Video Analytics to be $1 Billion in 2012

Author: John Honovich, Published on Dec 18, 2009

An extremely bullish but wildly misleading projection for the video analytics market has been made. V/B Research claims that video analytics will generate more than $1 Billion in 2012 revenue up from an estimated $556 Million in 2009. Of course, this analysis counts all revenue from products running video analytics - meaning a DVR with two channels of perimeter detection is counted for $5,000 or $7,000 rather than the $500 - $700 the analytics alone cost. Likewise, this would make a Pelco Sarix running ObjectVideo count for $1500 rather than the $300 premium the OV enabled Sarix camera has over the non-video analytic version.

The upside is that if you want a 3rd party to provide a big number justifying video analytics growth and size, now you have one from V/B Research.

On the other hand, there are some other obvious and important flaws in V/B analysis:

  • V/B claims that OV and ioimage believed that retail would be a big adopter despite ioimage not even having a retail video analytic solution. While OV does offer retail oriented analytics, OV has continuously been clear that security has and is their major market.
  • V/B cites Southwest Florida International Airport claiming a 5 month ROI on their video analytic systems as proof of 'real ROI'. However, this airport's use is a niche case involving wrong way exit monitoring. While this may be a solid application, it is incredibly narrow and only applicable where regulations apply to controlled movements in indoor areas. This shows nothing about the use in the more commonly desired outdoor perimeter scenario.
The one point we do agree with is that video analytic only providers have shifted into selling 'solutions' or bundles of cameras plus analytics or DVRs plus analytics. While this may be the best option for video analytic startups currently, it is a reflection of a failure to succeed at the primary and initial strategy rather than the ideal market approach. Video analytics manufacturers moving into the DVR or camera market now need to compete head to head against establish incumbents with only minor differentiation from their analytics.
 
[Update 2012: Video analytics growth has been poor over the last 3 years, with more companies exiting the market then entering it.]
Comments : PRO Members only. Login. or Join.

Related Reports

Video Analytics Integration Guide on Aug 16, 2018
Video analytics is hot again (at least conceptually) but integrating video analytics with VMSes can be challenging. This is especially significant...
ISS VMS / Video Analytics Company Profile on Aug 16, 2018
Who is ISS? In the past few months, they had one of the craziest ISC West promo items in years. Then, they hired industry veteran and ex-Dahua...
IP Camera Analytics Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview on Jul 30, 2018
Video analytics are hot again. But whose analytics really work? IPVM bought and tested Avigilon, Axis, Bosch, Dahua, Hanwha and Hikvision cameras,...
Eagle Eye Networks Cloud VMS Tested on Jul 26, 2018
Eagle Eye has become one of the most significant players in the industry in the past few years: Eagle Eye's Owner Acquired Brivo Eagle Eye...
Avigilon "Self-Learning" Analytics And VMD Tested on Jul 23, 2018
Avigilon is a popular choice for video analytics, offering "self-learning" analytics built into their cameras as well as appliances. We tested...
Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
FST Fails on Jul 17, 2018
FST was one of the hottest startups of the decade, selected as the best new product at ISC West 2011 and backed with tens of millions in...
Axis Perimeter Defender Video Analytics Tested on Jul 12, 2018
Axis 'high security' video analytics offering is Perimeter Defender, OEMed / developed with Digital Barriers. But how good is Perimeter Defender?...
Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...
UK VSaaS Startup Ocucon on Jul 03, 2018
Decreasing exposure to fraudulent slip-and-fall insurance claims and lawsuits is one of the oldest selling points of video surveillance for retail....

Most Recent Industry Reports

2Gig Gun Lock / Motion Detector Tested on Aug 17, 2018
Safer guns for families and an opportunity for security dealers to sell more services? That is the aim of Nortek's 2GIG 'Gun Motion Detector'...
Video Analytics Integration Guide on Aug 16, 2018
Video analytics is hot again (at least conceptually) but integrating video analytics with VMSes can be challenging. This is especially significant...
Hikvision IP Camera Critical Vulnerability 2018 Disclosed on Aug 16, 2018
The same day that the US government passed a prohibition on Hikvision cameras, Hikvision disclosed a critical vulnerability for its IP...
ISS VMS / Video Analytics Company Profile on Aug 16, 2018
Who is ISS? In the past few months, they had one of the craziest ISC West promo items in years. Then, they hired industry veteran and ex-Dahua...
Chinese OEM Avycon Gets ADI Push on Aug 15, 2018
Who is Avycon? An American company? A Korean company? A couple of guys relabelling Chinese products? The latter is the best explanation. While...
Backboxes for Video Surveillance Tutorial on Aug 15, 2018
Backboxes are a necessity in surveillance, whether for managing cable whips, recessing cameras, adding wireless radios. But it can be confusing to...
Genetec Stratocast / Comcast 'Motion Insights' Examined on Aug 15, 2018
Comcast recently announced "SmartOffice Motion Insights", an extension to their Genetec OEMed cloud video service (covered by IPVM here). This...
SimpliSafe Violating California, Florida, and Texas Licensing Laws on Aug 14, 2018
IPVM has verified that DIY security system provider SimpliSafe, founded in 2006 and acquired in June of 2018 at a billion dollar valuation, is...
Ban of Dahua and Hikvision Is Now US Gov Law on Aug 13, 2018
The US President has signed the 2019 NDAA into law, banning the use of Dahua and Hikvision (and their OEMs) for the US government, for US...
Cut Milestone Licensing Costs 80% By Using Hikvision and Dahua NVRs (Tested) on Aug 13, 2018
Enterprise VMS licensing can be quite expensive, with $200 or more per channel common, meaning a 100 camera system can cost $20,000 in VMS...

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