SCOTTSDALE, USA: The video surveillance market is showing limited unit growth in 2009, but still seeing revenue declines as the weak economy takes its toll.

However, the impact is greater in some segments than others, according to market research firm, In-Stat. Due to their higher cost, IP cameras will see a large slowdown in 2009 shipment growth. As the Networked Video Recorder (NVR) segment is tied to IP camera shipments that area will be impacted as well. Meanwhile, stimulus programs are actually increasing surveillance equipment shipments in select applications.

“In-Stat sees Digital Video Recorder (DVR) channel shipments growing faster than camera shipments, with hybrid DVRs that can connect to both analog and IP cameras increasing at the highest rate,” says Michelle Abraham, In-Stat analyst. “We expect the overall market to return to growth in 2010.”

Recent research by In-Stat found:

•After a decline in 2009, revenue from analog cameras, IP cameras, DVR/NVR, and IP encoders will grow to US$19 billion in 2011.
•Video encoding for DVRs, IP cameras, and IP encoders is moving to H.264 from MPEG-4 part 2. This is enabled by more powerful ICs able to encode multiple streams of H.264 on a single IC.
•As pricing comes down, the attach rate for video analytics in video surveillance equipment will increase at a fast pace.
•Semiconductor revenue for the video surveillance equipment will be stable through 2013, with lower average selling prices offsetting shipment growth.
The research, “Worldwide Market for Video Surveillance Equipment” (#IN0904587BVS), covers the worldwide market for video surveillance equipment, including analog and IP cameras, IP encoders, NVRs and DVRs, as well as video analytics. The report also covers the associated semiconductors in these markets including:

•Surveillance analog and IP camera shipments, revenue and ASPs by region and consumer vs. professional.
•Worldwide Security Digital Video Recorder Channel shipments and Revenues by Region and by DVR/NVR Type.
•Worldwide market for video analytics streams and revenues by equipment type.
•Surveillance equipment semiconductor bill of materials by equipment type and by semiconductor type.
•Surveillance equipment semiconductor revenue by equipment type and by semiconductor type.
•Analysis of key technologies, semiconductors and standards for video surveillance equipment