Recently, I learned from the security market that the price of security surveillance cameras has increased.
After understanding the situation from all parties, the author found that the camera price increase is an inevitable trend in the short term, mainly due to the shortage of upstream chips; in the medium term, as other domestic chip manufacturers begin to increase the volume, camera prices may remain stable.
Upstream chip shortage triggers price hikes
It is well known in the industry that security video surveillance systems mainly have five types of chips, CMOS image sensors, SoC chips for IP cameras, NVR chips, ISP image processing chips, and DVR chips.
At present, Huawei HiSilicon has a dominant position in the IPC SoC chip market, occupying more than 70% of the global market share; in the video surveillance field, its market share has exceeded 90%, and it has the absolute right to speak. The reason for this camera price increase is also closely related to it.
Jiwei.com learned that the current supply of HiSilicon’s chips used in security video surveillance is in short supply. Some distributors/agents have begun to stock up and even roasted stocks. As a result, some cameras in the downstream application market have also begun to increase prices. .
In this regard, Jiwei’s survey of industry companies found that there is indeed a phenomenon. A well-known video surveillance company in the industry said that the price of cameras in the industry has indeed risen slightly recently, mainly due to market demand and price fluctuations caused by the supply chain. Many of these have speculation intentions.
An executive from a manufacturing company in Shenzhen also said that it is mainly due to the impact of upstream chip supply, and price increases are an inevitable trend.
However, some video surveillance companies said that they have not received any notice at the moment, the chip supply is normal, the company has not adjusted prices at present, and the camera prices are stable. In the future, they will make corresponding adjustments according to market demand and supply chain structure.
In response to this, the author contacted the HiSilicon security chip supplier to verify the situation and found that tight supply and demand did exist. According to HiSilicon’s suppliers, the full range of video surveillance chips are currently in short supply; before the US Department of Commerce’s ban, the supply of HiSilicon’s security chips was relatively stable. After the ban, the market began to experience supply shortages, and prices began to follow. Tight supply rose.
In the short term, camera prices may have risen due to the shortage of upstream chip supply and other issues. However, as video surveillance companies choose other chip companies for supply, chip manufacturers begin to increase their volume. In the medium term, camera prices will stabilize.
Many domestic alternative companies
In fact, in addition to HiSilicon, domestic and foreign companies include Fullhan Micro, National Science Micro, Beijing Junzheng, Vimicro, Novatek, Ankai Microelectronics, Xingchen Technology, Ambarella, Intel, Nvidia, Texas Instruments, etc. Can provide corresponding security video surveillance system chip.
A well-known video surveillance company in the industry stated: “In the current security video surveillance market, although HiSilicon’s chip supply accounts for more, it’s because HiSilicon’s products are more affordable, but HiSilicon is not the only one to choose from. Micro, Ingenic, Fullhan and other companies are also shipping."
From the perspective of downstream market applications, the above-mentioned companies' claims can also be confirmed. Jiwei has learned that Fullhan Micro has achieved mass production of a new generation of cost-effective, highly integrated professional security camera products; at the same time, it has launched a new low-light full-color camera product in addition to 4K HD system and wireless package system. , And AI SoC products and solutions such as image-based intelligent security systems, facial recognition intelligent building systems, etc.
At present, the company's video surveillance chip products have been used in the products of security giant Hikvision. According to Fullhan Micro's 2019 annual report, the amount of products it sold to Hikvision reached 330 million yuan, accounting for 63.2% of its total annual sales, making it its largest customer.
Let's look at Beijing Junzheng. The current process of the company's mainstream products covers the range from 28nm to 16nm, and the packaging is based on high-density packaging technology.
According to the 2019 annual report, Beijing Junzheng's smart video chip achieved operating income of 179 million yuan, a year-on-year increase of 52.61%. Its smart video chip is mainly targeted at commercial and home consumer smart cameras and pan-video markets, including security monitoring, smart doorbells, smart door locks, face recognition equipment and other fields.
In addition to the above-mentioned companies, domestic security chip companies including Guoke Micro, Vimicro, Ankai Microelectronics and other domestic security chip companies have also launched corresponding products. At the same time, as the security industry enters the era of intelligence, the market space is further expanded, and more and more players begin to pour into the security chip track. Intensified market competition will further promote the rapid progress of enterprises and improve product performance. .
It is worth mentioning that in the long run, domestic video surveillance manufacturers have a large number of alternative solutions that can alleviate upstream chip supply problems, but it will take some time.
"Considering the technical support of chips, upstream and downstream applications, ecosystems and other factors, video surveillance companies will still be subject to chip supply issues in the short term." The Shenzhen manufacturing company executive said that although the current products of domestic chip companies can also be applied, However, it also needs a long running-in period with various products, and it also takes time to settle in downstream applications for stable operation.