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 Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

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) : PRO Members only. Login. or Join.

Related Reports

Security / Privacy Journalist Sam Pfeifle Interview on May 24, 2019
Sam Pfeifle is best known as the outspoken former Editor of Security Systems News. After that, he was publications director at the International...
Dahua USA Celebrates 5 Years of Errors on May 22, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Amazon Ring Public Subsidy Program Aims To Dominate Residential Security on May 20, 2019
Amazon dominates market after market. Quitely, but increasingly, they are doing so in residential security, through a combination of significant...
LifeSafety Power NetLink Vulnerabilities And Problematic Response on May 20, 2019
'Power supplies' are not devices that many think about when considering vulnerabilities but as more and more devices go 'online', the risks for...
Inside Look Into Scam Market Research on May 17, 2019
Scam market research has exploded over the last few years becoming the most commonly cited 'statistics' for most industries, despite there clearly...
Vivotek Talks About Taiwan, China, Bans, AI And Business Development on May 10, 2019
Vivotek, Taiwan's biggest manufacturer by revenue, did not have a booth at Taiwan's Secutech 2019 (which we are covering). However,...
Verkada False Allegations Against Avigilon Exposed on May 08, 2019
Verkada has leveled false allegations against Avigilon, as part of their aggressive marketing tactics against the 'dinosaurs' in the 'ancient'...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
Verkada Salesman: IPVM "Stuck In A The Stone Age" on Apr 25, 2019
Verkada is 'tackling dinosaurs' and battling those, like IPVM, who are 'stuck in a the stone age'. Verkada's recent sales recruiting promotion...
Amazon Marketing Pro Installs of Amazon Security Systems on Apr 25, 2019
Is Amazon a threat to conventional providers like ADT, Vivint and Brinks Home Security? Many say no. Now, Amazon is advertising free in-home...

Most Recent Industry Reports

NJ Law Requires Apprenticeship For Public Works Integrators on May 24, 2019
Few integrators do a formal apprenticeship program. However, now a NJ law is requiring any integrator on public works projects (such as state...
Security / Privacy Journalist Sam Pfeifle Interview on May 24, 2019
Sam Pfeifle is best known as the outspoken former Editor of Security Systems News. After that, he was publications director at the International...
Verkada Video Quality Problems Tested on May 23, 2019
Verkada suffers from numerous video quality problems, not found in commercial IP cameras, new IPVM testing of Verkada vs Axis and Hikvision...
Average Frame Rate Video Surveillance 2019 on May 23, 2019
What is the average frame rated used in video surveillance systems? In IPVM's 2011 statistics, the average was 6-8fps increasing to ~10fps in...
Access Control Job Walk Guide on May 22, 2019
Significant money can be saved and problems avoided with an access control job walk if you know what to look for and what to ask. By inviting...
ASCMA / Monitronics Declares Chapter 11 Bankruptcy Plan on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
US Considers Sanctions Against Hikvision and Dahua on May 22, 2019
The US government is considering blacklisting "up to 5" PRC surveillance firms, including Hikvision and Dahua, Bloomberg reported, with human...
Dahua USA Celebrates 5 Years of Errors on May 21, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Axis ~$150 Outdoor Camera Tested on May 21, 2019
Axis has released the latest in their Companion camera line, the outdoor Companion Dome Mini LE, a 1080p integrated IR model aiming to compete with...
Covert Facial Recognition Using Axis and Amazon By NYTimes on May 20, 2019
What if you took a 33MP Axis camera covering one of the busiest parks in the US and ran Amazon Facial Recognition against it? That is what the...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact