New market research shows that, after a slow start, demand for network cameras is expected to grow at an annual compound rate of 53%, and will exceed $1 billion by 2009.
IMS has revised upwards its forecast for the network camera sector, due to faster than expected acceptance of the technology.
“When IMS published its last report on this market two years ago, there was a great deal of scepticism about network cameras, but this has passed and users are now ready to embrace the benefits of networked video surveillance,” said IMS Research senior analyst Simon Harris.
The report says that raised awareness and availability of network cameras and a shift from basic cameras to higher specified models – such as megapixel and dome cameras more suited to demanding surveillance applications – has contributed to the upgraded forecast.
Meanwhile, the growth of video content analysis software, sometimes known as intelligent CCTV, is set to surge at 66% a year (compound rate), lifting the sector from $66.7 million in 2004 to $839.2 million by 2009.
Such software analyses live or recorded video streams to detect and flag-up suspicious activities or pre-determined events. The report adds that it is easier to justify the costs of such systems, as they can be used beyond narrow security grounds, for example, for loss prevention or to monitor consumer behaviour.
IMS Research predicts that content analysis algorithms will increasingly be embedded in equipment such as cameras, video servers and recorders. By 2009, embedded applications are forecast to account for around 60% of the video analysis software market.
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