Analogue video surveillance equipment still dominant in consumer market

Despite the difficult retail climate, the consumer market for video surveillance equipment has continued to perform well, with double-digit growth forecast for both analogue and network product categories.

11/29/2012


IMS Research (acquired by IHS)Analogue security cameras accounted for 87 percent of total camera shipments in the consumer and DIY video surveillance market, according to a recent market report from IMS Research, (IHS Inc.). However, unlike the professional market, the consumer market is not predicted to see a significant revenue transition from analogue to network video surveillance equipment in the next five years.

This is for two main reasons. Firstly, in a highly price-sensitive market, consumer network cameras are on average, double the price of analogue cameras. Secondly, many of the major suppliers to the consumer market are primarily focused on analogue equipment and have comparatively small ranges of network products.

Josh Woodhouse, market analyst and report author, commented: “Consumer analogue video surveillance equipment is primarily sold bundled as a complete system containing at least one camera and a DVR. Conversely, network cameras largely are not available in four or eight camera bundles. Whilst consumer network security equipment offers some interesting solutions it is often not an equivalent product to analogue equipment. Typically, network cameras appeal to a different type of end-user who initially installs a single camera to monitor a particular area of their home.”

Despite the difficult retail climate, the consumer market for video surveillance equipment has continued to perform well, with double-digit growth forecast for both analogue and network product categories.

Woodhouse concluded: “Many retailers stocking video surveillance equipment realise it is a growing category that has not yet reached saturation. The faster growth seen in network equipment has not cannibalised sales of analogue equipment; there is still organic growth in both product lines. For standard multiple camera installations, analogue offers a cheaper solution complete with many of the functions available from network equipment. Analogue bundles will remain fit for purpose for many consumers in the future.”



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