by Shane Henson — August 26, 2013—The CCTV (closed-circuit television) and video surveillance market continues to be headed to a “tipping point” in 2014, with revenue for network video overtaking analog for the first time ever next year, according to a new report titled The World Market for CCTV and Video Surveillance Equipment from IMS Research, a supplier of market research and consultancy to the global electronics industry that is now part of IHS Inc.
According to the report, analog cameras are still forecast to continue outselling network cameras in terms of shipments throughout the period to the year 2017, but higher value resides in their more sophisticated and pricey rivals.
A high proportion of large and enterprise projects already use network video surveillance instead of analog equipment. Now, network equipment is increasingly being selected for smaller projects as well. Furthermore, price competition for analog cameras and digital video recorders (DVRs) is intense, with a degree of commoditization taking place for some product types, providing further impetus for growth where network video is concerned, the report notes.
Overall, the world market for video surveillance equipment grew by more than 10 percent between 2011 and 2012, IMS Research estimates. Growth was predominantly driven by sales of network equipment in many countries where analog declined. An exception, however, was China, one of the countries where the analog market continued to grow.
“The transition from analog to network video is continuing in 2013,” says Jon Cropley, principal analyst for video surveillance at IHS. “This year the global analog space will be broadly flat while the network market will grow by more than 20 percent.”
