Consumers and business decision-makers often clash in ideals, as both have unique demands that service providers must meet to appeal to both groups. While this sentiment can be said regarding many things, video surveillance cameras is among the most interesting.

A new report by IMS Research highlighted this, noting that roughly 87 percent of all camera shipments in the consumer and do-it-yourself market during the past year were analogue devices. In the private sector, on the other hand, one of the biggest trends is the adoption of IP surveillance products and services.

During the next five years, not too much is expected to change, as consumers are forecast to continue opting for analogue devices, despite the well-known benefits of using network solutions, IMS Research noted.

While there are many reasons for this, one of the most prominent is the fact that network cameras appeal to a specific niche that only wants monitoring capabilities to a specific area, as opposed to analogue offerings which often provide more devices through bulking.

“Consumer analogue video surveillance equipment is primarily sold bundled as a complete system containing at least one camera and a DVR,” said Josh Woodhouse, analyst at IMS Research. “Conversely, network cameras largely are not available in four or eight camera bundles.”

Why Else Are Consumers Sticking With Analogue?

Besides the fact that IP products generally target a different niche, there is one key reason consumers opt for analogue solutions: cost.

Analysts said the video surveillance system market is often very expensive, as many IP solutions go for twice the price of analogue offerings. This is a major contributor to slowed IP adoption in the consumer landscape, as many people are feeling the effects of the ongoing macroeconomic crisis that is putting pressure on their wallets.

“For standard multiple camera installations, analogue offers a cheaper solution complete with many of the functions available from network equipment,” Woodhouse said. “Analogue bundles will remain fit for purpose for many consumers in the future.”

The Need for Surveillance Will Require Innovative Thinking

Despite these setbacks, the overall surveillance industry is forecast to experience a significant uptick in the coming years, as analogue and IP markets are both expected to experience double-digit growth, IMS Research noted.

This was also highlighted in another report by MarketsandMarkets, which revealed the global video surveillance market is forecast to expand at a compound annual growth rate of more than 19 percent through 2016, when it will generate revenues exceeding $25 billion.

PC Advisor noted that both analogue and IP surveillance solutions have their benefits and setbacks, requiring decision-makers to think outside the box when determining which offering is best for their organization. In some cases, however, network products simply provide more capabilities than legacy analogue products, enabling greater use of the cameras.

Regardless of which surveillance method is chosen, executives need to be sure their choice will not impact the budget in the long run.

“Surveillance is critical but at the same time it should make short- and long-term financial sense to a company,” said George Choge the director of Basesys Solution, according to PC Advisor.

While decision-makers in the different markets will likely differ in their views as to which surveillance offerings are best, both will agree that video is the foundation of any effective integrated security system and will continue to play an important role in the ongoing demand for physical security solutions in both the consumer and business landscape.