Video Surveillance / IP Video Statistics 2010 Examined

Author: 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

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%

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 Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

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

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 : PRO Members only. Login. or Join.

Related Reports

Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
Security Camera Cleaning Frequency Statistics on Apr 18, 2018
150+ integrators told IPVM how often they clean cameras on customer's sites and why.  Inside we examine their answers and break down feedback...
Strong ISC West 2018, Says Manufacturers, GSX / ASIS Expected Weaker on Apr 17, 2018
Manufacturers say ISC West 2018 was strong, continuing the trend we have seen in 2017 results and 2016 results. However, those same 100...
Average Access Control Project Size 2018 on Apr 10, 2018
  The most common access control project size is 5 - 16 doors per project. This 2018 result mirrors previous statistics, most recently in 2016...
Favorite Video Analytic Manufacturers 2018 on Apr 02, 2018
Video analytics is one of the biggest trends in 2018, driven by marketing for Artificial Intelligence and Deep Learning. But what do integrators...
Audio Usage In Video Surveillance Statistics on Mar 28, 2018
Audio is more widely available and easier to use than ever, with many IP cameras building audio in and often making integration as simple as...
Top 4 Biggest Problems Selling Access Control 2018 on Mar 23, 2018
We received 150+ responses from integrators when we asked them "What is the biggest problem you face when selling electronic access control?...
Favorite Access Control Credentials 2018 on Mar 22, 2018
In this 2018 access integrator statistics result, which credential type holds the favored spot to unlock access doors? More than 150 integrators...
Thank You - Today, IPVM Turns 10 Years Old on Mar 19, 2018
IPVM turns 10 years old today. 10 years ago, IPVM was an experiment. Today, it is the largest and most read publication in our industry. I wanted...

Most Recent Industry Reports

The Yolo Bro And The Death of Journalism on Apr 24, 2018
There's an old quote: The job of the newspaper is to comfort the afflicted and afflict the comfortable Unfortunately, the opposite is more...
DMP Adds Ring Video Doorbell Integration on Apr 24, 2018
Video doorbells have become one of the hottest items for security systems. After several years with no doorbell, DMP has announced integration with...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
Chinese Manufacturer Kickstarter Campaign Huge Success (EverCam) on Apr 23, 2018
In a week, a Chinese manufacturer's expertly done Kickstarter campaign has received $1.4 million in pledges, an incredible amount for a video...
Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dahua and Hikvision Win Over $1 Billion In Government-Backed Projects In Xinjiang on Apr 23, 2018
Dahua and Hikvision have won well over $1 billion worth of government-backed surveillance projects in China’s restive Xinjiang province since 2016,...
May 2018 Camera Course on Apr 20, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
April 2018 IP Networking Course on Apr 19, 2018
This is the last chance to register for our IP Networking course. Register now. NEW - 2 sessions per class, 'day' and 'night' to give you double...

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