Whalesbook
Regulatory Framework
The new government rules, from the Ministry of Electronics and Information Technology (MeitY), require CCTV cameras to meet strict essential requirements (ER). Introduced in April 2024 with a two-year period to comply, these rules demand that manufacturers declare the country of origin for key components like System-on-Chip (SoC) devices. Products must also pass tests at accredited STQC (Standardisation Testing and Quality Certification) labs to check for vulnerabilities that could allow unauthorized remote access.
Market Shift Dynamics
This tough certification process effectively bars Chinese manufacturers such as Hikvision and Dahua, which previously held a large part of the Indian market. Industry officials confirm the government is refusing certification for products from these companies and those using Chinese chipsets. As a result, market share is quickly going to domestic brands like CP Plus, Prama, Matrix, and Sparsh. These Indian companies have proactively changed their supply chains to use Taiwanese chipsets and local firmware.
Market data shows Indian players held over 80% of the market by February, a sharp jump from their previous one-third share. CP Plus, for example, has seen its market leadership grow from 20-25% to 45-50%. Global companies like Bosch and Honeywell have focused on the high-end segment. Some Chinese firms have left the market completely, while others, like Hikvision, have had to form joint ventures with Indian companies and overhaul their supply chains just to stay in business.
Cost Implications
Shifting away from Chinese suppliers and the required disclosure of component origins are increasing manufacturing costs. Analysts estimate a 15-20% rise in the Bill of Materials (BoM) for CCTV cameras. This, combined with ongoing global shortages for memory and processors, is pushing up final product prices. While some leading players are localizing components to cut costs, the overall trend points toward a more expensive market for surveillance equipment.