In the latest Research Note to be produced by market analyst HIS, principal analyst Jon Cropley provides information on current trends in the market for video surveillance equipment.
According to recently published estimates issued by the Video Surveillance Intelligence Service (VSIS) at HIS, the world market for video surveillance equipment grew by almost 7% in 2013.
The VSIS also reveals that the ongoing transition from analogue to network equipment accelerated last year, with revenues from network solutions higher in all four major world regions analysed (ie the EMEA, the Americas, China and Asia).
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 network equipment at the expense of analogue.
Global video surveillance equipment revenue in 2014 is expected to rise to $15.0 billion, up from $13.5 billion in 2013.
IHS has just added new global and regional market statistics, forecasts and market share estimates to its Video Surveillance Intelligence Service.
Key findings about the video surveillance market
In addition to the trends above, other key findings include the following observations:
• 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, last year the market for network cameras was much larger than the analogue camera market. However, unit shipments of network cameras are not forecast to exceed those of analogue 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 15 largest suppliers only accounted for just over half the market in 2013
• Although declining, shipments of analogue cameras and DVRs will remain high throughout the forecast period