- IP video surveillance equipment seems to pass the first introduction phase and starts to enter the growing stage.
- It is now into the critical high growth stage where the benefits of years of investment are there to be won.
- Over the next 2 to 3 years, IP camera market will also start to experience more and more competitions over the price, especially from the manufacturers in China, Taiwan and Korea.
According to IMS Research's latest analysis report, surveillance is expected to grow in 2012 and the growth in network video surveillance equipment sales is forecast to exceed 25 percent in 2012.
If we simply divide IP security product life cycle model into introduction, growth, maturity and decline phase, IP video surveillance equipment seems to pass the first introduction phase and starts to enter the growing stage.
Products in their growth stage mean they have gained much public awareness and expect high sales volume. It also implies the fierce competition begins to start, leading to price decrease. 2012 to 2013 will be the years to see the critical growth of IP video security products. In the following, we interviewed some major IP Video companies to comment on the IP video security product cycle.
Ray Mauritsson, CEO, Axis Communications
It actually depends on which country or segment of the market that you look at. As the global penetration today is estimated between 30 and 40 percent, I think it is safe to say that we are past the introduction phase and now in a growth phase.
Katharina Geutebruck, CEO, Geutebruck
Geutebruck has been increasingly active in the IP and network-technology field since 2000. This I would say is still an emerging market segment. Looking at camera systems in particular, I would say that we are still in the growth phase. This is a market segment which is growing faster than the market as a whole.
Marcus Kneen, CEO, IndigoVision
We are past the early-adopter stage, and also past the stage of technology not living up to expectations. So it is now into the critical high growth stage where the benefits of years of investment are there to be won.
Lars Thinggaard, CEO, Milestone Systems
Market-wise if you look at research analysts' reports on IP technology uptake versus analog equipment use in the security industry, you will see anywhere from 20 to 35 percent of revenues coming from IP in recent years, depending on the region. This analysis should also be split into low to high-end and small to large installations because size of implementation and requirement complexity definitely affect decisions on whether to use analog or IP. The bigger and more comprehensive the project, the more they need and want open platform IP video surveillance advantages and a solution with more sophisticated functionality.
In contrast, the analog offerings in the security industry are in their low-growth phase, past maturity for their product development, and widely recognized these days to be a ‘sunset' technology headed towards its end of life. IP video surveillance and especially open platform solutions are still on the upswing of the high-growth phase.
Alexander Fernandes, CEO of Avigilon
The IP-based video surveillance market is at the beginning of its high growth phase. Analysts project that the video surveillance market will grow to $29 billion in 2015 and the majority of that growth will come from IP-based solutions. They predict that over the next two years we'll see IP-based solutions start to ramp up and overtake analog. It's an exciting time for us, since we are the company to build an HD system from the ground up. Most systems are based on analog technology or are upgraded analog solutions. Our company was built for this transition in video surveillance.
William Ku, Director of Brand Business Division of Vivotek
“IP-based products are in their high-growing phase according to demands of recent projects worldwide. Nowadays there is a lot less demand for analogue products for big projects. Analogue products sell like a consumer product, which always exists in some low-end and price-sensitive markets. Comparatively, IP-based products still cost more to make at this point of the product life cycle, not like analogue products, now in their mature product cycle phase. But, definitely, due to the development of semi-conductors, IP-based products will become more affordable within the next stage of the product life cycle. It forecasts, over the next 2 to 3 years, IP camera market will also start to experience more and more competitions over the price, especially from the manufacturers in China, Taiwan and Korea.”