IP Video Sales Rebound, Analog CCTV Continues to Fall

Author: John Honovich, Published on Mar 17, 2010

An important market shift for the video surveillance market is occurring. In the last 6 months, while IP video sales have rebounded, analog sales continue to fall. This is in clear contrast to the beginning of recession where IP dropped harder than analog and prior to the recession when trends for the two groups tended to mirror one another.

Here's a visual of the trend we see from examining financial statements:

The changing market dynamics are an important factor for all those who buy, sell and specify video surveillance solutions.

For a background on market size and forecasts, premium members may read our extensive 2010 Video Surveillance Market Statistics Guide.

** ********* ****** ***** *** *** ***** ************ ****** ** occurring. ** *** **** * ******, ***** ** ***** ***** have *********, ****** ***** ******** ** ****. **** ** ** clear ******** ** *** ********* ** ********* ***** ** ******* harder **** ****** *** ***** ** *** ********* **** ****** for *** *** ****** ****** ** ****** *** *******.

****'* * ****** ** *** ***** ** *** **** ********* financial **********:

*** ******** ****** ******** *** ** ********* ****** *** *** those *** ***, **** *** ******* ***** ************ *********.

*** * ********** ** ****** **** *** *********, ******* ******* may **** *** ************* ***** ************ ****** ********** *****.

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

Financial ********

** ******* *** ******** ** *** ******* ********* ******* ** leading ****** ******** *********. **** ******** ******** ********* *************, *** confidence ** *** ******** ** *** ******* ** ******* **** whisper ** ********* ******** *******.

** *** ***** *****, ** ******* *** ********* **** * groups: ** ******* *** *********** ******. **** * ***** ****** glance ************ *** ***** ********** ** ****** **** ******* ** and ****** *********. ******* **** ** ******** ******** ** ******** ****** ***** ************ *********(**** * ****** ***, ******* ****) ***** *** ******* ** IP ********* **** ******* ***** *** ****** *** ********* ******.

*******Annual ******* (******)Growth **** (****/****)*****
*******$*** ********%******** *********
****$*** *********%
************$** *********%
*******$** ********%
****** *********-**%****** ************
********* ******$** *******-**.*%**** *** **/**
*********$** *******-**%
*********$** *******-**%
***** ********$** *******-**%*** ******** ******** ******
*********-***$** *******-**%
***********$** *******-**%
********$** *********.*%
**** *********** *********-**%******* *****
*****$** *******-**%

*** ******** ****** ** *** ** ****** ** ****** *********** in **** ******** *******:

  • ****** ** ***** ** ****** ** ***** ***** ***** ********* are ***** ******* ******* *******.
  • ****** ********* *** ********** ****** ** ***** **** ****** ******** by ********* ***** ** ***** *****

********* ** **** ** ***** ***** **** *** ***** ********* projections **** ******** *** **.

********

** ******* *** ***** ************ ****** *** ** ********* **** 3 ****** **** *** **** *** *****:

  • ******** ******: ***** ** *** *********, **** ****** *** ** **** growing. *** ** ****** **** *** ********* ****** *** *** especially ************ '****' **** ******.
  • ******* ** ******: ***** *** ********* *** (**/****), ** ****** ***** **** much ****** **** ****** ****** *****. **** *****, ******* ***** losses, ***., ***** ************* ********* ** ********* ***** ******** ********* to **. ****** *** *** **** ***** ******* ** ******** on **** ******** (*** **** *******) *******/*********** ********.
  • ********* ******: ** *** ******** ********* (******** *********, ******* ********** ****** markets, ***.), ********** *** ******** *** ****** ******** ********* ** IP ******* ******* *****.

** ******** ** *** *******, ** ******* *** *** **** of **** *** * ******* ***** ** *** ********** *** viability ** ** ******** *** *** '****' ******. ************, *** broad************ ** ********* ******* *** ****** **** ** ******** ** *** ******** *** ****** ********** **** *** ****** to ** **** ****** - **** **** ** *********** *********** ('better' ********) *** **** * ********* *********** (******* ****/******** **** from ****** **********).

** *** ***** ****, ** *** ********* ******* ********, *** majority ** ****** ********** *** ***** * **** ** ******** job ** ********* ** ***** ** **********. ****** ** ******** from *** ********* ********* ** ******* ** ****** ****** ** IP ***** ********* (** ***** *** *** **** *** *****). Similarly, ****** ** ********* ******* **** **** *** ***** ******* or ****** **** **** *** ************ **** **** ******** **** reduces ********* ** ***** **** ********** (**** *** ******** *********).

******

**** ***** ** ****** ** ******** ****** *** ****** ****** be *****:

  • ** ** ****** **** * ****** ******* **** ********* ** recover **** ********** *** ***** ******** *** ****** **** *********. We ** *** ******* **** **** **** *** ** ****** help **********.
  • ** *** ****** ******* *** ** '****** ***' ** **** back **** *********, **'* ****** **** ***** ** ****** **** closer ** ******. **** ** **** **** * *********** ******* as ********* ******** *********** ******* **** ****** *** ***** *** to ****** ****, ********* ********, ***.
  • *** ****** **** ********** ***** '******' ****. *** ******** ***** has *** ******* ** ***** *** ** ******** ******** *** incumbents ** **** ********** ** ******. **** ***** ******* ***** approach *** **** *** ****** ** ** ** ** **** realize ***** ********* *******.

**** ***** ****, ** ** ****** ** *******-**** ********, ** ******* *** ******* ** ****** **** **** **********. Between ******* ****** *** * ********* **** *********** ** *** incumbents ********** ***** ******, *** **** ** ** ***** *** great ********.

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

*** ********* ** *** ****** ******** **** ******** ****** ******* in *** *****, ********* * ******* ** *******, ***** ** the ****** ************* *** ********** ** *** ******.

*******

*** ** ****, *******'* ******* *** ************* ********* **************** **** *** ******** *******, **** *% **** **** **** revenue ****** ******** ****** *% **** **** **** ****** ** ** ****. **** ******** ****** ****** ************ ** ***** ** **** ******** **** **********.

*** ********* **** *** ****: "******** ***** ********* ** **** more ******** ** *** ******* *******. ***** **** *% ** Q4 **** ***** ****, **** ********** ******** ** **** *** the ******** *******."

***** ******* *** *** ******** ******* ******* ****** *** ******** solutions, ** ******** ********** **** ****** ******** ******* ** ************* $650 ******* ***. ** ******* **** ** ******* ***** ** this ******.

****

********* * **** **** ******** *****,****'* ** **** ********* *********** **** ******, ******* *** ********, ***?

******* *** ** **% (**** ******** ** ****). *** ******* were **** ****** ** ***** ******** ***** - ** ****** 40% [****: *** **** ** ****, ******** ******** ****** **** Axis's ********* *********** **** ****** **** **** ****. ***, **'* the *******).

******* *** ****** *** *******, *** *** **** **** (****), Axis ****** *** ****** ****, **** **** *% ***** ******** growth ******** ** ****.

******* **** ** *** ******** ******* (****), *********** ** ***** ******** ***** *** ********. ****, ****'****** ***** *** **** ** ***** **%** * ****** (**** ***** ** ****** ** ****** **** to ****** *** ****** ** *** *, ****).

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

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

** ********, ****** **** ** **** ********* * **.*% ******* ****** ******** **** ****. ***** *** ******* ******** ****** **** *** this ****'* **** *** ************, *** ******** *********** *** ** an **********. ****, ******* ********* **** *** ***** * ****** of **** ** *** ****** (**.* *** ** ** **** to *** *** ** ** ****) (****: ***********, ***** ****** year ****** *** *).

** ************'* ********** ** ***** ** **** *******, **** ******* some *******, *********:

  • "***** *******, ******** ****** *** *** ****** **** ********* ** lower ***** . . . ********* ******** ** *** **** off ** *** ************ ******."
  • "*********** ********** ** ******* *********** ** *** ******* ********* ****. . . **% ******** ** *********** ***** ** *.** (****: 1.0m).

*******

*******'* ********* ****** *** ******* ** ******* **** * ******** trend ******** **** ********* *** ** **** ********* *******. ** ****, *********** **** **** ** **** *.*%. ** ********, *** **** (**** - ******** ****), **** are ********* *.*% ******* ******. **** ******* * **** ****** rate ** ************* **%.

***** *** ******* ******** ** ******* ********* *********:

  • ******** **** **** ****** ***** **** ** **% **** *.* M ***** ** **.* * ***** (****** ** *** ********* cameras ***** **** **** ** ***** **** ****** ******/*********)
  • ** ***** **** ******* ** ** ******** **** ****
  • ********* ********* **** *** ** *** ****** *** ****** - 15%
  • *** ****** ***** *** ****** ****** - ***** *******, ***** America, ****

ADT/Tyco ******** ********

**** ******* *** * **** ******* *** *** *********** ******** is * ********** **** *** *** ******** ******** ******** ** large. *** ***** ******* ** ***'* ****** ************ *** **** Security's ******* ******* ********* ** ****, ******** * ****** **** of ********.

** ******* ******** ****** (****** **** / ******** ****)*****, ***'* ****** ************ *** ******* ******* ******** **% ******* Q409 *** ****. ***********, ********** ******** ******** (****, ****** *******, etc.) ******* ******** **% ** *** **** **** ******.

**** ** ********** *********** ******* *** ********** ** ******* ****, the ***** ******* ***** *** ********* **** ****** ********* *** therefore ******** ** ******* **** *******. *** ********, **** ******** weakened ***** *** ********* ******* ******** ********** ** ****. **** *** ***** *** ***** ** **** ** **** revenue ********.

*** **** **** *** **** ** *** **** *** *** traditional ***** ************ ********. **** ********* ******** ******** ** ********* revenue *** ***** ******* ********** *** ******** ** ****** ************ and ********. **** *** ****** **** ******* **** **********:

"*** ******* *** *** ******* ******** ** ** ****** ** our **** ********** *** ************* ******* ** **** ** *** continued ******** ** *** ******* *** ********* ******* ******** ***** represents **** **% ** *** ***** *******. ** ** ***** actions ******* **** *** ****** ** *** ******* ******** ***** have ******* ****** *** ****** ** ***** ******* ** *** product ********** *** ** *** ******* ************ ********** ** *** and ****."

*********-***

*********-***, * ********** ** ***** ************ ******* *** ******* ********** and ******** ************** ********,********* * **% **** **** **** ******* ** ******* *** Q4 ****.

**** ***** ********* *********, *** *** ******** ****** ** *** steep ******* ** ***** ****** ***** ****** ******* ********. *** instance, ******* ** ********* *********, ******* **** ***** ****** ******* **% ***** ** ***** products ******* **** **%.

***** ** ******** ******** ** ************ ***** **** **** ********** infrastructure, *********-***'* *********** ***** ****** ******** ***** ***** **********. ********* has **** ********** *** ********* ***** *** ** ***** ******** called ******* ** ***** **** ********** '********'. *** ****** ******** ** *******.

*****

*****'* ** **** ******* *********, ******** **% **** **** **** **** $**.** ** ** 2008 **** ** $**.* * ** ** ****. ******** ***** were **** **&. ************* ***** **** **** **%. ***** ******* dropped **** **.*% ** **.*%.

***** ***** ****, "*** *******’* ******** *** **** ******** ** the ********* ******** ******** ** ******* ******** *** *** ************ and ********** ******** ********."

**** **** *** *** **** *** ****** ** *** ****** from **** ** *** ** *********, **** ** **** *** Mobotix's ******* **** *** **** ******.

***** ** ******** ** **** ** ** * *******. ***** they '****' ** ***** *** * **** ****, **** ** a ***** **** **** ** *** *********'* ********* *** ******* to ********* ********** **** **** ** ******* ******* *** *********.

*********** *****'* ******* *********** *********** ** *** ****** ** ****.

March ********

** ******** ** ****, ***** *************** ********* ** ****, ****** ** ******* **** **** *** ******** *******. **** *******, ******* *** **** **% (****** **** **** half ** *** **** ** ********** ** ******** **** ************).

************** **** ************* **** *******:

  • ***** ******* **** **** **** *% *** ****** *** **** 33%
  • ***** ***-**** *** **** *% ** ******* * **** ***, they *** *** **% ** *****'* *******.
  • **** *******, **** **** ******* **** **** ** **** **** 10% **** *** **** *** (**'* ********* ******* *** **** less ** **** **)
  • ***** ********* **** **** "*********** **** ** **** ******* ****** in *** ********** ********** ******." **** ** ********* ******* **** is *** ** ***** ** ****** ********/****** ***********. *******, ***** they ** *** ****** *** *********** *** ****** ***, **'* hard ** ********* *** **** ***** ** ***** ** **** market.

***********/*********

** ***********************, ****** ******* ** ***** ************ *****************, ******** ********* ******* ** ***** *** *** *** **** of ****.

** ************ ******* *** *** **** ****(******** ****), *********** ********* *** ********* *** **** ******:

  • ******** ******* ******* ******** ******* **** **** **.* *** ** 17.4 *** **** ** **** ** ** **** (**.*% ******* decline). ******* *** ***** ****, *********** ******** ** ****** ** orders ** *** ******** ******.
  • ********* ******* ***** ************ ******* **** **** *.* *** ** 4.9 *** **** ** **** ** ** **** (**.*% ******* decline). ***** ******** ******* ******* ****** *** ***** ** * key ******.

Dedicated ******

********* ****** ******* ******* *** ******** **** *** **** * years, ************* *** *******'* ******* *********. *** *** **** ****** June **, ****, ******** ********** ******* *** ********* ******* ******** 17.4% **** **.* ******* *** ** **.* ******* *** (** current ******** *****, **** ** ************* $*** ******* *** ** $90 ******* ***). *** ******** **** ***** ***** ** **** with **% ******* ** *** **, **% ** *********** ****** and **.*% ** *** **** ** *** *****.

******* **** ******** **** *****'* ********* ***** **********.

*** ****** **** ***** **** ********** *** ******* **** *** to ***, * **** ** ******** **** **** **%.

**** ***** ****** **********, ** *** *** ********** ********* ** the ***** ** ** *****, ********* * **** ********** *** strange****-** ******.

*********

********* ***** ************ ************,*********, ******* * *********** ***** ******* ** *** **** ****** Q3 ****, ******** ** *** **** ****** ** ****. ********* to ***** ********* ****** *********,***** ******* **% **** *.* ******* *** ** .** ******* NTD(** ******* ******** *****, **** ** ************* * **** ** $35 ******* *** ** $** ******* ***.

**************, **** **** ************* *** * ******* ** *********, *** main ******* ********** ******* ***** ****** ***, *** *****, ***. We *** *** **** * ********* ** ***** ******* ****** and ** ******** ** *********'* ******** ********* **********.

*********

******* ******** **** *********, *** ** *** **** ****** **** 'budget' **** *********, ********. *** *** ** ****** ****** */**/****,******* *** **** **.*% **** *.* ******* *** **** ** 1.37 ******* ***(************* $** ******* *** ** $** ******* ***).

*******, ********* ** *** ****** ***** ********,**** ******* ******* *** **** *** ** **.**%******** ** *** ***** *** ****** ** ****. ** **** trend ********* *** *** ****, ** ***** ***** *********'* ******* selling **** - **** (****** **'* ********* *** ***** ** make * ****** ********).

********

***** *** ********* ************,********** ******* ***** ** ******** ***** * ***** **** ** H1 ****. **** ****, ************ ******* *** ******* **%**** **** **** (*** *.** ** *** ***). ***, ** 2009, **** ************ ******* ** **.*% **** ** **** ($**.* ******* *** ** ** ******.**.* ******* *** ** ** ****).

********'************ ** *** ***** ******* *** *******:

"** *** ****** ****** ****** ******* *** ********* **** **** with * ******* ** ********* ** ***** ******* *** **** little ********** ** **** ****** *** ***** ********* ***** ******. As * ******, *** ******** ******** ******* ************* ** *** first ******* ** **** **** ...******* *** *** ** *** second *******, ** ***** ** *** *** ******** *********’ ******** for *** ****** **** ** *** **** ******** *************. ********* are *** ********* **** *** *** ****** ****** ** ** pace ** ****** ** ’** ****** ** *** ****** *******."

****************** *** ******* ******** ** ******* *** ********:

"*** ***** ********* *** ********** **** *** ******** ******** ** the ******* ******** ******* *** ***** ****** ** *** **** engineering *** *************. ** * ******, **** *** ********* *** bulk ** ******* ******** ******** ************ ****** ** **** ** taking ***** ** *** ******** *** ***** ******** *******."

** ********* ******** ** ******* ********'* ******* ******** * ******* increase *** ****** **** ********* ** **** ** ******* * shift/growth ** *** ******* ******? ** *** *** **** ** answer **** ******** **** *** *********** ** ******* *********.

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