2010 IP Camera Sales Surge, 2011 Even Stronger

Author: John Honovich, Published on Nov 28, 2010

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.

**** *** **** * ******** **** *** ** ****** ********, with ******* ***** *** ********** ********** ********. ** ******** **** growth **** ** **** ********. *** *** ****** *** *** will ******** ** ** *** ********** ** ********* ** *******.

********* ** ****** *********, ** ****** ***** ******** *** ** 2009 **** * ********** **** ****** ****. *******, ****** ** new ** ****** ******** ****** **** *** ** ******** ******* in **** ***** *** ****** **** ************* ******. ** ****, we ******** **** ****** **** **** **** ****** ** ******* ** ******** **** ** *********** ****** ********* *** *******.

** *** *** ** ****, *********** * ***** ******* ** ** ****** ***** *** ***% growth******* **** *** ****. **** ****'* ******* *** ** ** target *** **** ********.

** * ********* *****, **** ***** ** ******* *** ***** used ** ******* *** ******* ******** *** ************ *** ******** of *** ********. ** *** **** ****, **** ** ********* in ********* ****** ****** ***** *** *** ********* *** ***** sales ******** ** *** **** *** *****.

[***************]

2010 ********* ******

**** ** ****** ***** *** ***** ****** ** * ********: (1) ****** ****** ** ****** ********* *************, (*) ********* ****** growth ** ******* ************* *** (*) *** ********.

***'* ***** **** * ****** ** *** **** **** *** 3 ** *** ** *** ** ****** ************* (*** ***** on ****** ********* *******):

*** ***** ** ***** ******* ******* *** ***** ** $*** Million ** **** *****, ** **** ** ********** ** ********** a *********** ******* ** *** ****** (******* **-**%).

*** ****** ******* ** *******, *** ****** ** ****** *************. From *** ******* *********** **** **** ** ***** *************, ****** rate ** **% ** ****** **** **** ** **** ******. Two **** ******** *** ******** *********** ** *************** ******* ****** *** ******* ** * ****** ******* ** our **** ****%+ ****** (*** **** ***,*** ****** **** *****).

*** ***** ******* ** ****** ********** ****** **** **. ***** their ******* ******* ************ ** ****** *** ****, ***** ****** rates *** ****** ** ** ***%+. **** ** * ****** result ** ***** **** * (** ***** ** **** ** sales) ** * *** ******* ** *** **** ** ********.

******* ***** * ******** ******** *** **'* ***** **** **** IP ****** *****, ******** ** ****, *** ****** **** **% and ******** ***** ** **%.

*** **** ** **********, ***'* **** * **** ** **** of *** **** ***** ****** ******* ******* ********* ****** ********* results:

*** *** ** ****, **** ******* ******* ** ******** ***** than **** ******* ******** (***** -**% *** ******). *******, ***** IP ****** ****** ******* **** ********, ****** ***** ******** ** struggle (******* *** *********** ** *** *******).

**** ** *** ******, **** ** ********** *** ** ********** *** ********* **** ** ** ***** ******* ** ******** **** **** a *** ***** *** ** ***** ** ***** ** ********. The *** ****** ** *** ** (*) ********* ************* *** pushing ** **** *** (*) ********* ******* ***** ****. ******, one ********* ******** ***** ** *** ******** '*************' ** ***/**** as *** *** ******* **********. ** ** *** ******* **** is ********** *** *** **'* ******* ************ *** ********* **** in *** **** *** ***** **** ****** ***********.

Megapixel ** ****** *************** **********

** **** **** * *****, *** *********** *********** ** ********* IP ** ****** ******* *** ******* ************. *** ***** ** megapixel ** ******* *** ** ********* ******* *** ****** ***** plus ******** *********.

***'* ***** **** **** ***** *********, ****** ***** ************, *** hard ** *******. ** *** **** **** ******* ** ****** * ******** ** ** *******, ** ***** *** **** ** ** ******* **** ***** as ********* ** ****** *** *** ********* ******* *** * significant ******* (**** ***** ** **** ****). **** *****, ******* costs ***** ****** *** $***-$*** **** *** ******. ******* **********, megapixel ******* ** **** **** ***** **** **** ********* **** a ***** ***** ** $*** - $*** ** ****** (****** pricing). *******, **** **** * ***** ** ** *************, ********* camera ****** *** ***** ***********.

** ****, *** ********* ******* **** ****** *** ***** $*** - $**** *** ******. ****'* * **** ****** ** ***** that ** **** ** ******* ****** *** (*) ****** ****** to ******* ******** ******* ** * ****** ******** ** (*) were ********* ********* ** **** ***** ******* *****. **** ** these **** ***** ************. **** *** ********* ** * ********** small ****** ****** **** ** ***** $*** ******* ***.

***, ** ****, *** ****** ** ****** ***% ****** **** it *** ** **** - ******** **** ** *** **** two *****.

*********'* ******** *************** ** **** **** * ***** ** ******* short ** **********:

  • *.*** ** *** **** *** (**** ***** **** ******* ******** rare)
  • $*** - $*** ****** ******* *** ********* ******* ** ******** quite ******. ***** *** ***** ********* ******* ****** *** ***** $***** *** ****** ******.
  • *** ****** ** ********* *** ** ***** ********** **** ********* every ****** ************ ****** *** ***** *** ******** *********
  • ******* ****** ******* ** **** ** ****; ****** ********, ***** a ******* ** *********

******* ** ***** *******, *** ******* ** ********* **** ****** is *** ***** $*** - $*** *** ******. ****'* * straightforward *******:

****'* ******** ********** *.*** *** ****** (******-*****) *** ** ****** ***** ** *****$***(********* ****). *** ********** **** ******/******* **** ****'* ****** ****** is *************** *** ** ****** ***** ******* $***(*** * **** *** $**) - ***** ***** ***** $***. With ******, ******** **** ** **** **********. ***** *** **** cost ********* ******, * ***, *** **** **** ** ***** $125 *** ****** (*** ******* ** * *** **** ** analog ******* **** **** ** *** *********). *.*** **** $*** vs ** ****** ** $***, * ******* *** ********* ** $135. *** ** *** ********** **** ** ******* (***** $** given *.*** *** ***** **** ***** ***** *****) *** *** total ******* ** ***** $***.

**********, ** *** ****** ** *** * *** **** **** or ******** ** ********* ********* ** $** *** ******* **** a **** **, *** ******* ** ********* **** ****** ***** drop ******* (***** $*** *** ******).

*** ********* **** **** ********* **** **** ** *** ***** sub $*** ********* *******. *** *************** ** ************ ** **** of *** **** **** ******** ******* *** **** ******* - such ** ********** *.*** ******* *******, *********** *.*** ***** *******,** ***** **** ***********, *** *** *******, ***.

**'** **** **** * $***+ ** **** ****** ******* ** 2008 ** * *** $*** ******* ** ** **** ****** in ****.

*****, **** ****** **** ** **** ** ********** *** ********* adoption *** ******. ** ** *** ********* ****** ********* ** more ******** *** ***** -- *** ******** *** ****** **** more ***********.

******, ** *** ******** *** ***** ***** ********** ** **** analog **** ****** ****. **** *** ***** **** ** * project ****** ******* (** ** *** ** ****), *** ****** is ****** *******. **** *** ***** **** **** ** **** 20%, ****'* **** ****** ********** **** *** ****** ******** *** dramatic ** *** ************ ******** ** ************. ** * ** camera ***, ** *** ********* * ** * *******, ********* pays *** ******. **** ** *** ********* ** *******, *** significantly ****** ******** ******* *** ****** ** **** ***** * number ** ***** **** ****** ******* ***** **** ****** (******* images ** ******* *****, ******* ******, ***.).

***********, ****** **** ** ****** ** *********** ********** *** **** years, ********* ****** ** *** **** ********** ** **** ******* (repairs, ***** **********, ***.). *******, *** *** ***********, *** *************** of ****** **** ** ********** *** ** *** ***** ** low ****, ****** ********* ********* *******.

Going **** ****

** ****, ************ * *** ********** ********* ** ** **** *** **** *** *****:

  • ********** ********* *******
  • ********** ****** ****
  • *******/****** *****
  • ********* *******
  • ******** ** ****** *********

** ****, ** ***** *, *** **** ******** *** **** in ********* ****** *********** (** ********* *****). ** ******** ***** development ** ** ****** *** ******** **** ** ***********. ** camera ********* *********** **** **** ********* ******** (****** *** ********* impact ** **** ***** *** **********). ***** ****** ** *** managed/hosted ********* ******* *** ******, ** ***** ******** *********** ** ***** ******* *** ****** ****** *******.

****** *** *** ******* *********** *** ******. *******, **** '************' or '**********' *** ********* *** **** **** ****** ****. **** entry ** '******' ***** ******* *** *** *** ****** (*.*., analog **** ****). *** ***** ** ******** ** *** ** increased ********** *** ******** **** ********* ** **** *** **** DVR ********* ***** **** **** **** ********** ** **** ******* to ***** **** ********** *******.

** *** *, ********* ****** *********** *** *******. ********* ******* remain * ***** **** **** *** ******* *** **** **************** (especially **** ********* ******* ******* ******* *********** ** ****** ********* of ***** - ******** ******* *******, ******** *** *********). *****, Mobotix ******* ****** ***** ** ****** ** ***** *** ********* models, **** ** ***** ***** ******** ** *** ******* ****** and * *********** ********. *** **** *********** *** ********* ************ is*******'* *** */* ******. ** ***** **** **** ** ** ********** ******** *** them *** ***** *** **** * ****** ******, ** ** unlikely ** **** * ***** ****** ** *** ******* ******.

2011 ********* ********

*** ***** ***** *** *** **** ***** ************ ******** **** be ********** ********* ****** ********. **** ** * ************ *** acceleration ** * ***** ********** *** *** **** *** *****. What ** *** ******** *** ** ********** ****** *** ********** costs (** **** ** **** ****** *********).

***** **** ****, ** *** * *** ** **** ** grow. ********* ** ******* *** ******* *** ****** ** ***** sold ** ***** ******, ** ** ********* ******* ** - 35% ** *** ****** ****** (*** ***** ****** *** **** sales, *** ****** ****** *** ***** ******).

** ****, ****** (*** *********** *********) **** **** ** ******** for ********* *** **** **** ***** ************ ** *** ***-****** as *** ******** ****** ** ******* ** ********* *** ********** minor ******** **** ****** ****.

*** **** ****** ******* *** ****** ** **** **** ** the ****** ******. *** ***** ****** $*** - $**** **** for ****** ************ ******** ***** *****, ********* **** ** ****** as ** ********* ****** **** ** **** ** *******. **** will **** ******** ** ***** ***** ****** *** ** ****** video (*** ******* ******** *******).

****** **** *** **** * *********** ***** ****** ** *** overall ****** ** ****. ** *** *** ** ****, **** a ***** ****** ** ****** ******* *** ******** *** **** fewer ****** *********. ****, *** ******* ** ***** ** ****** to ********* **. ***** ****** ***** **** ********* **** ******* in **** (** **** ********* * ** ****) *** ****** may **** * *********** ****** ** ***** ** ****, **** will ** **** ***** ********* ******* ******* *** ******** ****** awareness ****** **** ****** * *********** ***** ** *** ******.

*** ****, * ******** ****** *** ****** ******* ** ******** positioning ** ***** ********* ****** ********. ***** *** ** ****** manufacturers *** ****** ** **** ***** ('* ****** **** ***** all *****'), *** ********* **** *** **** ********** ******* ********* are ****** ** *** *** **** ******. ** **** ***, consider *** *********** ** *** ********* *******:

  • ****: **** ******* *** ******* ************* ** *** **** **** and ******** *** ********** ********* *** ** ***** **** *******, ** ***** **** will ******** ******** ** ***** ****** **** ***** ******** (******* to ******* *** *******).
  • Arecont ******: With one of the most aggressive product release schedules, Arecont will benefit from a broad megapixel camera portfolio with new H.264 products and niche offerings like built in IR bullet cameras and multi-imager panoramics. We would be ******** ***** *** ********/** ** ***** *** *********** ** ***** **** **** ****** **** **** ****** **** strong ****** ** ****.
  • ****: ** **** ** *********** ** *** ** **** *** match *** **** ****** ** **** ** **** ******* **** is ******* ** *** (******** ** *** ************ ******). ** 2010, ****** **** ******* ******, **** ******** *** **** ********** of ********* ****** ** ***** ********. **** **** ******* **** its ***** ******* ****** ** **** *** ** **** ** growth ****** ** ***** *** **** ** ***** **** ****'* 30% ****?
  • *****: ** ***** *****'* ** ******* **** **** * *** of ********** ** ****. ******* *******'* ** *******, **** **** *** ******: ********* *** ****** *********. ***** main *********** ********* ** ***** ********* ******* ******* ***** ************* for **** ********* * **** ******* ** *** ******. **** of ***** *********** *** * **** *** ** ****** **** affordable ********* ******* (*** **** * ******, *** ******* ******* series, *** **** * ******). ***** *** ***. ** ****** Pelco **** ** * ***** ******* ** ****** **** *** that **** ** **** ** ************* ****** **** *********** ********.
  • ****: ** ***** **** *** **** *** ********* **** ** the ***** ** ****** *********. ** ****, **** ************ ******** its ** ****** *********. ** **********, ** ******* ***** ***-***** E ****** *** ***** ***** * ****** **** ** **** competitive (****** ******* ** ****** ******** *******). *** ********, *** * ****** ** ************* ***** cost **** *** **** * ****** *** **** *** **** day/night ************, *************** **** (*** **** **** *****). ************, **** ************ **** ** *** ***** ********* ********* ******* ** *** market. *********, **** ******** **** ****** ******** ***** ******* ** the **** * ******. ** ********** ****** ***** ************* ** respond (*** **** ** *****). **** **** *******, *** ********* will ********. ***** ****, **** ***** ** ** ** ****** competitive *****.
  • *******: ******* ******** * ***** ****** ** *.*** ******* ** 2010 *** *** ******* *** **** ** ******** ****** ** Spring ****. **** ** ******* ***** ******'* **** ** ********* ******, ******* ************ ****** ******** ** *** ****** ***** **** of ******* ******* ********. ** ***** ******* **** ******** ** do **** **** *** ***** ******* *** *** '*** ****' option *** ** *******. *******'* ***/******** '*******' ****** *** ****** to ** **** **** ********* (*** ****** *************). ***** ** learn **** *******, ** *** *** **** *** **** **** will **.

***** **'** ********* ** * *** **** ***** ** ****** suppliers, ** ****, ****** **** ** ****** ** * ***** number ** ************* -- **** ****** ********** ********* ***** ******** released ** ******* ** *** ******** ****** **** *** ******.

2012 *** ****** ***********

**** ***** **** ** ****** ***** **** ******** ** **** strongly *** *** *********** ******. ****'* **** *********** *** ********* is ** ********** **** ******* **** ***** ** ********* *** growth ** ** *******. **** *** *** *** **** ** recommend *** ********:

  • ****** ** *** ******* ****** ** *** ***** ************ ******
  • ***** ********** *** ** *******
  • ********** ** ******** **** *********
  • ********** ** ******

******* ****** ** *** ******

*** ****** ****** *** ***** ************ ******** ** ******** ** grow **** **** **% *** **** ** *** *********** ******. This ** ****** ******* ***** ************ ** ******* ******* ******* and **** ******* *** ******* '*********' **** *******.

********* *** **** * ******** ******** ****** ** *** ******* market *** **** **** ********** *******. ** *** *** ****, some **** *** ********* ** ****** ****** ***** *** *********** reduce *** ******* *********** ** ************. ** *** *****, *** higher ****** ******* **** ********* ******** *** **** ******* ******** of ************ ******* ** ***** ***** **** ********* **** ***** cameras. ******** *** *** ******* **, **'* ****** *** ** be * **** ******.

***** ******* ******* ****** ******, ** ****** ***** ****** **** 50% **** **** **** ************. **** ** ****** ***********. ** something **** ** **% ** * ***** **** ********* ** 50% **** ****, ** **** *, ** **** ** **%, year *, ** **** ** **.*%, **** * ** **** be ***%+, ***. *********, ** ***'* ** **** **** ***% and ** ** ******'* ******* ***** ** *** ****** *********, growth ***** **** ********* *******.

** ********* *****, ** ******* ********* **** **** **** ****** will ***** ** **** (*** ********), **** ** ** ******* face ** ****** *** ******** ** ***********. ***** *** ********** rate **** ******* (***** **% ******), *** ******** ****** ***** will ** ***** ***** ***** (** ** ** * ******* growth **** ** * **** ****** **** ****).

***** ********** ** ** *******

* ****** ****** ** ********** ****** ** ****** ****** ** how *** ***** ******* **** *******. ** ******* *** ******** price ******** *** ****** ****** ** * *******:

  • ********** ***** / *****
  • *** ******** / ***********
  • ******* ******* *******

*****, ** ****** ************* ********* ***** ******* ******* (**** ***** margins ** **%+ *** *** ******* ** **% ******). **** is *** * ****** ***** ******* *** *** ** ** squeezed.

**** *** **** *** *****, **** ********** **** ** ** cameras *** *** ******** **** ******** *************. *** ****** **** provide ********* **** *********, ******** ***** *****. *** ***** **** provide **** ******** ** ******** *****.

** ****, ** ****** ** ****** ****** ** ** **-**% lower *** *** **** ******* ****.

********** ** ******** ****

*** **** ******** **** *** ******* *** **** (*** ********), the ******** ** ****** ***** **** **. ** ********, ****** (and ******) ***** *** ********* ********* **** **** **** *** appliances **** ****** ********. **** *** **** * *****, ***** a ****** ****** *** ******* **** *** ****** ** ******** only **** ******** ***** ******* *** *********** ******** ***** *** most ****** *****. ***** *** ********* ****** ****** ** ******** only *** ********* *** *** ******* ************ ** **** ********, we ******* *** ***** ****** ******** **** **** ******** ** the *********** ******.

********** ** ******

** *** ********, ****** ** ****** ** **** * ********** decline. ** **, *** ***** ** ***** *** ** **. We ***** *** **** *** *** '*********** ****' ********. **** ****** ****, ****** **** ******* ***** '********' *** encodes ***** ** *** ******** (***).

*** **** *********** ******** ****** ****** ** **** ******** ******** cameras ************** (*.*., ** * ***) ** ************* **** ****** than ******** ******* ************ (*.*., ** **/** *******). **** ***** HDcctv *** ********* ** ***** **** ********** ** ************* ***** overall ***** **** ********* ** *******. ** ****** *** ******* a ******* **** ********* ** ******, ** ***** **** * significant ******.

** ** ******** ****, ****** ** *** ******* **** **** in *** ********. ***** *** *** ********* ******** *********:

  • *** ***** *** ****** ***? *****, ****** ******* *** ***** the **** ***** ** ********* ** *******. *** ******* ****** of ********* *** ************* **** ********* **** ****. ****** **** decrease. **'* *** ***** ** *** **** *** *** **** it **** ****.
  • *** **** ***** ********? ***** ***, ***** **** **** * large ****** ** (****** *****) ************* **** *** ******** (*** frustrated) ** *** ********* ** ******* *** ******** *** **. It ******* **** *** ***** ** ****** ************'* ******** ** to ***** **** **** **** ** *** *****. *** *** HDcctv ******** **** ********** ********?

****** ****, ***** *** **** ***** ******** **** ****** **** not ****** **********:

  • ******** *** *** *********: ** ****** *** * ******** ******* or * ****** ***-** ** ******** ****, *** ********** ***** be ********* ****. *************, ****** *** ** ********* ************* **** existing ****** ****. **** ** ** ********* **** ** ******* but *** ** ********* *** ********* * ***** ***** ** recording ******* **** *** **** ****** (**** ****** ********* ** software **** *** *******).
  • ******** ********** ** ******** ** *** *******: ** **** ****** feeds ********** *** **, *** ******* **** ** ** ******* either ** ********/********* ** ** *** *********. ** *** ****** that ****** ****** ******** ****, ****** **** ** ** * disadvantage.
  • ******** ********* ****** *** ****** ***** ** ****** *****: **** in *** ****** ******* ****, * *** ****** ** ****** will ** ********* ** ****** ***** *** ******* *** *** analog. **** ** ********** ********** *** **** **** ********** **** difficult. *** ****** **** ** ** *********** ******** ** ****-****** inputs *** * ***** ********* *** ******* ************ *** ***** impact ** *** *****.

****** **** ******* ****** *** **** ******* ** ** ****. In *** *******, **'* ******** **** *** ****** **** ****. However, **'* ********* **** ****** *********** ** *******.

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