The expansion of Chinese suppliers of video surveillance equipment outside China is facilitated by the current situation in this market. According to IHS Markit, demand for this equipment is growing rapidly: in 2017, the global market for video surveillance equipment will grow by 5.5%. This is higher than in 2016 (3.9%) and in 2015 (1.9%). But due to price competition, it is becoming increasingly difficult for suppliers to increase turnover and profits.
, the influence of Chinese vendors is growing. Thus, in 2015, the saudi arabia whatsapp data share of the three largest Chinese players in this market - Hikvision, Dahua and Uniview - was 28.8%, and in 2016, according to preliminary estimates by IHS, it exceeded 30%. However, it is not easy to maintain further growth, and companies are looking for new ways to spur business.
One way is to enter markets outside China. For example, Dahua opened ten foreign representative offices in 2015 , and four more in 2016. So the creation of the Russian office is another step in this direction.
Other Chinese companies are following suit, and it’s paying off. According to IHS, Hikvision and Dahua’s combined overseas revenue grew 35% in the first half of 2016 compared to the same period in 2015.
Analysts note that an important factor in the success of Chinese manufacturers is the attractive cost of their products. But this alone is not enough to support business growth. Realizing this, the largest companies are actively investing in R&D to accelerate innovation, such as the introduction of deep learning technology in video content analysis applications, and diversifying their product portfolios beyond traditional video surveillance and security equipment.
For example, they are expanding their drone lines, increasing their functionality, and also expanding their consumer product lines designed for the smart home. In this way, IHS notes, Chinese manufacturers are trying to strengthen their positions in the market and take advantage of the growing demand in new segments.