The CCTV market continues to be headed to a ‘tipping point’ in 2014, when revenue for network CCTV overtakes analogue for the first time, next year. That is according to a new report titled “The World Market for CCTV and Video Surveillance Equipment” from IMS Research, now part of the US market research firm IHS Inc.
Analogue cameras are still forecast to continue outselling network cameras, in terms of shipments throughout the period to the year 2017, but higher value will resides in network CCTV. Jon Cropley, principal analyst for video surveillance at IHS, said: “Network cameras are generally higher-priced cameras with more advanced features. Therefore, even though less than 20 percent of all cameras shipped in 2012 were network cameras, the size of the market for them in terms of revenue was almost as large as that for analogue cameras.”
A high proportion of large and enterprise projects already use network video surveillance instead of analogue equipment. Now, network equipment is increasingly being selected for smaller projects as well. Furthermore, price competition for analogue cameras and digital video recorders (DVRs) is intense, with a degree of commoditisation taking place for some product types, providing further impetus for growth where network video is concerned.
Overall, the world market for video surveillance equipment grew by more than 10 percent between 2011 and 2012, IHS estimates. Growth was mainly driven by sales of network equipment in many countries where analogue declined. An exception, however, was China, one of the countries where the analogue market continued to grow. Cropley said:“The transition from analogue to network video is continuing in 2013. This year the global analogue space will be broadly flat while the network market will grow by more than 20 percent.”
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