Examining HDcctv's Bold/Dubious Claims

Author: John Honovich, Published on Aug 03, 2009

Info4Security features an interview with the HDcctv Alliance. Most of the article covers topics we have previously reviewed in our HDcctv competitive analysis. However, there are a few interesting points to consider:

  • They claim an "an order of magnitude lower price performance or cost effectiveness in [HDcctv compared to] the IP cameras." 10x? It's a wild claim and I am surprised the interviewer did not object.
  • They implied that IP cameras could be obsolete in 18 months to 2 years. Certainly cameras will improve but to say it's obsolete is simply fear mongering. Here's a review of the Axis 207 from 4 years ago - still a perfectly acceptable camera to use in deployment. Note: I believe that analog cameras likely have a longer lifespan that IP, simply that the aggresivness of the statement is too extreme.
  • They compare CSST, a HDcctv member to be close to the size of Pelco. That's extremely misleading. 77% of CSST's revenues comes from installation services in the Chinese market. while CSST's revenue may be $500 M USD, only 16%, or approximately $80 M USD comes from manufacturing.
  • In 2013, they project HDcctv cameras will be 30% of sales and IP only 15%. In 5 years, they expect IP to only grow from 10% market share to 15%. This implies an IP growth rate of under 10% per year (which is almost impossible to believe outside of the IP camera market collapsing).

Quote: "In about 2013, have 55 per cent of the market still as standard definition analogue, 15 per cent IP – growing from maybe 10 per cent today – and the remaining 30 per cent: HD CCTV."

I am sure HDcctv is happy that Info4Security published what is essentially a long marketing promotion for their efforts. However, it's these type of dubious claims that I do not think will do much to convince/motivate industry insiders.
 
[Update 2012: HDcctv / HD SDI sales are not even close to 1%, forget about 30%. And IP sales are 100 times larger than HDcctv / HD SDI.]
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