Global IP cam and VCA market to reach $5.8B by 2017, MarketsandMarkets says
MarketsandMarkets | Date:
According to a new report “Network Camera and Video Analytics Market - Global Forecast , Trend & Analysis (2012 - 2017) " published by MarketsandMarkets, the network camera and video analytics market, on the whole, is expected to reach $5,760.27 million by 2017, at a CAGR of 22.4% from 2012 to 2017.
The global video surveillance market has changed dramatically over the years. The need for intelligent security systems, counterterrorist efforts, dwelling infrastructure and efficient investigations of criminal activities has fueled the demand for reliable and intelligent security systems. Video surveillance is rapidly changing from analog to digital systems, stand-alone solutions to networked implementation and growing array of complex video analytics. The advantages of surveillance systems over physical, manned security such as the ability to allow remote monitoring have resulted in wide deployment across the world.
Network camera and video analytics are only two components of video surveillance that are growing faster than the overall video surveillance market. The potential to boost efficiency levels of video surveillance, facilitate reduction of human intervention, and achieve related cost savings is encouraging the adoption of these two products.
The key factors driving the network camera market are the need for higher resolution; reduction of TCO backed by government investments, and increasing demand from nonsecurity applications. On the other hand, the network camera market growth is hammered by factors like high-bandwidth requirements and lack of data privacy. Embedding edge-based video analytics into network cameras could add a competitive advantage to network camera manufacturers. The global network camera market is estimated to be worth $1.85 billion in 2012 and expected to reach $4.5 billion in 2017, at a CAGR of 19.5% from 2012 to 2017.
The global network camera market is evenly distributed across various geographies. As of 2011, Americas led the suppliers segment with share of 30% in the year 2011. However, APAC is expected to grow at a relatively higher CAGR during the projected period.
The key factors driving the video analytics market are the transition of video surveillance from analog to network (digital), emergence of open standards, and increase in the efficiency of system components; inhibitors include system complexity, higher cost of maintenance and occurrences of false alarms. Opportunities in nonsecurity applications, such as entertainment and visual communication, are considered lucrative. The global video analytics market is estimated to be worth $250 million in 2012 and expected to reach $1.26 billion in 2017, at a CAGR of 38.6% from 2012 to 2017. The video analytics market is expected to be led by Americas during the projected period. However, APAC is observed to grow at the highest rate. This is primarily due to the growth of technology, increasing awareness about network video surveillance, and market maturation.