Video Surveillance / IP Video Statistics 2010 Examined

By John Honovich, Published on Oct 26, 2010

In this note, we examine the (1) global video surveillance market size and growth forecast, (2) breakdowns for Americas, Asia and EMEA, (3) IP video penetration by market segment and (4) growth forecasts for market segment. We offer commentary on the issues and drivers behind them. These statistics are based on a presentation from Axis's Q3 2010 financial presentation (pages 12 - 16) cited from IMS Research.

Overall Video Surveillance Market

As the following table shows, the estimated market size based on manufacturer total revenue (not end user) is:

  • 2009 Global video surveillance market: $8.26 Billion
  • 2009 Asia video surveillance market: $3.28 Billion
  • 2009 Americas video surveillance market: $2.87 Billion
  • 2009 EMEA video surveillance market: $2.05 Billion

[link no longer available]

The projected 2014 market size and implicit CAGR is:

  • Global: $14.47 Billion with CAGR of 11.87%
  • Americas: $4.48 Billion with CAGR of 8.9%
  • Asia: $6.6 Billion with CAGR of 15.1%
  • EMEA: $3.3 Billion with CAGR of 10%

The fastest growth projection for Asia is not surprising given the region's overall higher projected GDP growth plus the relative lack of surveillance systems in place. By contrast, Europe and the US already have deep penetration of surveillance systems making growth more difficult as greenfield opportunities are fewer. We believe these growth projections will be hard to hit as US and Europe 2010 growth is likely in the 0-5% growth range. Plus, if any recession or contraction occurs by 2014, hitting an average of 10% growth would become essentially impossible.

IP Video Adoption by Segments

The following graph shows the percentage adoption of network vs analog video by segment.

  • Residential: ~15%
  • Healthcare and Education: ~45%
  • Retail and Banking: ~12%
  • Transport and Government: ~35%

[link no longer available]

One clear pattern from these adoption rates is the high correlation between network video adoption and surveillance over larger physical area. Notice how the top two segments adopting video (healthcare/education and transport/government) generally have large facilities or campuses to cover. Prior to the rise of megapixel, using IP across large areas was the top rationale for IP video migration.

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

One market where we think the estimation is low (or at least poised to change rapidly) is residential. While residential is a traditionally undeserved market, USB camera and cheap cube IP cameras have made IP a no-brainer for residential users who want 1 or 2 cameras. For this very common and growing application, we think IP will dominate.

Growth Projections by Segment

The following table forecasts growth rates by segment. Key claims to note:

  • Transportation market size projected to more than double to $3.6 Billion (or 25% of the global market)
  • Government market size projected to double to $2.3 Billion
  • Banking/finance and retail projected for lowest growth rates

[link no longer available]

We are skeptical of the transportation projection. On the one hand, transportation is likely to grow as it is a relatively underserved segment that benefits from two of IP's two biggest strengths - transmission across great distances (IP networks) and coverage of large areas (megapixel). On the other hand, it seems hard to believe that 1 out of every 4 dollars spent on video surveillance will go to the transportation market. There's just too many other markets/applications out there for spending to be so heavily concentrated in transportation.

The low projections for banking and retail do make sense but with some questions noted. On the one hand, banking and retail were earlier adopters of video surveillance so they are more of a replacement market than a greenfield opportunity. On the other, these segments both have quantifiable unresolved losses (shrink, fraud, etc.) that could easily justify significantly greater expenditures. By 2014, we think video analytics will mature enough to see a boom in surveillance spending for these markets. While we are skeptical of recent video analytic performance, such problems are not difficult to resolve in the next few years.

Comments : Members only. Login. or Join.

Related Reports

Video Analytics 101 on Mar 16, 2020
This guide teaches the fundamentals of video surveillance...
Video Surveillance Cameras 101 on Feb 25, 2020
Cameras come in many shapes, sizes and specifications. This 101 examines the...
Access Control and Video Integration Statistics 2020 on Oct 08, 2020
Video Surveillance and Access Control are two of the most common security...
The Future of H.266 For Video Surveillance Examined on Aug 17, 2020
First H.264, now H.265, is H.266 next? H.266 was recently announced amid...
Video Surveillance Trends 101 on Apr 01, 2020
This report examines major industry factors and how they could impact video...
Video Surveillance Business 101 on Mar 30, 2020
This report explains the fundamental elements of the video surveillance...
Directory of 97 Video Surveillance Startups on May 20, 2020
This directory provides a list of video surveillance startups to help you see...
2020 Video Surveillance Cameras State Of The Market on Jan 03, 2020
Each year, IPVM explains the main advances and changes for video surveillance...
Video Surveillance History on May 06, 2020
The video surveillance market has changed significantly since 2000, going...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
NetApp Video Surveillance Profile on Mar 09, 2020
NetApp is increasing its efforts in video surveillance and told IPVM...
Open vs End-to-End Systems: Integrator Statistics 2019 on Nov 11, 2019
Preference for open systems is on the decline, according to new IPVM...
BICSI For IP Video Surveillance Guide on Feb 11, 2020
Spend enough time around networks and eventually someone will mention BICSI,...
Smart CODEC Usage Statistics 2019 on Jun 03, 2019
Smart codecs are now nearly a standard feature in IP cameras, but our...
Favorite Video Surveillance Hard Drive Manufacturer 2020 on Aug 27, 2020
Western Digital and Seagate effectively have a duopoly in hard drives but...

Recent Reports

GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic i-PRO presented its X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...
Watrix Gait Recognition Profile on Oct 16, 2020
Watrix is the world's only gait recognition surveillance provider IPVM has...
Intel Presents Edge-to-Cloud Ecosystem for Video Analytics on Oct 16, 2020
Intel presented its processors and software toolkit for computer vision at...