The transition to true IP systems will take several years. The latest statistics indicate network based systems comprise approximately 12% of the video surveillance market in the United States and this is projected to grow to approximately 45% by the end of 2010.
Schafer: Probably about 20 percent. Analog systems certainly have a big following. For years people have been deploying analog with a high degree of satisfaction. They know how they work. They are driving the business utility that they want out of them. There is going to be a long term market for them. As you move into the hybrid world, that is really important too because that is a way to get some of the advantages of the digital or IP system and not have to walk away from the investment of the system in place already.
Forest : We consider that currently 95% of systems being sold today are hybrid video systems because they use analog cameras on the front-end and digital recording on the back-end. This is true for the majority of IP-based systems as well as all systems that use analog cameras recording on a DVR. Hybrid video systems will represent at least half of the install base for the next two years.
Hauhn: IP remains a very small share of the video market because its adoption will be a typical technology transition. It started with analog and moved to hybrid systems driven by the DVR craze of a few years ago. Early adopters started using the latest hybrid systems which consist of limited number of IP video streams. As cost of IP cameras come down, use will accelerate and consequently the market share will start to grow quickly.
Brady: In what markets is IP video making the greatest inroads? How can dealers capitalize on selling IP to these clients?
Whitcomb: IP video will make the greatest inroads in industries with existing network infrastructure, e.g., schools, hospitals. VoIP has completely changed the cost structure of phone systems and IP is doing the same thing in video surveillance.
DeFina: We have identified a number of “power zones” that reflect markets and areas of application where we see the greatest IP video growth potential. Specific power zones include education, mass transit, building management/operations and healthcare. Additionally, the IT sector continues to be a significant area of interest as convergence connects infrastructure networks and video surveillance. Dealers have tremendous opportunities to expand their businesses by cultivating these new market opportunities with IP-based video solutions. To do so, dealers need to stay attuned to the latest technologies available to them—most specifically network technologies—so they have the tools on-hand to provide their customers with security solutions that deliver performance, value and low cost of ownership over time. As the industry continues to move toward IP-based systems, dealers need to be moving in the same direction.
McClean: At the moment, IP is best suited to small numbers of cameras which are located remotely such as the far side of a parking lot or cameras deployed on freeways or in a remote office. Here the benefits of leveraging an existing network such as the Internet or wireless technologies such as cellular LAN's outweigh other options on cost. IP also allows for higher resolution video.
Abram: We have seen an influx of activity for IP cameras in several markets where video surveillance has always been considered, but not implemented for various reasons—primarily because of the cost factor. A perfect example is the education market; a market that employs networks on a rather extensive basis for other than security purposes. As they look to implement video surveillance systems—many from the ground up—they are seeking cost-efficient and versatile means of monitoring their facilities. The timing for IP cameras is perfect in this growing market.
Casinos are perfectly primed for IP camera networks despite the control and switching issues they need to address. As both new and existing casinos continue to get larger, the need to move and reassign cameras becomes essential, and ideally suited for networked cameras. This coupled with the progressive prospective casinos have regarding technology, is resulting in early acceptance of network based systems.