The Evolution of IP Camera Intelligence

• By Martin Gren
• Nov 25, 2025

As the 30th anniversary of the IP camera approaches in 2026, it is worth reflecting on how far we have come. The first network camera, launched in 1996, delivered one frame every 17 seconds—not impressive by today’s standards, but groundbreaking at the time. It did something that no analog system could: transmit video over a standard IP network.

For many early remote monitoring applications, it was sufficient—it also opened the door to new possibilities. More than just a technical achievement, it was the catalyst for industry transformation.

A key turning point came with the introduction of the first chip designed specifically for IP cameras: the ARTPEC-1. We could now stream 30 JPEG images per second at VGA and 4CIF resolution, but this was well beyond what networks and 200MB hard drives of the time could manage.

Despite these limitations, the AXIS 2100 — the first camera with the ARTPEC-1 — became the world’s top-selling IP camera for six consecutive years. That success revealed the market’s hunger for network-connected surveillance, even when supporting infrastructure was still catching up.

We quickly realized transmitting and storing everything was not feasible. So, what was the solution? One early idea was to reduce frame rates over time during recording. While it seemed like a potential fix, it turned out to be CPU-intensive and impractical. We needed to be selective, recording only what truly mattered.

Smarter Storage Through Motion Detection
That is when we hit upon a transformative idea: only record when something changes. We asked team member Daniel Elvin, senior engineer, to find a solution. The answer? Video Motion Detection (VMD). VMD, revolutionary at the time, let cameras detect motion and trigger recording, drastically cutting bandwidth and storage. In 2001, the AXIS 2120 (formerly the AXIS 2100) introduced this feature, marking a key milestone in smart surveillance.

VMD helped operators focus on relevant events while keeping storage manageable. Over time, we enhanced it by not only detecting pixel changes but also incorporating more advanced motion detection techniques.

We also made VMD a plug-in, allowing updates independent of major software releases. This laid the foundation for innovations like Axis Zipstream, our smart encoding technology that reduces bandwidth while maintaining video quality—even within standards like H.264 and now AV1.

From Detecting Motion to Understanding Context
The next leap came when we realized cameras did not just need to detect motion, they needed to understand what they were seeing. Fast forward to today: modern cameras use our latest ARTPEC SoC with deep learning capabilities to classify objects, generate metadata, and deliver real-time insights—all processed at the edge.

Thanks to this powerful chipset and advanced software, cameras now identify people, vehicles, or unusual activity before anything is sent to the cloud. This dramatically reduces bandwidth, and storage needs while enabling real-time response. Cameras now analyze and interpret, reducing reliance on human monitoring.

Shaping the Next 30 Years
Looking back, it is remarkable how the concept of "only recording what is necessary" spurred innovations in motion detection, compression and intelligent analytics that have become essential to modern surveillance.

As Daniel Elvin once told me, “Creativity and clear vision drove network cameras forward. Developing VMD to make them smarter was simply the natural step in that innovative environment. Technology builds on itself, and each breakthrough will continue to unlock new potential.”

That same creative spirit and drive continues to propel us forward. As we look to the future, the potential for even smarter, more autonomous surveillance systems is immense. What started with a single frame every 17 seconds has grown into an industry now driven by edge AI, computer vision, and predictive analytics.

Moore’s Law is alive and well, fueling the rapid advancements that we are seeing today. As we enter the next 30 years, the possibilities are more exciting than ever.

This article originally appeared in the November / December 2025 issue of Security Today.