Online Surveillance Market 2011

Author: Marty Major, Published on Mar 05, 2011

Online sales of video surveillance products is already a sizable market growing at a robust rate. We estimate the global market size is over $200 Million USD, growing at an annual rate of over 25%. In this first ever study of video surveillance ecommerce, we provide an in-depth analysis of the players, issues and trends in selling surveillance products online.

Online sales is a topic that every segment of the industry already has an opinion about - and often a strong one:

  • Channel manufacturers often refer to it as the ‘Grey Market’.  While some are relatively silent on this practice, those that do speak out against this practice claim they actively try and prevent unauthorized online sellers from marketing their products.  
  • Distributors generally have a negative view of online sellers that sell directly to end users (though some clearly do the very same thing themselves). 
  • Integrators see online sellers as a huge threat to their historically high margins.  
  • End users, armed with information readily available on the Internet, sometimes see no need to pay integrator mark-ups for services that they do not feel add significant value.

But are all online sellers the same?  Is the commoditization of surveillance equipment the real driving force in the breaking down of the channel, or is it the easy access to information that the internet provides?  Or both?

In this report we examine the many facets of online surveillance sales and the impact this 'outside the channel' practice is having on manufacturers, distributors, integrators and end users alike.  Who benefits? Whom does it hurt?  To get a broader understanding of this 'shades of grey' market, we sought to find out who was selling what to whom, what quantities were being sold online, and more importantly - how?

How could so-called 'channel' brands like Pelco, Bosch, GE, etc - brands allegedly available only through traditional channel sources - be so readily available for purchase by anyone with a broadband connection and a credit card?  And what about online sites that sell everything from spy pens to PTZs to access control?  Where do they fit in?

Companies Covered

An enormous number of websites offer video surveillance products for sale. As part of our research we conducted in-depth analysis on a number of companies to better understand the varying practices and approaches of sellers. These companies include:

Interestingly, the online market for surveillance products is even more fragmented than the video surveillance market overall.

****** ***** ** ***** ************ ******** ** ******* * ******* market ******* ** * ****** ****. ** ******** *** ****** market **** ** **** $*** ******* ***, ******* ** ** annual **** ** **** **%. ** **** ***** **** ***** of ***** ************ *********, ** ******* ** **-***** ******** ** the *******, ****** *** ****** ** ******* ************ ******** ******.

****** ***** ** * ***** **** ***** ******* ** *** industry ******* *** ** ******* ***** - *** ***** * strong ***:

  • ******* ************* ***** ***** ** ** ** *** ‘**** ******’.  While **** *** ********** ****** ** **** ********, ***** **** do ***** *** ******* **** ******** ***** **** ******** *** and ******* ************ ****** ******* **** ********* ***** ********.  
  • ************ ********* **** * ******** **** ** ****** ******* **** sell ******** ** *** ***** (****** **** ******* ** ******* **** ***** **********). 
  • *********** *** ****** ******* ** * **** ****** ** ***** historically **** *******.  
  • *** *****, ***** **** *********** ******* ********* ** *** ********, sometimes *** ** **** ** *** ********** ****-*** *** ******** that **** ** *** **** *** *********** *****.

*** *** *** ****** ******* *** ****?  ** *** *************** of ************ ********* *** **** ******* ***** ** *** ******** down ** *** *******, ** ** ** *** **** ****** to *********** **** *** ******** ********?  ** ****?

** **** ****** ** ******* *** **** ****** ** ****** surveillance ***** *** *** ****** **** '******* *** *******' ******** is ****** ** *************, ************, *********** *** *** ***** *****.  Who ********? **** **** ** ****?  ** *** * ******* understanding ** **** '****** ** ****' ******, ** ****** ** find *** *** *** ******* **** ** ****, **** ********** were ***** **** ******, *** **** *********** - ***?

*** ***** **-****** '*******' ****** **** *****, *****, **, *** - ****** ********* ********* **** ******* *********** ******* ******* - be ** ******* ********* *** ******** ** ****** **** * broadband ********** *** * ****** ****?  *** **** ***** ****** sites **** **** ********** **** *** **** ** **** ** access *******?  ***** ** **** *** **?

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

** ******** ****** ** ******** ***** ***** ************ ******** *** sale. ** **** ** *** ******** ** ********* **-***** ******** on * ****** ** ********* ** ****** ********** *** ******* practices *** ********** ** *******. ***** ********* *******:

*************, *** ****** ****** *** ************ ******** ** **** **** fragmented **** *** ***** ************ ****** *******.

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

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

** ******** *** ******* ****** **** **** *** ***** ************ product **** ****** ** ** ******* $*** *** $*** ******* USD. **** ** ***** ** ********* ********* ** * *** 'large' ****** ********* ** ************ ********** $** - $** ******* annual *******, ****** ** ********* ********** ******* $* *** $** Million ****** ******* *** ******** ** ***** ********* ********** **** than $* *******. ***** ****** ***** ******* ** ******* *** most *** **** ***** *********, ***** ****** ****** ** *** possible. *******, ** **** ** ***** **** ******** ** ******** of ******* ***** ** ************ ******** **** **** ****** ** 2010.

** ******* ** *** ******* ************ ******, ***** *% ** surveillance ***** ******* **** **** ****** (******** ******* ************ ****** size [*** **** *****] *** $** - $** ******* ***). This ** ******** *** ***** **** *** ******* ********** *** all ******. *** ********, *** ** ****** *********** *% ** *** **** ****** ***** **** *********.

** *** *** ****, **** ************ ******** ** ***** ********* online, *******, ** ** ***** **** ***** **** *** ******* average *** **** **** **** *** ******* *** ********** ***** generally. ***** ****** ******* *** **** ******* *** ********** *****, actual ********* ****** ******* **** *****.

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

** ******** ** *** ********* ************ ****** ******** *****, ** also ***** ** ******* ****** ** **** *** **** ** described ** ****** ***** ******** - ***** **** ******** ** be ** **** **** ********** ** ********* **** ** *******, no ******* ***********, ***.

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

*** ******** ********* **** *********** **** ** **** * ***** portion ** ****** ******, **** *** ***** ****** *** **** of ************ ******** **** ******. ******* *********** **** ****** ** products *** ******** **** *********** ***** ********, *** ********** ** move ****** ** ********** ***. ** *** ***** ****, ***** the ******* ****** *** **** ***** *** ** *** ** consumer, *** ****** ** ***** ***** ** ** ** ***** organizations ****** ****** **** ************ ****. *** ***** *************, ** appeared *** *** *** *** ***** ******** ** ******* ********** where *** *** ******** *** *** ***** **** / ********** of ****** ****** *** *********.

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

***** ***** ** ** ******** ** ***** ******** ******* ******, the **** ******** ** *** ****** ***** ** ***** (*** including *** ******** *********) ****** ** ** ******* ***-******* ******; most ****** ******* ** ****** ****** ** ************.  **** ** restrictions ** ***** **** **** ** (*** **********, ********* **************, etc), ***-******* ************* **** **** ******* ** ****** ******* **** in ******* ********* ******** ****** *******.

***********, ********* ****.*********.*********.******** *** *** ******, ************* '************ *******' *****, ***, ** ***** **** ***** were **** *** ****** ** ***** *** ****** ********* *** **** ******.

*** ******* ** ******** ** *** ***-******* ****** ************** **** under ******, ******** ** ***. *** ************, **** *** ******** were ********** ****** ** ****** *****.

****** ** **

******** *** *********** ** ****** ******* * **** *** ** analog *** ** (****** **** *** **-****), ** ***** ****** product ***** **** *** ***** ******** ** *** ****** ******. Nevertheless, *********** ** ****** ***** *******. ** ******** ** ******* accounted *** ******* **  - **% ** ****** *****. ***** this ***** ** ********** **** ******* ****** ****** *** ** vs ******, **** ** ****************** ****** ******** ** *** *** end ** *** ************ ****** *******. ** ******* **** ****** sales *** * *** **** *** ********** ** ****** *********** in *** *** *** ** *** ******.

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

***** *** ********* ** ******** ****** ** **** **** (**** sell **** ** *******, ****** **** **** **; ** ***** one ******** ********* *******), ** **** ***** ******** ************.  *** coincidentally, ***** ************ *** ********* ********* ********* *** ***** ****** from *** ********** ********* ******** (****** ** ***).

  1. **** **** ***** ******* ********** ** ************* ********
  2. *** ***** **** ***-***** *** ***** *** **** ***** *******
  3. **** ******** ****** ***-** ************ ** * *** **** ** assist **** ************* *** ***************
  4. **** *********** *** *********, *** **** ******** **** **** ******** gaps ** ******* ****** *************
  5. *** *** ******* ******* ** *** *** ** ****** ******** and ******** ******* 

*********- *** ********* ********* ** *********** **** **** *****:  **** do *** **** ******** ******.  ******* ** **** ******, **** consider ********** ** ********* **** *********** ******* ************.  ***** **** maintain * *********** ****** ********, ** ******* ***** ******* **** do *** **** *******.  ** ** *** ********** **** **** both ****** ****** ************* **** *** ************* ** *** ******** they *****.  ****, ** ************ ***** ******** ** ******** ****** is ********* ** ******* ******* *** *********** *** *** ** sell *******.

******– ** ** *********** ** **** **** *** ****** ********* we *********** *** ******** **** *************, ******* *** ********** *** do *** ****** ** *** ** *** ************* ************ ******* lists (**** ** ***** ****).  ***** ***** ******** ******* *******, they *** ********* **** ********* ** ***** ***** ** *** their ******** *****.  *********** ******* (**** ************ *** ***********) *** deride *** ****** ********* ** **** ****** *********, *** *** retail ***** ** ******** ** *** **** ********** ** **** since **** ****** **** *** ******** *** *** ******** **** manufacturers. ******** *** ******** ****** *** ****** ********* ** ******** to ******* ******* *** ********** *********** ** *********** *********, **** claim ***** ******** ****** *** ***** ** ********* – ** much *** **** *** *********** ********* **** ** ******** ********** .  *** **** ******* *********** *** ************ ************ *** *** they ***** ********* ********* ***** ******** ****** **. *********** ******* marketing.

****** & *********– ******* **** ****** *** ********* ***** **** ** ** difficult ** **********, *** *** * ********* **** **** ******** model **** ** ******** (**** **** ***** ****** *******) *** able ** ** **** ** ********** ***** ******* *****.  *** provides **** ***** ******* ******** ** ******* ***** ******** *********, privately ******* ******** ** *** ****** *****, *** *** ***** uses ******* ** ************* ***** ***** (********* ******* *** ********* prices, *** ***** *** ******).  ** ********** ***** *********, ***** players *** **** ** ****** ** ****** ******* ** ********* customers ***** ******** *** ‘**** ******’ *****.

** *** ********* ** ********, ** ***** *** ******** ***** varied:

****** – ***** ********* **** ** ******:

********* – ***** ********* ****** **** ** ***********

**** ********* & ****** – ***** ********* **** ******** ********* *** ****** *****

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

**** ** * ************* ***** **** ****, **** *******.  ** we ***** ** *** ********* ** **** ******, ** ** not ********* ** **** **** ******* ****** ********* ****** (*** entering * ***** ** *** ****** ***** ** ******** ******* ******* *******).

************* ***** **** ********* *** *** **** ***** **** ****** providers *** ** **** *** **** ********** **** *** ** honored, *** **** **** ******* *** ******* *** ***** ********* from ***** ********.  ** ***** ** *** **** ********* ****** from?  ***** ** ** ********** **** ** ****** ******* *********, figuring *** *** ***** ******* *** ** **** ** **********.  However, ************ *** *********** **** ****** ** ****** ********* *** the ********* ********.  *** ********, ***** ******** ***** ******** ************.*** which ******* ** **** ************* ************ ******* *****.  **** ********* sold ** ************.*** ***** ***** ***** ***** *************’ ********, *** customer **** ** *** **** ************, *** *** ************ **** gets ** *** **** *** – *********** *********** *** **** market *** ******** ******* ** ** *** ************.

***** **** (** *** ***) ************ ********** **** *** ******* with * ****** ****** (*** ******* **********, * *** *******) as * ****** **********, ** **** ************* ****** **** ** is *** ********* ** ****** **** ****** ***** ** ** spurious ** ****.  ** **** **** ****** ********** ** ******** the ********* ** **** ****** *********, ** ***** * ********** simple **** ** ***** ***** *********** ** *** ******** *********** (or **********) ***** ******** **** **** **.   *** ***** ** clear – **** ****** ********* *** *** ****** *** ***** of ********* ********* ***** ********; **** ****** ***** *** **** in ******** **** *********** ****** ** **** *** ** ****** these ***** ** ***** ***.

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

*** ********* ** ***-****** ***** ******** ** ******* ********* ****** in *** ******** ********* ** ************ *****.  **** *********** ******* manufacturers **** *** **** *******, **** ***** **** **** ****** control **** ************ *** ******* – ******* ** **** ******* high *** *********** **** ******** ********* *** *************** ** ************ products.  ***** **** *** ****.  ** *** ***** ****** **** tech-savvy *** ******** ****** ****** ** *** (**** *** ****, wireless, ***) *** **** *** ******* *********** ********** ************* – especially ** ******* ****** ***** ************. 

*** ** *** *** ******* *** *** ***** ********* ** these *** ******* ** ** ***** ****** *** **** **** channel ************* **** ************ ******** * ***-**** ******** ******** ** new ******** **. ********** ******** *** *********** *******.  *** ******* structure ** ***** *** ******* ***** *** ***** *** ******* choices.  ***** **** ***** ****** ** *** *** ***** ******* enjoyed ** *********** **** **** ** ******* ************ – ***** that ******’* **** *******.  ***** ************* ***** ********** **** ******** with ******, **** ** *** ***-******* ********* ********* ** ***** those ********* *** ******* ****’*.  **** *****, ***** ****** *** electronic ******* ******** ****,*******,**** ***, *** ****** **** *** ************ ******** ** ********** **** these *** ******** ** ******* **** ****** ***** ********.  ******** on **** *******, ***** ************* ***** ********* ***** ********* ** push **** ******-*** *******.  ********* **** *********. **** *** ****** ******* ** **** * *** ***** ***** *** - are *** ********* ***** ********* ******* *************, ******* *********** ***** margins ** **** *** *** **** ***********.

***********

** **** ************ ********** ** ** *** *** ******* ** the ********* **** ******.  ** **** **** ***** ********** ** stopping **** ********, **** ***** ** ** (*** ******* ******** products ****** – *** ***’*).  ** *** ***’* ****?

*** ****** ** **** ********* ******** ******* ** ** ******** more ** ****** ****** ******** **** ** *** ********* ****** toward *********** ***********.  ************* **** ** **** **** ******** ** continue ** ****.  **** ** ****-********* ****** ** *** ************* and ******* ******** *** ************ *****, ******* ************* *** ********* turning * ***** *** ** **** ****** *********** ** ***** to *******.  ******** ************* ******** ** ******** **** **** *** doing **** **** *** ** ****** *** **** ****** (** keep ***** ******** ********* ** *** ****), *** ******** ********* otherwise.

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

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

******- *** *****'* ******* ****** ******** ******** $** ******* ** ******* ****** *****, ** *** *********, **** '*******' ** ************ ***** **** a ***** ****** ** ****** ******** ************ ********. ***********, ******* Amazon ***** ** **** ***** ** **** ** **** *****, we ******** **** **** *** *** ** *** ******* ****** surveillance ******* ** *** ***** **** ******* $** - $** Million ** ****** ************ *****.

*&* ***** – * *** **** **** ***** ******* ******* ** ****, *&* ***** is *** ******* ***-***** ****** *** ***** ***** ** *** ** with ** ********* ***** ****** ******* *************** $*** ******* ***. *******, ***** *&* **** ***** ************ ** * ********* ******** less **** * ***** ***, ***** ************ ******* ** ****** to ** * **** ***** ******* ** ***** ******* ********. That *****, *&* ****** * ***** ******** ** ****** *** ** branded ************ *********.  ****** *** ****** ** ********, *&* ******** * ***** & mortar ****** ***** ** ***, ****** ************* **% ** ***** revenue ***** **** ******** *****.

********** ********-***** ** *** **** ****, ********** ******** ** *** ****** in ******* **** ** ***** *** ******** *** ***** ****** surveillance ****. ***** ****, **** **** ******** ***** ********** ********* to ******* * **** ******** ** ******** ********, **** *** pens *** *** ******** ** **** ********* ******* *** *** traditional ******* ***** ************ ********. ***** ********* * ****** ****** online, ********** ********** ****** ** ********** *** ******** ** *** law ***********, *********** *** ********** ******** ****** ******** ** ******** and **** ***** ******* ************ ************. ****** ***** ********/** *****, the ******** ** ***** (******/*********) ** ********** ** **** *******, as ***** ***** ************ ******** ****** ****** ** ***** *******, whereas ******* ******** *** *** ********. ** ********** ***** ****** products **** ********* ******* ********, ********** '********' ***** ******* *** are **** ** ******* ** **** ********** *** ******** ** a ***** ***** ** ******** **** **** ** *** ****** we ***********.

****.***- * *** ******* ***** ****** ********** ** ************ ********, CCTV.net ** *** **** ******* ** ******** **** ****** **** analog *** ** ***** ***** ** ** ********* ********* **** of ****** (**/**)%. **** ***** ********* ** ****, ****.*** *** focused ** **, ******* **** ** ******* *** ***********, **** distribution ******* ** **** ** *** **. **** *****************.***, ****.*** possesses * ****** ******* *** *** ****** ********, ****** ***** they ****'* ******* ******** ** *** ****** *****, *** ****** rely **** ** *** ******** ** ******* *** ******* *** not ** **** ********.

**** ******- * *******, ** ***** ****** ** ******** *** ************ products, **** ****** ******* ********** **** ****** ** ** *** maglocks ** ****** ******* *********. ****** **** ****** ** *** study, *** ********** ** **** ****** ****** ** **** ** clear **** **** ** *** **** ******** ******. ***** **** certainly **** ** ****** ******** - ********* ***** **** *** page, *****, ****** *****, *** - **** ****** ** ** online *********** ** ******** *********, ******* **** ** ********* **********, dealers *** ******** ***********. ***** ***** ** ******** ****** ** that ******* ** **** ********* ******* ******, ****'** *********** * working ************ **** ** *** ***** ************ ** ******* ****. CCTV ****** ** *** **** ************** *** *** *** ******* Brand. **** ****** ************ **** *** ************ ***** **** *** ability ** ** ******** ** *** *********** ******* - ********* that ******** ********* *** ****** **** ** *********.

******* ******* - * ** ***** ****** ******** ** ** ************ ******* specifically, ****** **** ** *** ***** ********* ** ***********, ******* Webcams **** *** **** ** ****** * **** ***** ** security ******** *** ******* ******* ****** ** ***** **** ********.  Network ******* ** ****** *** ******* ** *** ** ********* ** *********** and also *** ** *** ***** ** *** ****** ********* ** online ** ************ *******, ******** * ******* ***** ** ******* ****** as *** **** ** ****.  ****** **** ** *** ***** 'one ****' ****** ******** ********* *********, ***** ******* ******* ******* offering ***** ****** ** **** ** ****** ** ******* ***** customer **** (**** ****** ** ********** ********) ** ********* ******* expertise ** **** *** **** - ** *******.

*************/** ***** - * ***** ***** ******* ** ******** ***** ****, ************* has **** **** ** ****** ****** ****** ** * **** range ** ************ *** ******** *********. ***** *** ******** ** historical ***** **** **** ******, *** ******* *** *********** ****** growth ** ** ***** ****** ** **** *** **** *** dealer ******. *** ** *** **** *********** *** ****** *** largest ****** ************ ****** ** ***********, ************* ***** ******** ******** directly ** *** ***** *** *** ********. ******* ***** ***** acquired ** *** ******* ***** ** ****, ************* ******* * complete **** ** ******** *** *** ****** *******, ******* ** Black.  ************* ***** ******** **** **** **- *** ***-***** ************* to ****** *** ******* ************ ********* ************ *** *** ** Black ****. ****** ******, ** ***** ******* ********* ** ******* available ** ***** ****** ********************.*** ** **** ******. ** ******** * ****** ******* ********* **** dealer ********* *** ****, ************* '********' ***** ******* *** *** able ** ******* ** **** *********** *** ******** ** *** same *********.

***-**, ***- * ** ***** ****** ** ******** ***** **** *** 2008, *** ********** ** **** ******* ***** **** * ******** background *** *** **** ** ***** ******* *********** ********* **** other ****** *******. ** *** **** ***** ********, ***-** ** focused *********** ** *******-***** ************ ********* *** **** *** ***** analog *******. **** **** ** *** **** ******** ** *** users, **** ********** ** ** ********** ******** ** ******* ***********. Though **** **** ******** ******** (**** * *** ****** ******* to **** ****), *** ***** **** *********** ** ***** *** slowest ******* ******, ********* *** ** ***** ******* ******** ** adapt ** *******-***** ******** ************.

*****************.***– * ******** ** ***** ****** ************ ******** **** ** emphasis ** ******** * ******* ** ****** *****, *** *****************.*** online ***** *** ******** **** **** * ***** *** *** offers *** **** ******** ** ****** *** ** ************ ********. Originally ********* ** * ***** ************ *********** ******, (********* *****, manufacturer *****, ‘***-***-******’ ******, ****** ***** *****, ***), *****************.*** *** able ** ******* * ****** ******-***** ******** **** ****** **** offered ***** ***** ******** ******. **** *********** ******** – *** the **** **** ***** *** ** * **** ****** ******* search *********** – ***** **** * **** ********* **** ***** online ************ *****. ** ******** ** ***** ****** *****, *** unlike *** ***** ********* ** ***********, *****************.*** **** ******** ******* in ***** ********** ******. ** ******** ****** ********* ** ******* they ******* **** ******* ***** *** ***** ******, *****************.*** *********** covers *** *** ***** ** ********* ** **********, ******** *** integrator.

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