Market Share Changes Examined

By John Honovich, Published Aug 26, 2009, 08:00pm EDT

Axis market share is likely to simultaneously increase and decrease depending on the categorization. In network/IP cameras, Axis market share is almost certainly shrinking. However, for general video surveillance products, Axis market share is likely to hold steady or increase.

Differentiating between these two is important, especially in light of Axis press release highlighting its improved position [link no longer available]. According to IMS, for 2008, Axis is now ranked 4th overall in revenue, this is up from 6th in the previous report (see the tables included in Axis financial report earlier this year).

This does make sense, because Axis' 2008 revenue increased 18% compared to 2007 (see the 2008 annual report).

However, 2009 is a different story. First half growth in video products was down 8% (in local currency terms) - see our examination of Axis' market weakness.

In 2009, Axis may continue to increase its overall market share in video surveillance if only because the legacy analog companies ahead of it (Pelco, Panasonic, Bosch, etc.) are likely to be struggling as much as Axis is.

However, on the IP side, it's almost guaranteed that Axis will lose market share in the network camera space as its growth rate fails to match the market's.

As a final note, Axis 2008 annual revenue was approximately $250 M USD. This really drives home the fragmentation of this market - the 4th largest company in an approximately $8 B USD global market only generates $250 M USD or about 3% of the total market.

[Update: Axis revenue is now $600+ million USD and is the largest western surveillance manufacturer.]

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