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

Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
Eocortex / Macroscop VMS Company Profile on Apr 09, 2018
Eocortex is the international brand of Russian VMS manufacturer Macroscop. Macroscop was founded in 2008, and the Eocortex name created in 2013. We...
VMS New Developments Spring 2018 (Avigilon, Exacqvision, Genetec, Hikvision, Milestone, Network Optix) on Apr 04, 2018
What's new with VMS software? In this report, we examine new features and releases for Spring 2018 to track different areas of potential...
Favorite Video Analytic Manufacturers 2018 on Apr 02, 2018
Video analytics is one of the biggest trends in 2018, driven by marketing for Artificial Intelligence and Deep Learning. But what do integrators...
Destructive Video Analytics Hype Returns on Mar 27, 2018
It is not just Hikvision's false advertising campaign. With marketing money being pumped into deep learning, we are returning to the bad old...
Startup Image Intelligence 10X Accuracy Guarantee on Mar 26, 2018
An Australian startup, Image Intelligence, is targeting the biggest problem of video analytics, poor accuracy, with quite a claim: Is this...
Axis Z-Wave IP Camera Tested Poorly on Mar 20, 2018
Z-Wave is drawing notable interest for video surveillance use. In IPVM's initial coverage, 84% expressed interest in it, with nearly half being...
Video Analytics Usage Statistics 2018 on Mar 09, 2018
Video analytics is hot again (one of the top 2 trends going into this year), this time driven by deep learning and artificial intelligence. But,...
Directory of 50+ LPR / ANPR Providers on Feb 21, 2018
License Plate Recognition / Automatic Number Plate Recognition are a type of video analytics software that can identify and match license / number...
Hikvision DeepInMind Tested Terribly on Feb 15, 2018
While Hikvision is heavily marketing deep learning and 'AI' as their next big thing, new IPVM test results of their DeepInMind NVR shows their deep...

Most Recent Industry Reports

May 2018 Camera Course on Apr 25, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Death Of A Dummy Camera Manufacturer on Apr 25, 2018
5 years ago, IPVM gathered insights from a dummy camera manufacturer, who was then the top selling dummy camera provider on Amazon and 3rd in all...
Hikvision Critical Cloud Vulnerability Disclosed on Apr 25, 2018
Security researchers Vangelis Stykas and George Lavdanis discovered a vulnerability in Hikvision's HikConnect cloud service that: just by...
The Yolo Bro And The Death of Journalism on Apr 24, 2018
There's an old quote: The job of the newspaper is to comfort the afflicted and afflict the comfortable Unfortunately, the opposite is more...
DMP Adds Ring Video Doorbell Integration on Apr 24, 2018
Video doorbells have become one of the hottest items for security systems. After several years with no doorbell, DMP has announced integration with...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
Chinese Manufacturer Kickstarter Campaign Huge Success (EverCam) on Apr 23, 2018
In a week, a Chinese manufacturer's expertly done Kickstarter campaign has received $1.4 million in pledges, an incredible amount for a video...
Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dahua and Hikvision Win Over $1 Billion In Government-Backed Projects In Xinjiang on Apr 23, 2018
Dahua and Hikvision have won well over $1 billion worth of government-backed surveillance projects in China’s restive Xinjiang province since 2016,...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...

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