What Is The Analog To IP Camera Install Base In The US SMB Market?

Is it 80:20? I'm interested in SMB market data alone. Is there any public data available? Do share your thoughts.

Updated with additional query - Since finding data on installation based might be difficult, for all new installations in SMB can we safely say 80% IP cameras with NVRs? Is that too high?


"For all new installations in SMB can we safely say 80% IP cameras with NVRs?"

I think that's very high / optimistic.

Taking a step back, it depends on what you mean by SMB. I generally think / categorize SMB to be 4 - 24 cameras, bigger than a home user but generally just 1 or 2 recorders at most. With that in mind.

In the US, the big box providers (like Costco) are major players for SMB. Most mom n' pop restaurants and independent stores I see use Costco type kits and they are almost all analog, primarily since the big box providers do not regularly stock IP on the shelves (which price is a big factor in).

If I had to guess for 2015 market breakdown, it would be more like 10-20% IP (in terms of units). The big trend in SMB is moving to HD analog. Not because the SMB customers know or care about specific technologies but because the suppliers are seeing that customers do want HD, with a simple install, and that HD analog is a much better route to delivering that.

Related IPVM research:

Not because the SMB customers know or care about specific technologies but because the suppliers are seeing that customers do want HD, with a simple install,

Wait... you mean Todd was right all along?!

and that HD analog is a much better route to delivering that.

Hmmm, or maybe not ;) Strangely, I don't see any mention of "zero latency" on any of Costco or Best Buy's ad copy.

We are all Todd now....

Zero latency is certainly not the core value proposition.

My main counterargument against HDcctv (i.e. HD-SDI) was always price (too high, too close to IP). It's now HD Analog's super low pricing that has enabled the breakthrough. Most people don't love (or hate) coax but a lot love $50 1080p cameras.

Thanks John. If we include 24-50 camera sites also as SMB, would this tilt more favorable to IP?

Yes, systems of that size typically have more complex requirements (multiple recorders or multiple camera brands or even some third party integration, etc.) and use professional integrators. That's where you are more likely to see IP camera / VMS systems.

That said, those are definitely not 'small' for surveillance users or regular businesses. An organization with 40 cameras is almost always medium size or larger.

Two 8 camera mom & pop retail facilities: 100% analog, over the past five years.

Why? My opinion: the paupacity of clear information within the security industry.

Initial facility was set up by ADT in 2010. They recommended and installed analog. Nobody ever went wrong hiring IBM, right?

For the second facility, we reached out to a well regarded local security company who recommended Mobitix and came in at about $18K. Analog, while obviously less capable, came in at $6K. What absolutely wonderful capabilities would I get for that additional $12K?

Then I joined IPVM. There's an amazing world of information out there, for layman and professional alike :)

I agree, IP cameras have a ton of useful features... which are unfortunately going to be underutilized in many SMB sites.

In that small of site we're seeing downwards pressure on pricing quite a bit due to Costco equipment, HD analog, and yes, there are still SD analog systems being installed. Not everyone needs SNMP, advanced VMS features, analytics, etc. If a customer will not take advantage of the advanced features that IP cameras offer there is no need for them. In the SMB market the only killer feature that requires IP is 3 MP and above resolutions. Some customers just want video. A large portion of the SMB market falls in that demographic.

You will find that historically speaking, IP was making a push into the SMB market and getting closer to 50/50, but then analog HD arrived and slowed that growth. We currently are doing more HD-CVI installs than any other type. We have not installed an SD system for quite some time now, as HD-CVI has not only replaced low end IP (read no VMS, just cheap NVR), but also has completely removed the need for an SD analog product in our lineup.

Please note this is just my personal, anecdotal info and shouldn't be taken as gospel.