Report: Analog video surveillance dominates consumer security market
IMS Research forecasts that the consumer security market will not see a significant revenue transition from analog to network video surveillance equipment in the next five years.
Analog security cameras accounted for 87 percent of total camera shipments in the consumer and DIY video surveillance markets, according to a recent market report from IMS Research. The research notes that, unlike the professional market, the consumer market is not predicted to see a significant revenue transition from analog to network video surveillance equipment in the next five years.
According to IMS Research, the reasons for this are twofold: First, in a highly price-sensitive market, consumer network cameras are, on average, double the price of analog cameras. Second, many of the major suppliers to the consumer market are primarily focused on analog equipment and have comparatively small ranges of network products.
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“Consumer analog video surveillance equipment is primarily sold bundled as a complete system containing at least one camera and a DVR," comments Josh Woodhouse, IMS market analyst and the report's author. "Conversely, network cameras largely are not available in four or eight camera bundles. While consumer network security equipment offers some interesting solutions, it is often not an equivalent product to analog equipment. Typically, network cameras appeal to a different type of end-user who initially installs a single camera to monitor a particular area of their home.”
The report, entitled Consumer and DIY Video Surveillance Equipment - World 2012, notes that, despite a difficult retail climate, the consumer market for video surveillance equipment has continued to perform well, with double-digit growth forecasted for both analog and network product categories.
“Many retailers stocking video surveillance equipment realize it is a growing category that has not yet reached saturation," concludes IMS's Woodhouse. "The faster growth seen in network equipment has not cannibalized sales of analog equipment; there is still organic growth in both product lines. For standard multiple camera installations, analog offers a cheaper solution complete with many of the functions available from network equipment. Analog bundles will remain fit for purpose for many consumers in the future.”
Learn more about the report here.
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