Market analyst IHS has issued its fifth annual White Paper on the key trends for the video surveillance industry. Niall Jenkins (research manager, video surveillance and security services at IHS) states that 2014 is all set to be another exciting year for the industry with big data, thermal cameras, embedded audio capabilities and the rise of the cloud in China just a few of the trends to watch out for during the next 12 months.
1. Video Surveillance: The Star Markets for 2014
IHS has been researching the video surveillance equipment market for more than ten years. During this time, the market has grown quickly, most years at a double digit rate.
The year 2014 will be no exception. IHS forecasts that the global market will grow by more than 12%. Within the global market, IHS has identified fixed-dome and 180/360 degree network cameras as the fastest growing product segments, and the city surveillance and utilities/energy sectors as the vertical markets to watch.
2014 is all set to be another exciting year for the CCTV sector
2. Big Data: Crowd Sourcing Video Surveillance and Social Media Analytics
The prevalence of smart phones with cameras and Internet connectivity in tandem with social media apps such as Vine and Instagram has led to the first ‘crowd sourced’ data collection for an investigation in 2013 (following the Boston Marathon bombings).
Now that this trend has begun, IHS predicts it’s likely that police forces will increasingly request – and need to manage – crowd-sourced video surveillance data. While this will allow law enforcement agencies to react more quickly, especially with the use of social media monitoring, it will also create data analysis and manipulation challenges.
Meeting these challenges will provide systems integrators and software vendors with a new opportunity to create solutions that improve police incident responses in 2014 and beyond.
3. Cloud-Based Video Surveillance Opens Markets in China
In China, the concept of the cloud is becoming increasingly popular, particularly so as the telecom infrastructure matures. As network bandwidth improves and network product pricing declines, cloud-based video surveillance solutions are drawing the attention of more suppliers.
While a cloud-based solution isn’t a compulsory choice, it does represent a great opportunity to leverage the massive demand for civil video surveillance.
With more attention and an increasing customer base, IHS predicts that cloud-based video surveillance solutions will be defined by the value created in the applications they offer to customers. With more than one billion potential users in China, getting the right mix of product and security features will be a successful combination.
4. Thermal Cameras Hit the Commercial Market
IHS forecasts that the video surveillance product market that will see the largest average selling price (ASP) decline during the next few years will be the un-cooled thermal camera market.
While the number of un-cooled thermal camera units shipped to the commercial security industry suggests that the market has not yet been commoditised, increased competition, new products and new end user markets will mean 2014 is a breakthrough year for the technology.
IHS predicts it is likely that police forces will increasingly request, and need to manage, crowd sourced video surveillance data
5. Panoramic Cameras: Providing the Full Picture
The big video surveillance camera category winner in 2014 will be 180/360 degree panoramic network cameras, with global unit shipments forecast to increase by more than 60% year-on-year.
In particular, the cameras are predicted to gain market share in verticals such as retail, airports and casinos where monitoring wide indoor areas is a key requirement of the video surveillance system.
6. Power over Ethernet: Watt’s the Story?
As the transition towards network video surveillance continues, increasing focus is being placed on the supporting network infrastructure. A crucial element of this is power.
Recent developments in Power over Ethernet (POE) standards and products make the technology a much more viable option for security managers. Looking forward, IHS expects that security camera manufacturers will expand and develop their portfolios of low-powered cameras to conform to the POE+ standard.
Technologies that overcome the distance limitations of Ethernet and POE also will find general market acceptance.
7. Is it Time for a Different View on Live Video and Mobile Access?
Following the events of the school shooting in Sandy Hook 12 months ago, there has been renewed focus on the idea of facility security managers securely sharing live video footage with law enforcement in the event of an incident.
The technology needed to provide this already exists, yet issues over ongoing cost – and, more importantly, who pays for the system – have meant that market penetration has been limited.
However, with costs dropping and a refocus on protection of assets of both the physical and human kind in the post-Sandy Hook era, 2014 could be the year where live streaming of video surveillance to law enforcement becomes the norm.
In 2014, the market for video surveillance devices with chargeable VCA will remain a viable market in applications where the end user needs advanced reliable analytics
8. Video Analytics Market Reaches a Fork in the Road
For some time now, video surveillance device vendors have been embedding low-end video analytics applications in their devices and offering them as ‘free’ features. A question has therefore been raised: ‘Will there continue to be a market for video analytics, or will all applications simply be offered for free?’
As the market reaches this fork in the road, it’s clear that vendors can no longer charge for basic algorithms. That said, in 2014 the market for video surveillance devices with chargeable VCA will remain a viable market in applications where the end user needs advanced reliable analytics.
9. Security Cameras to Make Some Noise in 2014
More than 70% of network cameras shipped globally in 2013 had either unidirectional or multidirectional audio capability. However, the consensus from security systems integrators is that these capabilities are rarely used.
Nonetheless, with increasing awareness of embedded audio analytics and even sound source localisation, market penetration could be about to rise.
With much of the technology already available and the constant need to differentiate products and increase system efficiency, IHS predicts that the market will see greater emphasis on the audio capabilities of video surveillance systems in 2014.
10. Video Surveillance Vendors to Enter New Markets
Contrary to popular belief, the physical security market is not consolidating, at least not in the near future. However, video surveillance vendors are beginning to look at new markets as they invest the profits made from years of fast market growth.
Following the announcements of new products from companies like Milestone Systems and Axis Communications and new services from Hikvision and Dahua during 2013, IHS expects this trend to continue into 2014 with more new product and service announcements from network focused security companies as they seek to add new revenue streams to their portfolio.