Market Trends of India Video Surveillance Industry
Rising Smart City Initiatives is Driving the Demand for Video Surveillance
- In the last decade, the rate of urbanization in India has increased by 4%. This rapid urbanization process emphasizes the need to build smart cities. The smart city mission, inaugurated on June 25, 2015, had been a collaborative initiative involving the Ministry of Housing and Urban Affairs and all state and union territory governments. Under the project, a hundred cities and towns across various states and UTs have been chosen. The mission aims to propel cities by enhancing infrastructure, promoting a clean and environment-friendly atmosphere, and ensuring a quality life for their residents.
- Consequently, ensuring security has emerged as a vital necessity, thus leading to the growing deployment of video surveillance systems in the form of vital necessity. For instance, in January 2024, Uttar Pradesh announced the implementation of a network of 100,000 Closed-Circuit Television (CCTV) cameras under the Smart City Mission, which was an initiative that the Urban Development Department spearheaded in partnership with the Home Department, focuses largely on the safety of women, children, and the elderly.
- Also, in February 2024, Lucknow Smart City went under artificial intelligence-enabled camera surveillance for the safety of citizens. A total of 1,000 AI cameras equipped with face recognition technology have been installed across the city.
- The major reason behind the huge incorporation of surveillance cameras in the country is the associated benefits. For instance, high-tech surveillance cameras provide critical insights into the daily operations of a city, which can be used to improve infrastructure planning. For example, data on pedestrian traffic can inform the construction of sidewalks or pedestrian bridges.
- Surveillance cameras can also monitor the usage of public amenities, aiding in effective resource allocation. By providing a bird’s-eye view of city operations, these cameras create a data-driven, efficient, and user-centric urban environment. Thus, the rising smart city initiatives have been driving the growth of the market.
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The Hardware Segment is Gaining Popularity
- The CCTV, video surveillance, and security industry is growing phenomenally. It is being tipped as the fastest-growing sector in the security segment owing to unprecedented demand for security solutions. This surge in demand is not just a fleeting trend; projections show a sustained upward trajectory for the industry.
- For instance, in recent years, Forbes India released a report that claimed Delhi to be the most highly surveilled city in the world. Further, the 2023 Status of Policing in India Report (“2023 Report”), which was the first of its kind report that surveyed public opinions on digital surveillance in India, stated that about 51% of respondents reported that their residential or household colony has CCTV coverage, with the significant proportion of respondents reporting CCTV coverage in residential areas from the states of Haryana (67%), Karnataka (68%), and Andhra Pradesh (65%); Maharashtra reported 33% of CCTV coverage in residential areas. Moreover, CCTV coverage surged with rising income levels - high-income areas reported at 73% across India, with middle-income reported to be 63%, low-income reported 45%, and coverage in slums is just 28%.
- Also, the Indian government has rolled out several incentives and supportive policies for the CCTV manufacturing sector. This regulatory environment is pivotal in nurturing an ecosystem conducive to growth and innovation.
- For instance, in February 2023, the Department of School Education (DSE) authorized the school management committee (SMC) in every government school across the state to spend up to INR 1.50 lakh out of the Consolidated Children Welfare Fund (CCWF) for the installation of close circuit television (CCTV) cameras.
- Moreover, the Make in India initiative, launched with much fanfare, has catalyzed various industries, including the burgeoning CCTV sector. This initiative aims to transform India into a global manufacturing hub, and the CCTV industry is an integral part of this vision. All these factors will likely add new growth opportunities to the hardware segment of the market.
