Research: Video Surveillance Market Showing Limited Growth In 2009

The video surveillance market is showing limited unit growth in 2009, but still seeing revenue declines as the weak economy takes its toll. However, the impact is greater in some segments than others, according to market research firm, In-Stat.

Due to their higher cost, IP cameras will see a large slowdown in 2009 shipment growth. As the NVR segment is tied to IP camera shipments that area will be impacted as well. Meanwhile, stimulus programs are actually increasing surveillance equipment shipments in select applications.

“In-Stat sees DVR channel shipments growing faster than camera shipments, with hybrid DVRs that can connect to both analog and IP cameras increasing at the highest rate,” said Michelle Abraham, In-Stat analyst. “We expect the overall market to return to growth in 2010.”

Recent research by In-Stat found:

  • After a decline in 2009, revenue from analog cameras, IP cameras, DVR/NVR and IP encoders will grow to $19 billion in 2011.
  • Video encoding for DVRs, IP cameras, and IP encoders is moving to H.264 from MPEG-4 part 2. This is enabled by more powerful ICs able to encode multiple streams of H.264 on a single IC.
  • As pricing comes down, the attach rate for video analytics in video surveillance equipment will increase at a fast pace.
  • Semiconductor revenue for the video surveillance equipment will be stable through 2013, with lower average selling prices offsetting shipment growth.

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