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Q: Mr. Seiter, Mr. Ekerot, you both joined Bosch Building Technologies’ business unit Video Systems & Solutions as Senior Vice Presidents in March 2020, when the Coronavirus pandemic was just beginning. How did your business unit get through 2020? Magnus Ekerot: The crisis was also felt at Bosch. At the same time, demand has risen for solutions that keep businesses open and protect people's health. We offer corresponding video solutions that can make a significant contribution to containing the pandemic. Michael Seiter: Overall, we managed the past year well despite the challenges and have been growing again since the third quarter compared to 2019. We see good opportunities for further growth in 2021. Q: Has the Corona crisis again accelerated the development of smart technologies in the security technology market, and does the security market in contrast to most industries benefit from the crisis more than it suffers? Michael Seiter: The Corona crisis has definitely demonstrated that the future lies in data-driven solutions. Thanks to our product development strategy already being based on this, we at Bosch were very quickly able to develop new products for the ‘New Normal’ and to expand existing products accordingly. To give one or two examples: in cooperation with Philips, we very quickly developed a people counting solution for retail operations – smart Philips displays in conjunction with smart cameras from Bosch that provide protection for staff and customers. The In-Store Analytics software solution was also implemented with additional features. Shop owners can now make decisions based on customer movement data such as “Where do we position products to avoid queues or crowds?” HTD involves a touch-free monitoring system to accurately and speedily identify people with heightened skin temperature The latest highlight is the Bosch Human Skin Temperature Detection solution, in short HTD. This involves a touch-free monitoring system to accurately and speedily identify people with heightened skin temperature at control points in offices, factory floors, or airports. The benefits of previously existing solutions on the market are sometimes called into question. Competitors are often unable to deliver what they promise because, for example, the measured temperature of the skin does not correspond to the core temperature of the person, or fluctuates, due to environmental influences. Therefore, we developed a software-based solution that, in compliance with GDPR, first allows people with potentially elevated body temperatures to be filtered out, and in a second step, allows medical personnel to perform a more targeted fever measurement. Q: You see a lot of potential for the video security industry in new technologies such as Artificial Intelligence and the Internet of Things. What specific opportunities do you mean, and how are you leveraging these technologies at Bosch Building Technologies? Michael Seiter: Bosch has committed itself fully to an “AIoT” – AI meets IoT – strategy. The development of AI algorithms and software, in general, is at Bosch significantly driven in the security space. By AIoT, we specifically mean the networking of physical products and the deployment of artificial intelligence. With AI we aim to enable clients to understand events at an ever-deeper level and predict them in the future – the keyword being predictive – so that they can act proactively. This is particularly important for health and safety. An example is the Intelligent Insights solution where the user can anticipate potentially dangerous situations, for instance in maintaining social distance and a maximum number of people numbers in any one area. Q: From your point of view do you have an advantage over other suppliers when it comes to AI-based products in the video arena? Michael Seiter: The analysis and utilisation of video data have long been front and centre with us. Since 2016 we’ve been following the strategy of offering AI applications in the form of integrated intelligent video analytics as a standard in our network cameras. Data such as colour, object size, object speed, and direction are all measured. Simply put, you can say this is seeing and understanding – which is the principle behind smart security cameras. Today it’s much more a question of intelligent, data-based solutions than collecting high-quality pictures and storing them for the record. Bosch has been investing heavily in AI for years, from which we can benefit greatly in our area. In the first quarter, for example, we will launch a vehicle detector based on deep learning that is already running on our cameras. This will create significant added value for our customers in the area of intelligent traffic control. Q: Mr. Ekerot, what advantages do customers have in AI-based video security from Bosch? Magnus Ekerot: A key advantage is strong customer focus with tailored solutions that are at the same time modular and scalable through new AI algorithms A key advantage is our strong customer focus with tailored solutions that are at the same time modular and scalable through new AI algorithms. Take the example of Camera Trainer, a machine learning software that can be directly uploaded to Bosch network cameras. The camera is thus trained up on recognising objects and situations – tailored to the specific needs of our customers. If the camera detects the defined scenario, it performs a predefined action in real-time – for example, a count or an alarm. The latest example is our new camera platform Inteox. As a completely open camera platform, Inteox combines Bosch's intelligent video analytics with an open operating system. This allows programmers to develop specific software applications - or apps - for various application purposes. These can then be loaded onto cameras – the same principle as an app store for smartphones. To sum up, Bosch AI applications support customer-specific needs related to data analysis while enabling totally new applications within and beyond the video security market. Q: Can you name a specific current project where Bosch has deployed an AI-based solution? Magnus Ekerot: A current ground-breaking project using our smart cameras is being implemented as a pilot in the USA. Smart Ohio enables users to configure more intelligent traffic flows and thus ensure mobility, safety, and the efficient use of roads today and tomorrow. The new vehicle detector mentioned by Mr. Seiter also plays a central role here. Our overall goal is to provide connected smart sensor solutions for public and private transportation agencies to enable them to operate their roads safely and efficiently. The Intelligent Insights can anticipate potentially dangerous situations, for instance in maintaining social distance and a maximum number of people numbers in any one area Q: Mr. Seiter, you have been involved with the topic of mobility for some time. What experience from your previous job in the automotive business of Bosch might help you when it comes to further develop the video portfolio of Bosch Building Technologies? Michael Seiter: There's a lot to tell. First of all, the development of core algorithms for video-based solutions, whether for autonomous driving, for vehicle interior monitoring, or for our Bosch Building Technologies video systems, all come together at Bosch's Hildesheim location. This gives us considerable synergies and allows us to bring R&D results to market faster and more flexibly. Essentially, assisted driving systems use AI algorithms that process ever-increasing volumes of video data. Attempts are being made to imitate the human being and enable the vehicle to understand better the surrounding environment with its ‘eyes’. This predictive capability is especially critical with autonomous driving. For example, key questions include: “How should the car respond and what could potentially happen next?” “What kind of environment does it find itself in?” etc. There are many activities in this area at Bosch that in my new role in security we can also strongly benefit from. I am now bringing a lot of this experience and existing R&D achievements to Bosch Video Systems & Solutions, which also results in further synergies with our mobility division: At Stuttgart Airport, autonomous driving is already being implemented together with Mercedes-Benz and the parking garage operator Apcoa as part of the "Automated Valet Parking" project, or AVP for short, in which intelligent video systems from Bosch Building Technologies are making a significant contribution. Mr. Ekerot, you have a lot of experience in the video security area. Where do you position Bosch Building Technologies now in this market and what specific goals are you pursuing? Magnus Ekerot: Our clients are looking for reliable partners and products. We are a strong brand; you can rely on Bosch products. Bosch is a thought leader in video and a pioneer in AI applications in this field since 2016. Data security is everything to us: Our products conform to the EU’s GDPR regulations. Beyond that, we have an extensive camera portfolio that complies with the US National Defense Authorization Act (NDAA) for video security devices. This enables our portfolio to be deployed for example within US government buildings. We are planning to conclude more software maintenance agreements with our clients in 2021. These deliver investment and future security for our customers and include for example a ‘patch guarantee’ along with regular updates with new functionalities. This is the first step in a comprehensive plan to access new revenue channels for us and our partners delivering the best technology and excellent service to the end-user! Overall, many new products will be launched this year and this trend will intensify. Our goal is to establish new product families that follow a simple principle: “The development and delivery of disruptive, predictive video solutions that every user can trust because of the underlying sustainable forward-thinking mindset.” It’s been much discussed of late that Bosch is one of the very first companies globally that operates on a CO2-neutral basis. How does sustainability impact your business? Magnus Ekerot: IoT solutions are actually sustainable and contribute to environmental protection Our IoT solutions are actually sustainable and contribute to environmental protection. For example, our cameras are sustainable in that they remain up-to-date through software updates and needn’t be constantly exchanged for new ones. Our systems demonstrate sustainability also operationally as they can be managed remotely. System integrators don’t need to be physically present, thus avoiding unnecessary travel with its accompanying emissions. All in all, Bosch Building Technologies develops ways to accompany and support our clients in reaching their climate goals via new technologies. This can be done, for example, through improved energy efficiency, the total cost of ownership models, organising and simplifying the supply chain, and helping our customers meet their social responsibilities. The Power of Bosch helps us here to leverage company-wide research to be two steps ahead, a shade faster, when it comes to new technologies and initiatives that our and future generations will benefit from. I should also say that I am personally very proud to work for a company that set an ambitious climate goal for itself and achieved it! Can you already share a preview of your technology innovations in 2021? Michael Seiter: We see great market potential for our cameras that use artificial intelligence and can be updated flexibly throughout their lifecycles. I have already mentioned the deep learning-based vehicle detector in our cameras. More such solutions – also for other applications where object and person recognition are important – will follow in the course of the year. And the best part is: with AI, the more data we collect and the more intelligently we use it, the better the solutions become and the more added value they bring to the customer. This will revolutionise our industry! Another example is our cloud-based solutions, for example for alarm monitoring. Here, we can now also integrate third-party cameras and, building on this, offer and jointly develop our intelligent software-based solutions. This gives our customers more opportunities to take advantage of the opportunities created by AI. The trend towards integration of the various security technologies seems to be driven mostly by the rapid progress in software development. Does this affect full-range suppliers such as Bosch and what specific plans for fully integrated security solutions do you have for the future? Michael Seiter: Naturally, this suits us as a full-scope supplier. Bosch solutions are deployed in many cross-domain client projects. We have experts for the different domains under one roof and a strong brand with the same quality promise for all areas. Nevertheless, it is always also about specific domain excellence. Only when you master all different areas and have profound and proven expertise in each of them you can succeed in integrated cross-domain projects. The respective business units craft their future strategies and innovation roadmaps with this in mind – as we do in the field of Video Systems & Solutions. Our business unit offers fully integrated Bosch video solutions that can be extended and operated on open systems. This is why we drive open platforms such as Inteox, to offer customers from a wide range of industries the right solutions. Our Bosch Integration Partner Program that we launched in 2012 is also heading in this direction – every product can be integrated into multiple other systems and VMS solutions. In summary: At Bosch, we are both a one-stop-shop, but also an open-system, meaning we offer customers maximum flexibility in their choice of products and services.
If you’re a security or facilities manager, you may already be aware of the quiet revolution that’s taking place across businesses and organisations up and down the country. By the end of 2020, 20% of all ID and access control systems featured mobile capability, and this is set to increase by a further 34% over the next three years. There’s no doubt that using a smartphone or mobile device in place of traditional credential and access control is a growing trend that’s only been sped up by the pandemic. It’s true that many businesses are still very much focused on remote working, although many are now starting to implement new-and-improved strategies that are better suited to protect the workforce moving forward. Mobile ID systems As the next normal becomes clearer, businesses will be reviewing procedures such as access control, occupancy monitoring, reducing touch points and tracking visitors. Mobile ID systems are ideally suited to this task. But what are the key reasons for considering such a setup in 2021? But why is this new technology so well-suited to future-proof your physical access system, and why is it becoming so popular? Eradicating outdated legacy credentials Have you seen just how vulnerable outdated Proximity card technology can be? Low-frequency 125kHz cards can be cloned in a matter of seconds with the use of cheap, readily available tools. Despite their weaknesses, they are still used by a huge majority of businesses – big and small. All smartphones include two industry-standard features that make them perfect for operating a secure, contactless credential Replacing such a system with a mobile-enabled system is one of the best ways to increase security ten-fold. Thanks to a cloud-based infrastructure, mobile ID offers best-in-class security and cryptography. All smartphones include two industry-standard features that make them perfect for operating a secure, contactless credential. Bluetooth Smart and NFC (Near Field Communication) make them the best product to operate such a credential via a secure app. If you’re looking for best-in-class security in 2021, mobile access is most definitely the way forward. Removing touch points across the business Reducing touch points and the adoption of touchless facilities has become a key priority for businesses in the wake of COVID-19. Even as businesses start to return to the office and operate a home/office split, it will be imperative that unnecessary contact is kept to an absolute minimum between staff. The traditional issuance of identification and access control credentials can pose problems in this regard. Facility and security managers who are responsible for onboarding and processing ID have done the process face to face. Mobile access makes it possible to carry this process out without people coming into direct content. First, the security manager has access to a secure portal, allowing them to create, manage and edit credentials anywhere. They can upload and remotely transfer mobile ID and access control credentials directly to users’ smartphones over the air. Via the secure app, users can view and see their credentials and immediately begin using it for ID and access control by simply placing their smartphone over card readers. Enabling a more flexible way of working The way in which we work has changed for good. Even as people more people return to the office in 2021, a majority of businesses will be operating a home/office split indefinitely. This once again reinforces the need for a smarter, more adaptable onboarding system. Implementing mobile ID is the perfect way of doing this: over-the-air delivery of credentials and security data is now a given, helping businesses create the perfect balance between the home and the office. No longer do people have to come into the office for the onboarding process. Increasing convenience and user experience More often businesses are realising the value mobile ID can have for enhancing the work experience as well as security Ok, so mobile ID is the perfect way of increasing security and adapting workplaces to a post-COVID way of working. And we’ve not even touched on the most obvious advantage yet: Convenience. How many times have you forgotten your ID card? We’re sure it’s more times than you forget your smartphone. These powerful processors have become intertwined with the way we carry out tasks on a daily basis. They’re so vital that people will soon notice if they’ve forgotten it. From an employee’s perspective, mobile ID and access control is simple, convenient and extremely user-friendly. More and more businesses are realising the value mobile ID can have for enhancing the work experience as well as security. From the employer’s perspective, mobile ID means it’s easier for administrators to manage access and credentials. Future-proofing access control now will ensure that in the longer term, mobile ID is well worth the investment. The annual expenditure of printing ID cards and purchasing credentials can be vast, while reissuance costs can also quickly add up for larger organisations. These issues are a thing of the past for businesses using mobile ID. Mobile ID perfect tool for 2021 and beyond Until mobile ID, new and improved credentials’ main focus was on increasing security. Mobile ID not only delivers that, but it also provides a more convenient way of accessing the office in a way that’s perfectly suited to returning to the office in 2021. If there was ever a time to upgrade, now is the time. Summing up, mobile access is changing the way we access the office by: Eliminating weak links in security systems such as outdated legacy card technologies Eradicating the need for touch points across multiple areas of the workplace Enabling a smarter, more flexible approach to onboarding Increasing convenience – for both employers and employees.
Access control and door entry is a huge responsibility, and challenge, for local authorities and housing associations UK wide. For councils, they’re accountable for the security and safety of many public facilities such as leisure centres, libraries as well as residential housing developments which are often large scale and home to hundreds of people. Housing associations manage affordable rental housing which also means they’re responsible for the appropriate access control management for each individual house or flat. Technology developments have enabled better entry systems that are far more secure yet also more convenient and easier to manage. For example, with modern intercom and access control systems, remote management and communication is something that offers local authorities and housing associations features that enable them to reduce costs and cut their carbon footprints by managing multiple sites from one place. On the other hand, such technological innovation has meant that local authority and housing association specifiers and consultants now have a wide range of systems and products to choose from which can cause issues in ensuring the right system for a specific building or development is chosen. Choosing an appropritate access control system In choosing an appropriate system, local authorities and housing associations need to opt for a cost effective solution that can be easily maintained with excellent support from the manufacturer and guarantees that the system and system parts will remain supported for the duration of its expected life cycle. It is also important that the chosen system is flexible to cater for the varying needs of the tenants and visitors. Of increasing importance is the reduction of anti-social behaviour which new technology can help by providing the use of data loggers which track the use and events of a door entry system, allowing specific evidence to be located by integrating with CCTV. Using technology to our advantage Through advancements in management systems and services, we can gain a much better visual representation of the events and general usage of an intercom entry system and not just its proximity access control. Systems, for example, can now send email alarms or notifications to the administrator or management. We are now able to modify user rights and access levels on the go from a mobile app which enables a much greater control over service and maintenance engineers, such as making sure they have full access when required via an app, rather than arriving to site with the incorrect keys or access fob. Systems, for example, can now send email alarms or notifications to the administrator or management Dealing with tenant’s lost and stolen keys has never been so easy either. The blocking or deletion of lost fobs and adding a new fob can be carried out in minutes while at the same time removing the cost of sending an engineer to the development to programme new fobs. This greatly reduces the carbon footprint of the whole task as fobs can now be sent out via post to a secure location for collection. Technology has also helped local authorities and housing associations to overcome the issue of not being able to have a concierge or building manager available 24/7 at some developments. Now with internet communication, it’s possible for tenants and visitors to get in touch with someone should they need assistance, whether that’s from within the apartment or from an entrance point. For example, lets take the Videx VX2200 with IP concierge integration. This system is exceptionally flexible, enabling calls to be answered on Videx intercoms and also mobile phones if required. With the integration of the IP concierge each block can be either standalone or networked via the internet back to a central control room. Reduced maintenance costs and carbon footprint We work with a wide range of local authorities and housing associations to help them overcome access control and door entry challenges. One organisation we have recently partnered with is The Living Group to help them greatly reduce their maintenance costs and carbon footprint by installing the MiAccess offline proximity system on many of their developments across the North East. Technology developments have enabled better entry systems that are far more secure yet also more convenient and easier to manage By installing an appropriate system, The Living Group has managed to overcome issues caused by the existing system’s limitations and also enabled much more flexibility when it comes to effectively managing the access control system of all their included developments. For those responsible for effective and appropriate access control, the management of the systems are easier, quicker and there’s no delay or on-going costs for needing a specialist programme to modify fobs and access rights as this can now all carried out in-house. Improved security legislation Further advancements in programmes such as Secured by Design (SBD), a police initiative that improves the security of buildings and their immediate surroundings to provide safe places to live, work and visit, means that there’s more security legislation being implemented that’s making intercoms and access control more secure, without affecting ease and convenience. Videx holds an SBD accreditation and we know, from first-hand experience, how it’s making a difference in keeping tenants safe. When you combine the safety features promoted by an SBD member company like ourselves with the likes of the Videx event logging, image capture and ability to modify access users on the go, for example, we can help to create a very safe and secure environment. Personally, I think there needs to be a greater emphasis on the role of security legislation Technology has completely transformed the way local authorities and housing association are able to choose, install and manage door entry and access control systems for tenants and visitors alike. Personally, I think there needs to be a greater emphasis on the role of security legislation such as Secured by Design to ensure all councils and housing association consultants are up to date with what constitutes a robust and secure system that’s also cost effective too. In my role, I see weaknesses in systems and constant ongoing costs that could easily be avoided. For instance, features such as timed remote entry means local authority and housing association management no longer need to worry about keys being lost, the wrong keys being supplied or locks needing to be changed. With new systems such as the Videx MiAccess and Videx WS4 range, we can help to massively reduce a housing association’s or council’s carbon footprint and engineer costs by allowing them the access to management and control from an offsite location. Crime prevention We can also use live and logged events to help prevent crime in different ways, from antisocial behaviour growing around a tenant being called or visited much more regularly than others, to knowing a tenant is currently still living at a property but isn’t paying rent or answering to any correspondence. Technology enables local authorities and housing associations to receive detailed data and therefore behavioural insights on the people under their management and care. If consultants and specifiers are advised on the most appropriate systems that meet their specific entry needs, they can ensure greater, safer and more convenient access control that meets the requirements of both the end user and the those responsible for its effective management.
Ajax Systems, a smart security systems developer, has acquired the engineering team of Concepter, a design and product development studio. The Concepter developers will become members of various R&D teams at Ajax Systems and will work on new devices. "We’ve added the Concepter developers to the Ajax Systems team to boost our growth and engineering capabilities. The Concepter specialists have plenty of experience in handling complex custom projects. We’re excited that they will continue creating cool products with us. Our global goal is to find talent and create a new engineering elite in the country. We want to double our R&D by the end of the year”, states Aleksandr Konotopskyi, CEO at Ajax Systems. Engineering capabilities The Concepter team is one of the best in Ukraine and is very complimentary of Ajax Systems" The company is actively seeking such engineering teams. The Ajax technology stack includes Embedded C, Python, RTOS, Java, Kotlin, Swift, Objective C, STMicroelectronics, Texas Instruments. “The Concepter team is one of the best in Ukraine at building the hardware and is very complimentary of Ajax Systems. I’m sure that the engineering capabilities of Ajax Systems will be greatly enhanced by the Concepter. As for me, I plan to focus on investments at SMRK in the future. The Concepter brand will continue to exist, but it will be handled by a different team”, says Vlad Tislenko, CEO at Concepter. Consults product startups Recently, Ajax Systems announced the opening of a new R&D office in Vinnytsia. The company’s other two R&D offices are located in Kharkiv and Kyiv. Concepter is a Ukrainian studio that creates its own gadgets and also promotes and consults product startups. Concepter has over 20 products in its portfolio, including the world-famous Nect, iBlazr 2, Nuka, and iGlam. Also, the studio has won the prestigious international awards Red Dot Design Award, Best of CES, etc.
In the state of the residential security market today, we see many who are offering home security packages that rely on numerous sensors and multiple devices to provide a comprehensive coverage of the home and provide peace of mind. Each individual sensor or device within the package provides a specific functionality, and the user finds himself burdened by an overwhelming amount of sensors and devices. This overload is intensified by the penetration of additional IoT and smart devices into the home, such as pet-cams or smart speakers that add to the burden of installation and maintenance. In addition, we are witnessing the rise in popularity of DIY security devices, indicating that users are looking for models and technologies that provide both contract flexibility and simplicity of use. The past years have seen major advancements in radar technology, which have brought the formerly military technology into the consumer space. Radars provide interesting prospects for home security and smart homes due to several inherent characteristics which give it an advantage over existing technologies. The resolution of an advanced radar sensor enables not only presence detection, but also provides advanced features for security, automation and well-being Advanced security and automation features Of primary importance, a consumer designed radar sensor provides the user with full privacy, but the use of radar is also beneficial because it is indifferent to environmental, temperature and lighting conditions. In addition, radar signals (at certain frequencies) are capable of penetrating through almost any type of material, enabling concealed installation, robust monitoring in cluttered spaces and even the coverage of several separate rooms with only one device. In terms of capabilities, simple time of flight 2-antenna radar sensors, which have been around for a while, do not provide much additional value in comparison to existing solutions and are not necessarily competitive in terms of pricing. However, the new generation of radar sensors are also opening up new capabilities previously achieved with optics only. Today, the resolution of an advanced radar sensor is high enough to enable not only presence detection, but also to provide advanced features for security, automation and well-being, all in one. Imagine for example, that the security sensor installed in your elderly parent’s home could also detect a fall having occurred, monitor the breathing of a baby or even leaks in your wall. Due to the unique field of view that radar provides as well as the multi-functional potential, this technology will be the key to the awaited convergence of smart home functionalities and minimisation of home devices. The security sensor installed in your elderly parent’s home could also detect a fall having occurred Secret of the consumer radar A radar sensor’s accuracy and its ability to support wide functionality and applications is determined initially by its resolution, which is based on two key factors: bandwidth and number of channels. The wider the bandwidth and the more channels the radar supports, the more accurate the data received. Imagine the difference between a 1990s television model and a 4K 2018 television model - As the resolution is ever improving, the sharper and more detailed is the image. When looking at the short-range radar sensor market, prominent companies such as Texas Instruments and NXP are offering radar-on-chip solutions supporting 2\3 transmitters (Tx) and 3\4 receivers (Rx), mainly utilising frequency bands of 77-81GHz, as they target mostly automotive and autonomous driving applications. Another company that develops such radar-on-chip solution is Vayyar Imaging, an Israeli start-up, founded in 2011, that developed a radar sensor for 3D imaging. Vayyar Imaging directly targets the smart home and security markets with its radar-on-chip, developing modules and products for intruder detection, automation and elderly care (fall detection). Providing not only chips, but complete systems, the new model makes radar technology highly available and accessible. The radar-on-chip technology opens the door to installation of security and well-being devices in locations where privacy or environmental conditions pose an issue Radar-on-chip solution The radar-on-chip solution supports 72 full transceivers, an integrated DSP and radar bands between 3-81GHz. The resolution provided by this type of specification is high enough to provide subtle information about people’s real time location posture (lying down\falling\sitting\walking), and breathing, and enables to classify pets from humans, but it is low enough as to not compromise privacy. This type of technology opens the door to installation of security and well-being devices in locations where privacy or environmental conditions pose an issue, such as in bathrooms or heavily lit environments. Moreover, utilisation of this technology allows to dramatically minimise the numbers of sensors installed in the home, as it provides full home coverage with just one or two sensors and enables using the same HW to support additional capabilities such as breath monitoring, fall detection and highly accurate automation. Using AI and machine learning, the data derived by these sensors can be leveraged to provide smarter, verified alerts on the one hand and whole new insights on the on the other. The sensor can be tuned to learn the location of the house entrances or boundaries, where the inhabitants are expected to be at night, or where they should be expected to enter from into the home, adding new logics to the traditional yes\no decision making. Home security is widely regarded as a necessity, provides peace of mind to people and is integral to people's day to day lives Additional smart home services Among the evolving home technology verticals, security is by far the most relevant and integral to people’s day to day lives. Home security is widely regarded as a necessity and provides peace of mind to people. Being a legacy industry with many well-known and well-trusted brands, security players are well positioned to introduce new technology into the home and have the ability and credibility to expand their offerings to additional smart home services by utilising existing infrastructure and channels. With technology giants entering the security arena through the smart home door the DIY security solution market expected to explode with a CAGR of 22.4% (according to a report by Persistence Market Research). Now that new pricing and service models offer minimal commitment, traditional security players will need to step up. Security companies will need to explore new technologies and expand their offering if they intend to stay relevant and competitive in a market trending on functionality converge and minimisation of maintenance and installation costs.
Worldwide industrial semiconductor revenues grew by 18 percent year over year in 2014, according to IHS Inc., the leading global source of critical information and insight. Global industrial semiconductor revenue in 2014 totaled $40.4 billion, up from $34.3 billion in 2013. The year-over-year increase follows solid growth of 13 percent in 2013, a decline of 3 percent in 2012 and 12 percent growth in 2011. The strong performance achieved in 2014 represents the highest annual growth rate, since the 36 percent boom in 2010. “Gradual acceleration in the global economy, led by the United States and China, continued to lift industrial equipment demand,” said Robbie Galoso, principal analyst, IHS Technology. “Broad-based growth in industrial electronics gained momentum in the semiconductor industry, especially in products used for factory automation control, commercial avionics, LED lighting, digital internet-protocol cameras, climate control, renewable energy, traction, wireless application-specific testers and oil and gas exploration equipment.” Moderate growth expected this year Based on the latest information from the IHS Industrial Semiconductors service, the industrial electronics category is expected to continue its strong momentum, as the top application-revenue driver in the semiconductor industry, through 2019. Industrial semiconductor revenue growth is expected to increase 7 percent in 2015, with continued growth forecast for many segments; however, more moderate growth is expected this year, due mainly to slowed growth in memory, logic and analog products used in building and home control, military and civil aerospace, and test and measurement. With improving financial results in the long term, the industrial semiconductor market is expected to be on track to reach 6 percent compound annual growth rate (CAGR) between 2014 and 2019. 2014 top 10 company ranking variations Texas Instruments maintained its strong position as the largest industrial semiconductor supplier in the world, followed by STMicroelectronics and Infineon Technologies. Both Micron Technology and ON Semiconductor both made their way into the top-10 industrial semiconductor supplier ranking list in 2014. "Micron jumped into the top 10 last year, due to the success of their product-longevity program, which reinforced their commitment to the industrial market", said Robbie Galoso, principal analyst, IHS Technology “Micron jumped into the top 10 last year, due to the success of their product-longevity program, which reinforced their commitment to the industrial market and leveraged the company’s 2013 acquisition of Elpida Memory,” Galoso said. “Micron’s product longevity program continued to grow quickly in 2014, which helped the company become the undisputed global industrial memory chip supplier.” The other big mover among the top 10, On Semiconductor, was boosted by its acquisition of Aptina, a leading complementary metal-oxide semiconductor (CMOS) image sensor supplier in the industrial market, which moved the merged company into tenth position in the rankings. Because both Micron and ON Semiconductor made their way into the top 10 rankings, both Maxim Integrated Products and Cree were displaced. Strategic acquisitions to play major role “Strategic acquisitions will continue to play a major role in shaping the overall semiconductor market rankings in key industrial semiconductor segments,” Galoso said. “Infineon and NXP will soon upgrade their positions among the top semiconductor suppliers in 2015, due to their acquisitions of International Rectifier and Freescale Semiconductor respectively.” The combined industrial semiconductor revenues for NXP and Freescale last year would amount to $1.3 billion. A joint NXP Freescale would be ranked in sixth place, behind Analog Devices; NXP was previously ranked 16th while Freescale was ranked 17th. The combined company will catapult into the top 10 for major industrial applications, and impressive share gains will be realised -- especially in manufacturing and process automation, military and civil aerospace, power and energy and medical electronics. On the other hand, the combined Infineon International Rectifier would generate $2.3 billion in industrial semiconductor revenues, which would catapult the merged company into second place in last year’s rankings. Among the top 10 semiconductor suppliers, nine companies achieved growth in 2014 and seven of those companies posted double-digit growth. Out of the top 10 companies, only one, Renesas Electronics, suffered a decline, as the Japanese semiconductor market and suppliers continued to struggle. Industrial semiconductor market revenues on the upswing Among the top 10 semiconductor suppliers, nine companies achieved growth in 2014 and seven of those companies posted double-digit growth Optical Semiconductor delivered the strongest performance, thanks to the continued strength of the LED market. The highest semiconductor device absolute revenue growth from 2014 to 2019 will come from LEDs, which is expected to grow from $6.3 billion to $12.6 billion—stemming from the global general lighting LED lighting boom, with most countries banning incandescent bulbs in 2014. Discrete power transistors, thyristors, rectifier and power diodes are expected to grow from $6 billion to $7.3 billion, due to the policy shift toward energy efficiency. Microcontrollers (MCUs) are also expected to experience robust growth in the long-term, growing from $4.3 billion to $5.8 billion, because of advances in power efficiency and integration features. Out of more than 27 semiconductor segments, 26 achieved increased year-over-year growth in 2014. All 7 major semiconductor components grew last year, led by optical, analog integrated circuits (ICs), logic ICs, discretes, micro component ICs, memory ICs, and sensors and actuators. Both analog ICs and logic application-specific ICs achieved the strongest turnaround in growth, moving from relatively flat growth in 2013 to over 20 percent growth last year.
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