelancer
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f there is one thing that we can be sure of when talking about the security market in almost any country in Asia, it is that the growth is rapid. The more important question, therefore, is about which of the countries are expanding faster than the others and at what rate. Malaysia, with its infrastructure projects, is certainly one of the fastest growing Asian markets for the security industry. According to Janesta Woon, Country Manager for Malaysia at Robert Bosch, is seeing a growing demand for security products. An IHS report showed that the security industry in Southeast Asia
▲Education has been identified as a key growth sector, necessary to improve the nation’s status and global competitiveness.
compared to last year. “According to the current market, the rapid upgrade of products leads to the competition from low-priced products gradually to the mid-end products,” Weng said. “Next year will be a year of blossoming for projects in vertical markets, including the start of many large government projects, which indicates a positive sign for the overall security market.”
Quantifying the Growth Estimates
tractive is predicted to grow at double digits on a year on year basis. “We believe that Malaysia will continue to grow well given the huge focus on global security, rising investments in this area and technological advances feeding demand for smart security products,” Woon said. Other major companies in the region agree. Simon Weng, Country Manager for Dahua Malaysia, said that the security industry in Malaysia is developing rapidly. Although the government related projects are affected by political factors, Dahua still estimates growth in market share
Of course, taking such a general approach to prospects based on the perceived needs is not quite sufficient from a practical business perspective. More concrete facts are required to take strategic decisions. For instance, the public perception is that break-ins are common in Malaysia and this is supported by a Malaysia 2018 Crime Safety Report issued by OSAC (United States Department of State, Bureau of Diplomatic Security) that states “residential break-ins are common, and single-family homes are most frequently targeted.” Statistics from other sources support these. According to Michael Chan Yee Keen, Executive Michael Chan Yee Keen, Director at Stratel, agencies like Numbeo depict Executive Director, Stratel Malaysia as the most dangerous country in Southeast Asia with the highest crime rate for the past three consecutive years. The latest data for mid-year 2018 places Malaysia at the 20th position worldwide, followed by Cambodia at 32, Vietnam at 35, Thailand at 44, Indonesia at 53, the Philippines at 69 and Singapore at 115. “Based on interactions with our network of more than 1,200 dealers, installers and system integrators, the market has a projected annual compounded growth rate of between 10 to 20 percent,” Chan Yee Keen said. “As one of the leading wholesale distributor of security products in the ASEAN region, our company grew by about 40 percent last year and this year we are on pace to improve by another 15 to 20 percent. Despite strong economic headwinds (U.S.-China trade war, deferment/ Verghese Thirumala, MD, Maxitulin
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Special Feature
2018/2019 Review and Preview
Most Security 50 companies experienced growth in 2017 thanks in part to lingering demand for security across verticals. For 2018, many also expressed a positive sentiment, saying results from their Q1-Q3 reports point to another year of growth, which they said would also last into next year. BY William Pao
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ooking at this year’s Security 50 rankings, one can’t help but notice that the top two spots now go to Hikvision Digital Technology and Dahua Technology, the latter jumped from No. 3 last year to No. 2 this year. This has all but solidified the status of the two Chinese companies (often collectively referred to as Hikua in the security world) as the world’s biggest security firms. Hikvision remained the world’s No. 1 with 2017 security product sales revenue of US$5.4 billion, a growth of 26.4 percent from 2016. Dahua, meanwhile, saw 2017 revenue of $2.7 billion, a growth of 41.4 percent from the previous year. As for the other top 10 companies, things were pretty much the same from 2017, with the established brands — ASSA ABLOY, Bosch Security Systems, Axis Communication, FLIR Systems, Allegion and Hanwha Techwin ranking No. 3 to 8, respectively, and Avigilon moving up from last year’s No. 12 to this year’s No. 10.
Paulo Byun, President, COMMAX
Fu Liquan, Chairman, Dahua Technology
Thomas Lausten, CEO, Mobotix
Tiandy Technologies took the No. 9 spot. In terms of ranking by revenue growth, Chinese companies last year took the top five spots. This year Chinese companies were more spread apart within the top 15, with Raysharp, Dahua, Tiandy, Kedacom and Hikvision taking No. 1, 3, 4, 6 and 8, respectively. Raysharp, which made its debut on Security 50 this year and ranks No. 18 on the main list, saw revenue jumping 71.3 percent, taking No. 1 in terms of revenue growth. Last year’s top gainer, Wanjiaan
AI
Ray Mauritsson, President and CEO, Axis Communications
Horacio Morales, Director, International Sales, CI and Security, Nortek Security and Control
Interconnected Technology, got pushed out of the top 15 this year. Asian companies, meanwhile, still dominated the top 15 revenue gainers. Besides the aforementioned five Chinese companies, other Asian entrants include CP Plus, ITX Security, KOCOM, INCOM and VIVOTEK. Among Western companies, Russia’s DSSL, a new entrant to Security 50, took the No. 2 spot in term of growth, with revenue increase of 48.2 percent. Milestone Systems and Axis Communications, meanwhile, took No. 10 and No. 12, respectively. In terms of gross profit, Hikvision and Axis took the top spots, with 2017 gross profit of $1.4 billion and $501 million, respectively. As for companies with the highest gross profit
2018 a&s Security 50
Fermax
56.9 % 2018 a&s Security 50
DSSL
48.2% Dahua Technology
2
Raysharp
71.3%
1
41.4 % 3 Tiandy
4
30.2%
CP Plus
5
27.7%
Highest Revenue Growth 6 7 8 9 10
Kedacom 26.9 % ITX Security 26.8 % Hikvision 26.4 % KOCOM 25.6 % Milestone Systems 24.3 %
2
VIVOTEK
IndigoVision
53.8 %
1
3
69.5%
6 7 8 9 10
Axis Communications
51.8 %
4
Avigilon
51.6 %
Highest Gross Margin
5
AV TECH 50.8 % ACTi 47.1 % Suprema 46.3 % Hanwha Techwin 43.6 % DSSL 40.7 %
2018 a&s Security 50
1 Hikvision
1235.14
2 Dahua Technology
338.09 82.73
3 Axis Communications
34.67 30.37
4 Fermax 5 Nedap
*Compared in US$ Million
Highest Net Profit 6 7 8 9 10
Optex (Security Sensors) 29.02 Avigilon 28.26 Infinova 18.07 Milestone Systems 17.05 Aiphone 13.14
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Industry Report
What You Didn’t Know About the Indian Security Market
The Indian market is complex and requires carefully crafted strategies to survive. In this article, we talk to systems integrators and consultants to identify certain key steps necessary to win here.
BY Prasanth Aby Thomas, Freelancer
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he most important aspect to remember as a foreign company entering the Indian market is that a local partner is critical to establishing a business here. But this is only the first step. According to Nanda Kumar, President of Electronic Security Association of India, getting the right partner plays an important part in this. Kumar gave the example of a certain Chinese manufacturer who failed to make a mark in India, unlike some of their counterparts. One of the major reasons for their failure here was because they were not able to find a partner who could support them all the way.
First Three Years — the Crucial Period
There is also the issue of the parent company’s priorities. “Finding a partner here is not impossible, but what we see most of the time is that the parent company is not willing to invest in marketing and branding of their products here,” Kumar said. “For any company to make an entry here and
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creating an awareness among customers about their product, they need to work hard for at least three years.” These first three years are all about survival in the market and educating the customers on what the new company provides that the other major players in the country cannot. In simple terms, don’t really expect to make money in these initial years, but be ready to shell out for marketing. There is an even more important factor to consider when finding a partner. According to Kumar, a foreign entrant might be tempted to look for a partner who is already working with other major brands. This potential partner may be doing extremely well for his current parent company
“Don’t really expect to make money in these initial years, but be ready to shell out for marketing.„
“Educating the customer and gaining the trust of dealers is extremely important. The dealers need to be convinced of the support they can get from the parent company.„ and would even promise to give similar results to the new company. “But what a foreign company will not understand is that the business that he has been able to develop, which could be worth billions of rupees, will be limited to his current company because that’s the product which has the demand,” Kumar said. “To sell a new company’s product, he should start from scratch, and this will take time and expertise.” So, educating the customer and gaining the trust of dealers is extremely important. The dealers need to be convinced of the support they can get from the parent company. If a customer comes to them with a defective product, the dealer’s main concerns are the expenses and expertise to repair it along with getting a replacement while it’s being repaired. For all this to happen, the parent company has to be present whenever there is a need. In fact, now, some of the major manufacturers even take care of courier charges when there is a defective piece that needs to be serviced. Such kind of a support goes a long way in getting into the good books of the dealers, which in turn will encourage them to push the new products to their customers.
Need for a Different Marketing Strategy in India
Another angle to this whole system was presented by Pawan Desai, CEO of Mitkat Advisory Services. According to him, the channel market is already quite saturated with products and companies that cater to the needs of the dealers. Now the demand should come from the end users. Only when the end user can understand the benefits of a new brand and begin to demand this from the dealer, will there be an opening in the market for new entries. This approach actually calls for a change of strategy from what is seen in the international security market. In other countries, manufacturers would be content taking a Business to Business (B2B) marketing strategy, but here, Business to Consumer (B2C) is equally important. “Another point is that when we talk about the Indian market, the key is where and what in India,” Desai said. “North, South and West, for instance, are very different. The value proposition and buying behaviors are different. Each region has to be considered as a different country altogether and accordingly the market entry strategies for each region should be different.”
Nanda Kumar, President, Electronic Security Association of India
Pawan Desai, CEO, Mikat Advisory Services
In Desai’s opinion, the South and West of India would be easier than the rest of the country for a foreign company to enter. The way business is done in the North tends to be a bit more complicated and hence difficult for foreign companies to tackle in the beginning.
Perseverance and a Tiered Approach
As Kumar suggested, the initial years are going to be a struggle for any company trying to establish in the Indian market. Desai agrees to this need for perseverance and added that there should be a tiered approach to the market. “India is too fragmented a market and so joining hands with just the largest SIs will not fulfill your business requirements,” Desai said. “Your dependence on such a limited number of SIs will be detrimental to your business or your growth won’t be as fast as it should be. So, you need to work with different SIs in different regions and segmenting them as per the vertical/clients they are catering for.” Understanding this segmentation of the market is important. Mid-end customers will never go to high-end SIs to get their projects done because of the perception of high costs. The case is similar to low-end customers too. So, as a manufacturer, you need to be able to partner with SIs in all the segments to ensure proper penetration.
Key Takeaways
In short, there are five major points to keep in check as a foreign company looking to enter the Indian market. Find a suitable partner, invest in branding and marketing for the first three years at least, convince the dealers of support, target end users and educate them, and take up a tiered SI collaboration approach. Needless to say, these five strategies will require a lot of effort and patience. But that is the reality. If it were easy, given the potential of the Indian market, every Tom, Dick and Harry would already have been here.
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Vertical Market
Ensuring the safety of the millions of children that ride school buses daily is a top priority. New and more advanced technologies are helping school districts protect students both on and off the bus. BY Eifeh Strom, Freelancer
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S
chool buses are one of the safest modes of transportation on the road. In fact, students are 70 times more likely to arrive safely at school if traveling by school bus rather than by car, according to the National Highway Traffic Safety Administration (NHTSA). Even so, recent school bus accidents, such as the 2016 Chattanooga, Tennessee, bus crash that resulted in the deaths of six students have highlighted the need for stronger safety measures. Today, a combination of public awareness, driver and student bus safety training, and installation of integrated onboard safety technologies are essential for modern school bus safety management, according to Justin Malcolm, Director of Product Management for Safe Fleet. By deploying a combination of different safety solutions, school buses across the U.S. can better ensure the safety of the precious cargo they transport.
Using Cameras and GPS Tracking
Nowadays there are many different types of safety and security solutions for school
buses. Cameras are a common safety measure, and in the past have mostly been installed inside buses to monitor and keep track of what is happening aboard. However, advancements in camera technology and accompanying software can now offer school districts real-time video footage of what is happening both outside and inside the bus. This is important since students are most vulnerable during the loading and unloading process. While the deployment of stop arms and crossing arms have helped reduce student injuries and fatalities over the years, implementing stop arm cameras on the outside of the bus is helping penalize drivers overtaking stopped school buses. “Stop-arm cameras track any illegal passing and some states allow districts to use these cameras to issue tickets to those drivers,” said Gene Ballard, Smart Bus Program Manager at Kajeet. “Rearview or backup cameras provide drivers another point of reference to ensure there are no pedestrians walking behind the school bus. Additionally, bus drivers have a silent alarm or panic button, which they can press to alert their transportation department of an issue or emergency on their school bus,” he added. Leslie Kilgore, VP of Engineering at Thomas Built Buses (TBB), explained how using a 360-degree camera, such
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Product Exploration
Smart Lock Booming in Demand
The smart lock market is being boosted by growing customer awareness of the benefits and value these locks can bring to various industry segments. BY the a&s Editorial Team
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n Smart Home and Hospitality
T
he global smart lock market is expected to grow at a CAGR of around 15 percent during t h e fo r e c a s t p e r i o d f r o m 2018 to 2022, according to a research report by Technavio. Compared to traditional locks, smart locks provide more secure and convenient door entry via connected mobile devices like smartphones and smartwatches without the need for physical keys or access cards. Technavio indicated that the implementation of security standards is another advantage of smart locks. Overall speaking, the hospitality and residential segments are two major applications for smar t locks. The industry stakeholders benefit from the advancement of technologies like cloud-based lock management solutions or artificial intelligence technologies that lead to new business models and opportunities. Homeowners or hotel guests enjoy convenience from keyless entry, customized user experiences and enhanced security as well as additional services like secure in-home parcel deliver y or nearby restaurant and shopping recommendations.
Smart Home on the Rise
The smart home is considered to be the first market to really take off, and it is projected to present considerable growth opportunities. “Smart door locks in residential are often connected
with a smart home solution,” said Brian Shedd, VP for Global Sales and Marketing at OpenKey. He predicts that the home segment will likely to continue having the highest growth in the next five years as residential smart locks are less complicated and more economical than hotel or commercial smart lock applications. Based on a report from Grand View Research, the rising adoption of connected home solutions and need to establish connectivity across all electronic devices in users’ houses as a result of the growing penetration of smart homes are among the key trends that can drive the smart lock market. The report indicates that the increasing penetration of smartphones is expected to fuel the demand for smart locks, and technological advancements will play an important role in the development of the market. The smart home lock provider August Home, which reached 1 million users in July 2018, said that the highest growth will likely be in the home, as security, control and convenience around one’s front door is a universal concern and a personal decision. To drive market growth and increase the product value of smart locks, smart lock suppliers and service providers are forming mutually beneficial strategic partnerships. In a previous interview, Thomas Schulz, Director of Marketing and Communications of Digital and Access Solutions at ASSA ABLOY EMEA, said, “We are fine-tuning our suite of integration services for new partners. We want to make it as easy as possible for service providers to work with us.” The company also offers help to integration partners when it comes to promoting their new solutions or services. The company works with a leading Scandinavian postal service company PostNord to offer opt-in service to issue single-use “digital key” automatically to an authorized PostNord driver. Schulz indicated,
Roy Johnson, VP, Strategic Accounts, UniKey Technologies
Dale Pistilli, VP Sales and Marketing, August Home
Sam Lin, CEO, ATW Technology
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New Products
asmag.com PRODUCT FOCUS To view the most updated and complete content for new products, please visit the “Products” section of our website at www.asmag.com. For more information, contact as-pr@newera.messefrankfurt.com
4MP 4x IR Network PTZ Camera NOTIFIER’s FireWarden-50X Intelligent Addressable FACP Hikvision Digital Technology/China Key Features With Communicator • 1/3" progressive scan CMOS • Up to 2560 × 1440 @ 25fps resolution • Support H.265+/H.265 video compression • 4x optical zoom, 16x digital zoom • Up to 20 m IR distance • 120 dB WDR, 3D DNR, HLC, EIS, regional exposure, regional focus • IK10, IP66 Email: overseasbusiness@hikvision.com
IPSecurityCenter V5.7 PSIM
CNL Software/U.K. Key Features • Enhancements support greater control over large scale federated solutions, driving tightly managed Global Security Operations Center (GSOC) operations • Faster access to historic alarm data with fewer clicks and rapid access to video from remote locations • Support for 64-bit video to ensure IPSecurityCenter leverages the latest developments in video-technology and multi-thread processing for faster and more scalable solutions • General Data Protection Regulation (GDPR) ready security platform Email: marketing@cnlsoftware.com
2MP WDR Starlight VandalResistant Network IR Fixed Dome Camera IPC3232ER3-DUV
Uniview Technologies/China Key Features • Day/night functionality • Smart IR, up to 30 m (98 ft) IR distance • Up to 120 dB optical WDR (wide dynamic range) • 3D DNR (digital noise reduction) • Support PoE power supply • Built-in PoE splitter that outputs DC 12V • Wide temperature range: -40°C to 60°C • Wide voltage range of ±25% • IK10 vandal resistant Email: overseasbusiness@uniview.com
2MP Super Starlight Bullet Camera TC-C32GP/TC-C32HP Tiandy Technologies/China Key Features • Super starlight: 0.0008 Lux TVP 3.0 • Video compression: S+265/ H.265/ H.264 • Highly cost effective • IP67 waterproof • PoE, applicable temperature -35˚C~ +60˚C Email: sales@tiandy.com
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NOTIFIER by Honeywell/U.S. Key Features • Listed to UL Standard 864, 10th edition • Pre-installed IPOTS-COM Ethernet IP and POTS (plain old telephone service) central station communicator • Optional CELL-MOD or CELL-CAB-N GSM central station communicator over AlarmNet • Compatible with SWIFT wireless devices • Auto-programming (learn mode) reduces installation time • Reports two devices set to the same address • Two independently programmable, built-in Style Z (Class A) or Style Y (Class B) NAC circuits Email: info.sc@honeywell.com
2M H.265 NW 32x Zoom Camera XNZ-6320
Hanwha Techwin/U.S. Key Features • Max. 2MP (1920 x 1080) resolution • 4.44 ~ 142.6 mm optical 32x zoom, digital 32x zoom • Max. 60fps @ all resolutions (H.265 / H.264) • H.265, H.264, MJPEG codec, multiple streaming • Day & night (ICR), WDR (150dB), defog • DIS with built-in Gyro sensor • Video and audio analytics • PoE, SFP, SD/SDHC/SDXC memory slot Email: customerservice@hanwha.com
IP67 Managed PoE Switch Hi-Net Technology/China Key Features • M12 connector PoE switch • IP67 aluminum waterproof with mini-size 110 mm (L) x 190 mm(W) x 90mm (H) • 8/10/100/1000TX M12 copper ports + 2 1000FX LC fiber ports • Managed by web/SNMP/telnet/ console • Wide operating temperature: -40˚C~ +85˚C Email: sales@szhi-net.com
VAX Mobile Readers and Credentials Vicon Industries/U.S. Key Features • Mobile-ready contactless smartcard reader • Models with read range for upon presentation (1.5 in.) or long range (up to 15 ft) • Mounts to door and window frames (mullion) • Credentials stored on smartphone (iPhone or Android) for communication with reader Email: sales@vicon-security.com
www.asmag.com
FLIR Firefly Deep LearningEnabled Camera
FLIR Systems/U.S. Key Features • Intel Movidius Myriad 2 powered deep learning inference • High Quantum Efficiency (QE) and low read noise deliver the imaging performance required for accurate results • Global shutter CMOS image sensor for sharp and accurate images while moving • 60 fps for high accuracy tracking • Near-infrared (NIR) sensitivity enables lower power illumination • GenICam and USB3Vision compatibility makes integration with third party libraries simple Email: mv-sales@flir.com
WD Purple Surveillance Hard Drive
Western Digital/U.S. Key Features • Built for 24/7, always-on, high-definition security systems • Support workload rate of up to 180 TB/yr and support for up to 64 cameras • WD Purple 10TB and 12TB drives are designed to support deep learning analytics in AI capable NVRs • Up to 16 AI channels for analytics within the system • Designed for both DVR and NVR security systems Email: support@wdc.com
2MP H.265 Starlight 12x Vandal Resistant High Speed Dome IP Camera WAMA Technology/Hong Kong Key Features • Sony 1/2.8" 2.1MP STARVIS sensor • Starlight sensitivity • 12X optical zoom • H.265 / H.264 / M-JPEG dual streams • Micro SD slot for recording • Enhancements: T-WDR (120dB), 3D NR, defogging • ONVIF (Profile S) • Power over Ethernet (PoE) Email: info@wamatech.co
Verkada D80 Fisheye Camera
Verkada/U.S. Key Features • 1/1.7” Progressive CMOS Sensor • Maximum resolution 4000 x 3000 (12MP) • Built-in IR illuminators • 24/7 access to live video feeds from computer, tablet or mobile device • Store up to 120 days of retained footage in unit • Quickly find the footage you need with time-/date-based search and motion-based indexing Email: sales@verkada.com
Companies Advertiser Index in This Issue *The index is provided as an additional service. *The publisher does not assume any liability for errors or omissions.
COVER STORY • Genetec
PRODUCTS OF THE MONTH • Axon • Panasonic • PRO-VISION • Reveal • Utility Associates • VIEVU • WatchGuard Video
COUNTRY REPORT • Dahua Malaysia • Hikvision Malaysia • Maxitulin • Robert Bosch • Stratel
SPECIAL FEATURE
• Affiliated Engineers • ASSA ABLOY • Avigilon • Axis Communications • BitRefine Group • COMMAX • Dahua Technology • FLIR Systems • Genetec • Grand View Research • Guardia Systems • Hikvision Digital Technology • HYE Enterprises • Ideal Information • IHS Markit • Kintronics • Magal Security Systems • Memoori Research • Milestone Systems • Mobotix • NKTech • Nortek Security and Control • NW Security Group
Surveillance
INDUSTRY REPORT
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• Electronic Security Association of India • Mikat Advisory Services
VERTICAL MARKET
• Kajeet • Safe Fleet • Thomas Built Buses • Wireless Links
PRODUCT EXPLORATION • ASSA ABLOY EMEA • ATW Technology • August Home • OpenKey • UniKey Technologies • ZHouse IoT Technology
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