Issue link: https://read.dmtmag.com/i/40004
SECURITY SYSTEMS NEWS SEPTEMBER 2011 www.securitysystemsnews.com NEWS 11 When will network video surveillance sales surpass analog? Q&A with IMS's Gary Wong WELLINGBOROUGH, England— According to a recently released IMS Research report, 2014 will be the year that sales of network video surveillance equipment finally surpass analog. The report said that the growth of the net- work video surveillance market and the decline of the analog market will lead to this transition in 2014. However, the transition in terms of shipments of network cameras themselves will not occur until "far beyond" 2014. Security Systems News con- ducted a Q&A with IMS Research analyst Gary Wong. Below, Wong answers SSN's questions about the report. ------------------------- SSN: What's pushing the market to the tipping point? Gary Wong: In recent years, the analog video surveillance equip- ment market has been in decline whilst the network video sur- veillance equipment market has achieved strong and sustained year- over-year growth. IMS Research forecasts that global sales of net- work video surveillance equip- ment will be greater than those of analog video surveillance equip- ment in 2014, the tipping point. Push-and-pull factors are influ- encing the approach to the tip- ping point. From the push side, increasing numbers of manufac- turers are beginning to prioritize network video surveillance equip- ment ahead of analog video sur- veillance (including incumbent analog equipment manufactur- ers), resulting in greater prod- uct variety and availability. And from the pull side, end users are increasingly beginning to active- ly seek and investigate network video surveillance solutions. Unlike most electronic equip- ment markets (e.g. cell phones), [where] the distribution of rev- enue is heavily weighted towards the mid- and enterprise-tiers of the market, the low-end mar- ket remains the least significant in terms of revenue (however, it does represent the greatest revenue potential going forward). In recent years, the demand for analog video surveillance equipment at the enterprise tier of the market has waned significantly. The combi- nation of declining demand at the enterprise tier and aggressive price competition at the mid- and low- tiers of the market has resulted in a sharp decline in analog video surveillance equipment sales rev- enue, accelerating the transition between technology types. With regard to declining demand, in a rather perverse way, the economic downturn may dmp MemBErsHip P hAs Its rIvILegEs 2011. . have also served to accelerate the transition from analog to network with end users raising return-on- investment and future proofing on their list of priorities. IMS Research says that while network video surveillance sales will overtake analog in 2014, shipments of "analog cameras are forecast to continue to outsell network cameras in 2014." SSN: Has IMS Research pro- jected when network cameras will outsell analog cameras? Gary Wong: Whilst IMS Research has not forecast the tip- ping point for analog cameras versus network cameras in terms of unit shipments (this is beyond the 2015 range limit of the latest IMS Research report), this is not expected to occur until far beyond 2014. Even by 2014, analog cam- WONG see page 14 NO.5 NO DISTRIBUTION As a valued authorized DMP dealer you have access to products and services that others can't compete with. Like the new XTL™ Wireless Security System with built-in cellular communication providing instant RMR. It's amazingly quick to install, offers users the ability to control their system and get status updates remotely using the DMP MyAccess™ Features. The revenue-generating XTL is available only to dealers in the DMP authorized network. Contact us about becoming a business partner at 877.725.1114, or visit us at www.dmp.com Visit us at ASIS, Orlando, FL Sept 19-22 Booth 2651 /