The government sector is the most important and largest segment in the security industry market. Most of the products and services invested in by manufacturers in this industry are produced in response to the demands of government organizations, as government sector projects continue to account for the largest share of revenue in the global security market. However, the economic recession has affected government budgets. In the meantime, networked technology has become a more cost-effective solution for all market segments. The commercial and residential sectors have achieved higher capacity in recent years. For this reason, many security manufacturers have begun to tailor their products and services to the commercial and residential sectors.
The Blurred Line Between Commercial and Residential Sectors
The commercial market typically covers a wide range of applications, from small and medium-sized businesses to global organizations, and these applications often overlap with the residential sector. With various interpretations of the details between the two commercial and residential sectors in the security market, many manufacturers believe that there is little distinction between the two. For instance, small, independent stores share many similarities with residential applications. Some organizations view the commercial sector as including offices, factories, chain stores, and parks, though many might consider these locations part of the residential sector, as residential areas often adopt certain commercial uses, and many companies in the commercial market also include residential areas.
Unlike specialized security products, which are typically used in urban security and government projects, the commercial security market targets locations like residential buildings, chain supermarkets, small shops, and small to medium-sized organizations. While it is believed that chain stores, shopping centers, and small shops are part of the commercial security market, some organizations oppose this view. Some believe that chain stores and large multinational wholesalers, such as hypermarkets, which focus on centralized purchasing from suppliers, are distinct from other stores. Therefore, some companies view chain stores as a separate segment of the market.
Commercial Sector Customers Prefer Value-added Services
The distinction between commercial and residential markets is not always clear-cut. Often, medium-sized business projects can evolve into larger ones, making it illogical to define the market based solely on the size of the projects. However, it is possible to illustrate the commercial sector by considering the level of security needs and comparing the products from different suppliers.
Specialized security products (related to government projects and financial institutions that require strict security measures) and commercial security products have significant differences in terms of end-user needs. Reliability is the most crucial requirement for specialized security products, while those choosing commercial products are looking for lower costs, higher performance, and organizational features that improve efficiency and return on investment.
For example, in video surveillance systems, end-users of specialized products often prefer systems with high resolution, bright lighting, and suitable frame rates. In contrast, end-users of commercial products prefer value-added systems that offer organizational capabilities and useful market information, such as people counting and smart video analysis of their behavior. Shopping centers often require a large number of cameras to quickly gather customer information to help develop business strategies. Furthermore, commercial systems generally incorporate more advanced technologies and require less organization, as many commercial sector companies often lack sufficient personnel to protect and manage the systems.
End Users of Commercial Products Prefer Easy-to-Install Solutions
End users in the commercial sector prefer products that are easy to install and operate, while also being equipped with innovative and cost-effective technologies. Concerns for some chain stores and shopping centers include the aesthetic appeal of the system, the ability to install it in concealed locations for greater customer comfort, and low power consumption. Most small shops, chain stores, and restaurants still use outdated surveillance systems, creating a great opportunity for security equipment and service providers in the commercial market.
Direct Sales Business Model
Today, centralized purchasing has become a common practice in the commercial market. For rapidly expanding businesses, purchasing all security systems from one supplier is highly cost-effective. Some hotels have started using network-based systems with central management capabilities to effectively organize their branches and provide complementary services. As a result, end-users in bulk orders for cost-effective and customized products based on their organization’s needs have turned to direct requests from primary distributors.
Innovative Applications Stimulate Market Demand
The new generation of GeoVision network cameras, the Cloud Storage series, includes infrastructure for cloud-based surveillance systems. This series provides all the necessary features for network surveillance in small businesses. All models in this series support local storage along with cloud storage at 1080p resolution, offering high-quality imagery. These cameras provide a wide range of features such as outdoor and indoor compatibility, night vision, and Wi-Fi support to meet various environment standards and requirements.
Recently, two new product series from GeoVision have been introduced for the commercial market. The first series, Aurora, features a Super Low Lux sensor for clear images in very low light conditions, with a minimum illumination of 0.01 lux. These cameras come with 1.3MP and 2MP lenses (the minimum illumination for 2MP lenses is 0.02 lux). The second series, Target, focuses on reducing costs and increasing performance for installations in various projects. GeoVision has added advanced functionalities to its wide range of products, including a 10MP FishEye camera, an IR night vision FishEye camera, thermal cameras, X30 zoom Speed Dome cameras, UniCam cameras with interchangeable lenses, license plate recognition cameras with built-in detection motors, WDR cameras, and cameras with motorized lenses (remote zoom and focus adjustment).
GeoVision’s video surveillance management software, GV-VMS, supports up to 64 network video channels and has GPU decoding capabilities. Additionally, the GV-Edge Recording management system provides decentralized storage for more flexible video recording, while the GV-Recording Server is capable of receiving and recording images from up to 128 network video channels. GeoVision has introduced its first network video recorder (NVR) based on Linux OS, the GV-SNVR, which can record large and small streams in 4, 8, and 16-channel versions and can simultaneously playback 16 channels.
Many store owners have realized the importance of installing security equipment and are seeking to invest in this area. However, only a few are aware of the benefits of network technology and smart systems, especially for central management of branches, particularly for chain stores. Providers still need to work on enhancing customer education quality. Therefore, it can be assured that this market will continue to develop, requiring more innovative solutions to stimulate market demand.