Subscriber Discussion

World Market For Video Surveillance Storage

AM
Allan McHale
•Jul 26, 2018

A recent article in IPVM quoted an IHS statistic of $1.7Bn for the market for external storage systems (SAN, NAS and external DAS) used for storing video surveillance data in 2017. I assume this is just hardware at factory gate prices, are you able to confirm this? Even then it looks rather small but maybe the move to VSaaS is having a much bigger impact.

I understand that server hardware and basic software costs represent only a small part of the total cost of ownership, possibly accounting for only 15 to 25 percent of the overall costs associated with installing, maintaining, upgrading and supporting a dedicated server.

JH
John Honovich
•Jul 26, 2018
IPVM

IHS standard is to use factory gate prices.

$1.7 Billion seems pretty reasonable, if not big to me, considering that this is for external storage and most video surveillance systems (by deployment) use only internal storage (NVR, DVR, single server, etc.).

Surely, there are many big systems with large SANs deployed (e.g., those who use Pivot3 or EMC or DDN, etc.) but that it still a minority of the market.

AM
Allan McHale
•Jul 26, 2018

So if evaluating the total size of the storage market at hardware prices $3.4Bn would be excessive

JH
John Honovich
•Jul 26, 2018
IPVM
In reply to Allan McHale

You mean the end user price? It depends how much it get marked up through the channel. If you are implying a doubling, I would think that is too high for external storage.

JH
John Honovich
•Jul 26, 2018
IPVM
In reply to John Honovich

From Allan:

No - I was combining the external storage with on site storage through Pivot3 or EMC or DDN, etc

I think you are double counting then.

IHS says:

The market for external storage systems (SAN, NAS and external DAS) used for storing video surveillance data is estimated to have been worth $1.7 billion in 2017.

To me, Pivot3, EMC and DDN would fall under 'external storage system', i.e. Pivot3 is external to the VMS or NVR.

Also, from that IHS note, worth emphasizing the role of China:

As with the video surveillance equipment market, the largest regional market for these storage systems is China. Here, government investment in safe city programs and expansion in underlying IT infrastructure under planned economic policies such as the “Xue Liang” program have driven China to account for the majority of market revenues and capacity. Many of the Chinese domestic video surveillance vendors are addressing this demand with their own “IP SAN” systems which are installed in regional surveillance datacenters.

Excluding China, I am also certain that the rest of the world spends less than a billion annually on 'external storage systems' for video surveillance.

UM
Undisclosed Manufacturer #1
•Aug 27, 2018

Any idea what is the split between DAS/SAN/NAS out of the billion $ (i.e. excluding China)?

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