Revenues from the sale of video surveillance equipment globally are expected to rise to $15 billion in 2014, up from $13.5 billion in 2013, according to IHS.
The market research firm said on Thursday that the world market for video surveillance equipment grew by almost seven percent last year and that the ongoing migration from analog to IP also accelerated, with revenues from network equipment being higher in all four major world regions analyzed (Americas, China, ASIA, and EMEA).
“IHS forecasts that the pace of transition will continue to be rapid in 2014 and 2015 before slowing slightly from 2016 onwards. In the next two years, a number of major vendors will continue focusing their efforts on their network equipment at the expense of analog,” said IHS Principal Analyst Jon Cropley.
Other key findings from IHS’ Video Surveillance Intelligence Service include:
- A number of Chinese suppliers are estimated to have gained market share in regions outside China in 2013. They tend to offer products with low prices and this has been a major factor in high average price erosion in those regions.
- China is estimated to have been the largest regional market for video surveillance equipment, accounting for a third of global revenues in 2013.
- In terms of revenues, the market for network cameras was much larger than the analog camera market in 2013. However, unit shipments of network cameras are not forecast to exceed those of analog cameras until later in the decade.
- Forecasts for network cameras with 4 megapixels and above have increased. Growth in demand for 180/360-degree network cameras and 4K cameras is a major reason.
- The supply of video surveillance equipment remains highly fragmented. The fifteen largest suppliers accounted for only just over half the market in 2013.
- Although declining, shipments of analog cameras and DVRs will remain high throughout the forecast period.
For more information, visit www.ihs.com.