CCTV cameras are among security products that have been forecast to maintain a steady growth trajectory until 2008.
Mainland China and Taiwan are increasing their presence as providers of CCTV cameras. The mainland produced at least US$100 million worth of CCTV cameras in 2004. Taiwans share of the global market, meanwhile, was estimated to be at least 25 percent.
CCTV camera manufacturing in mainland China is centered in Guangdong province, which hosts about 80 percent of makers. In Taiwan, production is still largely maintained in Taipei.
This report covers 37 manufacturers from mainland China and 10 manufacturers from Taiwan.
Manufacturing Capability
• Taiwan makers have longer manufacturing experience than their mainland China counterparts. Many of these Taiwan companies have four to 14 years experience in manufacturing, and three to 13 years in the CCTV camera business. Thirty- five percent of mainland companies are relatively new in the line — having at most five years experience in the business.
• Board, water-resistant, dome and speed dome, and miniature cameras compose the bulk of mainland China makers CCTV camera line. In Taiwan, production is mostly centered on dome and speed dome cameras.
• Sixty-three percent of mainland companies have 20 percent to 50 percent unused production capacity, while 75 percent of Taiwan makers have more than 50 percent unused capacity.
Component Sourcing
• Sourcing of key CCTV components, such as CMOS and CCD modules and sensors, ICs, PCBs and motors, is stable.
• Key components are primarily sourced from Japan, South Korea, Greater China and the United States. Daiwon, Hitachi, LG, OmniVision, Panasonic, Samsung, Sharp, Sony and Tamron are the major suppliers.
Exports
• The CCTV camera exports of respondents accounted for 74.3 percent of their 2004 total annual CCTV camera sales.
• In 2004, mainland China and Taiwan makers exported US$216.2 million and US$76.5 million worth of CCTV cameras, respectively.
• Asia and North America are the leading export destinations. They accounted for 42.9 percent and 70.8 percent of export sales of respondents in mainland China and Taiwan, respectively.
Product trends
• CCTV cameras featured in this report include dome and speed dome, water resistant, board, IP, vandal proof, PTZ, miniature and wireless models.
• Mainstream specifications include up to 600 TVL resolution, 48dB S/N ratio, auto-iris functions, color CCD sensors and 0.1lux to 3lux minimum illumination. Typical operating temperature range is from -45° to +60° Celsius.
Industry Overview
The global security market, of which closed circuit television (CCTV) cameras are a key product, is on a growth path. The security products market will be worth some US$74 billion by 2008, according to research by the Freedonia Group. Among the growth drivers of the industry cited are heightened security needs as economies expand, especially in Asia, Latin America, Eastern Europe and the Middle East; and the enhanced attractiveness of higher-end electronic systems. The latter is due to advancing technologies and moderating prices.
CCTV cameras are among the higher-end electronic products that Freedonia forecasts will enjoy the highest gains.
This is because these products possess new market potential, have a relatively higher pace of product development, are on a price downtrend and are seen as having a greater capability to thwart threats to security.
Growth is forecast to be faster in developing regions like Asia, Latin America, Easter Europe and the Middle East. These regions are characterized as having expanding economies, emerging middle and upper classes and heightened foreign invested industries. These factors make investments in security measures and products a necessity in these areas.
According to Frost & Sullivan, escalating security concerns are spurring the uptake of CCTV across Europe. This trend is promoting the adoption of CCTV cameras and systems across a wide range of public and private applications, including niche applications such as Nanny and Spy cams. CCTV is also gaining appeal among new end-user sectors such healthcare and retail.
As key manufacturing centers of CCTV cameras, the industries in mainland China and Taiwan reflect the same pattern of growth as the world market.
Supplier Profile
ACTi Corp.
ACTi Corp. specializes in the manufacture of digital surveillance products. Established in 2003, its head office and ISO-certified manufacturing facility is in Neihu, Taipei, Taiwan.
ACTi has branch offices in Shanghai, mainland China, and has established business partnerships in Europe, the United States and Asia. These partners are system assemblers, system integrators, product developers and distributors.
The company is divided into two business units — digital video and applied systems. In the companys digital video business, ACTi focuses on IP cameras, IP speed domes and video servers. It also manufactures video transcoders and DVRs.
The company, which started to ship IP cameras in 2004, projects US$3 million in revenues for 2005. It sells an average of 500 units per product per month.
ACTi exports up to 90 percent of its products mainly to Europe and the United States. Europe accounts for 36 percent of the companys sales revenue, and the United States shares 24 percent. Asian markets, including Southeast Asia, Japan and mainland China, account for 30 percent of the companys total sales. Smaller markets account for the remainder. For 2005, ACTi projects a total export value of US$2.7 million.
ACTi maintains a flexible business model. Currently, the company serves OEM/ODM buyers and does off-brand and own-brand business.
Sales from OEM/ODM orders and off-brand business make up 70 percent of the companys total sales, while30 percent comes from own-brand sales.
ACTi provides Configuration to Order (CTO) and Build to Order (BTO) services for buyers. According to the company, the minimum order is 200 to 500 units for off-brand buyers, and at least 1,000 units for OEM/ODM buyers.
ACTi participates in major tradeshows like SecuTech and Computex in Taiwan, ISC West in the United States, and IFSEC in the United Kingdom.
Manufacturing Capability
ACTis factory is equipped with one production line which is mainly for final assembly and testing. To decrease production costs, it subcontracts some manufacturing processes such as mold-making, plastic injection, SMT and DIP work. According to ACTi, the subcontracted companies house a total of six SMT lines and two DIP lines.
ACTi maintains subcontracting arrangements with about 10 companies, most of which are located in northern Taiwan. The companys monthly in-house and outsourced production capacity can reach up to 50,000 units.
CCD sensors are key components for IP cameras. At present, most of ACTis IP cameras use Sony solutions. The company, however, also sources Sharp CCD sensors for use in other models. The company plans to release several higher-end models that are embedded with Hitachi solutions.