Supply of CCTV and video surveillance equipment in Asia by distributors is highly fragmented; that is according to an Asian market report for CCTV. Jon Cropley, principal analyst for IHS Inc, says that large multinationals such as ADI Distribution, Anixter, and Ingram Micro do operate in some Asian countries.
However, according to Jon Cropley, principal analyst for IHS Inc, the Asian market is mainly served by a multitude of small, privately-owned distributors. There are relatively few distributors that have a large share of their local market. The report, “The Asian Distribution Market for Video Surveillance Equipment” estimates that the top ten distributors accounted for only just over a tenth of the market in 2012.
Jon Cropley says: “There are some exceptions. For example, Aditya Infotech has a relatively high share of the Indian distribution market and Pacific Communications has a relatively high share of the Australian distribution market. However, the Asian market as a whole is mainly served by smaller players.
“China is easily the largest distribution market for video surveillance equipment in Asia. However, Chinese vendors often have a large sales team of their own and they operate numerous branch offices. Their own sales teams tend to sell direct to systems integrators and installers for big projects. They also manage the relationship with small distributors. WinHi and Digital China were two of the largest distributors of video surveillance equipment in China in 2012. However, both of these companies mainly distribute equipment from foreign brands.
“Distributors are often not even used to supply video surveillance equipment. Over half of the Asian market is served by vendors selling direct to systems integrators and installers or, occasionally, selling direct to end-users. Despite this, the percentage of the market served by distributors is not changing greatly. What is more, their market is growing quickly. The Asian distribution market for video surveillance equipment is forecast to grow at annual rate of almost 15% over the next five years.”
IHS’ report, “The Asian Distribution Market for Video Surveillance Equipment” contains forecasts and analysis.
Visit www.ihs.com
