After a minor fall in 2009 due to the global economic conditions, the video surveillance equipment market has returned to healthier levels and is improving.
Boosted by 2011 sales, the market has witnessed the rise of the IP camera, which is about to overtake the long-established analog camera in revenues. As a result, new NPD In-Stat research forecasts that video surveillance semiconductor revenues will approach $3.5 billion in 2015.
"The years 2011 to 2015 will continue to show increased competition and opportunity for chip sales to surveillance video equipment makers, as semiconductor vendors see new specifications and more demand for surveillance video cameras and associated digital video recorders/network video recorders. Like digital still cameras, competition, semiconductor price erosion, and the rise of consumer-priced camera volumes shipped, will in time reduce the number of surveillance equipment makers," said Max Baron, Analyst.
NPD In-Stat research also found that:
• Revenue from analog cameras, IP cameras, digital video recorders/network video recorders (DVRs/NVRs), and IP encoders will grow to $16.4 billion in 2015.
• Semiconductor vendors will continue to take advantage of opportunities in sensors, processors, and system security.
• By 2015, analog camera unit shipments will still be five times greater than IP cameras.
• Asia Pacific continues to employ less expensive analog cameras, but the larger unit shipments more than make up for the lower prices.