Clearly, as processing power improves, we will see both analytics on the server and at the edge (in the camera). The winners will be those who partner with the best-in-class analytics providers and open-based systems. Having analytics run on the edge scales better, so I expect that most future analytics will happen there by feeding the VMS with either Metadata or alerts. Crucial to the success of analytics companies is that they have the end-user in mind through the entire development process, as opposed to bundling fancy analytics with every camera and hoping the installer sorts it out. Yet again, Apple is on to something with the AppStore model. Expect the surveillance market to follow.
Industry verticals and trends in society
Today, we see most surveillance cameras in retail. As network cameras continue to improve, integrators and their users will discover many more applications. City surveillance, transportation and healthcare verticals will experience increased growth as surveillance systems enable better operational efficiencies. The residential market is another to keep an eye on. While many have tried selling cameras to homeowners, I expect that this will become a larger vertical thanks to hosted video.
We will see more regulation on how the video is used, but less on where cameras are placed. The cost of deploying cameras systems will fall mainly in the storage and installation sides, but also likely with respect to software. Given the overall industry growth and new applications, we we will see more cameras in new vertical markets where we never expected them.