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Video Surveillance Distributors Face Increasing Competition

Wellingborough, U.K. – 13 December 2012. It isn’t easy being a distributor of video surveillance equipment. They usually finance the supply chain, bear the commercial risk of stock being unsold, and, according to new reports from IMS Research (now part of IHS Inc. (NYSE: IHS)), face increasing competition. Still, at least their market is growing quickly. The reports, “The EMEA Distribution Market for Video Surveillance Equipment” and “The Americas Distribution Market for Video Surveillance Equipment” forecast that the both these markets will grow at an average annual rate of more than 10 percent to 2016.

Much of the newer competition is coming from IT distributors. The video surveillance market has been gradually migrating from analogue equipment to network equipment. IT distributors have therefore started to recognise video surveillance equipment as IT devices and a potential new revenue stream.

According to report author and IMS Research Analyst Jon Cropley, “It is generally recognised that distributors are responsible for transporting video surveillance equipment from manufacturers to installers and systems integrators. They are less well known for other functions that they sometimes perform like advertising and promoting offers and product announcements, on-going technical support, and operating physical locations where products can be viewed and purchased.”

Distributors reflect the level of their involvement in the price they charge. This price is typically a fixed percentage of the equipment selling price and is known as the “distributor margin.” IT distributors are generally used to operating at lower margins than security distributors (although security distributors claim that IT distributors offer fewer functions). This is placing average margins for distribution of video surveillance equipment under pressure.

IT distributors have already gained a firm foothold in the video surveillance supply chain. It is estimated that they accounted for almost 15 percent of the distribution market in EMEA in 2011 and an even higher percentage in the Americas. What is more, they are not alone. IT value added resellers and broadline electrical distributors are getting in on the action too. This, combined with the fact that some systems integrators try to perform the role of distributor themselves, means that competition for distribution of video surveillance equipment is truly intense.

For more information please contact:

Niall Jenkins
T: +44 (0)1933 402255


Contact details:

Ann Ruff
T: +44 (0)1933 402255

Paul Everett
Tel: +1 512 302 1977

Asia Pacific
Bo Zhang
Tel: +86 21 6720 1823

IHS Media Relations
Tel: +1 303 305 8021

About the report:
IMS Research’s reports, “The EMEA Distribution Market for Video Surveillance Equipment” and “The Americas Distribution Market for Video Surveillance Equipment”, were published in October and contain forecasts and analysis for these highly fragmented and competitive markets.

To find out more, contact IMS Research:
T: +44 (0) 1933 402255

About IHS (
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to long-term, sustainable growth and employs more than 6,000 people in more than 30 countries around the world.

About IMS Research (
IMS Research, recently acquired by IHS (NYSE: IHS), is a leading supplier of market research and consultancy to over 2500 clients worldwide, including most of the world’s largest technology companies. Established in the UK in 1989, IMS Research now has dedicated analyst teams focused on the factory automation, automotive, communications, computer, consumer, display, financial & ID, LED & lighting, medical, power & energy, solar PV, smart grid and security markets.  Currently publishing over 350 different syndicated report titles each year, these in-depth publications are used by major electronics and industrial companies to assess market trends, solve marketing problems, and improve the efficiency of their businesses.