Rising crime rates, increasing terrorist attacks and ongoing economic uncertainty are driving the demand for more efficient and effective integrated security systems. While there are a number of technologies contributing to this trend, the video surveillance industry is leading the charge.
A new report by MarketsandMarkets highlighted this phenomenon, noting that network cameras and video analytics are thriving at a faster rate than the overall video surveillance industry. In fact, the market for network cameras is forecast to expand at a compound annual growth rate of more than 19 percent from 2012 to 2017, eventually generating roughly $4.5 billion in revenue in 2017, up from only $1.85 billion in 2012.
The global market for network devices is evenly distributed around the world and is being driven by multiple factors, including the demand for high resolution surveillance cameras, the news source reported. The industry is also being pushed by the promise to implement solutions with a reduced total cost of ownership, which is being boosted by a growing number of government investments, and increasing demand in non security-related applications.
On the other side of that coin, however, the market for network cameras is being impacted by a lack of data privacy and high bandwidth requirements, MarketsandMarkets reported. As a result, more manufacturers are embedding offerings with advanced analytic solutions to gain an advantage over rival vendors.
Video analytics on the rise
MarketsandMarkets forecast the global market for video surveillance analytics to expand at a CAGR of more than 38 percent through 2017. While the industry is expected to generate roughly $250 million in revenue by the end of this year, it is estimated to reach more than $1.2 billion in revenue by 2017.
A separate report by IMS Research noted that chargeable video analytics will become more popular as organizations and consumers leverage advanced surveillance cameras. This will not be without challenges for manufacturers, however, as many vendors will not charge additional expenses for the use of such tools for fear of losing customers.
"This is because only a small proportion of cameras are actually monitored. Most record the video and only view an event after it has occurred," said Jon Cropley of IMS Research. "Furthermore, many applications are quite niche. The majority of customers would therefore be paying for a feature that they would not use."
As the physical security market continues to experience growth from the persistence of real-life threats, network surveillance cameras and video analytics will be leveraged more frequently.