Cable Technology Feature Article
December 11, 2009
Video Surveillance Equipment Market Experiencing Decline
By Jayashree Adkoli, TMCnet Contributor
The video surveillance equipment market is experiencing limited unit growth in 2009, reports research firm In-Stat in one of its recent reports entitled “Worldwide Market for Video Surveillance Equipment.”
According to the report, the video surveillance equipment market is still experiencing revenue declines due to slow recovering economy. It is estimated that the overall semiconductor revenue for the video surveillance equipment will be relatively flat between 2009 and 2013, as lower average selling prices has offset unit shipment growth.
However, the research firm noted that by 2012 semiconductor revenue in IP cameras might surpass $300 million in revenue. Moreover, the video encoder/image processor will be the dominant semiconductor segment. Even, the Digital Video Recorder channel shipments are accelerating faster than camera shipments, in which hybrid DVRs are increasing at the highest rate.
Even though the video surveillance equipment market is moving in a slow and steady pace, the IP systems with new standards that will make IP equipment easier to integrate are being adopted widely. Despite the fact that higher resolution image sensors and H.264 are driving improvements in video quality, image sensor revenue across all surveillance cameras have declined from nearly $700 million in 2008 to $435 million in 2013, says report.
The report also indicated that revenue from analog cameras, IP cameras, DVR/NVR, and IP encoders will grow to US$19 billion in 2011 after a decline in 2009. Once the prices comes down, the attach rate for video analytics in video surveillance equipment will increase at a fast pace.
“The video encoding processor segment remains among the most dynamic opportunity, as it shifts to H.264 from MPEG-4 part 2,” said Michelle Abraham, In-Stat (News - Alert) analyst, in the release. “We see growth in analog and power components as well.”
To view the report and list of topics covered within, click here. The report covers the worldwide market for video surveillance equipment, such as analog and IP cameras, IP encoders, NVRs and DVRs, and video analytics. Apart from analysis of worldwide market for video analytics streams and revenues by equipment type, the report also covers facts in surveillance analog and IP camera shipments, revenue and ASPs by region and consumer versus professional.
The report also covers worldwide security digital video recorder channel shipments and revenues by region and by DVR/NVR type. It also covers analysis of key technologies, semiconductors and standards for video surveillance equipment.
Jayashree Adkoli is a contributing editor for TMCnet. To read more of Jayashree's articles, please visit her columnist page.
Edited by Michael Dinan