Why Consumer Surveillance Will Flip to IP

By: John Honovich, Published on Nov 19, 2012

The last still strongly analog segment is the consumer market. Cost is king for home use and the marginal increase in value with IP for their needs has not yet been enough. However, an emerging technology will fundamentally transforming the consumer surveillance market.

The Impact of Edge Recording

Edge recording changes the competitive positioning of the consumer market as it enables IP to eliminate the recorder appliance (i.e., DVR/NVR).

IP benefits twice from eliminating this:

  • IP recorder appliances (like NVR NASes or PCs) are more expensive than analog DVRs. IP had a significant deficiency here.
  • Without a recorder box, IP not only eliminates a deficiency but it builds an advantage as even 'cheap' analog recorders are still ~$250 USD.

Cost, the number #1 objection to IP, is significantly reduced.

[UPDATE 2014: Analog HD Beats Edge Storage]

Edge storage has been significantly undercut by the emegence of super low cost analog HD, eliminating the resolution advantage of IP for consumers and providing it at much lower cost than IP. See: HD Analog vs IP TutorialTesting Dahua HDCVITesting Analog HD and Hikvision HDTVI Cameras Tested.

The rest of this article remains as is for historical purposes.

Simplicity Gains for IP

While IP is historically and rightfully viewed as more complex than analog, the shift to edge recording will make IP the simpler solution. Now there is no need for setting up any box nor home running coaxial cables to a central place. Widely available ethernet cables or even WiFi will be sufficient (remember, with edge recording, bandwidth demands are no longer an issue).

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

The Market in 2015

Forget 5 years, in less than 3 years, the competitive market is very likely to look like far different than today:

  • IP: 1080p resolution + edge storage + cloud access for $150 per camera
  • Analog: Resolution stays the same, add cloud access, low end 4 camera kits ~$300 (excluding cabling and installation)

Here's the advantages of IP then:

  • Massive video quality advantages (1080p to SD)
  • Much simpler to setup (No box vs box and coaxial cables)
  • More flexible - need 1, 5 or 10 cameras, just add cameras as you need, no additional boxes or constraints

Here's the disadvantages of IP then:

  • Product cost likely still more expensive (50 to 100%) over 3 cameras
  • IP edge recording proprietary - can still use multiple manufacturers but will need different apps/UIs for monitoring

While analog may remain cheaper for larger consumer use, IP will offer far higher video quality, simpler setup and more flexibility. Buying analog will have all the attraction of buying a VHS recorder today.

The Need for Kits?

The growth of edge storage undermines one of analog's greatest strengths in the consumer market, pre-packaged kits of 4 or 8 cameras sold with a DVR. Once you record inside the camera, there is no need for anything but the camera. Each IP camera with edge storage can be sold by itself and consumers can simply buy as many or as little as they need. Buying multi-camera kits actually becomes a disadvantage as it reduces flexibility and increases costs for consumers who want more or less cameras than come in the kit.

Lack of Suppliers?

The last major strength cited for consumer analog surveillance is the range of suppliers. IP consumer offerings have been constrained by a compelling low end offering. With edge storage proving its value, we fully expect a surge in the number of consumer IP cameras with built-in recording. 2013 will likely be to edge storage what 2009 was to megapixel IP cameras.

The Future

IP use is about to explode in the consumer market, at the expense of analog, driven by the disruptive value proposition of eliminating recorders through edge storage.

Comments : PRO Members only. Login. or Join.

Related Reports

Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Network Optix NxWitness 4.0 Tested on Oct 10, 2019
Network Optix released Nx Witness 4.0, proclaiming new features like a deep learning analytics metadata SDK, increased H.265 support, and UX...
Consumer IP Camera Analytics Shootout - Arlo, Google / Nest, Amazon / Ring, Hikvision / Ezviz, Wyze Cam, Yi Home on Sep 26, 2019
AI analytics are hitting the mainstream in the consumer camera market, with entrants Wyze and Yi Home releasing free people detection on their...
Directory of 70 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Yi Home Camera 3 AI Analytics Tested on Sep 10, 2019
Yi Technology is claiming "new AI features" in its $50 Home Camera 3 "eliminates 'false positives' caused by flying insects, small pets, or light...
Genetec Stratocast VSaaS Tested on Sep 05, 2019
The VSaaS market is rapidly expanding in 2019, with Verkada, Meraki, Eagle Eye, Avigilon and numerous startups growing their market share. When we...
UK Facewatch GDPR Compliance Questioned on Aug 27, 2019
Even as the GDPR strictly regulates biometrics, a UK company called Facewatch is selling anti-shoplifter facial recognition systems to hundreds of...
China Dahua To Replace Their Software With US Pepper on Aug 22, 2019
What does a US government banned company do to improve its security positioning in the US? Well, Dahua is unveiling a novel solution, partnering...
JCI Sues Wyze on Aug 21, 2019
The mega manufacturer / integrator JCI has sued the fast-growing $20 camera Seattle startup Wyze. Inside this note: Share the court...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...

Most Recent Industry Reports

Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Pelco Sarix Pro3 Camera Tested on Oct 16, 2019
Pelco has released their Sarix Professional Series 3 cameras, claiming "more security detail in challenging scenes with excellent low light and...
IPVM Camera Calculator User Manual / Guide on Oct 16, 2019
Learn how to use the IPVM Camera Calculator. The guide below includes instructions, images, gifs, and videos demonstrating and explaining the...
Altronix Claims Tango 'Eliminates Electricians' on Oct 15, 2019
Power supply provider Altronix claims its new Tango power supply 'eliminates the need for an electrician, dedicated conduit and wire runs'. In...