High growth for China's encoder market

New data from IMS Research indicates an explosion in the Chinese market for video encoders (a.k.a. video servers) used in video surveillance applications. According to IMS, the Chinese market for these devices grew by some 60 percent in 2007, and IMS' research suggests that the market for these encoders will continue to grow strongly, and will be greater than $150 million by the year 2011.

The research is part of a new report, "The Chinese Market for CCTV and Video Surveillance Equipment." In the report, the authors note that the video encoder market growth is directly linked to general growth in IP-based video surveillance systems in China.

"For users of analog video surveillance systems, video servers represent a cost-effective upgrade since their existing analogue cameras can be re-used while they still get the benefits of a networked security system," said IMS Research's Richard Jun Li, in explaining the encoder market growth. "Furthermore, in China it is often more cost-effective to use a combination of a video server plus analog cameras, rather than network cameras, since analog cameras are so cheap. Besides, network cameras are still new to system integrators in China; so they tend to recommend video servers to end-users who are looking for a network video surveillance solution."

According to IMS, Chinese integrators are quickly learning and deploying the networked video technology.