Market Navigation

Everyone knew it was coming, and now the use of IP cameras in the security industry is moving at full speed. Three years ago, the IP trend was a lot of talk, but players in the industry have ensured that these cameras offer a dawn from the dour days of analog.

IP cameras also have heralded the arrival of better equipment—though most experts agree that there is more work to be done, including improved resolution and intelligence inside the camera. The megapixel camera is evolving quite nicely in the high-resolution market, as well as the video surveillance business. According to John Monti of Pixim, cameras with output resolutions greater than 720 x 480 will drive adoption of IP cameras once the current issues of poor low light, low-dynamic range, marginal SNR, cost and image performance are addressed.

So, what’s to come in this market niche that will improve the IP video camera? For starters, the speed of the network will increase, multiplying the range and ability of the camera. The application of megapixel technology will only serve to improve visual quality, and future technology will improve the processing speed of the IP camera.

I recently spent a couple days in Lund, Sweden, and Copenhagen, Denmark, with Fredrik Nilsson of Axis Communications to learn more about the technology and what’s coming to the marketplace in the future.

Axis knows a thing or two about developing and selling IP cameras. They’ve been doing it since 1996, and they surpassed the 1 million mark in sales in October 2007. Selling that many cameras certainly carries some weight in the industry. You might as well know that Axis officials plan to hit the $10 million mark in sales in the next 10 years.

Nilsson, the general manager of North American operations for Axis, said the market for network video products is accelerating at about 40 percent a year. No question—there is enormous interest in the IP product, which has helped Axis and many other camera companies become technical and market leaders.

At Security Products magazine, we feel so strongly about the future of the network and IP video that we’ve created a new magazine Network Centric Security, which details the trends in market convergence and the applications of IP systems over the network.

Analog cameras have pretty much done what they can, and until today, they have filled a genuine and important role. CCTV systems are giving way to open systems, like network video, that can be fully integrated. Let’s face it—security projects are increasing in scope, especially at installations in train stations, schools, retail stores and airports.

Who is interested in IP video solutions? This is an interesting question, but the answer is even more intriguing. Developers and government officials in Dubai, part of the United Arab Emirates, are building a city that resembles the future. Everything new in Dubai is juxtaposed with the ancient, including the Burj Dubai, which will be the world’s tallest tower, and the Burj al Arab, a resort that redefines what a hotel can be. Officials in the country are only interested in IP cameras. They are completely skipping one product generation and integrating the newest of the new. In fact, Dubai’s growth represents an exploding emerging market.

Companies are realizing the added benefits of network video, such as scalability, remote access and, probably more important than anything else, cost-effectiveness. Many companies are transitioning from analog to digital technology, and, according to Nilsson, projects and installations are increasing in scope.

IP solutions also have the ability to deploy artificial intelligence within the camera. Axis co-founder and president Martin Gren said his company will approach the intelligence question cautiously, but company research and development will continue down that path. Gren said intelligence will become an integral part of the solution at some point.

Artificial intelligence is already used by a few select venders, such as Verint, Lumenera and ioimage. Monti said pervasive and flexible AI will require many more embedded CPU cycles in the camera, which may take another three years to hit commodity price points.

Some providers, including ioimage, have managed to package IP cameras with built-in analytics, and according to Dvir Doron, the company’s vice president of marketing, it has been deployed for some time now. The majority of traditional IP manufacturers have yet to release a mainstream intelligent video for their IP cameras, but Doron expects that this year will be the time when some level of analytics will be included on many IP cameras.

Use of the IP video solution is only going to grow in popularity, especially when commodity price points settle at comfortable levels. According to IMS Research, the growth of IP cameras is pegged at a compound annual rate of 40 percent. I suspect that nearly 10 percent of video surveillance cameras shipped in 2007 were IP cameras. This only heightens the prospects that IP solutions will continue to grow.

The use and practicality of IP solutions touches more than the security market. Jumbi Edulbehram, director of strategic channels at Axis, said the integration of IP video with other systems, such as access control, gives the solution a higher level of intelligence. He also pointed out that IP video can be used in a retail application to assist in merchandising and store operations.

Storage capacity also is part of the big picture. IP video cameras currently use the MPEG-4 compression scheme and stream video in this format, which is the industry standard. However, as H.264 standards become more prevalent, manufacturers will incorporate this technology, probably this year.

IP video is growing fast, and the analyst community’s view is unanimous about its future. Within the next three years at the latest, it will be more common than not for video analytics functionality to be requested in project specifications for major institutional or commercial video surveillance systems. As soon as the mainstream security channel—systems integrators, dealers and installers—buys into the deployment of IP video-based systems, their skill sets of installation and sales will push integration forward.

Featured

  • Security Industry Association Announces the 2026 Security Megatrends

    The Security Industry Association (SIA) has identified and forecasted the 2026 Security Megatrends, which form the basis of SIA’s signature annual Security Megatrends report defining the top 10 factors influencing both near- and long-term change in the global security industry. Read Now

  • The Future of Access Control: Cloud-Based Solutions for Safer Workplaces

    Access controls have revolutionized the way we protect our people, assets and operations. Gone are the days of cumbersome keychains and the security liabilities they introduced, but it’s a mistake to think that their evolution has reached its peak. Read Now

  • A Look at AI

    Large language models (LLMs) have taken the world by storm. Within months of OpenAI launching its AI chatbot, ChatGPT, it amassed more than 100 million users, making it the fastest-growing consumer application in history. Read Now

  • First, Do No Harm: Responsibly Applying Artificial Intelligence

    It was 2022 when early LLMs (Large Language Models) brought the term “AI” into mainstream public consciousness and since then, we’ve seen security corporations and integrators attempt to develop their solutions and sales pitches around the biggest tech boom of the 21st century. However, not all “artificial intelligence” is equally suitable for security applications, and it’s essential for end users to remain vigilant in understanding how their solutions are utilizing AI. Read Now

  • Improve Incident Response With Intelligent Cloud Video Surveillance

    Video surveillance is a vital part of business security, helping institutions protect against everyday threats for increased employee, customer, and student safety. However, many outdated surveillance solutions lack the ability to offer immediate insights into critical incidents. This slows down investigations and limits how effectively teams can respond to situations, creating greater risks for the organization. Read Now

Most   Popular

New Products

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.

  • A8V MIND

    A8V MIND

    Hexagon’s Geosystems presents a portable version of its Accur8vision detection system. A rugged all-in-one solution, the A8V MIND (Mobile Intrusion Detection) is designed to provide flexible protection of critical outdoor infrastructure and objects. Hexagon’s Accur8vision is a volumetric detection system that employs LiDAR technology to safeguard entire areas. Whenever it detects movement in a specified zone, it automatically differentiates a threat from a nonthreat, and immediately notifies security staff if necessary. Person detection is carried out within a radius of 80 meters from this device. Connected remotely via a portable computer device, it enables remote surveillance and does not depend on security staff patrolling the area.

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.