Swedish network camera producer sets up in Thailand
The Swedish network camera firm, Axis Communications AB, has opted to establish its Southeast Asia headquarters in Thailand.
Axis Communications AB management said it currently derives around 12 percent of its annual revenue from the Asia-Pacific region and believes by setting up a base in Thailand it can increase its revenue from the region to 33 percent by the end of 2020.
The co-founder of the company, Martin Gren, who invented the world’s first network camera in 1996, has stated he thinks Thailand offers great potential for his company because of its large population, geographic and geopolitical location, and steady GDP growth.
Thailand is a major manufacturing base for Axis, which also has factories in China, South Korea, the United States and in Europe. Notably, despite generally poor economic conditions this year, Axis had doubled its investment in Thailand and moved to a larger building in order to serve its increased business activity.
The new office space has a demonstration area for potential customers to test products and services.
The network camera is becoming a key surveillance device and is driving the shift from analogue to IP-based video, an area of the market which is presently seeing double-digit growth in Thailand as well as neighbours Myanmar and Vietnam.
Axis Communications said it hope to be able to find a local partner by early 2016 in order to provide video surveillance as a service. This is especially relevant following the 17 August Erawan Shrine bombing, and the uses made of CCTV footage in hunting down those the authorities believed to be responsible for the fatal act.
Axis notes that video surveillance is part of the so-called Internet of Things (IoT) communications revolution, which is especially relevant in the security space.
IoT is being used to help security firms manage the full range of security systems, creating a single, integrated and cohesive platform. Being able to seamlessly integrate and coordinate such security elements as intrusion sensors, fire alarms, access control, video surveillance, loudspeakers, video intercoms and emergency stations is arguably the Holy Grail for companies such as Axis Communications.
In February this year, the Japanese electronics maker Canon purchased an 85 percent stake in Axis Communications for US$2.82 billion. The bolt-on for Canon gives it access to the growing global surveillance marketplace, which is expected to be worth a whopping $42 billion within the next four years.
Martin Gren stressed that Canon’s stake had not impacted on the business operations of Axis Communications, which remained independent. Axis, for its part, gains access to Canon’s patents and feels this will give it a competitive advantage.