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Global IP surveillance cameras market to reach USD 85.5 B in 2025

The market size of the Global IP Surveillance Camera market is estimated to be USD 25.6 Billion in 2018 and is expected to record CAGR growth rate of 18.8% and is expected to reach a market size of USD 85.5 Billion in 2025

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Definition / Scope

IP surveillance cameras, also called digital cameras or network cameras, are cameras that digitize and compress one or more surveillance video streams before streaming it to a central system for further processing and storage.

Due to the urgent need for improved security, fast response times, and superior diagnostic capabilities, the surveillance cameras market is moving towards more sophisticated network cameras. The transition from SD to HD cameras has been rapid and there is growing demand for cameras with excellent visual quality even in poor light, analytical features, and the ability to utilize power and bandwidth to overcome the limitations of bandwidth and storage facilities.

With improved network infrastructure in developing countries, the demand for IP cameras is increasing across all user segments. In the more advanced countries, sophisticated IP network cameras such as pan-tilt-zoom (PTZ) models that provide additional features like remote control, zoom into particular sections, overlay displays with text, customized image enhancements, and real-time analytics and event responses experience greater demand.

Market Overview

The market size of the Global IP Surveillance Camera market is estimated to be USD 25.6 Billion in 2018 and is expected to grow at a CAGR of 18.8% to reach a market size of USD 85.5 Billion in 2025.

By Component

  • Hardware is dominating the market with and has generated USD 7.63 billion market in 2018 and is and expected to grow with 11.54% CAGR
    • Camera is dominating the market with and has generated USD 4.06 billion market in 2018 and is expected to grow with 11.1% CAGR
    • Server is expected to drive the market with 13.9% CAGR during forecast period 2018-2025
  • Software device is expected to drive the market with 15.01% CAGR during forecast period 2018-2025
    • Video Management is dominating the market with and has generated USD 1.52 Billion market in 2018 and is expected to grow with 14.6% CAGR
    • Video analytics is expected to drive the market with 15.6% CAGR during forecast period 2018-2025

By Application

Retail is dominating the market with and has generated USD 4.58 billion market in 2018 and is expected to drive the market with 13.9% CAGR during forecast period 2018-2025.

By Geography

  • North-America accounted for the largest market share, owing to increased adoption of new technological solutions, increasing competition among IP camera vendors, increasing demand for security and increasing disposable income.
  • Asia-Pacific region is expected to grow over the forecast period, 2017-2023. The reason is attributed to technological developments, need for better picture quality and growing demand for security concerns.
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Key Metrics

Metrics Value Explanation
Base Year 2018 Researched through internet


Market Risks

Need for Significant Investment in R&D

Research & Development investments have direct impact on new firm entry. large R&D investments are needed for introducing technological changes and to overthrow new entrants.

Structural barriers arise from the existing demand, cost and technology conditions of an industry and are the same for all firms, new or existing, while strategic barriers are created from the actions and strategic choices of incumbent firms. Examples of structural barriers are economies of scale and capital costs, while examples of strategic barriers are limit pricing and collusion.

R&D is considered as a structural barrier to entry, however it also has a strategic side, as incumbent firms may use R&D strategically it in order to impede new competitors.

Cybersecurity threats

Video surveillance systems have long served as the workhorse of physical security, exposing and even deterring criminal activity. But changes in technology have allowed cyber hackers to turn the tables on these dependable devices and make surveillance cameras another piece of equipment that needs to be protected. As more and more facilities opt for advanced IP (internet protocol) cameras, they expose themselves to hackers who, often, can easily gain access to system networks, changing or stealing data and rendering cameras useless.

In a video surveillance network, each IP camera is a unique, connected device with its own passwords and security settings. Poorly configured devices with design flaws or faulty firmware, combined with a “set it and forget it” mindset, can give hackers easy access to manipulate video footage and potentially compromise other critical systems housed on the same network. Facilities often invest vast resources to combat cybersecurity threats to their IT systems. And the same vigilance should apply when managing video surveillance systems.

Hacking of IP surveillance cameras first appeared in the public eye in 2016 when a huge DDoS attack influenced one-third of all US Internet services. An immense number of IP cameras had been hacked on the grounds that their default usernames and passwords had not been changed.Vulnerabilities in internet-connected camera enable an attacker to seize control of the camera for manipulation. They can remotely control the camera for use as a surveillance device with the capacity to snoop on any recorded sound or video. Pictures and videos recorded by the camera can be transferred to a mobile application. Exploitation of bandwidth resource, end-user deception, anti-forensic data planting and zombie exploitation are a few highlights that fall under possible manipulation.

Top Market Opportunities

Cloud-based Surveillance

Cloud technologies and cloud based surveillance is a key driver for IP technology adoption. Increased awareness about the benefits of these solutions, including remote monitoring, encouraging ROI, reliability makes it an opportunity.With growing maturity and adoption of cloud-based video surveillance technologies, service providers and network operators are finding they can acquire new revenue streams and increase ARPU by offering the right Video Surveillance solution to key vertical markets, including: restaurants, offices, warehouses, retail stores, fitness centers, financial institutions, multi-unit apartments, property managers, hotels, schools, health services and law enforcement.

Untapped SME Market

Huge opportunity for electronic security system will emerge from Small Office Home Office (SOHO) and Small and Medium Enterprise (SME) markets across the world. The home and office security system market is growing at 25 to 30 per cent annually. The SME market is still largely untapped as only 40% of the respondents of a survey point to have implemented surveillance systems and hence can be an opportunity that can boom the growth of the IP Surveillance Camera Market players.

Smart Cities

Investments of about $1.2 trillion will be required over the next 20 years across areas such as transportation, energy, and public security to build smart cities in countries like USA, UK and India. Under the “Safe City” project, the Union Ministry of India proposes $333 million for security and surveillance in 7 big cities which is an opportunity for the Market Players.High level of security concerns and increasing rate of adoption of security systems are creating exponential growth in surveillance market. It has also created enormous market opportunities for the vendors and installers. Additional measures taken by institutions and increasingly by individuals, to reduce theft and vandalism are inducing further demand in this market. Additionally, this increasing adoption rate has also opened up opportunities in the government and commercial sectors for business intelligence.

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Market Drivers

Increasing security concern

Since there is an increased security concern in residential areas due to an upsurge in crime and theft incidents, people are adopting advanced surveillance systems to protect their indoor and outdoor assets. This system is easy to install and helps to provide real time view of location.

IP surveillance system is configured with inbuilt video analytics, which gives out warnings if there are suspicious activities going on. The system alerts the organizations and helps them to prevent any such occurrences. Therefore, these systems generate huge demand and usability in banking and financial institutes and amongst business users.

Availability of Intelligence Services

With increased demand for Security, Video-based Surveillance has become an important area of Surveillance. An Intelligent Video Surveillance system basically censored the performance, happenings, or changing information usually in terms of human beings, vehicles or any other objects from a distance by means of some electronic equipment (usually digital camera).

The scopes like prevention, detection, and intervention which have led to the development of real and consistent video surveillance systems are capable of intelligent video processing competencies. In broad terms, advanced video-based surveillance could be described as an intelligent video processing technique designed to assist security personnel’s by providing reliable real-time alerts and to support efficient video analysis for forensic investigations.

The Availability of Intelligence Services such as alerts and video analytics are driving the demand for IP Video Surveillance Cameras.

Reduction in Complexity of Cabling

IP cameras (commonly referred to as Network cameras, or Megapixel cameras) feature an embedded video server that converts images into a digital format inside of the camera. Because IP cameras are embedded devices and do not need to output an analog signal, they are capable of capturing far higher resolutions than traditional analog cameras and require less cabling.

IP cameras connect to a local network via a single Ethernet cable, which transmits power, video and data to and from the camera which reduces the complexity in cabling. Additionally, IP cameras have a unique IP address, and can be accessed directly via the network – providing remote access and storage flexibility.

IP network cameras can by deployed anywhere reachable by Ethernet cabling or a wireless access point, expanding deployment options to include longer reaches or even outdoor coverage.

Increased Flexibility and Scalability

An IP surveillance system is more robust, flexible, and scalable. IP (Internet Protocol) cameras send digital signals over a computer network. Although slightly more inexpensive initially, an IP-based video security system gives the ability to monitor, view and record activity from remote locations. Cameras can be controlled simply by logging into the network using a computer, tablet, or even a smartphone.

Delivering high-quality video in real time, IP-based surveillance systems are highly scalable and are flexible as any number of cameras can be added based on the Demand.

Market Restraints

High Bandwidth Requirement

While there are a lot of advantages of IP Surveillance over Analog Surveillance, bandwidth occupied by IP Surveillance Cameras are an important consideration before implementing an IP surveillance project as the bandwidth demand is typically higher when compared to other types of Surveillance Cameras such as CCTV or Analog Cameras. The IP Surveillance cameras can malfunction if enough bandwidth is not provided.

Factors affecting the bandwidth occupied by IP Surveillance Cameras:

  • Resolution: Various resolutions are supported by IP Surveillance cameras, from QVGA to HD. Higher the resolution, higher the bandwidth required to transmit every video stream from the IP Camera to the user monitoring station (computer/ server).
  • Frame Rate: Various frame rates are supported by IP Surveillance cameras from 5 frames per second to 30 frames per second (for example). Higher the frame rate, higher the bandwidth required.
  • Compression codec: There are various types of compression schemes applied to the transmitted video like MPEG4, H.264, etc. Better compression (H.264, for example), lower the bandwidth required to transmit each video stream.
  • Compression ratio: A video stream can be compressed more than 90% of its original size, based on the compression codec and the compression ratio used. Better the compression ratio, lower the bandwidth required.
  • Type of Camera Operation: An IP Camera can be operated in fixed mode or PTZ mode. In the latter, the movement of the camera can controlled (even from a remote location) and the bandwidth occupied in this mode is higher.
  • Type of movement/complexity in the scene: If the movement/ complexity in a scene being shot by the IP Camera is less, the bandwidth occupied by the resultant video stream is lesser.
  • Other factors: Many other factors like indoor/ outdoor shooting, shooting in bright light/ dark surroundings, etc affect the amount of bandwidth occupied by each video stream. Special applications like face recognition/ license plate recognition require higher resolution/ frame rate recording and hence they will occupy more bandwidth.

Thus IP Surveillance Cameras require more bandwidth when compared with other types of Security Cameras as IP Surveillance Cameras require bandwidth of 1 MB/Sec when compared with 150 KB/sec required by Analog Cameras. thus hindering the adoption of IP Surveillance Cameras.

The Lack of Data Privacy

The information from IP Surveillance Camera can be found anywhere in the world via Internet-connected Android or IOS devices and apps. There is, however, a potentially darker side to this technology because not only can it can be watched, but also to listen to what is going on within proximity of one or more cameras. That means these devices can be used for an unintended purpose -Spying (and in violation of end-user license agreements) which can be illegal under federal and state criminal laws as well as subjecting abusers to civil liability.

Complexity in Configuration

Configuration refers to the way a system is set up, or the assortment of components that make up the system. Configuration can refer to either hardware or software, or the combination of both. The IP Surveillance Camera require that they have a certain minimum configuration. For example, the software might require a graphics display monitor and a video adapter, a particular microprocessor, and a minimum amount of main memory.

When the IP Surveillance Camera is installed it is needed to configure it, which means to set various switches and jumpers (for hardware) and to define values of parameters (for software). For example, the IP Surveillance Camera may need to know what type of video adapter is used and what type of printer is connected to the computer. The configuration of IP Surveillance Cameras involves complex steps which includes setting up the monitor and the Camera itself. The Complexity in the Configuration of the IP Surveillance Cameras hinders the adoption of the same.

The High Costs Associated with Upgrading of Existing Analog Infrastructure

If the network is not set up already and the switches in place, the IP Video Surveillance camera can increase the cost and labor involved in the CCTV installation, regardless of the fact that it needs fewer cables overall. It may cost more to initially set up the IP camera system if the switch is made from analog; The cameras and equipment (aside from cables) tend to cost more on an individual basis compared to their analog counterparts.

Industry Challenges

Vulnerability to Hacking

Internet Protocol (IP) surveillance cameras afford certain conveniences in homes and businesses primarily owing to their accessibility. With these devices, it’s possible for, say, parents to remotely check on their children in their homes or company personnel to see what’s going on in and around their business premises.

However, their usability tends to come at the expense of security, resulting in such issues as Hacking. More seriously, this trade-off has also led to some consequences that It is also observed, with hackers gaining access to cameras to record videos, selling access to cameras to other parties, or even using cameras for malicious view around shops and getting access to credit card information from unsuspecting customers. Despite the sensitivity of the images and information caught on exposed cameras, though, It is believed that this activity is not the doing of sophisticated hackers.

For one thing, services related to the abuse of IP surveillance cameras and other devices connected to the internet of things (IoT) are often advertised not in darknets, or parts of the internet that are available only through specialized anonymity-protecting tools, but in publicly available social networks such as VK.com. The software and tools used for network enumeration and gaining access to cameras are themselves publicly available as well. In addition, the means of payment used for transactions are often not anonymized.

It is also observed that because cameras often use default passwords or streaming video without authentication, much of the activity related to exposed cameras doesn’t require special knowledge or advanced hacking skills. It’s small wonder, then, that tapping into exposed cameras is considered an easy task for entry-level cybercriminals and script kiddies, or unskilled hackers who use existing scripts or code rather than developing their own. Hence it turns out to be an easy task for hacking the IP Surveillance Cameras.

Rise in number of inferior quality products by local players

There are no standards for the manufacture of IP Surveillance Cameras Lack of standards is also paving the industry to be more streamlined, there is the way for more imports and countries like China and Taiwan are dumping products without any set standards for an association, specifications regarding the manufacture of IP Surveillance Cameras.

There is no regulatory body to keep a check on the industry’s activities, which is a bad situation for a business like ‘security’. The association can also encourage local manufacturing. Moreover, there is a need to educate customers not to compromise on security by using inferior quality products. Customers are very price sensitive and just to save a nominal amount, they compromise on the quality of products, even though it involves their own security. Due to their lack of awareness, customers get mislead by any unorganised player.

The key issue is the unorganised sector and the low customer awareness of quality products available in the market. It is important that the mindset move from just having a surveillance system in place to having a working system that takes care of the predictable threat as well as works well over a period of time. Here, the role of the consultant whether it is an architect or interior designer is also critical as they too should focus on Page quality and durability as against price point alone.

Technology Trends

Artificial intelligence for video surveillance

Artificial intelligence for video surveillance utilizes computer software programs that analyze the audio and images from video surveillance cameras in order to recognize humans, vehicles, objects and events. The A.I. program functions by using machine vision. Machine vision is a series of algorithms, or mathematical procedures, which work like a flow-chart or series of questions to compare the object seen with hundreds of thousands of stored reference images of humans in different postures, angles, positions and movements.

The A.I. asks itself if the observed object moves like the reference images, whether it is approximately the same size height relative to width, if it has the characteristic two arms and two legs, if it moves with similar speed, and if it is vertical instead of horizontal. Many other questions are possible, such as the degree to which the object is reflective, the degree to which it is steady or vibrating, and the smoothness with which it moves.

Combining all of the values from the various questions, an overall ranking is derived which gives the A.I. the probability that the object is or is not a human. If the value exceeds a limit that is set, then the alert is sent. It is characteristic of such programs that they are self-learning to a degree, learning, for example that humans or vehicles appear bigger in certain portions of the monitored image – those areas near the camera – than in other portions, those being the areas farthest from the camera.

Forensic Video Analytics as a Service

When reviewing video for investigations one of the biggest challenges is the sheer volume of video footage which may need to be examined. It's said that typically it may take a trained officer or analyst using traditional methods (a notepad and the pause/rewind buttons) 1.5 - 2 hours to review just an hour of raw video footage. This can be a huge consumer of resource.

The problem is particularly prominent in police forces where the issue is amplified by a combination of budgetary constraints and a spike in the amount of video inputs (increased use of body worn cameras and more publically submitted videos). There have long been grounds to find a more efficient solution. Several video surveillance analytic solutions for forensic video analysis have been available for some time, yet, the improvement in accuracy in the last 18-24 months using deep learning technology has been critical. This advancement has pushed accuracy to a level of competency that can be reliable enough to assist human analysts. However, deploying this technology can prove expensive for police departments.

At present there is a significant hardware cost required to run this type of video analytic. And many of the potential clients are not managing live cameras but instead looking for a tool to search through the repository of potential evidence they have collected from multiple sources in many formats. Some providers have offered use of their analytics and software packages in a “as a service model” where police forces or agencies can utilize the vendor’s onsite infrastructure and internal analysts to outsource their forensic video analysis.

Moving this model to a cloud platform is an obvious evolution where by following some training clients can use on-demand forensic video analytics for particular cases remotely with their own analysts without large hardware investment.

Other Key Market Trends

From Analog to IP Based Cameras – A Paradigm Shift

The security and surveillance industry has evolved over the years, and the trend is shifting from physical security to video-based security and surveillance with the help of camera technology. The shift is driven by factors such as increased safety, time, and cost efficiency, and convenience of the end user. Also, video surveillance systems provide numerous benefits to its users, such as remote monitoring, better work productivity, protection against theft, traffic management, and also support in gathering evidence in legal cases.

During the initial phase of video surveillance technology, analog cameras were being used; however, the market is witnessing a change with the increased acceptance and adoption of IP cameras. Owing to the low cost, cloud storage, built-in wireless connections, and high durability, the market for IP cameras is expected to grow at a robust rate. Moreover, the changing paradigm shift from video analytics to intelligent video analytics presents a number of opportunities for the market to grow.

With the addition of video content analytics (VCA) and video surveillance as a service (VSaaS), the video surveillance industry is expected to witness high growth, as VCA enables extraction of structured information through the automatic analysis of a continuous data stream

Market Size and Forecast

North America The North America IP Video Surveillance Market size is poised to grow at a CAGR of 18.5% during the forecast period (2018-2025). The US market dominated the North America IP Video Surveillance and VSaaS Software Market by Country in 2016, and would continue to be a dominant market till 2025; growing at a CAGR of 18.5 % during the forecast period. The Canada market is expected to witness a CAGR of 22.3% during (2018 - 2025). Additionally, The Mexico market is expected to witness a CAGR of 21.1% during (2018 - 2025).

USA IP Video Surveillance Camera Market Size

  • USD 5.12 Billion – The estimated market size of the US IP Video Surveillance Camera Market in 2018
  • 18.5% - The CAGR growth rate of the US IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 16.8 Billion- The expected market size of the US IP Video Surveillance Camera Market in 2025

Canada IP Video Surveillance Camera Market Size

  • USD 1.54 Billion – The estimated market size of the Canadian IP Video Surveillance Camera Market in 2018
  • 22.3% - The CAGR growth rate of the Canadian IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 6.3 Billion- The expected market size of the Canadian IP Video Surveillance Camera Market in 2025

Mexico IP Video Surveillance Camera Market Size

  • USD 612 Million – The estimated market size of the Mexican IP Video Surveillance Camera Market in 2018
  • 21.1% - The CAGR growth rate of the Mexican IP Video Surveillance Camera market size in the forecast period 2018 to 2025
  • USD 2.34 Billion- The expected market size of the Mexican IP Video Surveillance Camera Market in 2025

South America

South America IP Video Surveillance Camera Market size is estimated to witness to grow at a growth rate of 22.8% CAGR during the forecast period (2018- 2025). These regions show comparatively lower adoption for IP video surveillance. However, the need for crowd management and security concerns in countries such as Brazil and Argentina would enhance the adoption of IP Video Surveillance Camera system. The hospitality sector in these countries is poised to grow in a notable manner, which would fuel the growth for IP surveillance market. The ongoing developments in communication networks in this region have also fueled the growth of the IP surveillance systems.

Brazil IP Video Surveillance Camera Market Size

  • USD 720 Million – The estimated market size of the Brazilian IP Video Surveillance Camera Market in 2018
  • 22.8% - The CAGR growth rate of the Brazilian IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 3.03 Billion- The expected market size of the Brazilian IP Video Surveillance Camera Market in 2025

Argentina IP Video Surveillance Camera Market Size

  • USD 432 Million – The estimated market size of the Argentinian IP Video Surveillance Camera Market in 2018
  • 22.4% - The CAGR growth rate of the Argentinian IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 1.78 Billion- The expected market size of the Argentinian IP Video Surveillance Camera Market in 2025

Asia-Pacific

The Asia Pacific IP Video Surveillance Camera Market Size is anticipated to experience a growth rate of 23.2% CAGR during the forecast period (2018 - 2025). The Asia-Pacific market is showcasing positive inclination towards IP surveillance system, owing to rising security concerns. The ongoing developments in communication networks in this region have also fueled the growth of the IP surveillance systems. The other drivers such as technological innovations, real-time access, integration of wireless technologies, video analytics, affordability of IP surveillance systems, and government initiatives have positively influenced the adoption of IP surveillance technology.

China IP Video Surveillance Camera Market Size

  • USD 3.58 Billion – The estimated market size of the Chinese IP Video Surveillance Camera Market in 2018
  • 22.8% - The CAGR growth rate of the Chinese IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 15.08 Billion- The expected market size of the Chinese IP Video Surveillance Camera Market in 2025

India IP Video Surveillance Camera Market Size

  • USD 1.79 Billion – The estimated market size of the Indian IP Video Surveillance Camera Market in 2018
  • 23.2% - The CAGR growth rate of the Indian IP Video Surveillance Camera market size in the forecast period 2018 to 2025
  • USD 7.71 Billion- The expected market size of the Indian IP Video Surveillance Camera Market in 2025

Japan IP Video Surveillance Camera Market Size

  • USD 620 Million – The estimated market size of the Japanese IP Video Surveillance Camera Market in 2018
  • 23% - The CAGR growth rate of the Japanese IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 2.64 Billion- The expected market size of the Japanese IP Video Surveillance Camera Market in 2025

Europe

The Europe IP Video Surveillance Camera Market Size would grow at a market growth rate of 19.5% CAGR during the forecast period (2018 - 2025). Europe is one of the major markets in terms of adoption of IP video surveillance. The major countries in the region are U.K, Germany, Italy, France, Spain and Russia. Russia has notable adoption rate with rising demand for IP surveillance system.

UK leads in the rate of adoption of Internet Protocol in small and medium-size businesses. As the small businesses are showing interest in IP technology in UK, it is expected that UK would experience a healthy rise in adoption for IP surveillance system. The terrorist attacks in the region have further added to the need for an effective surveillance system. The political stability in Russia and other European regions would also fuel the growth of IP Video Surveillance Camera.

The adoption rate of Cloud-based solutions is higher in Europe, as it mitigates the storage cost for storing data, eventually leading to an increase in market share of IP surveillance system in this region.

UK IP Video Surveillance Camera Market Size

  • USD 1.8 Billion – The estimated market size of the UK IP Video Surveillance Camera Market in 2018
  • 19.2% - The CAGR growth rate of the UK IP Video Surveillance Camera market size in the forecast period 2018 to 2025
  • USD 6.15 Billion- The expected market size of the UK IP Video Surveillance Camera Market in 2025

Germany IP Video Surveillance Camera Market Size

  • USD 900 Million – The estimated market size of the German IP Video Surveillance Camera Market in 2018
  • 19.5% - The CAGR growth rate of the German IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 3.13 Billion- The expected market size of the German IP Video Surveillance Camera Market in 2025

France IP Video Surveillance Camera Market Size

  • USD 540 Million – The estimated market size of the French IP Video Surveillance Camera Market in 2018
  • 19.2% - The CAGR growth rate of the French IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 1.85 Billion- The expected market size of the French IP Video Surveillance Camera Market in 2025

Middle East and Africa

The MEA IP Video Surveillance Camera Market size is estimated to witness to grow at a growth rate of 22.6% CAGR during the forecast period (2018- 2025). MEA region includes countries such as South Africa, UAE and others. These regions show comparatively lower adoption for IP Video Surveillance Camera market.

However, the need for crowd management and security concerns in countries such as UAE and South Africa would enhance the adoption of IP Video Surveillance Camera system. In addition, countries such as Dubai and South Africa are rapidly evolving into tourism destinations. The hospitality sector in these countries is poised to grow in a notable manner, which would fuel the growth for IP surveillance market.

Saudi Arabia IP Video Surveillance Camera Market Size

  • USD 452 Million – The estimated market size of the Saudi Arabian IP Video Surveillance Camera Market in 2018
  • 22.8% - The CAGR growth rate of the Saudi Arabian IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 1.90 Billion- The expected market size of the Saudi Arabian IP Video Surveillance Camera Market in 2025

UAE IP Video Surveillance Camera Market Size

  • USD 418 Million – The estimated market size of the UAE IP Video Surveillance Camera Market in 2018
  • 22.6% - The CAGR growth rate of the UAE IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 1.74 Billion- The expected market size of the UAE IP Video Surveillance Camera Market in 2025

South Africa IP Video Surveillance Camera Market Size

  • USD 542 Million – The estimated market size of the South African IP Video Surveillance Camera Market in 2018
  • 22.5% - The CAGR growth rate of the South African IP Video Surveillance Camera market in the forecast period 2018 to 2025
  • USD 2.24 Billion- The expected market size of the South African IP Video Surveillance Camera Market in 2025
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Market Outlook

The market size of the Global IP Video Surveillance Camera market is estimated to be USD 25.6 Billion in 2018 and is expected to grow at a CAGR of 18.8% to reach a market size of USD 85.5 Billion in 2025.

The total unit shipment was about 21.6 Million in 2018 and is expected to post a volume growth of 20% in the period 2018 to 2025.

The global infrared IP camera market is expected to grow at an exponential rate of over 36% in the forecast period (2018 to 2025) owing to the need for effective night surveillance solutions.

The Centralized system is expected to bolster growth of 22% in the period 2018 to 2025, while the decentralized system is expected to post growth rate of 24% in the same period.

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Technology Roadmap

Radio Frequency (RF) detection aerials:

These products are used to detect, analyze, and locate the RF used by the drone base station to communicate with the drone. The benefits of RF detection aerials are that they can detect and locate both the drone in the air and the person controlling the drone, in some instances even before the drone takes off. RF aerials are also able to detect over a much greater range than radar or video surveillance cameras.

Additionally, RF aerials can potentially even interfere with the communication between the drone and the controller. However, doing this can have unknown effects, such as the drone dropping out of the sky. The problem with RF aerials is that they are not particularly accurate at providing a specific location, nor are they able to provide video verification of a drone.

High Efficiency Video Coding (HEVC) also known as H.265 and MPEG-H Part 2, is a video compression standard, designed as a successor to the widely used AVC (H.264 or MPEG-4 Part 10). In comparison to AVC, HEVC offers from 25% to 50% better data compression at the same level of video quality, or substantially improved video quality at the same bit rate.

It supports resolutions up to 8192×4320, including 8K UHD, and unlike the primarily 8-bit AVC, HEVC's higher fidelity Main10 profile has been incorporated into nearly all supporting hardware. HEVC is competing with the AV1 coding format for standardization by the video standard working group NetVC of the Internet Engineering Task Force (IETF).

Distribution Chain Analysis

IP Video Surveillance Camera supply chains are characterised by two main parts, one being the manufacturing process and the other being the distribution process. The first two steps (suppliers and manufacture) may be included in the manufacturing process, whereas the three other steps may be included in the delivery process.

For the sake of simplicity, and if one considers clustering customers, one can consider customers and consumers to be in the same step of the supply chain. IP Video Surveillance Camera manufacturing involves several steps and each one can be performed in different sites. However, only one step is considered, and IP Video Surveillance Camera leave factories as final products.

All of these steps can take up to few months to complete, approximately, which represents a huge lead time in the delivery of IP Video Surveillance Camera from factories to warehouses After manufacturing, IP Video Surveillance Camera are shipped for distribution. In the distribution process IP Video Surveillance Camera go through international shipping and finally arrive to warehouses where they are stored. The last step encompasses delivering IP Video Surveillance Camera to final markets as countries.

A supply network from a IP Video Surveillance Camera company is similar to that of any other industry in the manufacturing sector. Despite all advances and improvements in the manufacturing, storage, and distribution methods, several manufacturing companies are still significantly far from effectively satisfying market demands in a consistent manner

Inside the industry, the preferred mechanism to overcome the productivity crises has been to increase investment, primarily, in the two extreme ends of the supply chain, R&D and sales. However, supply chain optimisation is an excellent way to increase profit margins and is becoming current practice

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Competitive Landscape

IP Video Surveillance camera market players have adopted various strategies such as acquisitions, technological innovation and price differentiation in order to gain a stronger foothold and competitive advantage in the market. The growing competitiveness among IP camera vendors has resulted in huge investments in R&D to develop innovative and advanced solutions. Among the overall competitive strategies, new product launches constitute the major share, followed by partnership & collaboration. Large network of technology partners and branding strategies have also helped vendors to gain market share across various regions.

Vendors are focusing on mergers and acquisitions, new product launches with 4K, advanced video analytics, cloud storage and infrared capabilities to develop versatile systems. Some of the key vendors of network camera market include Bosch Security Systems, Axis Communications, Sony Professional, Samsung Techwin, Dahua Technology, Panasonic Security System, Hikvision Digital Technology.

The global IP Video Surveillance camera market is characterized by technological development and creating a global market presence through partner programs and long-term collaborations. Industry is characterized with horizontal integration and acquisition of technologically sound companies to add on to the capabilities of the vendor’s product portfolio. Various players are focused on providing interoperable systems and ease of upgrading of existing analog system into IP based solution. Chinese vendors have started to extend their reach outside of China by offering low prices. For instance, Hikvision and Dahua Technology lowered prices of their products to outcast competitors.

Competitive Factors

Competitive Pricing

Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. This pricing method is used more often by businesses selling similar products, since services can vary from business to business, while the attributes of a product remain similar. This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which occurs when a product has been on the market for a long time and there are many substitutes for the product.

Quality

Competitive advantage denotes a firm's ability to achieve market superiority over its competitors. In the long run, a sustainable competitive advantage provides above-average performance. The characteristics relate to quality, quality can be an important means of gaining competitive advantage.

Innovation

The market dynamics are affected by many factors - from consumers’ socioeconomic conditions to a firm’s capacity to show an innovative product for consumption. Thus, innovation is becoming the companies’ main competitive factor to increase and keep their operating area.

Key Market Players

Avigilon Corporation designs, develops, and manufactures video analytics, network video management software and hardware, surveillance cameras, and access control solutions. The company’s products include high definition Internet protocol cameras, network video recorders, analog video encoders, access control and security products, RIALTO video analytics appliances, Avigilon artificial intelligence appliances, and video management software products.

It also provides Avigilon Blue cloud service platform for security and surveillance to support professional video monitoring. The company’s products are used in school campuses, transportation systems, healthcare centers, public venues, critical infrastructure, prisons, factories, casinos, airports, financial institutions, and government facilities, as well as used by retailers.

Axis Communications AB develops and sells video surveillance and access control solutions. It offers fixed cameras, fixed domes, PTZ cameras, thermal cameras, panoramic cameras, HD and megapixel cameras, and outdoor cameras; and video encoders and video server racks. It also offers IP-surveillance video management software solutions for small stores, offices, schools, and retail and manufacturing clients; camera applications; mounting and connecting accessories, add-on devices, and tools; and physical access control products.

In addition, the company offers Network Radar Detector for area detection of moving objects in different light and weather conditions. Its products are installed in retail chains, airports, trains, motorways, universities, prisons, casinos, banks, hotels, boutiques, restaurants, and offices, as well as used by city surveillance, government, healthcare, industrial, and critical infrastructure clients.

Bosch Security Systems, Inc. designs and supplies security equipment for communications, video surveillance, access control, and intrusion and fire detection applications throughout the world. It offers access control and system solutions; analog cameras, IP cameras, digital video recorders, monitors, accessories, and video software; conference systems, including discussion systems, wireless discussion systems, and wireless language distribution systems; and fire alarm systems, which include fire panels, smoke detectors, and notification appliances and accessories to help protect office buildings, warehouses, lodging establishments, educational facilities, retail stores, and other types of facilities throughout North America.

Canon Inc. manufactures and sells office multifunction devices (MFDs), plain paper copying machines, laser and inkjet printers, cameras, diagnostic equipment, and lithography equipment. The company operates through four segments: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit.

The Office Business Unit segment offers office MFDs, printers, copying machines for personal and office use, production print products for print professionals, laser multifunction and laser printers, digital continuous feed presses, digital sheet-fed presses, wide-format printers, and document solutions, as well as software, services, and solutions. The Imaging System Business Unit segment provides interchangeable-lens digital cameras, digital compact cameras and camcorders, digital cinema cameras, interchangeable lenses, compact photo printers, inkjet printers, commercial photo printers, image scanners, multimedia projectors, broadcast equipment, and calculators.

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use. The Company provides products for transporting data, voice, and video within buildings, across campuses, and globally.

Zhejiang Dahua Technology Co., Ltd. operates in the security video surveillance industry worldwide. The company offers front-end products, including watchman panorama infrared network, dual-camera behavior analysis network, multi-dimensional sensing network, AI ecosystem network, AI entrance and exit image-capturing, thermal imaging, 4k 4-camera network, spherical network, and linkage network cameras.

It also provides storage products, such as smart NVR and IVSS products, vehicle travelling data recorders, HDCVI products, and face-recognition attendance integrated machines; central products comprising smart structured video, vehicle secondary analysis, passenger flow statistics, and other intelligent servers; and cloud computing and big data products and services. In addition, it offers facial recognition access control machines; AI algorithms in smart traffic, facial and behavior analysis, object recognition, robots, and multi-sensor fusion fields; economical face detection cameras,

Flir Systems Inc. designs, manufactures, and markets thermal imaging and infrared camera systems in the U.S. and internationally. Its Thermography division offers products for commercial and industrial applications, where temperature measurement is a primary requirement. The Commercial Vision Systems division caters to security, automotive, marine, airborne, and first responder markets. The Government Systems division makes products that allow the user to see in total darkness and through smoke, haze, and various types of fog. This division serves search and rescue, force protection, border and maritime patrol, surveillance and reconnaissance, targeting, federal drug interdiction, military, paramilitary, and police markets.

Hangzhou Hikvision Digital Technology Co., Ltd. provides video-centered intelligent Internet of Things solutions and big data services worldwide. The company offers network cameras, thermal cameras, analog cameras, PTZ products, network video recorders, digital video recorders, Wi-Fi and PoE kits, video encode and decode cards, encoders, mobile video recorders, mobile cameras, and portable cameras. It also provides video intercom and access controller products; traffic products, such as radars, terminal servers, supplement lights, traffic signal controllers, and smart traffic data analysis servers; and transmission and display products, including LCD and LED splicing screens, DLP splicing screens, decoders, monitors, controllers, network switches, keyboards, accessories, digital signages, smart interactives, wireless bridges, and POE repeaters, as well as enterprise network storage products.

Honeywell Security Group offers intrusion, access control, and video surveillance products and systems in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its products include control panels, keypads, expansion modules and accessories, wireless products, alarm communications, sensors, life safety products, structured wiring, cabling products, and kits. The company also offers commercial and residential security services using Internet video, alarmnet, and structured wiring systems.

Huawei Technologies Co., Ltd. provides networking products and telecommunication solutions. The Company researches and develops internet access, transmission network, servers, storage, security, and other networking products. Huawei Technologies also offers business consulting, network integration, assurance, managed, learning, and global delivery services.

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Strategic Conclusion

The market size of the Global IP Video Surveillance Camera market is estimated to be USD 25.6 Billion in 2018 and is expected to record CAGR growth rate of 18.8% and is expected to reach a market size of USD 85.5 Billion in 2025.

The major challenges pricking the growth of the Global IP Video Surveillance Camera market includes vulnerable Systems and Rise in number of inferior quality products

The growth of the market is restrained by factors such as High Bandwidth Requirement, The lack of data privacy and The high costs associated with upgrading of existing analog infrastructure

The growth of the Global IP Video Surveillance Camera market is augmented by Drivers such as Real time access to data, Increasing security concern, Availability of Intelligence Services, Reduction in Complexity of Cabling and Increased Flexibility and Scalability

Further Reading

Appendix

  • PTZ - Pan-tilt-Zoom
  • CAGR - Compounded Annual Growth Rate
  • USD -US Dollar
  • R&D - Research and Development
  • DVR - Digital Video Recorder
  • POS - Point of Sale
  • CCTV - Closed Circuit Television
  • ANPR - Automatic Number Plate Recognition
  • IoT - Internet of Things
  • AI - Artificial Intelligence
  • RF - Radio Frequency
  • HEVC - High Efficiency Video Coding
  • IETF - Internet Engineering Task Force
  • IP - Internet Protocol


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