 
        
        
        Trends in Video Surveillance
        Two senior analysts from IMS Research’s Video Surveillance and Security Services group share their thoughts on trends impacting the video surveillance industry
        
        
			- By Gary Wong, Jon Cropley
- Dec 01, 2011
				Gary Wong comments on the trends to network
  video surveillance equipment, PSIM and VSaaS.
  
The transition from analog CCTV equipment to
  network video surveillance equipment continues
  to be the major overarching trend within the video
  surveillance industry. In a recent press release,
  IMS Research forecasted that by 2014, network
  video surveillance sales would overtake analog
  sales in terms of revenue. Despite current global
  economic uncertainty, largely due to the Eurozone
  crisis, IMS Research believes that the industry will still ‘tip’ in 2014.
  
Other notable technology trends in 2011 have been Physical Security
  Information Management (PSIM) and Video Surveillance as
  a Service (VSaaS). That is not to say that neither of these technologies
  were not present in 2010—or even 2009—but both have gained
  significant market attention and mindshare over the last 12 months.
  
Looking at PSIM first, the last 12 months have seen significant
  shakeup in the PSIM market with acquisitions, partnerships, and new
  and repositioned products. Examples include Honeywell partnering
  with Boeing, Verint acquiring Rontal Applications and ADT acquiring
  Proximex. Because developing a PSIM software solution is highly
  capital and labor intensive, IMS Research expects that acquisitions
  and joint ventures will continue through 2012.
  
According to the in-depth PSIM software study, which IMS Research
  conducted at the start of the year, the PSIM market will exceed
  $1 billion in revenue by 2014.
  
As the transition from analog to network video surveillance accelerates,
  VSaaS is becoming increasingly topical. In essence, VSaaS
  moves video surveillance storage from local locations to the cloud—
  either as a mirror or as the sole storage location—and enables users
  to access their video surveillance content on demand. While we have
  seen increasing numbers of vendors begin to announce and release
  VSaaS services, we have yet to see any significant traction.
  
Let me clarify the term “significant;” IMS Research estimates that
  in 2011 VSaaS services in the Americas generated less that $7 million
  recurring monthly revenue (RMR). However, the outlook for VSaaS
  services remains bright; by 2020, IMS Research forecasts that the
  market for VSaaS in the Americas will exceed $1.5 billion.
  
Jon Cropley comments on trends in the market
  for video content analysis (VCA ) software.
  
VCA software is still used mainly for security applications.
  However, a major trend is the increasing use
  of VCA software for business intelligence. A number
  of different applications are being deployed and
  developed including people counting, dwell time,
  customer-not-present and queue-line analysis.
  
These applications are being used to improve
  the effectiveness of business operations and generate
  an increase in revenues.
  
One important aspect of business intelligence analytics—or video
  business intelligence, as it is often called—is that systems that are not
  100 percent accurate still provide value.
  
In security applications, end users cannot afford to miss a potential
  security breach. However, business intelligence algorithms can
  provide reliable trend information despite not always counting every
  person who enters a retail or commercial location. Many established
  suppliers of VCA software for security are now offering business intelligence
  algorithms. At the same time, suppliers focused primarily
  on VCA for business intelligence have emerged, such as BVI Networks,
  Scopix, and VideoMining.
  
IMS Research has recently published a report on the VCA market.
  It forecasts that the market for VCA in business intelligence applications
  will grow at an average annual rate of more than 30 percent
  over the next 5 years.
  
Another major trend in the market for VCA software is that of
  video surveillance manufacturers embedding applications and offering
  them as standard features for no additional charge. For some
  time, many of these manufacturers have been embedding in their devices
  low-end applications such as video motion detection and camera
  tamper as standard features. More recently, some of them have
  started to embed other applications such as virtual trip wire and offer
  them as standard features.
  
IMS Research forecasts that the number of video surveillance
  devices including basic VCA applications as a standard feature will
  increase. However, it also forecasts that there will remain a market
  for chargeable VCA. A charge needs to be applied to recover the high
  cost of developing many of the higher-end VCA algorithms.
  
It is unlikely that suppliers will amortize this cost in an increased
  price of every device they sell. This is because only a small proportion
  of cameras are actually monitored. Most record the video and only
  view an event after it has occurred. Furthermore, many VCA applications
  are quite niche. The majority of customers would, therefore, be
  paying for a feature that they would not use.
        
        
        
        
        
        
        
        
        
        
        
        
        This article originally appeared in the December 2011 issue of Security Today.