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

Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Security System Health Monitoring Usage Statistics 2018 on Oct 09, 2018
How well and quickly do integrators know if devices are offline or broken? New IPVM statistics show that typically no health monitoring is...
IP Camera Installability Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Oct 08, 2018
What are the best and worst cameras from an installation standpoint? Which manufacturers make it harder or easier to install their cameras? We...
ASIS GSX 2018 Mixed Manufacturer Reviews With Declining Overall Attendance on Oct 02, 2018
ASIS GSX 2018 show drew 9% fewer total registrants, however, it gained 15% more paid registrations, according to ASIS. In this note, we look...
Favorite Power Supply Manufacturer 2018 on Sep 28, 2018
While power supplies are becoming less important as PoE matures, they remain vital to access control systems, where increased power for locks,...
Favorite Access Control Reader Manufacturer 2018 on Sep 25, 2018
Favorite reader votes are in, and it is not close. A global access giant ran away with the votes in a one-sided contest. But for many, the...
Ligowave Wireless Profile - Ubiquiti Competitor on Aug 27, 2018
Ubiquiti has become the most common choice for wireless in video surveillance (see Favorite Wireless Manufacturers) but not without controversy and...
Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
FST Fails on Jul 17, 2018
FST was one of the hottest startups of the decade, selected as the best new product at ISC West 2011 and backed with tens of millions in...

Most Recent Industry Reports

Startup SafePass Profile on Oct 19, 2018
A major problem with visitor management is that the systems mostly require adhesive printed paper labels and paper logs, creating waste and an...
China Is Not A Security Megatrend, Says SIA on Oct 19, 2018
The US Security Industry Association has released its 10 "Security Megatrends" for 2019. SIA declares that these megatrends, such as "Advanced...
Hanwha Dual Imager Dome Camera Tested (PNM-7000VD) on Oct 18, 2018
Hanwha has introduced their first dual-imager model, the PNM-7000VD, a twin 1080p model featuring independently positionable sensors and a snap-in...
Camera Height / Blind Spot Added to IPVM Camera Calculator on Oct 18, 2018
IPVM has added camera height and blind spot estimation to the Camera Calculator. This is especially helpful for those who need to mount cameras up...
Axis Strong US Growth, Flat EMEA - Q3 2018 Financials on Oct 18, 2018
This spring, Axis had its best financials in many years (see Axis Strong Q2 2018 Results). However, over the summer, Axis had many products sold...
Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...

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