Semiconductor market to surpass $2B by 2012

According to a recent research report by Multimedia Intelligence, the market for video surveillance semiconductors will surpass $2 billion by 2012.

The increase in the market is attributed to top-line unit growth in the surveillance market and an ongoing shift to digital and networked solutions.

The study also found that :

• Competition between semiconductor companies, such as Texas Instruments and Techwell has significantly increased in recent years and that new companies, including Aptina, NextChip, OmniVision, PentaMicro, Pixim, and Stretch have carved out a niche for themselves in the market.

• Manufactures are producing more high resolution and IP cameras, but network bandwidth and storage capacity are constraining their proliferation in the surveillance industry.

• Compression technology, such as H.264, continue to increase in popularity and will offset the bandwidth and storage capacity problems for high resolution cameras.

• PoE is becoming a required feature for new IP cameras.

"The key drivers for the market are the overall growth of the video surveillance… and the transition towards a digital solution or network based surveillance solution," said Multimedia Intelligence President Mark Kirstein. "Basically, what you get is hyper growth in that segment albeit from a small base, but still good double digit growth in that segment and you have a higher semiconductor content in a IP camera compared to a traditional CCTV camera. Semiconductors also benefit from the growth of the DVR market which has been growing for a number of years as well."