India’s Surveillance and Security Market

There is a huge demand for safe city projects in India to ensure public safety.  With the successful deployment of surveillance and smart city projects in several Indian cities, more areas are expected to adopt similar video surveillance systems with central control rooms equipped with high-end large video wall solutions to monitor minute details. Emerging technologies in video analytics, biometrics, face recognition, and CCTV are becoming equally important for city surveillance monitoring and analysis, and these requirements provide huge opportunities for U.S. companies.

Four segments: security cameras, access control devices, intrusion detection devices, and video recording devices make up this market. India’s surveillance systems market is currently estimated to be a $2.5 billion industry. It is largely comprised of video surveillance and is expected to grow at 25-30% annually.  

Surveillance systems are in demand across all sectors. Both analog and IP-based systems provide opportunities, as it helps end users to pick and choose the most convenient system per their needs.  Hybrid video surveillance solutions also provide opportunities as they are being widely used in educational institutions, airports, railway stations, and power plants.  Infrastructure, banking, and financial sectors also require surveillance solutions, and these industry sectors are fueling the demand for surveillance systems and solutions.

Though the surveillance systems market in India is growing, it has its challenges when it comes to sourcing and implementation of projects.  Non-availability of components, high import duties, supply chain mismanagement, and inadequate infrastructure are some of the challenges faced by the industry.   Even before the pandemic and ensuing economic slowdown, Indian companies and consumers were extremely price sensitive.  U.S. companies must evaluate whether they can sell at prices that Indian companies are willing to pay and may need to adjust their sales models accordingly.  U.S. exporters should also be prepared to face non-transparent and often unpredictable regulatory and tariff regimes while doing business in India.

For entry into the Indian market, it is essential for U.S. companies to identify quality partners who know this market and are well-versed in procedural issues.  U.S. exporters should explore market strategies in India such as identifying a distributor or a joint venture partner with an India-based company.  Strategic planning, due diligence, consistent follow-up, patience, and commitment are prerequisites for doing business successfully in India.  

The Indian market necessitates multiple marketing efforts that address differing regional opportunities, standards, languages, cultural differences, and levels of economic development.  Penetrating India’s market requires careful analysis of consumer preferences, existing sales channels, and changes in distribution and marketing practices.  India is a face-to-face society, and in-person meetings are typically required before formalization of work partnerships or agreements.  While the pandemic has led Indian companies to work more frequently with global partners in virtual environments, it remains to be seen whether this is a permanent shift in business practices.   

U.S. companies are also encouraged to participate virtually or in person in South Asia’s largest security expo and conference, IFSEC India, which will be held from Dec. 1-3, 2022, in New Delhi, to identify potential partners.

For further information regarding the industry, please contact Principal Commercial Officer Andrew.Edlefsen@trade.gov and/or Senior Commercial Specialist Mala.Venkat@trade.gov.