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IMS Research Analyst Blog
Will Network Video Penetrate the DIY Video Surveillance Market?
Date: 13 July 2012
IMS Research, recently acquired by IHS Inc. (NYSE:IHS), announced in May that it forecast that sales of network video surveillance equipment would overtake those of analogue video surveillance equipment in 2013 (in terms of sales revenue). Whilst the mid-to-enterprise markets are all close to/have already tipped, the consumer and DIY video surveillance segment is still dominated by analogue video surveillance systems.
IMS Research conducted a study into this market segment last year and it was estimated that 85% of video surveillance equipment sales into the consumer and DIY market were analogue cameras and DVRs. The penetration of network video surveillance equipment was significantly lower than in mid-to-enterprise tiers.
Some of the reasons for this are:
The consumer video surveillance market is highly price sensitive. Currently network video surveillance equipment can cost multiples of their analogue counterparts. In a market, where price is a key (occasionally sole) consideration, this is a significant inhibitor to market penetration.
Some consumers do not use the full functionality of their analogue systems so the additional benefits associated with network systems could be deemed surplus to requirements.
For DIY installations, the very word “network” or “IP” is often associated with complexity, an undesirable trait for a self-service market where “plug and play” is favoured.
IMS Research’s forthcoming report titled “The World Market of Consumer and DIY Video Surveillance Equipment – 2012 Edition” reveals that the tide is showing signs of turning. Many major suppliers of analogue video surveillance equipment to this market are to launch network video surveillance solutions (albeit tentatively). The decrease in the price of network video surveillance equipment and a growing emergence of a more tech savvy consumer are two key drivers initiating this supply side change. Cloud storage and Video Surveillance as a Service (VSaaS) solutions are also forecast to be key factors in stimulating and popularising network video surveillance in this self-install market.
Whilst significant traction for network video surveillance equipment is expected towards 2016, analogue video surveillance equipment will still represent the majority of sales into the consumer and DIY market for the foreseeable future.
“The World Market for Consumer and DIY Video Surveillance Equipment – 2012 Edition” will be available in October 2012.
Josh Woodhouse (Analyst, Video Surveillance and VCA)
+44 (0) 1933 40 22 55