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

Bosch Merges Video, Intrusion and Access Businesses on Feb 19, 2018
Bosch is merging their "video systems, intrusion detection, as well as its access control and management software business units to form a single...
Why 3VR Failed on Feb 16, 2018
3VR destroyed transformed ~$65 million in VC funding into a $6.9 million exit. The reason they failed is simple. They bet on analytics. They...
Last Chance February 2018 Camera Course on Feb 15, 2018
This is the last chance to get into the Winter camera course, starts next Tuesday. Register now. IPVM provides the best education, live online...
Hanwha Wisenet X 5MP Camera Tested (XNV-8080R) on Feb 13, 2018
Wisenet X is Hanwha's high-end camera line. We tested their Wisenet X 1080p camera last year. Now Hanwha is offering 5MP cameras listing super low...
Favorite NVR / VMS Manufacturers 2018 on Feb 12, 2018
There is a new integrator favorite VMS. In 2016, 2 VMSes were effectively tied for top choice. One of those VMSes favorability was stable while...
Arlo, Bigger Than Avigilon, More Valuable Than Axis on Feb 08, 2018
Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and...
3VR Firesale to Identiv on Feb 07, 2018
A decade ago, 3VR raised more than $60 million to deliver facial surveillance and video analytics in a '3rd generation' video recorder. Now, 3VR...
Dahua Acquires Lorex From FLIR on Feb 06, 2018
Would you buy your own customer? Well, Dahua has just done that. FLIR has sold its Lorex / home / SMB business to Dahua, just over 5 years after...
Barron's: If Trump Bans Hikvision on Feb 05, 2018
What happens if Trump bans Hikvision from US government entities? This is being considered in a new profile by financial magazine...
Avigilon Acquired By Motorola Solutions on Feb 01, 2018
Avigilon has finally been acquired. The acquirer is Motorola Solutions, a $16 billion market cap publicly traded company who sells direct and has...

Most Recent Industry Reports

Why 3VR Failed on Feb 16, 2018
3VR destroyed transformed ~$65 million in VC funding into a $6.9 million exit. The reason they failed is simple. They bet on analytics. They...
"Fear Mongering": Hikvision USA Cybersecurity Director Dismisses Chinese Government Ownership Concerns on Feb 16, 2018
The facts are: The Chinese government created Hikvision and is Hikvision's controlling shareholder. Hikvision's Chairman, a Communist Party...
16:9 vs 4:3 Video Aspect Ratio Statistics on Feb 16, 2018
What aspect ratio do security integrators prefer? The 'standard' 4:3 or the 'wide' 16:9 one? 100+ integrators told us what they preferred, with...
Mercury Releases New Series 3 Redboard Access Panels on Feb 15, 2018
Mercury Security has their first major product release post-HID buyout, and things literally look different. The Series 3 SIO boards now are red...
Last Chance February 2018 Camera Course on Feb 15, 2018
This is the last chance to get into the Winter camera course, starts next Tuesday. Register now. IPVM provides the best education, live online...
Hikvision DeepInMind Tested Terribly on Feb 15, 2018
While Hikvision is heavily marketing deep learning and 'AI' as their next big thing, new IPVM test results of their DeepInMind NVR shows their deep...
Genetec CEO: You Cannot Buy Trust on Feb 14, 2018
Genetec's CEO, Pierre Racz, delivered a direct message at their channel partner conference: Racz has become a focal point in the industry debate...
Assa's Lowest Power Draw Maglock: Securitron M680E Examined on Feb 14, 2018
Securitron produces some of the most extreme maglocks on the market, including massively strong maglocks and even ones with integrated CCTV cams...
Hanwha Wisenet X 5MP Camera Tested (XNV-8080R) on Feb 13, 2018
Wisenet X is Hanwha's high-end camera line. We tested their Wisenet X 1080p camera last year. Now Hanwha is offering 5MP cameras listing super low...
Top Problems For Integrator Project Management on Feb 13, 2018
Security projects routinely encounter issues that jeopardize deadlines, create confusion, and shrink profits. Unfortunately, there are common...

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