‘AI In Security Market Is Expected To Value USD 34.81 Billion By 2025 At A CAGR Of 31.38%’

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We spoke to Santosh Mandlecha, President, Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA) to understand the priorities for MACCIA this year, his thoughts on how Indian Security Market is going to mature in the near future, how AI, IoT and ML technology is going to further strengthen the security and surveillance market in India, the kind of innovations they plan to incorporate as part of their product offerings in the Indian market and his observations on India as an electronic product manufacturing hub vis-a-vis China & other Asian manufacturing giants.

Santosh Mandlecha, President, Maharashtra Chamber of Commerce, Industry & Agriculture (MACCIA)

Interviewed by Adeesh Sharma

  1. Please let us know about your priorities for MACCIA in the year 2019?

Maharashtra Chamber of Commerce, Industry & Agriculture is going to complete 100 years in 2027. The Chamber does its activities proactively to help small businesses, SMEs, MSMEs and various other sections of society. Our Vision helps us in setting up Goals and the Goals keep us motivated.

 Our priorities for 2019 are:

  • To use technology to improve the operations of MACCIA and provide maximum benefits to the members.
  • Increase the visibility of Chamber nationally and internationally with the help of digital media.
  • To develop & strengthen our marketing structure.
  • To create an open forum for environment problems and encourage people in environment conservation.
  • Sharing authentic and updated information through MACCIA website and easy access of these services.
  • We have been instrumental in making use of Security equipments - a necessity than a luxury.
  • The Govt.of India has taken very good measures and initiatives for ‘ease of doing business’ but this has not percolated to the grass root level. MACCIA aims to take this to the grass root level.
  • Process services digitally of services like issuing certificate of origin, visa letter etc.
  1. How do you foresee Indian Security Market maturing in the near future.

As I said earlier Security has today become a necessity because the awareness about it has increased. The major drivers of this industry are the growing crime rate as in CCTV footages have been of great help to solve crimes. Further, we are no longer confined to security of big societies and other official establishments but we have securities of public places too like bus stations, railway stations and even temples. This has led to both the government and the private sector spending more for the infrastructure required to this end. We are moving toward making our cities ‘Smart Cities’ and for this we need to implement the latest technology and to do that we must have the required infrastructure.

Secondly, a decade back we did not have many expo’s or exhibitions for security industry but today we have almost 13 exhibitions which have both national and international manufacturers and we definitely come across advanced technology here. So, I must say that this is a very interesting period for growth and we must grab this opportunity.

2.  With technologies such as AI, IoT, Machine Learning, Big Data, etc having a profound impact, what are your views around technology further strengthening the security and surveillance market in India?

AI in security market is expected to value USD 34.81 billion by 2025 at a CAGR of 31.38%. The major factors for this staggering growth is the demand for AI based security solutions. AI covers most of the need for cyber security. The market for application security is likely to grow at the highest rate as most organisations have started using a large number of applications for their business operations to secure from threats and other vulnerabilities.

Machine learning can collect and handle big data and also perform impossible calculations. This is fuelling the growth of this market.

SMEs are adopting cyber security solutions to ensure security of their networks and mobile applications.

These advanced technologies such as IoT and cloud computing will only further strengthen the significant growth of this market.

3.  What kind of innovations do you plan to incorporate as part of your product offerings in the Indian market?

Since its inception in 1996, our company - Reliance Electronics is one of the leading indigenous manufacturers of Safety equipments in India. We proudly claim to be the first company to introduce fourth generation of metal detectors in India.

To date we have very few Indian Manufacturers of security equipments as against traders dealing in it. This is because Indian manufacturers fall short in R&D. We, at Reliance, have initiated our focus on this.

For instance Deep search Metal detectors or mine detectors is available with GPRS facility. Our R& D team is already working on it and I’m sure we will launch this product by 2020. This is the need of the Indian army & paramilitary forces.

The Market share of Security products is 65% imported and 35% indigenous or Indian manufacturers.

Our team has set a goal to reverse this figure. And we hope to achieve this with the help of the ‘Make in India’ initiative of the Govt.of India.

4.  What are your observations on India as an electronic product manufacturing hub vis-a-vis China & other Asian manufacturing giants?

The Chinese government has been instrumental to the tremendous growth of the Chinese product manufacturing scenario. It has supported by giving the necessary infrastructure and R&D support. Along with this its Industrial Policy is very supportive.Chinese industry gets loans at 6% compared to 11 – 14 % in India. The logistics costs are 1% of the business in China compared to 3% in India. Looking at the manufacturing scenario in India companies are now looking to expand their facilities with automation to cope mass production. The labour rates are reasonable compared to Chinese. American & European companies now recognise the capacity & capability and quality of Indian companies & products. They are looking at India as a manufacturing hub. A few companies have already initiated joint ventures, transfer of technology etc. with Indian manufacturing company. So this is the right opportunity for Indian manufacturers to show their mettle.