What's All The Fuss

Reports from security analysts indicate that the analog market still accounts for about 87 percent of all security cameras. That number seems a little ambitious, and I would set the number lower. Here’s why.

I am afforded the opportunity to view a lot of installs around the country, and every one of them is about the installation of networked cameras. I’ve never been invited to a place where someone has installed 100 or more analog cameras, which makes me believe that IP video surveillance is on the rise. Here’s another reason why.

Price plays a key role in buying equipment. The cost of analog versus IP network equipment is as close as it ever has been. IP cameras offer so much more in terms of clarity, coverage and replay. The cost to install and maintain a networked IP system is far more beneficial to the end user. Thus, new markets are opening their doors to the video surveillance market. See what I mean?

The Chinese video surveillance market estimated its worth at $2.6 billion in 2011, an increase of more than 30 percent over 2010. That market has continued to grow into 2013. Southeast Asia, primarily Vietnam, will be the fastest growing market between 2010 and 2015. The expected growth is 22.3 percent. Vietnam accounts for only 10 percent of this figure, but that is a significant growth for an emerging market.

“Due to the increasing demand for high-resolution images, network security products, especially network cameras, gained market share in 2011,” said Cheryl Li, research analyst at IMS Research. “In fact, network camera revenue increased 130 percent in 2011. In addition, the growth also benefited from the increasing number of participants in the market.”

Growth in the industry stems from high definition and megapixel cameras. In Vietnam, for instance, high priorities are transportation, energy, irrigation and urban development projects.

I believe that emerging markets can teach developed markets a thing or two about security installations, beginning with the power of the networked camera, and its viability to vertically grow markets.

This article originally appeared in the February 2013 issue of Security Today.

About the Author

Ralph C. Jensen is the Publisher of Security Today magazine.

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