A surplus supply of wireless download technology was fitted to 16 percent of all video recorders sold in mobile CCTV markets in 2012. That is according a new report titled “The World Market for Mobile Video Surveillance
David Green, senior analyst for video surveillance at IHS, said: “Adoption rates have increased quickly; the technology really suits the usage cases for these larger fleets of trains, buses or police cars. Using Wi-Fi for downloading saves time and cost for the operator, can improve reliability and also offer added value features, such as remote vehicle health-checks.”
In 2012 however, it seemed IHS said that demand is lagging behind supply. While 45 percent of recorders sold were fitted with wi-fi that the customer will use, 16 percent were fitted with technology the customer won’t use – meaning that manufacturers are adding to costs by paying for components that do not need to be fitted.
Green said: “In reality, manufacturers won’t be losing out. The 16 percent number might sound a lot in terms of unit shipments, but it’s only a small portion of the revenue. Economies of scale mean the component costs will be low to start with, plus most of the oversupply is coming from recorders made by low-cost, Asian manufacturers. These companies can’t move on price since they’re already at the bottom, so they compete with each other by loading up on features—even though they know the customers won’t use them. You take a look at the high-end manufacturers and the level of oversupply is certainly less than 16 percent.”
Does that mean the high-end manufacturers have got supply levels right, and do they expect adoption rates to continue increasing at current rates? Green said: “Definitely they see adoption increasing into the future. Mobile Video systems are evolving and wireless is a key part of the more intelligent system, linking with back-end software to provide an end-to-end solution. Manufacturers aren’t wasting their money here—and they’ll see the rewards when the market sees a boost in sales over the next couple of years.” Visit www.ihs.com
