2010 has been a landmark year for IP camera adoption, with surging sales and widespread mainstream adoption. We forecast 2011 growth will be even stronger. The key driver has and will continue to be the maturation of megapixel IP cameras.
Throttled by global recession, IP camera sales bottomed out in 2009 with a relatively slow growth rate. However, dozens of new IP camera releases during 2009 and an improved economy in 2010 drove the growth rate significantly higher. In 2011, we forecast even higher year over year growth as more new IP products come to market and IP camera standards are adopted.
At the end of 2009, we projected a sharp rebound in IP camera sales and 200% growth between 2010 and 2012. This year's results put us on target for this forecast.
On a practical level, this means IP cameras are being used in smaller and simpler projects and increasingly the majority of new projects. On the flip side, this is resulting in declining analog camera sales and the potential for rapid sales declines in the next few years.