According to a new report from Omdia (formerly IHS Markit), the global market for do-it-yourself (DIY) security cameras is expected to grow by 80 percent by 2024, which the research firm said is attracting new competitors and thereby challenging the market’s current leaders.
Worldwide revenues for these cameras are projected to reach $3.6 billion in 2024, up from $2 billion in 2019, while the related market for video doorbells is projected to rise to $750 million, up from $492 million last year.
“Brands such as Wyze, Xiaomi, Hikvision and Ring have quickly risen through the ranks to threaten Arlo and Nest as the market leaders in terms of unit shipments for standalone network cameras,” Blake Kozak, principal analyst at Omdia, said in a research note. “Due to its competitive camera pricing, Arlo remained in the top spot as of 2019. However, the company’s status will be further tested as competition intensifies in 2020.”
Historically, Kozak said that Nest and Arlo have been the market leaders in standalone DIY network cameras. In the U.S. in 2017, for example, Arlo had a 31 percent market share of global unit shipments, while Nest held a 10.2 percent share. However, as of 2019, Arlo’s share dropped to about 26 percent and Nest to 8.9 percent.
Newer competitors are also undercutting the pricing of established market leaders and the initial manufacturer’s suggested retail price (MSRP) is also playing a major role in the erosion of the top-players’ market shares.
Moreover, Kozak said that brands such as Swann, Lorex and Night Owl are starting to offer advanced features such as facial recognition, auto-tracking and battery-operated cameras that pair with network video recorders (NVRs).
According to Omdia, product differentiators in 2020 likely will include new features such as enhanced color-night vision, audio analytics, edge-based analytics and agnostic storage options, such as the cloud, secure digital card (SD) or network-attached storage (NAS). Many more brands are also expected to join Apple’s Secure Video, which will offer a secure and less expensive alternative for video storage compared to many options available today.
For more information about Omdia's "Consumer & DY Video Surveillance" report, click here.
