IP surveillance camera market small, but booming

MultiMedia Intelligence reports that the market for IP/Networked video surveillance cameras grew nearly 50% in 2007, to approach $500 million worldwide. This growth is nearly four times the growth rate of the broader video surveillance equipment market, which also includes CCTV cameras, Digital Video Recorders (DVRs) and Network Video Recorders (NVRs), and IP Encoder/Streamers.

The transition from traditional CCTV surveillance to networked digital surveillance is revolutionary for the physical security industry. Yet this transition is also seen as over-hyped and under-performing compared to many expectations. Both are true.

While IP/networked video surveillance camera units and revenue are growing rapidly, they remain a small percentage of the overall surveillance market. "The outlook for continued growth of IP/Networked video surveillance is strong," says Mark Kirstein, President of MultiMedia Intelligence. "However, the barriers to it overtaking traditional CCTV surveillance will prove enduring." MultiMedia Intelligence's new research also found:

• Growth in the DVR market is slowing. However, both hardware-based and software-based NVRs are emerging as a key growth category.
• Semiconductor opportunities remain strong in DVRs and IP/Networked surveillance equipment. Key categories include video processing/Codecs and image sensors.
• Competition is increasing among IT-oriented companies, new IP/Networked surveillance companies, and legacy surveillance manufacturers. This is driving faster product innovation.
• Educating end customers and the surveillance sales channels about IP/Networked surveillance is vital for sustained market growth.

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