As per Future Market Insights Opportunity Assessment, revenue from the global video intercom device market is expected to increase from more than US$ 15 Bn in 2017 to about US$ 54 Bn by 2027 end, representing a CAGR of 13.1% from 2017 to 2027. The global market is expected to represent incremental opportunity of about US$ 38 Bn between 2017 and 2027.
Global Video Intercom Device Market: Opportunity Analysis
Surging smart city projects
Governments of various nations such as India and China are spending huge amounts in developing smart city projects to promote rapid urbanisation and to deliver better living standards to the citizens. Therefore, the demand for security infrastructure and devices such as video intercom devices is anticipated to project optimistic growth in the coming years.
Growth potential in developing economies with limited penetration
There is a low penetration of video intercom in some developing economies. This is expected to offer potential market opportunities for key players in the video intercom device market. For instance, in MEA and Latin America, there is low adoption of video intercom devices as compared to other regions. In these regions, currently, only real estate developers and a few commercial places are installing video intercom devices in tier 1 and some tier 2 cities. Hence, there is significant growth opportunity for key market players to expand their presence in the above mentioned regions.
Technology transition from Analog based technology to IP based technology
Due to the rapid technological advancement, video intercom devices are moving from analog based technology to IP based technology to provide better assistance to customers. In May 2017, Aiphone Corporation – a video intercom manufacturer – introduced IP networked technology in its products replacing analog technology. The intention behind this introduction was to increase the usage of the products in different security sectors. Interoperability and a better audio-video quality were some of the improvements because of the same.
Integration of smart assistance with intercom
With an increase in advancement towards smart gadgets, many vendors associated with technology are integrating smart personal assistants with intercom devices to facilitate automated workflows in residential and commercial places. For instance, Amazon.com integrates its smart personal assistants Alexa and Echo with intercom devices to ease day-to-day activities.
North America Video Intercom Device Market: Dynamics
Growth of smart homes and gadgets in North America
Adoption for smart homes and applications in the past five years in North America has increased significantly, owing to increasing advancement in home automation in the region. An increase in adoption of smart homes drives the demand for residential security. Smart home applications include advanced security aspects such as video intercoms, security alarms, sensors, electronic locks, and cameras along with other smart features like extensive control over the home living environment such as self-powered lighting, climate controls, fire alarms, and power management. Owing to the aforementioned factors people are adopting security systems with advanced security features embedded in their smart home application and considering it as a value-added service for better quality of living. These factors are encouraging video intercom vendors to innovate new solutions, which is driving revenue growth of the video intercom device market in the region.
High competition hampering market growth
Major brands dominate the video intercom device market by providing quality products at competitive rates and launching innovative products, which is creating entry barriers for new players to establish their business in the global market. Also, particularly for security related products, consumers choose trustable branded devices such as Panasonic security solution or Dahua Technology home security products as first preference. New entrants in the market may face difficulty in competing with branded product portfolios. In terms of value, North America is projected to be the most attractive market in the global video intercom device market during the forecast period. Western Europe is expected to register high Y-o-Y growth rates throughout the period of assessment. In terms of value, Western Europe is estimated to register a CAGR of 13.2% during the Opportunity Assessment period. In 2017, the North America regional market is estimated to be valued at about US$ 4.5 Bn and is expected to witness steady growth in terms of revenue throughout the Opportunity Assessment period. The North America market is expected to represent incremental opportunity of about US$ 12.1 Bn between 2017 and 2027
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