CCTV lenses: Reduced quotes, wider range help boost CCTV lens exports

Riding on the robust CCTV surveillance industry, China suppliers of CCTV lenses have a generally positive outlook. Production totaled 12 million units last year or 20 percent of global shipments, an increase from its 15 percent share in 2007. Makers forecast the line will continue expanding alongside widening adoption of CCTV devices and enable the country to grab a bigger percentage of the worldwide market.

Companies concentrate on the low-end and midrange sectors where they can leverage their cost advantage. Most offer lenses at half the price of Japan-sourced counterparts. Although many admit that CCTV lens manufacturing in China is still in the development stage and production facilities lag behind Japan and South Korea, R&D is on high gear.

More players are increasing investment in advanced equipment such as CNC lathes and lens grinding machines to improve quality. A few have even made breakthroughs in lens technology and design.

While several suppliers are boosting domestic sales and reducing dependency on the volatile overseas market, a good number continue to pursue an export-driven business model.

Nearly 50 percent of total output is shipped abroad. Some companies derive as much as 90 percent of revenue from foreign clients. They are optimistic the drop in demand beginning 2H08 caused by current economic uncertainties is just temporary and export-tax rebates will bolster orders in coming months.

Suppliers are expanding their selections to stimulate sales. More than half of makers have started exploring related lines such as CCTV cameras and DVRs in a bid to offer packaged solutions. Small and midsize companies with limited R&D capability generally concentrate on low-end and midrange products and steer clear of upscale units, which require a larger investment.

The main export destinations are North America, the EU and Southeast Asia. Suppliers attend international trade shows to expand their reach. They target mainly OEMs and ODMs. The lenses carry CE, FCC and RoHS approval.

There are about 200 CCTV lens makers in China. Most are from the military optical industry and joined the sector in the 90s when the surveillance sector started picking up.

First-generation products were largely imitations of Japan lenses. As manufacturers learned the technology and acquired advanced equipment from Germany and Japan, quality improved and selections started expanding.

The majority of companies are small and midsize operations with about 100 workers. Only 20 can be considered large enterprises. These have an annual capacity exceeding 500,000 units and employ more than 10 R&D engineers. Some major suppliers can make over 1 million a year and maintain 30-personnel product development teams.

Most conduct semiautomated manufacturing. Their facilities are equipped with glass-screen rough/thinning grinders and glass cutting, grinding edge, polishing and cleaning machines. Many also have clean rooms. Standard QC processes include visual inspection and press, temperature and optical tests.

The main production hubs for CCTV lenses in China are Fujian, Henan and Jilin provinces. Guangdong province is evolving into a key manufacturing base as well.

Fujian is the largest sourcing center with a 70 percent share of total output. The area is home to about 100 makers and research institutions concentrated in Fuzhou, Xiamen and Quanzhou. Major players include Fujian Forecam Optics Co. Ltd and Fujian Institute.

The province's CCTV lens industry, which has its roots in mainland China's military optical sector of the 60s, takes advantage of a mature supply chain that facilitates material sourcing, product development, sales and delivery. Most companies there have a strong R&D capability and focus on overseas business. Their proximity to Taiwan facilitates technology transfer.

Manufacturers in Henan are clustered in the cities of Nanyang and Xinyang. They concentrate on low-end models, although some offer midrange units. The province has a large pool of skilled workers that cost less than those from other areas in the mainland. The lens industry there is backed by the local government.

Jilin-based CCTV lens suppliers can be found in Changchun. Makers operating in Guangdong cluster in Shenzhen, where they can easily tap into the city's growing security industry.

The selection in China consists of fixed focus, varifocal, infrared, and fixed, manual and auto iris lenses. These are suitable for board, box, speed dome and PTZ cameras.

Board and 4, 6 and 8mm fixed lenses are currently driving supply. Many manufacturers also offer 3/3.5 to 8mm manual varifocal models. The mainstream products use C or CS mount and come in 1/3 or 1/4in format. Some enable manual adjustment, while others feature electronic control.

Manufacturers are complementing expansion plans with improvements on engineering precision and lens quality. Longer zoom range, wider angle and large aperture are the R&D priorities.

Motorized CCTV lenses are gaining momentum, driven by the popularity of PTZ and speed dome cameras. More suppliers are developing such models, with diplex and triplex versions leading the output. Diplex motorized lenses have zoom and focus functions, while triplex units support zoom, focus and iris motorized operation. The standard zoom range is between 6 and 100x.

Toeing the miniaturization trend, standard CCTV lenses now have a diameter of about 30 and weigh between 30 and 100g. Makers are introducing easy-to-install units.

Suppliers expect stable prices in the months ahead. A basic board mount lens with fixed focus and iris goes for below $1, while a CS or C mount fixed focus and iris lens lists from $1 to $10.

IR models start at $10. Varifocal versions are between $5 and $20.

Motorized lenses are quoted from $40 to $100. High-resolution units are available for above $50. Aspherical types are $10 to $15 more than spherical models with the same specifications.

A growing number of companies will be releasing high-resolution, aspherical and IR lenses. More suppliers are introducing 1MP lenses. A few have launched 3 and 5MP models, but their high price is limiting initial adoption. Many suppliers project 300,000 and 400,000-pixel units will continue dominating the mainstream.

Aspherical technology, which is now increasingly employed, reduces the weight and dimensions of CCTV lenses. In terms of optical performance, it enhances the definition, contrast and brightness. Some makers in China started developing aspherical lenses in 2007, but the high technology barrier hindered adoption. Only a few have rolled out their own products, including Fujian Forecam and Fuzhou Senview Optics Co. Ltd.

First-generation models use Plexiglas. Early this year, several suppliers released units made of glass, which represents a breakthrough because the technology is dominated by Japan. Local makers forecast that this milestone will fuel production and eventually reduce prices of aspherical CCTV lenses.

Most players adopt thin film-coating technology to optimize light access on certain ranges and limit backlight and stray light. Some recent releases integrate aspherical technology, while others combine high-resolution and IR lenses.

The rising popularity of digital IP cameras and CCTV camera makers' adoption of imported lenses are slowing Taiwan's CCTV lens industry. There are now fewer than 10 companies in the island, and many do not expect the manufacturing base to expand soon.

Suppliers such as Largan Precision and Chintaho Technology Co. Ltd offer both generic and special models. The latter includes pinhole, fiber and board lenses.

Fiber lenses are designed for medical equipment or factory micromachines. Pinhole units are utilized in spy cameras. Generic lenses consist of fixed focus, varifocal, manual zoom, fixed, manual or auto iris, pinhole, infrared aspherical and spherical, and aspherical models. These take 1/2, 1/3 and 1/4in formats.

The mainstream models have manual focus and fixed iris. Varifocal lenses are also in ample supply. IR types are becoming popular.

Product development efforts revolve around enhancing the resolution and focal length and reducing size. Many companies are planning to use aspherical lenses and adjustable apertures.

Basic models with fixed focus and iris are between $3 and $5. Varifocal and auto-iris lenses start at $5. Aspherical units, which target the high end, are above $10. Suppliers plan to keep quotes at current levels, but the fluctuating cost of motors could influence prices of auto-iris lenses.

Suppliers in Hong Kong, which are mostly camera makers that offer lenses and accessories to position themselves as one-stop sourcing partners, do not see significant growth in coming months. Because the line is generally regarded as a secondary business, many manufacturers do not conduct in-house production and have no immediate plans to invest in R&D and precision molding equipment.

Some act as distributors of one or several brands from mainland China, Taiwan, South Korea and Japan. Others second source lenses from the mainland and sell these under their own labels.

Even while companies are not expanding CCTV lens selections, they are taking advantage of growing support for optical technology research and manufacturing in the territory.

The Hong Kong Photographic and Optics Manufacturers Association assists local enterprises in the optics and optomechatronic industry and promotes collaboration with overseas partners. Most of the work, however, goes into lenses for consumer electronics such as digital cameras and camcorders, magnifiers, microscopes and LED lighting rather than CCTV lenses.

Securex Solution Ltd supplies Avenir, Amada and Theia CCTV lenses to complement its range of CCTV, IP and high-resolution cameras.

Avenir lenses are available in auto, manual and manual focus fixed iris, fixed focal, infrared corrected, manual zoom, motorized zoom, pinhole, and varifocal auto and manual iris series.

The company's Theia products include manual and DC auto iris models, and its Amada collection covers monofocal, varifocal, motorized zoom and megapixel versions.

This article "CCTV lenses: Reduced quotes, wider range help boost CCTV lens exports" is originally posted in Global Sources.

Fuzhou Senview Photoelectric Co.,Ltd
Fujian Forecam Optics Co Ltd
Fuzhou Aheadex Electronic & Technology Co Ltd
SecuRex Solution Ltd
Han Kwang Opto Corporation
Chintaho Technology Co. Ltd