Analyst: Many vendors to phase out production of standard resolution cameras

IMS Research analysts discuss security market trends at ISC West


Many security manufacturers are expected to phase out production of their standard resolution surveillance camera lines over the next 18 months, according to a presentation from analysts with IMS Research at ISC West on Thursday.

With the explosion that the surveillance industry has seen recently in the development of megapixel and high-definition cameras, Gary Wong, senior research analyst for video surveillance and VCA at IMS Research, says that the cost of producing a VGA network camera versus a HD network camera are now negligible.

"HD has produced a tangible benefit to migrate to IP," Wong said.

While the industry's continued migration to IP video solutions is expected to continue, Wong said that more than 60 percent of sales in North America in 2010 were of analog products. However, Wong said that sales of network products are expected to surpass analog by 2014. The surveillance market as a whole was estimated to be worth $ 2.8 billion in 2010 and is expected to exceed $3.9 billion by 2014.

The surveillance market in North America is still highly fragmented when it comes to market share. According to Wong, the top 15 manufacturers only accounted for 52 percent of sales revenues in 2009.

Regarding short term trends, Wong said that the industry will continue to see a boom in HD and megapixel technology, as well as the proliferation of HDcctv Alliance products (HD over coaxial cable) and edge-based storage. IMS expects VSaaS (video surveillance-as-a-service) platforms and commercial thermal video surveillance solutions to be market drivers over the mid-term. Looking further ahead, Wong said that 3D video surveillance and analytics could become more widely adopted.

While it's not growing at the rapid pace of the video sector, the North American access control market is still expected to increase from nearly $600 million in 2010 to $750 million by 2014.

According to Paul Everett, research director for access control and fire & security at IMS Research, the future of the access control market in the U.S. and North America will depend on the flexibility, scalability and integration of systems.

As with video, the North American access control market is fragmented with five companies accounting for 45 percent of 2009 revenues. Though the Americas currently make up the largest segment of the global access control market, Everett said that the region will soon be overtaken by the Asian market.