Sales of IP/networked video surveillance cameras grew by 48pc to approach US$500m in 2007, according to analyst firm MultiMedia Intelligence.
The growth is nearly four times the growth rate of the broader video surveillance equipment market, which includes CCTV cameras, digital video recorders and network video recorders, and IP encoder/streamers.
Despite the fast growth, IP/networked video surveillance camera units represent a small percentage of the overall surveillance market at less than 10pc.
However, wireless networks system provider PacketHop last year predicted that IP video surveillance camera revenue will increase to nearly 50pc of the total US$9bn surveillance camera market by 2010. PacketHop predicted the “hyper growth” of the market would boil down to increasing security needs, the development of new applications and technological innovations that enhance the video quality, scalability, ease of deployment and cost effectiveness of IP/networked video systems.
“The transition from traditional CCTV surveillance to networked digital surveillance is revolutionary for the physical security industry,” said Mark Kirstein, president of MultiMedia Intelligence. “Yet this transition is also seen as over-hyped and under-performing compared to many expectations. Both are true.”
MultiMedia Intelligence said the new competitive environment is drastically accelerating product innovation.
By Niall Byrne