Video Surveillance Market Not Immune from Slow Economy

Tue, Oct 20, 2009

Video Surveillance

Dlink-fixed-network-camera

Video Surveillance is one of the fastest growing segments in technology, but new research is saying the market for cameras and their equipment isn’t immune from the slumping economy.

According to market-research firm In-Stat, some segments within the video surveillance market will be hit harder than others. IP cameras, due to their high cost, will see a reduction on shipments this year as well Networked Video Recorders (NVRs) since they are normally bought in tandem.

The research also says that not all segments are down. For example, hybrid DVRs that can connect to both IP Video sources as well as analog cameras are seeing an increase in sales.

If you don’t want to pony up the $3,495 for In-Stat’s complete research study, here are the high-points:

  • After a decline in 2009, revenue from analog cameras, IP cameras, DVR/NVR, and IP encoders will grow to US$19 billion in 2011.
  • Video encoding for DVRs, IP cameras, and IP encoders is moving to H.264 from MPEG-4 part 2. This is enabled by more powerful ICs able to encode multiple streams of H.264 on a single IC.
  • As pricing comes down, the attach rate for video analytics in video surveillance equipment will increase at a fast pace.
  • Semiconductor revenue for the video surveillance equipment will be stable through 2013, with lower average selling prices offsetting shipment growth.

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