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.