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INSIGHTS

IHS research note: Avigilon acquires more video analytics patents

IHS research note: Avigilon acquires more video analytics patents
This comes around a month after it acquired all of Objectvideo’s patents and licensing agreements. Avigilon is a major supplier of video surveillance equipment. Objectvideo supplied patents and licensing agreements for video content analysis software.

This comes around a month after it acquired all of Objectvideo's patents and licensing agreements. Avigilon is a major supplier of video surveillance equipment. Objectvideo supplied patents and licensing agreements for video content analysis software.

Our Take
Avigilon has grown quickly in recent years to become the eighth largest supplier of network video surveillance equipment. It is one of the few Western companies to have gained share in 2013 in the face of fierce price competition from Chinese competitors.

These purchases are a shrewd move by Avigilon. A major challenge for video surveillance equipment suppliers is ensuring that their solutions continue to have unique features versus the competition. Competing on price simply leads to lower margins. Offering solutions that include advanced video content analysis software is one way to differentiate these solutions from the competition.

It is forecast that shipments of embedded VCA recording channels (free and charged) will increase by an average of more than 70% a year over the next few years.

An increasing proportion of video surveillance devices are forecast to feature embedded video content analysis (VCA) software. In some cases, it will be offered as a free feature. In other cases, there will remain a charge. However, it is forecast that shipments of embedded VCA recording channels (free and charged) will increase by an average of more than 70% a year over the next few years. Many different video surveillance equipment vendors will supply them. Avigilon now owns the patents for many of the algorithms supplied. It therefore has great power to dictate the terms of supply to the very companies with which it competes.

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