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

Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...
ONVIF Video Surveillance Tutorial on Jan 29, 2019
ONVIF is well known within the surveillance industry as an interface to connect IP cameras and VMS systems. However, new users may find it...
Bosch Favorability Results 2019 on Jan 23, 2019
Bosch's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2017, with 2019 results showing strong net...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...
CES 2019 Show Report on Jan 10, 2019
IPVM was at CES 2019 for the second year (see our CES 2018 Show Final Report) and is reporting on announcements and interesting news from the show...
Managed Video Services UL 827B Examined on Jan 09, 2019
Historically, UL listings for central stations have been important, with UL 827 having widespread support. However, few central stations have...
IPVM Best New Products 2019 Opened - 70+ Entrants on Jan 07, 2019
The inaugural IPVM Best New Product Awards has been opened - the industry's first and only program where the awards are not pay-to-play and the...
Axis Tailgate Detection Tested on Jan 04, 2019
Axis is aiming to tackle tailgating, one of access control's biggest issues, with the Tailgating Detector ACAP application. This camera app claims...
The Battle For The VSaaS Market Begins 2019 - Alarm.com, Arcules, Eagle Eye, OpenEye, Qumulex, Verkada, More on Jan 02, 2019
2019 will be the year that VSaaS finally becomes a real factor for professional video surveillance. While Video Surveillance as a Service (VSaaS)...

Most Recent Industry Reports

Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
Axis IR Multi Imager Camera Tested (P3717-PLE) on Feb 18, 2019
Axis has released their first IR multi imager, the P3717-PLE, a repositionable model listing 360° IR illumination and flexible positioning,...
Ubiquiti Favorability Results 2019 on Feb 18, 2019
Ubiquiti has quietly grown into a $1+ billion annual revenue company, with offerings across wireless, wireline network and video surveillance (see...
Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...

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