Security Systems

Bosch Security Systems - Maximize connected security Connectivity as a driver for growth
Gert van Iperen
President of the Security Systems Division
of Robert Bosch GmbH
at the press conference in Essen during the “security 2014”
on September 23, 2014

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  • September 23, 2014
  • Security Systems
  • Presentations

press release

Ladies and gentlemen,

Security systems are becoming increasingly important in our globalized world; not only for companies and the public sector, but also for private users.
In 2013, the global market for security products and systems had a total volume of about 18 bill. euro and grew by two percent in real terms. However, growth momentum varied across individual regions. The particularly strong drivers of growth were the Middle East, China, the ASEAN states and Latin America. We are also seeing a positive market trend in some African countries, South Africa for example.
The development of the world market in 2014 has so far been somewhat better than the previous year and we expect real market growth of around three percent. However, we should not forget that such a prognosis must be viewed conservatively considering the current situation in the global market. The main impetus for growth continues to come from the emerging markets in China, Latin America and Asia Pacific. We also expect further growth in the Middle East and parts of Africa.

We are developing this market with our innovative security and communications systems as well as with our services. In 2013, we achieved sales of around 1.5 billion euro. Setting aside exchange rate fluctuations, that is three percent more than the previous year. Worldwide, we have our own branches in more than 50 countries and we work closely with partner companies in a further 150. We manufacture at five locations in Germany, Portugal, China, and America and employ around 12,000 associates overall.
In 2013, we managed to significantly increase our sales in Latin America, Russia, Turkey, the GCC states and the ASEAN states. Our installer business in Germany and the Netherlands also delivered positive results. I will go into more detail about this later.

Good business development in 2014
Now to the current fiscal year:
We expect an improved growth in 2014 compared to the previous year. With the exception of North America, we have experienced growth in all regions, even achieving double digit growth rates in Latin America, the Middle East and South Africa.

Major projects are making significant contributions to sales
Major projects such as "The Star"– an architectural highlight in Singapore – made significant contributions to our positive sales development. "The Star" is a shopping mall with over 100 shops and restaurants. The security solution for this multifunctional building includes systems for video surveillance, public address and access control. The entire security system is managed through our Building Integration System.

One particular highlight of this year was of course providing security for many World Cup stadia in Brazil. One example is the Salvador da Bahia stadium, which we equipped with security and sound systems. This is where the World Champion Germany played their first game against Portugal. 280 cameras, 500 speakers and 4,000 fire detectors were installed. This security technology enables the 50,000-seat stadium to be evacuated in just eight minutes in case of an emergency.

We have also enjoyed success with many projects in China, a market that is very important for us. One of these projects is providing security for the Minsheng Bank in Beijing. The Minsheng Bank is the first commercial bank in China that is mainly owned by private companies; it has over 200 branches. We installed a comprehensive integrated security system at their Beijing headquarters. The security solution included video surveillance, an intrusion system, access control, a public address and evacuation system and conference technology. All of the components in the buildings can be controlled from a central location.

Progressive connectivity as an opportunity for growth
In addition to developing innovative products and successfully delivering customer projects, our success as a business depends on us quickly identifying key trends and acting accordingly. We therefore monitor changes in user needs and user behavior very closely. I would now like to talk to you about the most significant trend within our market: connectivity!
In 2015, 75 percent of the 7 billion people in the world will have an Internet connection and some 6.6 billion devices will be connected. And these numbers will continue to grow from there. Connectivity is also having a huge impact on the security technology market.

The switchover from "analog" to IP is in full swing. For example, the proportion of IP video systems in the global market in 2011 was a little below 40 percent. By 2016, two-thirds of all camera systems will be IP-based.
The main reason for this is that IP offers significant advantages. This protocol enables safety and security systems to be tightly integrated. For instance, in the event of a fire alarm, it is possible to automatically display video footage of the affected area and floor plans. At the same time, the data from the access control system can indicate exactly how many people there are within this area. This enables a faster and more targeted response to incidents. Connected and integrated systems are also much more efficient to operate.
As IP is a universal protocol, in the future it will also enable a simpler connectivity of systems that will go far beyond our own field. We are looking at the integration of domains here. Only the open IP architecture enables the integration of security systems with other domains from lighting and air conditioning to entirely new applications such as connected "smart cities."

As a comprehensive provider, we at Bosch are responding to this development and have identified networking as being the main focus for the coming years. Under the slogan “Maximize connected security”, we will show you what we are already doing today at our stand.

Let us now turn to a particularly important aspect of connectivity: data protection. Firstly, we will look at data protection from a technical point of view. Our cameras have a smart card chip of the type also used in credit cards. On the one hand, this chip provides a unique number for the camera and therefore ensures safe communication with it. On the other hand, the chip generates the keys for encryption and stores them securely. Our cameras encrypt video, audio, meta and control data, allowing them to be operated securely even in open IP networks.
But technology is only one aspect of the issue; data protection is also an organizational task. At Bosch, we have implemented internal rules and regulations to support compliance with the legal requirements on data protection and information security – and we have done this with a particular focus on our customers' interests. In addition, we restrict access to personal or security-related data and conduct regular access control checks. We also raise awareness among our associates of how to handle this data and ensure they receive ongoing training.

Integration Partner Program
One key move in terms of connectivity is the Integration Partner Program (IPP), which was first presented at Security 2012. IPP enables us to support our partners in integrating Bosch products and systems even more simply and more comprehensively than ever before, whether for new solution concepts or existing installations. We have also turned IPP toward consultants, system integrators and end customers. For example, the program allows consultants and integrators to use all the innovative functions of Bosch products in combination with products from other manufacturers in a single comprehensive solution. IPP thus clarifies the logical orientation of Bosch toward open IP interfaces rather than closed, proprietary systems. To date, several thousand users have joined the IPP community and the number of partners is constantly growing. Partners include Genetec, Milestone Systems, OnSSI, Exacq Technologies, and Lenel. The program that began with IP video products is now being extended to include intrusion systems, access control, and management systems, and will in the future also serve fire detection and voice alarm systems.

Wide range of IP products
We already offer our customers a broad portfolio of IP products. Our connected devices are becoming more and more intelligent. As a leading manufacturer of video products, we are already very far advanced in this product field.

Beside data protection, an important aspect of connectivity for our customers is that the required data is available anytime, anywhere. This involves a huge torrent of data, and associated network overloads must be avoided. The challenge in the video sector is to develop systems that can efficiently manage content with an even higher resolution. We at Bosch offer significantly better solutions in this area than the industry standard.
Take the example of 4K ultra HD. This technology offers four times the resolution of the previous 1080p HD standard at 30 frames per second. This generally means a data rate that is about four times higher. The data usage rate of the Bosch 4K ultra HD camera is up to 50 percent lower than the industry average. In other words, in an existing IP network customers can either use more cameras with the same storage capacity or need less storage capacity for the initial amount of cameras. How does that work? Bosch uses “intelligent Dynamic Noise Reduction technology (iDNR)” for this purpose. iDNR ensures that network bandwidth is only used when it is needed. If there is no movement or only minor movements in the picture, the data rate is lower. I would like to show you a short video that will explain the principle of iDNR.
To summarize once more: our IP cameras are well received in the market. In 2013, they were already generating 51 percent of our total sales of video cameras. This means a growth in sales in this product segment of 21 percent compared to the previous year. We expect IP video sales to grow by 20 percent each year up to 2020.

However, it is not only in the field of video that data transfer over IP is gaining importance. IP data transfer is integrated into our new MAP 5000 COM intrusion control panel without any additional hardware, making it the first system of its kind on the market. Our competitors' solutions still need a separate physical network device in addition to the actual intrusion alarm system. The MAP 5000 COM allows you to connect via standard IP networks or BoSiNet, our Bosch security network. This integration reduces hardware costs as well as installation and operating costs. In addition, it offers a more reliable system architecture and standardized programming, further limiting sources of error during configuration. The MAP is certified in accordance with VdS class C. The encryption is compliant with AES (Advanced Encryption Standard). It meets the highest standards and fulfills all requirements regarding critical infrastructures specified by the German Federal Office for Information Security.

New products at Security 2014
Now let's take a look at our new products, which we are happy to present to you at our stand.

Let's begin with our latest IP camera, the DINION IP ultra 8000 MP. With this camera, Bosch is setting new standards in the field of precise monitoring of large areas. Even when zooming in right on an object, the DINION IP ultra 8000 HD ensures that every detail remains recognizable. For example, the DINION IP ultra 8000 MP can monitor a large crowd of people at a soccer game while filtering out and identifying individual persons.

Following the introduction of ultra high resolution cameras, like the DINION IP ultra 8000 MP, Bosch will substantially change the market for panoramic surveillance at the beginning of next year. With the introduction of the FLEXIDOME IP panoramic 7000 MP Bosch will combine 12 megapixel imaging with the ability to continuously provide a 360 degree overview image without any blind spots. The advantage is that situational awareness can be substantially improved in, for example, high risk applications like airports without compromising on the level of detail. You can get a sneak peek of the FLEXIDOME IP panoramic 7000 MP in our demonstration room on the upper floor of our stand.
We have developed the MIC IP 7000 HD family for extreme applications. These PTZ cameras combine high-quality HD image capture with an IP68/NEMA 6P certified housing, meaning they can be used at temperatures from -60 to +60 degrees Celsius and humidity of up to 100 percent. They are also resistant to rain, snow, dust, wind and powerful vibrations. This means the MIC IP 7000 HD family is particularly suitable for outdoor use. It provides IP video images of the highest quality, and is used among other things to provide security for inner cities, highways and critical infrastructures.

There are also new developments within fire detection technology: With the use of video cameras for fire detection, we will be able to combine our expertise in both technologies in the future. These systems will open up new opportunities for special applications where conventional detection technologies have reached their limits. Examples of this are difficult ambient conditions, such as in tunnels, specialized production facilities or warehouses.

Let us now look at “Fire EVAC.” In this system, the Bosch Smart Safety Link networks our series-1200 and 5000 fire panels with the PRAESIDEO public address and evacuation system. The system is fully digital and is based on the IP protocol. This simplifies implementation and operation significantly. Thanks to the CAT5 connection this type of solution reduces the installation time for ten evacuation areas from two hours to two seconds. As you can imagine, this saves a lot of time and money. Our customers benefit from a considerably higher level of operational reliability as there is no possibility of wiring faults occurring. All systems, including the fire alarm peripherals and speaker, are certified in accordance with EN 54.

In the field of voice alarms and professional sound, we are showcasing our EN 54-certified ProSound and voice alarm/fire detection systems. A typical EN 54-certified "EVAC meets ProSound solution" is being implemented at a large velodrome complex south-west of Paris. We got the go-ahead on this project mainly because we were the first company to be able to offer the combination of voice alarm systems and ProSound components with EN 54 certification.

We would also like to present our cost-effective solution for audio playback in public address and voice alarm systems: The Line Isolator System (LIS) speaker.
The easy-to-install system comes without the need for expensive E30 wiring and creates redundant speaker loops for public address and voice alarm systems. LIS is currently being certified in accordance with EN 54 for the use in PRAESIDEO systems and is suitable for commercial use in buildings with lots of speakers – such as office buildings and hotels.

Of course, this was just a small selection of what we would be happy to present to you live at our stand.

Awards for attractive design
But it's not just the outstanding technology that's important; the appearance of the products, i.e. the product design, plays an ever greater role. Our products have already been recognized on several occasions this year for their attractive design. Here is a brief outline of some of these outstanding accolades:
  • The German Design Award 2014 for the Bosch DCN-D conference unit;
  • The Red Dot Award for the DINION IP 5000 video camera;
  • The International Forum Design (if) Award for three Bosch systems in the "Audio/Video" category. These are the DCN multimedia conferencing system and two components of the PLENA matrix;
The DCN multimedia conference system was used at the Nuclear Security Summit 2014 in The Hague.

Installer business for complete solutions from a single source
As I mentioned at the beginning, I would like to tell you about the development of our installer business. In this sector, we offer planning, setup, maintenance, and financing of security systems and solutions from a single source. Our main customers are the manufacturing sector, the public sector, banks, and service providers. This sector has until now been concentrated in Germany, the Netherlands, and Switzerland. Since the beginning of September, our installer business has also been active in the security market in Austria.

Our installer business has developed well over 2013 and 2014. One recent example of our successful market progression is the complete security system with fire detection and intrusion alarm system plus video surveillance installed for air navigation service provider Deutsche Flugsicherung in Munich. We have also provided security for the Porsche Centre in Mannheim. In 2014, Bosch video cameras have begun to monitor the fuel pumps and shops at German Avia gas stations.

More and more customers are relying on our expertise as installers of integrated and connected security solutions, which are operated via the existing IP infrastructure and are centrally managed. We also offer the option of integrating security systems across multiple sites and connecting to external monitoring centers via our own VDS-certified security network, BoSiNet.

Another highlight here at the trade fair is "EffiLink," our Remote Services platform. "EffiLink" enables diagnostics and programming to be performed remotely, meaning that an on-site technician is often no longer needed. For example, we can use "EffiLink" to identify the causes of system faults remotely and rectify the error directly. And in the event that remote service is not possible, the information received can be used to provide valuable support to our service technicians on site. This saves resources and decreases the response time. "EffiLink" is hosted by the Bosch data center and is manufacturer- and system-neutral, meaning it is forward-thinking. Data security on “EffiLink” is safeguarded at all times by the Bosch IT security concept and by authentication and authorization management for system users.

Service sector expanding
The Bosch Communication Center is also expanding and as of September 1, 2014 bears the new name "Bosch Service Solutions". But it's not only the name that has changed. I will tell you more about this in a moment.
First of all I would like to turn to business development over the current and last year. The development of new business models in addition to our BPO services (Business Process Outsourcing) as well as internationalization are the key factors for economic success in this sector.
We offer our services in more than 30 languages and in 15 countries worldwide. We are currently expanding the business, primarily in North and Latin America. In the coming years, we will continue to grow on an international scale. There will be both site expansions as well as new sites in other countries.

Now let's go back to the name change – why are we now calling the former Bosch Communication Center "Bosch Service Solutions"? The name is indicative of the continuing development of our company. We have become more than a Communication Center; we are a leading solution provider in the area of Business Process Outsourcing for complex, technology-driven services. In addition, we develop, implement, and operate new innovative business models together with our customers. We see great potential for such services in both industrialized and emerging countries.

I would like to mention a particularly good example of this, which is our "fleet management" mobility service. This is a solution that, on the one hand, provides the customer with greater security and, on the other hand, a higher level of efficiency in the planning and control of their truck fleets. This involves a unit built into the vehicle that transmits relevant data, such as deviations from established routes, fuel consumption, and speed recordings, to our security monitoring center. Our associates analyze this information and forward recommendations for the optimization of fleet performance to our customers.

Ladies and gentlemen,
We can be happy with our success up to this point and look to the future with optimism. We are well positioned in terms of technology and sales. But we want to put our strengths, such as a high level of innovation, excellent quality, and a broad international presence, to even better use. And we will seize all of the opportunities that the interesting market of security technology has to offer.

We will continue to drive forward connectivity within security technology as well as the integration with other applications, such as facility and energy management. That is why we are focusing all of our attention on IP and open interfaces.

This focus is also reflected at our stand, stand 409 in hall 3. As already mentioned, our slogan this year is "Maximize connected security". We are thrilled to show you what we mean by this. Come and visit us. We are looking forward to seeing you!

RF00239 - September 23, 2014

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