Communications and Technology Industry Research

Multimedia Intelligence recently reported that the IP/networked video surveillance market grew 48 percent in 2007, nearly four times the rater of the broader video surveillance equipment market.

 

This market segment is now worth about $500 million worldwide, Multimedia Intelligence said, based on 2007 figures. However, the research firm noted that IP/networked video surveillance camera units remain a small percentage of the overall video surveillance market.

 

“The transition from traditional CCTV surveillance to networked digital surveillance is revolutionary for the physical security industry,” said Mark Kirstein, president of Multimedia Intelligence, in a statement. “IP/Networked video surveillance has strong scopes of continued growth and so this transition is also seen as over-hyped and under-performing compared to many expectations.”

 

The firm said in its report that a new competitive environment has drastically accelerated product innovation as IT-oriented companies, such as Cisco (News - Alert) and EMC, are having to differentiate themselves from relative newcomers like Axis Communications, IndigoVision, March Networks, Nice Systems and Verint. These companies are turning out to be dynamic and focused competitors, and are leveraging the growth of IP/networked surveillance to take on the legacy manufacturers.

 

 Due to the lack of expertise in the networking and IP technology, growth in the digital video recorder (DVR) market overall is slowing. As a result, network video recorders, both hardware-based and software-based, are emerging as a key growth category. The strong semiconductor opportunities in DVRs and IP/networked surveillance equipment have strengthened the positions of companies such as Texas Instruments, Techwell, Analog Devices (News - Alert), Aptina, NextChip, OmniVision, PentaMicro, Pixim, and Stretch.

 

The IP/Networked surveillance market was analyzed within the context of the broader video surveillance industry. The research included a look at end-users, distribution/sales, integrators, equipment manufacturers, software vendors, and semiconductor providers. Forecasts were based on examination of various product categories, including CCTV and IP cameras, encoder/streamers, DVR/NVR, and surveillance software and video content analytics. Detailed technology segmentation, units, and revenue, ASPs at the equipment, software and semiconductor level by product type are also included in the forecast.

 

Multimedia Intelligence took a broad ecosystem-based perspective for this report, moving beyond the classic “three screens” of TVs, mobile handsets, and computers to identify the opportunities in digital media on a multi-platform, multi-network basis.