Potential market

PART B: valorisation plan

SECTION I: The product



The innovation potential of this product is related to:

  • Technology-driven innovation (under the influence of the development of science – the market is not ready for the product)
  • Market-driven innovation (as a result of market surveys, the market expects the product)
  • Replacement of existing product
  • Product related to cost reduction
  • Radical new product
  • Other, what…
The potential of the R&D result falls under three categories:

  • Market-driven innovation: given the fact that human-based CCTV surveillance has shown its limits over the years (limited coverage, possible high rate of missed alarms due to operator’s lack of attention, high cost) a solution for automated surveillance has been long sought.
  • Replacement of existing product: the proposed R&D result is a replacement of existing I and II generation surveillance systems. The proposed solution offers an automated system for detecting suspicious patterns of activity therefore replacing current CCTV systems.
  • Product related to cost reduction: the proposed solution will provide in the end a reduction of the costs related to human security operators. The human personnel is not completely substituted but can be reduced and requalified to other tasks. The automated system will focus the attention of the operator only in case something deviates from normality.






What added value for end-users does the product hold?
• higher quality
• Better technical characteristics
• Other …
In the last years, there has been a growing interest in surveillance applications due to the increasing availability of cheap sensors and processors at reasonable costs. In addition, citizens are demanding much more safety and security in urban environments. These facts, in conjunction with the increasing maturity of algorithms and techniques, are making possible the use of surveillance systems in various application domains such as security, transportation and automotive industry.The intelligent surveillance of remote and often unattended environments (e.g., metro lines and railway platforms, highways, airport waiting rooms or taxiways, nuclear plants, public areas, etc.) is a complex problem implying the cooperative use of multiple sensors. Surveillance systems have provided several degrees of assistance to operators and evolved in an incremental way according to the progress in technology and sensors. Several kinds of sensors are nowadays available for advanced surveillance systems: they range from tactile or pressure sensors (e.g., border surveillance) to chemical sensors (e.g., industrial plant surveillance or counter terrorism activities) to audio and visual sensors.For monitoring wide outdoor areas, the most informative and versatile sensors are the visual ones. This information can be used to classify different kinds of objects (e.g., pedestrians, groups of people, motorcycles, cars, vans, lorries, buses, etc.) moving in the observed scene, to understand their behaviours and to detect anomalous events. Useful information can be transmitted to a remote operator for augmenting its monitoring capabilities and, if necessary, to take appropriate decisions.

The benefits for the end-users can be summarized in higher security and  lower costs (cost of personnel is reduced).





What is the Unique Sales Proposition of the potential product?
Current video surveillance systems are based on closed-circuit television cameras (CCTV), video terminals, and recording systems on a physical medium. The vast majority of the systems are unattended an the recordings are used a posteriori as forensic proofs.If “active” surveillance is required, i.e. able to intervene when the crime is still under way, requires the attention of security personnel who must constantly watch the video terminals.Avires offers software solutions based on latest and modern techniques of computer vision which combines the video signals from the cameras, are able to manage security intelligence environment.




SECTION 2: The Market



What is the target market for the product? National ¨European ¨

Global ¨

Please describe the characteristics of your target market.

According to market research company, for “The Freedonia Goup, the market for products and services for electronic security has had an annual growth of around 9 billion dollars until 2006. Certain is that “the growth prospects of the industry have grown exponentially” as reported by Joe Freeman, a consultant on security for the market research firm JP Freeman Co. Inc.Before the attacks of September the growth was flat at 2% per year after that event sales in the field of CCTV has grown from about 6% to 8%. Freeman looks forward to a growing market, even despite the global economic stagnation, which is around 10% per annum and with the economic recovery will stabilize at 14%. 

In 2002, biometric systems (for the recognition and authentication of persons), CCTV systems and system access controller were a very interesting market(source Sandra Jones & Co). The sector has ceased to grow in 2001 as regards the United States, while it continued to grow in emerging markets such as Europe (notably the Mediterranean countries). A research carried out before the September 11 shows that in the case of biometric systems growth of 20% annually. This estimate after that date should be revised upwards by providing a market for biometric systems alone will be about $ 900 billion for 2003-2006 according to the report conducted by Frost & Sullivan’s World Biometric Market Technologies.

Within the biometric systems, according to Freeman, the systems that have more market will be those related to the analysis of faces and recognition of people. Moreover, the growing production of publications treating automatic systems makes more plausible the entrance in the near future of such systems within the markets related to video surveillance.

In particular, as reported in a study by Siemens Corporate Research, automatic systems (also known as third generation) will go to benefit from the growing demand for installation of CCTV type.

The third-generation systems will then be able to use second-generation systems (CCTV) installed. In this respect the Italian market, which will be the main market to which the firm will switch already offers a large number of installations carried out by many local authorities are scattered throughout Italy.

The pilot cities was surely Florence in 1999 with funds for the Jubilee contract to Telecom Italy SpA the installation of 14 cameras, mostly located in the center to monitor the historical monuments, for a total of 945,000,000 lire. And renewal of computer equipment in the operations center has a total expenditure of 300,000,000 francs for the Jubilee.

Recently, many other cities have followed this path, to cite a few: Rome, Milan, Naples, Verona, Brescia (260.000 €), Bergamo (300,000 €), Mantua, Bari From a survey conducted by the sponsor for privacy in June 2000, only in the city of Rome, Milan, Naples, Verona cameras are being recorded in 1095.

The CCTV market has thus seen in Italy, as in the United States, a strong expansion, although only recently, common to European countries.

The Italian market is made particularly visible in the largest proportion of facilities for the protection of sites for artistic content that appears to be equal to 10.9% (Source: Intermedia) against 2.4% in other countries (Source: JP Freeman Co. Inc.). This trend is mainly due to the large number of monuments, archaeological sites, museums, etc. .. present throughout the territory.

Our region, Friuli Venezia Giulia, is following the trend of growth more generally associated with Europe and Italy. Recently, even the administration of the City of Udine decided, even after the scars caused by the “Loggia del Lionello” at the end of his restoration to have a CCTV video surveillance system. To this end, the contractors for the work of AMG installation of 10 cameras at a cost of approximately € 312,000, to be managed by the Municipal Police.




How the product is characterized from the following options? Number of companies producing similar products in the field.• Base – applied by all companies in the industry• Leading – applied by a single or limited number of competitive companies

• Key –at a development stage, but has already proven its potential

Key: The product is definitely at a development stage  and it requires very specialized skills to bring it to the market. However, the potential could be extremely high.Direct competition is comprised of half a dozen of similar university spin-offs in Italy.The remaining indirect competition is comprised by resellers and installers of traditional CCTV systems.





What type of market demand will be satisfied?• Existing demand – the market is already developed• hidden (latent) demand – the market has yet to be developed
The demand is still hidden given since the existence of automatic surveillance systems is probably unknown outside the academic world. Nonetheless, the disadvantages of CCTV systems (high cost for human controlled systems or low cost and useful only a posteriori) are well know since their inception.





What is the current stage of the product’s market life cycle?• Implementation, implementation in production (leading to a radically new product offers)• Growth (rapid spread within the industry or outside it)

• maturity (parameters of the technical characteristics of manufactured products reached their maximum, higher-grade products can be manufactured on the basis of technological substitution)

While CCTV systems have reached their maturity by continuous and slow upgrades (e.g. from b/w camera to color cameras, from analog transmission to digital transmission).Automatic surveillance systems represent a radically new product as they open a whole new dimension of possibilities and their market is therefore in its implementation phase. 




Strategic partnerships (existing or potential).
Potential strategic partnerships can be established with camera manufacturers via the following possibilities:

  • Avires provides bundle software to be sold by the camera manufacturer
  • Avires provides the software to be directly installed on smart sensors (cameras with a CPU installed on-board)
  • Avires establishes a partnership to develop software that favors the use of cameras produced by a specific vendor
  • Avires establishes a partnership with several camera vendors to obtain large volumes of sensors at discounted prices


Partnerships should be established also with camera installers that will take care of the installation of the final products at the customer’s premises.


SECTION 3: The Competition



What is the competition within your target market?
Direct competition at National level is constituted by half a dozen university spin-offs that operate in the computer vision field. All the competition is aligned with basically the same expertise. Given the No one at the competitors at the moment has a clear killer-application that stands out.The remaining indirect competition is comprised by resellers and installers of traditional CCTV systems that have already saturated the market.




What competitive advantages will the introduction of the new product ensue?• lower prices based on lower production costs• product differentiation (uniqueness of the product proposal)
The proposed R&D result offers a win-win combination of cost savings and completely new functionalities.The system provides a whole new dimension of possibilities, for example:

  • Acquisition of video streams from heterogeneous sensors (color and b/w cameras, IR cameras, static and pan-tilt-zoom cameras, IP cameras, etc.)
  • Real-time moving objects detection and tracking
  • Real-time classification of detected objects (e.g. vehicles/person)
  • Face detection and recognition
  • Statistical analysis of observed movements and activities
  • Event detection
  • Anomalous behaviour detection
  • Transmission of video streams to remote stations through proprietary adaptive streaming software




Potential products relate to the following price range:• High price range• Average price range

• Low price range

Apart from an initial higher cost with respect to classic CCTV system, the proposed approach can provide significant personnel cost savings. In addition, if applied in a commercial environment (e.g. shopping malls) can provide, in addition to enhanced security, precious information regarding the interest of the customers for a given display of goods, the most common paths followed within the shop, etc. If correctly exploited, this information can be very valuable for the shop owner.




Potential products will be marketed:• To regulated markets (e.g. heat supply, water supply, universal telecommunication services, agricultural products, fishing industry, architectural services)• To markets operating on the principle of free negotiation between agents on the market
The product will operate in a market based on the principle of free negotiation between agents on the market. However, possible national or regional laws that incentivize the adoption of surveillance systems will also be taken into consideration.



SECTION 4: Indicators


Estimated cost of the new products € 18.000 (average)
Expected market volume (potential / maximum number of users) 2011: 502015: 4002020: 1000
Expected sales volume I year: 3II year: 8.5III year: 10
Expected market share of the company (proportion between sales and total company sales in the relevant market) 6-10%






Added-value potential 1 2 3 4 X
Size of future market demand 1 2 3 4 X
Competitive positioning of the product 1 2 3 X 5



Bookmark the permalink. Follow any comments here with the RSS feed for this post. Post a comment or leave a trackback: Trackback URL.

Post a Comment

You must be logged in to post a comment.

Request a proposal

Valorisation Plan Authors

Related Documents

There in no related documents

Visit the other applications of the INTERVALUE Platform: R&D Repository | IP Agreements

© 2009-2010 INTERVALUE Project