Escape the Price Trap, Capture the Imagination through Innovation

As this graph by Memoori Research shows, video surveillance accounts for the majority of the American physical security market in 2017. Despite its dominance, component commoditization is shrinking profits.

Commoditization killed the Cat

For the American security market in 2018 and beyond, innovation is the future. For years, American manufacturers have downplayed the aggression of Chinese companies, reassured by customer loyalty. However, a new report points to exceptionally tough market conditions for security integrators and vendors as pressure from Chinese companies and business-as-usual attitudes plunge the industry into a pricing rat race, with sales revenue growth projected to drop by 2%1. Play a different game entirely. The winning strategy is a switch to ‘smart’ tech.

While access control systems and intruder alarms have seen growth as sensor technologies such as biometric readers have kept products competitive, video surveillance, the bulk of the market, is facing a pinch as component prices drop. Hikvision and Dahua, two Chinese firms formed just six years ago, now dominate with combined revenues of $5 billion and nearly exclusive access to their home market, the largest in the physical security world. American companies cannot compete with their publicly subsidized pricing strategy, and businesses face a brick wall if they fail to innovate. This is especially true in a space where parts have been steadily commoditized.

Innovation is King

There is an upside, however. Innovation is shining a new light, and what were once barriers in incumbent technology are no longer. Security integration of mobile power systems, computing and localized analytics could fuel the growth of new verticals for the industry and provide new revenue avenues for struggling companies.

Building the ROI case for customers who’ve been limited to traditional surveillance, with expensive infrastructure and connectivity requirements, is straightforward because V5 Systems products are portable, re-deployable, and self-powered. Integrators and vendors can now offer security solutions for exposed spaces such as remote, outdoor sites. Open up whole new business opportunities.

Imagine a crowded college campus. Bang! A shot is fired. While incumbent GSL detection systems offer analytics, they still need human verification to relay alerts to responding officers, which could take up to seven minutes. With the high latency of traditional gunshot detection, officers would likely receive a verified update too late to address a crisis. In an active shooter situation, time is measured in milliseconds. With the V5 Acoustic Gunshot Sensor, robust onboard analytics and wireless communications allow for near instantaneous and actionable information. With analytics processed at the edge (on the device itself), you can transport a commodity security product like a camera or acoustic sensor and make it an integral piece of high technology.

Get Smart

Smart systems that relay real-time security alerts in milliseconds could build value for customers who would otherwise be swayed on price alone. And that’s where V5 Systems offers an edge.

This ability to expand surveillance quickly in areas with no supporting infrastructure is unprecedented and elevates the debate from generic, commoditized parts to competitive, turnkey systems. The opportunity for a resurgent market is here now. Security that is portable, security that works in real-time, and security that is self-powered and evolving is the future.

1 https://www.securitysales.com/research/challenges-physical-security-industry/

2 https://www.memoori.com/demand-physical-security-products-buoyant-margins-reduce-growth/

Please enter more information about V5 website


We’d love to chat

SEND us a message

We look for partners that share our mission to enhance the security and quality of life in all outdoor environments, such as schools, sporting venues, enterprise campuses and downtown areas, making them safer and more secure.