Axis on Network Camera Trends

Author: John Honovich, Published on Feb 14, 2009

This report summarizes a presentation made by Axis GM Fredrik Nilsson on the progress and future of IP cameras (presented at the Milestone Partners Conference). As the market leader in IP cameras, knowing Axis' outlook is important to analyzing industry developments. In the premium section, I offer rebuttals and contrasting viewpoints to provide professional's pointers on debated issues.

The bullet points below summarize the key points from the Axis presentation:

  • 2008 was a milestone year for IP video. IP video moved from niche to mainstream as everyone was talking about IP and the incumbent analog manufacturers were advocating IP.
  • 2009 should see another big break as analog sales start to decline for the first time
  • By 2012/2013, IP cameras should be more than 50% of the surveillance camera market.
  • Axis sees the main 3 reasons for IP videos' growth as quality, scalability and in many cases, lower TCO (total cost of ownership).
  • The consumer market is driving technology and helping the growth of IP. Whereas the video surveillance market is about $10 B USD, the consumer technology market is about $700 B USD.
  • Analog video surveillance is based on a 50 year old technology that is not global (NSTC/PAL/SECAM)
  • The rise of H.264 is driving IP cameras, reducing storage and bandwidth r equirements
  • Though H.264 requires more processing on the client side, hardware acceleration for H.264 is becoming increasingly common on consumer graphic cards
  • Bandwidth used to be a limiting factor but is now a driver of IP video with 1GB networks common
  • Mobile networking is still a limitation but in a few years will be a driver
  • Mesh IP networks has improved substantially with vendors now being able to deliver 180 Mb/s per radio
  • High-Power PoE (802.3at) is becoming available which will enable PTZs to use PoE in 2009
  • Storage continues to become cheaper and cheaper; today a 1.5TB hard drive can be bought for $126 USD putting the cost per GB under 10 cents
  • Other storage improvements driving video surveillance include SSD, decentralized storage and server virtualization
  • While analytics have problems with confusion and overpromising (e.g. finding terrorists in stadiums, facial recognition, aggressive behavior and bag left behind), many other analytics are drivers for IP including people counting, perimeter protection, motion detection and active camera tampering
  • IP video benefits from over 50 standards currently: in resolution, compression, wireless, networking, audio, etc.
  • One important standard is missing: for cameras but expect IP camera standards to be available in 2010
  • Axis broke the top 10 video surveillance companies, indicating the strength and power of IP video
  • Like Audi and BMW, IP video will do well in a recession as companies choose products with great value (like IP video)
  • People will not go back to analog just like they would not go back to walkmans or tube tvs
  • While IP video companies growth may shrink from 40-60% down to 20-30%, analog companies growth may drop from 10% to -10%
  • Analog companies shrinking revenue will force many to reduce R&D expenditures which can make the shift to IP video quicker
Whether or not you agree with this outlook, it is very worthwhile to understand Axis' position.

**** ****** ********** * ************ **** ** **** ** ******* Nilsson ** *** ******** *** ****** ** ** ******* (********* at ******************** **********). ** *** ****** ****** ** ** *******, ***********' ******* ** ********* ** ********* ******** ************. ** *** premium *******, * ***** ********* *** *********** ********** ** ******* ************'* pointers ** ******* ******.

*** ****** ****** ***** ********* *** *** ****** **** *** Axis ************:

  • **** *** * ********* **** *** ** *****. ** ***** moved **** ***** ** ********** ** ******** *** ******* ***** IP *** *** ********* ****** ************* **** ********** **.
  • **** ****** *** ******* *** ***** ** ****** ***** ***** to ******* *** *** ***** ****
  • ** ****/****, ** ******* ****** ** **** **** **% ** the ************ ****** ******.
  • **** **** *** **** * ******* *** ** ******' ****** as *******, *********** *** ** **** *****, ***** *** (***** cost ** *********).
  • *** ******** ****** ** ******* ********** *** ******* *** ****** of **. ******* *** ***** ************ ****** ** ***** $** B ***, *** ******** ********** ****** ** ***** $*** * USD.
  • ****** ***** ************ ** ***** ** * ** **** *** technology **** ** *** ****** (****/***/*****)
  • *** **** ** *.*** ** ******* ** *******, ******** ******* and ********* ************
  • ****** *.*** ******** **** ********** ** *** ****** ****, ******** acceleration *** *.*** ** ******** ************ ****** ** ******** ******* cards
  • ********* **** ** ** * ******** ****** *** ** *** a ****** ** ** ***** **** *** ******** ******
  • ****** ********** ** ***** * ********** *** ** * *** years **** ** * ******
  • **** ** ******** *** ******** ************* **** ******* *** ***** able ** ******* *** **/* *** *****
  • ****-***** *** (***.***) ** ******** ********* ***** **** ****** **** to *** *** ** ****
  • ******* ********* ** ****** ******* *** *******; ***** * *.*** hard ***** *** ** ****** *** $*** *** ******* *** cost *** ** ***** ** *****
  • ***** ******* ************ ******* ***** ************ ******* ***, ************* ******* and ****** **************
  • ***** ********* **** ******** **** ********* *** ************* (*.*. ******* terrorists ** ********, ****** ***********, ********** ******** *** *** **** behind), **** ***** ********* *** ******* *** ** ********* ****** counting, ********* **********, ****** ********* *** ****** ****** *********
  • ** ***** ******** **** **** ** ********* *********: ** **********, compression, ********, **********, *****, ***.
  • *** ********* ******** ** *******: *** ******* *** ****** ** camera ********* ** ** ********* ** ****
  • **** ***** *** *** ** ***** ************ *********, ********** *** strength *** ***** ** ** *****
  • **** **** *** ***, ** ***** **** ** **** ** a ********* ** ********* ****** ******** **** ***** ***** (**** IP *****)
  • ****** **** *** ** **** ** ****** **** **** **** would *** ** **** ** ******** ** **** ***
  • ***** ** ***** ********* ****** *** ****** **** **-**% **** to **-**%, ****** ********* ****** *** **** **** **% ** -10%
  • ****** ********* ********* ******* **** ***** **** ** ****** *&* expenditures ***** *** **** *** ***** ** ** ***** *******
******* ** *** *** ***** **** **** *******, ** ** very ********** ** ********** ****' ********.

[***************]

**** *** *** ******** ** **** ******* *** ** *****:

  • ***** ****** ***** *** ******* ** ****, *** ********* ** the **** ** ** ***** ***** ****** ** **** ****** than ******. ** ***** *****, *** ****** *** ******* ** and ****** ** ******** ********* ***** ***** **** **** *** transition ** ** ***** (** ***** ***********) ** ***** ******).
  • ***** *** ***** ** *** ****** ******* *** *** *** transition ** ******* ***** ******, ** ** ********* ******* ******** to ******* **** ** **** ** *** ******** ** **** or ****.
  • ****** ***** *** ** ***** ** * ** **** *** technology *** *** ******* ** ** ***** ****** **** ***** (better **** **) *** **** ***********. ****** ****** ** *** is **** ** ** ******* ****** **** ****** ********.
  • ******** ************ *** ******* ***** ** ********* ****** *** *** average *** ***** **** * **** *** ***. **** *** users **** *** ****** *** ** *********** * ******* *********** for ***** ************ (* **** ******* **** ****** **** ********* in *** *****).
  • ***** ** ** *** ****** ********** **** ****** * ****** in *** **** *** *****. ** **** ********* *** ********* will *** ** ***** *** **** ** ***** ***** **** the *********, ******** **** ****** **** ***** *** *** *********** that ******** ********* **/*/*** **** * ************ ******.
  • **** ******** ******* *** **/* **** ** ************** ******* ******** radios. **** ** *** * ********* ************ *** **** **** use **** ****** *******. ***** **** ** ******** ** ***** applications, *** **** ********* ** *** ******** *** *******.
  • ***** *** ** ************* ******* ** ***** *** **** ********* (6x - ***) **** **** ******. ***** **** ******** ********* reduces *** **** ** *********** *** ** ********* **** **** in ***** ***********. ****, ****** **** ** *** ***** *** providers ******* **-***** *******. **** **** **** ******* ****** *** is * ***** ****** ** *** ****** ** ** *****.
  • ** ****, ** ** ******** ** *** ******** **** **** limited *********** ** ****** *********. *** **** ** ***** *** issue ** *** ********* *********, ** ** ***** ** **** time *** *** ******* ** *** ****** (**** ** ** currently) ** **** ** *** *** ****** *************. **** **** we ** *** ****** ********* ****** *******, ***** **** ** significant ****** **** ******** *** *** ***** ****** *********** **** may *** ** ******** *** *****.
  • ******* ******** ******** **** ** ******* ** *** ***** ********** systems. ***** ** ** ******** *** ********** ***** **** *** systems *** ***** **** ** ********, ****** *** ******* **** have * *** ********* **** **. **** ** ******* **** customers **** * ****** **** ********* ** **** *** *****. Without *** *********, *** **** *** ** ********** **** ** through ***** * ****** *** ******. ** ******, **** ****** the ********* ****** ********.
  • ********* **** *** ** * ****** ****** *** **. **** within *** ********* **** **** ********, ********* *** ** *** centrally ** ******* - ************ ****. ******* * ****** ** DVRs **** ********* ***-******. ****** **** ** ****** **** *** more ******. **** **** ****** *** ***** *** ********* ** move ** ** ***** ****** ******* *** ****** ******** ******* through *** ***.
  • ***** ****** **** *** ** **** ** ******** (******* ******** are ********), ****** ***** ** ***** *** ************ ******** ** sales. **** ***** ** *** **** ** ****** ****. **** can ****** **** **** **** **** *** *** ** ***** existing ****** *******. **** ** * *** **********.
  • *** ******* ** **** *** *** ** ***********. **** **** want ** ** *** ****** ****** ** *** ** ******* or ****** * **** *** ***** ******? **** *** *** are ***** ******* - */*** *** **** ** ***** *** Toyota. **** ********* ** ***** ** ******* ******** **** ** a *** **** ********* ***. **** **** ****** ** ******* far ****** **** *** ****** ** ****** *********. **** ** why * ******** ** ******* **** **** *** ************* ****** and **** *********** ** *** **** ****** ** ***** ****, **** ****** cameras.
Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Importance of Sales To Integrators - Statistics on Jun 23, 2017
One of the top trends in the industry over the past few years has been the rise of across-the-board sales (e.g.: Hikvision Sales, Dahua Sale,...
Covert Cloud Camera Service Launching (KJB) on Jun 22, 2017
Cloud IP cameras, for consumers, has become increasingly commonplace. However, covert cameras, lag there, with few options. Now, North America's...
45 Drives 'Lowest Cost' Enterprise Storage Company Profile on Jun 21, 2017
45 Drives claims the "lowest cost per Hard Drive Slot in the industry." But who or what is '45 Drives'? What started as a product design to...
No Hack, Still Liable, Court Finds ADT on Jun 20, 2017
Recently, ADT has been in the news for a $16 million settlement for a cyber security vulnerability class action suit. One of the most important...
Resolver / PPM 2000 Incident Management Platform Profile on Jun 20, 2017
You might have seen the company whose employees wear hockey jerseys at trade shows and wondered "what do they do?" PPM 2000 has been active in...
Dahua Demotes USA CEO on Jun 19, 2017
Dahua has demoted their USA CEO Tim Wang. Inside this note, we examine the move, Dahua's challenges and what lies ahead for the...
VMS UI - Light vs Dark Preferences on Jun 16, 2017
Several VMS manufacturers have the ability to choose a user interface with either a light or dark color theme. 150+ integrators told us which they...
Panasonic Sells VSaaS Company To Eagle Eye (Cameramanager) on Jun 15, 2017
While many VSaaS companies might hope for one acquisition, Cameramanager has managed to get acquired twice. First they were acquired by Panasonic,...
Mirai-like Botnet Persirai Attacks IP Cameras - Impact Analyzed on Jun 14, 2017
Mirai made headlines in 2016, exploiting weaknesses in cameras, including those from Dahua and XiongMai to create a massive botnet that was used to...
Axis 20MP Q1659 Camera Tested on Jun 13, 2017
Axis has joined the super high resolution camera trend with their Q1659, a 20MP model equipped with Canon's APS-C sensor. We tested the Q1659...

Most Recent Industry Reports

Avigilon Announces RADAR-Based Presence Detector on Jun 22, 2017
RADAR is gaining momentum within physical security. Two months after Axis announced a network radar detector, Avigilon has announced a RADAR-Based...
Covert Cloud Camera Service Launching (KJB) on Jun 22, 2017
Cloud IP cameras, for consumers, has become increasingly commonplace. However, covert cameras, lag there, with few options. Now, North America's...
Manufacturers Shipping Unlicensed H.265 Products on Jun 22, 2017
While H.265 support in video surveillance is growing, IPVM's research shows that most surveillance manufacturers are shipping H.265 products with...
Uniview Low-Cost Bullet PTZ Tested on Jun 21, 2017
Uniview is offering a HD zoom bullet camera, the IPC742SR9-PZ30-32G, with an integrated pan / tilt positioner, for the price of a low-cost...
QSR Video Surveillance Best Practices on Jun 21, 2017
Fast food restaurants or QSRs (quick service restaurants), are frequent victims of crime and fraud. Because they are open late, deal with cash, and...
45 Drives 'Lowest Cost' Enterprise Storage Company Profile on Jun 21, 2017
45 Drives claims the "lowest cost per Hard Drive Slot in the industry." But who or what is '45 Drives'? What started as a product design to...
No Hack, Still Liable, Court Finds ADT on Jun 20, 2017
Recently, ADT has been in the news for a $16 million settlement for a cyber security vulnerability class action suit. One of the most important...
Resolver / PPM 2000 Incident Management Platform Profile on Jun 20, 2017
You might have seen the company whose employees wear hockey jerseys at trade shows and wondered "what do they do?" PPM 2000 has been active in...
Axis P3225 Mk II Tested Vs. Original on Jun 20, 2017
Axis has released a number of 'Mk II' versions of their cameras, which are the same fundamental camera but with specific improvements. We tested...
Directory of 40 IP Camera Manufacturer Discovery Tools on Jun 19, 2017
Locating the IP address of a DHCP client or factory defaulted device on a network is often a difficult task.  In another report, we discussed...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact