Why the market has already tipped to IP

Network camera sales outpacing analog in new project deployments across the US, Europe

- Less than 10 megapixel camera manufacturers total
- A real debate if H.264 megapixel would actually work
- Very limited form factors for megapixel
- Expensive pricing for megapixel cameras (typically $700+)

Today, just 3 years later,

- Nearly 100 manufacturers are offering Megapixel IP
- H.264 Megapixel is ubiquitous
- Various form factors, size and product options are available for megapixel IP
- $300 - $500 pricing for MP IP is common

H.264 megapixel cameras tipped the market to IP. The advantages over analog were obvious and compelling. This was certainly not the only advantage that IP cameras / VMS software offered but was the most powerful and recent one. As we examined in a report, justifying megapixel vs SD has become fairly easy.

The Many Definitions of Tipping

We focus on new project sales because this has the most practical impact on real world decisions. However, there is no absolute 'right' metric for defining a market's tipping. For example, if the metric selected was the year when more cameras deployed in the field were IP than analog, the tipping point might not be until 2020 or 2025 as it will take years to cycle out all the existing legacy analog cameras. You could then argue that IP will not be a significant force for more than a decade. However, that would be ridiculous as it completely misses the shift in new buying and selling decisions.