Scam Research And The $86 Billion IP Camera Market

By John Honovich, Published on Dec 19, 2018

Scam.

The most widely cited research numbers in many, if not most, industries come from a growing number of Indian 'market research firms'. We first covered this in Beware Scam Market 'Research'.

Here is another prime example in a new 'Reuters Brand" "article" from a 'research firm' named 'Stratistics':

the Global IP Camera market accounted for $11,012.24 million in 2017 and is expected to reach $86,821.40 million by 2026 growing at a CAGR of 25.8%

$86 billion and a CAGR of 25% over the next 8 years is crazy.

The IP camera market is growing now in the range of 5 - 10% annually. It is obvious to people in the market because they can see how they are their competitors are doing. It is a net growth market but nowhere close to 25% overall. And it is a mature market so it not as if, in the future, it is about to 'take off'.

As an example, IHS, one of the few companies that legitimately tries to estimate video surveillance market has the total market (which is majority IP cameras with NVRs, VMS, storage, etc.) at just 7.5% CAGR for the next 5 years:

Due to the power of compounding, the difference between a 7.5% CAGR and a 25% CAGR is massive. With 7.5% CAGR, in 5 years, a market grows a modest 45% but with 25% CAGR, the market grows 5x more to ~300%.

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

Scam 'Research'

It is patently obvious what is happening here. The 'research firm', Stratistics lacks even basic understanding of the market. From the report sample they provided, the errors are glaring:

3 of the 10 largest IP camera sellers - Avigilon, Hanwha and Uniview (combined they sell $1+ billion in IP cameras) - do not make the list while various companies who have minimal IP camera revenue, do make the list.

And their "company profiling", like the example below, consists of googling and pasting generic information from companies with no analysis nor insights into what the company is doing in IP cameras:

Benefit? Marketing By Journalists And Execs

These 'market research' firms have been able to exploit the demand by careless journalists and executives that simply want a big number to 'prove' what they are talking or writing about is important. "Invest in us - the IP camera market is growing 25% CAGR and will soon be $80 billion!" etc., etc.

Happens In Various Markets

IP cameras are simply one of many markets that these firms 'research', e.g., from Stratistics homepage today, 

'Experts' in amino acids, EMR systems, protection relays and more.

But these have real downsides. Professionals are creating false expectations and literally 'fake news' by citing these as facts, rather than what they are - clever, but deceptive, attempts to sell book reports and consulting.

Comments (20) : Members only. Login. or Join.

Related Reports

Drako's Companies (Brivo, Eagle Eye) Take $4+ Million in PPP Funds on Jul 14, 2020
While centimillionaire Dean Drako is the owner of two of the largest SaaS...
Integrator Acquisitions 'A Good Market' During COVID-19, Says Greybeards on Jul 28, 2020
Industry broker Ron Davis of the "Greybeards" says that the integrator and...
Anixter Runs Fake Coronavirus Marketing Using Shutterstock Watermarked Images on Jul 24, 2020
Coronavirus faked marketing is regrettably commonplace right now but Anixter...
IPVM Editorial Staff on Aug 01, 2020
IPVM has the largest and most experienced editorial team covering video...
Hanwha 8K / 33MP Camera Tested on Sep 14, 2020
Hanwha Techwin has released an 8K / 33MP resolution camera, the TNB-9000 with...
Access Control and Video Integration Statistics 2020 on Oct 08, 2020
Video Surveillance and Access Control are two of the most common security...
The Next Hot Fever Detection Trend - $100 Wall-Mounted Units on Jul 06, 2020
The first wave of the booming fever detecting market was $10,000+ cameras,...
Uniview Deep Learning Camera Tested on Jul 14, 2020
Uniview's intrusion analytics have performed poorly in our shootouts. Now,...
Axis Exports To China Police Criticized By Amnesty International on Sep 21, 2020
Axis Communications and other EU surveillance providers are under fire from...
Startup Calipsa Presents AI False Alarm Filtering on Jul 21, 2020
Calipsa presented its AI false alarm filtering platform at the 2020 IPVM...
Verkada Video Analytics Tested 2020 on Oct 08, 2020
In 2019, Verkada released people and face analytics but our testing then...
Favorite Access Control Credentials 2020 on Sep 15, 2020
Credential choice is more debated than ever, with hacking risk for 125kHz and...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Faulty Hikvision Fever Cam Setup at Mexico City Basilica and Cathedral on Oct 14, 2020
Donated Hikvision fever cameras (claiming screening of 1,800 people/min. with...
Bias In Facial Recognition Varies By Country, NIST Report Shows on Jul 15, 2020
While many argue that face recognition is inherently racist, results from one...

Recent Reports

Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic presented its i-PRO X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...
Watrix Gait Recognition Profile on Oct 16, 2020
Watrix is the world's only gait recognition surveillance provider IPVM has...
Intel Presents Edge-to-Cloud Ecosystem for Video Analytics on Oct 16, 2020
Intel presented its processors and software toolkit for computer vision at...
Microsoft Azure Presents Live Video Analytics on Oct 15, 2020
Microsoft Azure presented its Live Video Analytics offering at the September...
Worst Manufacturer Technical Support 2020 on Oct 15, 2020
4 manufacturers stood out as providing the worst technical support to ~200...
Clorox Announces, Then Pulls, Fever Camera on Oct 15, 2020
For almost one week, Clorox was marketing fever cameras. The booming...
Faulty Hikvision Fever Cam Setup at Mexico City Basilica and Cathedral on Oct 14, 2020
Donated Hikvision fever cameras (claiming screening of 1,800 people/min. with...
Directory of 211 "Fever" Camera Suppliers on Oct 14, 2020
This directory provides a list of "Fever" scanning thermal camera providers...