In an extremely competitive market, there is an opportunity for new suppliers to present themselves with an alternative video surveillance system concept. In general, there are two broad approaches: mobile video surveillance over existing wireless infrastructure and fixed video surveillance over DSL. The former relies on the use of cell phones and palm-held computers while the latter relies on fixed installations that can be added to and removed from existing broadband infrastructure. These systems are called IP video surveillance systems that can capture, manage, store and analyze video data from IP-enabled cameras and IP-based multimedia devices. The camera industry and networking industry are important elements in the IP video surveillance market. The IP camera market alone is expected to increase at a rate of 21% per year for the next three years. Over time, it will be integrated with current video surveillance systems to create a more comprehensive and flexible system.
However the market for IP video surveillance has not always been so bright--there has been some uncertainty in the market due to the credit crisis. With the increasing level of competition, Dahua has focused on expanding its business. Currently, it is developing its security video surveillance business at a much supersonic pace. Its customer base could be roughly divided into two categories: the traditional market and the internet community. It has also tried to develop its own IP video surveillance products.
Video surveillance is being developed into a lucrative branch for Dahua. It is the fastest maturing of the company's new market front. The home video surveillance market is growing quickly, and the optical chain is making headway. A big factor is that customers within the capital of small and medium enterprises tend to buy IP video security systems. At present, Dahua controls approximately 80% of the market in the capital. In terms of the home video security market, the development momentum is relatively slow, reaching an all-time high of only 450 million yuan in 2012. However, the level of development is very strong. In 2012, it grew by 15.5%. d2c66b5586