ELCINA predicts an upsurge in the Indian Video Surveillance Systems market

Nowadays, protecting communities, businesses, and homes from external threats has become the need of the hour. Hence, Security Products comprising of CCTV Camera Systems, Recorders (DVR/NVR) & Access Control Systems are high in demand being critical for internal security.

Surveillance systems capture their feed as large amounts of data which needs to be protected. There is increasing threat of hacking of this data through cyber attacks or leakage of the feed to undesirable elements. Security considerations require recordings to be well-documented and completely secure so that information is not lost. Thus the surveillance systems in use have to be highly secure and prevent threat of data loss in case of system failure or some external hackings. 

ELCINA’s Security Products Group undertook a comprehensive study on the Video Surveillance Systems comprising CCTV Camera Systems, Recorders (DVR/NVR) & Access Control Systems. The report highlighted that that the global Surveillance & Access Control market size was ~USD 43 billion in 2021 and is projected to reach ~USD 66-67 billion by 2026, exhibiting a CAGR of 8.9% during the forecast period.

According to ELCINA, the overall Indian surveillance industry for FY 2021-22 stood at Rs 11,500 crore, out of which, the camera market grabbed a share of 40 percent (Rs 4,650 Cores), while the DAS, SAN, NAS, and Hybrid grabbed a share of 38% (Rs 4,440 Crores). On the other hand, the DVR and NVR captured a share of 11% (Rs 1,300 Crore), while the services, monitors, accessories got a share of 10% (Rs 1,150 Crores). Most importantly, the domestic supply of CCTV Products has risen to 80% of the total supply in India in FY 2021-22 from 52% in 2017-18 (INR CR). The Video Surveillance industry in India is realistically expected to grow at 15-17% CAGR (Rs 18,768 crore) over the next 5 years.

The Report indicates that ELCINA and the industry has set an ambitious target  to achieve 20-25% share of the projected global market of USD 66 Bn by 2026. This requires rapid ramp up of the supply chain and eco-system. 

Another survey report by Counterpoint Research highlighted that India's smart home security camera market grew 116 per cent (year-on-year) as consumers are now more concerned about safety inside their premises. The growth in smart video surveillance cameras have gained traction due to increasing consumer interest, greater concerns over security, shift from traditional security cameras, and brands' marketing push through discounts and promotions. 

Sanjeev Sehgal MD Sparsh, a key domestic player in this domain, emphasized that design in India was crucial for security and self-reliance and the next step would be to have memory and storage semiconductors  “Made in India”. He highlighted that in the six layers of cyber security, hardware assurance is the first and most critical level that needs to be fulfilled. Sparsh is committed and working towards full backward integration as per Value Addition norms under PPP-MII Policy and is now working towards Atmanirbhar Bharat on Semiconductors. This capability is being being set up by Sahasra Semiconductors and would soon go online. 

M.A. Johar, President CP PLUS, a leading Indian brand in CCTV’s  adds, “In just 6 years of Making-in-India, we have seen CP PLUS expanding its production capacity by 6 times to become the world’s 3rd Largest Manufacturer of Surveillance Devices. As the ELCINA forecasts state, this growth has only been the tip of the iceberg since we have only just begun creating a surveillance market in all the tier 2 & 3 towns across the country. Through our year-round 360° campaigns, we are creating awareness in villages and rural areas all over India and since the public is now witnessing how our solutions provide much more than security, it can also be said that the market size may well exceed the projections in the ELCINA report.”

Commenting on the ELCINA Report and focus of the association, Secretary General Rajoo Goel said that this report would draw attention to the need for developing domestic IP for surveillance systems, enhance value addition and manufacturing.

Currently the biggest challenge was the absence of a component industry and high import dependence resulting is our industry resorting to basic assembly and system integration. We need to overcome this shortcoming on top priority and focus on design led manufacturing, Goel said. ELCINA recommends that there is a need to identify components required for the video surveillance systems and classify them in a phased manufacturing program for step by step indigenization. ELCINA is developing a Source India Electronics Portal which will be an important tool in developing the electronics eco-system and showcase the domestic sources. 

The opportunity in security electronics domain is huge. While the domestic market is Rs 11,500 Cr and projected to grow to Rs 18,700 Crores by 2026, the export potential was 8-10 times of this figure and at 20% of US$ 66 Bn, we could grow to US$ 12 Bn or a humongous Rs 96,000 Cr!