Video Surveillance Semiconductor Revenue to Approach $3.5 Billion in 2015

After a slight downturn in 2009 due to the worldwide economic conditions, the video surveillance equipment market returned to healthier levels and continued to improve.Boosted by 2011 sales, the market has witnessed the rise of the IP camera, which is about to overtake the long-established analog camera in revenues. As a result, new NPD In-Stat research forecasts that video surveillance semiconductor revenues will approach $3.5 billion in 2015.

"The years 2011 to 2015 will continue to show increased competition and opportunity for chip sales to surveillance video equipment makers, as semiconductor vendors see new specifications and more demand for surveillance video cameras and associated digital video recorders/network video recorders," says Max Baron, Analyst. "Like digital still cameras, competition, semiconductor price erosion, and the rise of consumer-priced camera volumes shipped, will in time reduce the number of surveillance equipment makers."

Recent research by In-Stat found the following:

  • Revenue from analog cameras, IP cameras, digital video recorders/network video recorders (DVRs/NVRs), and IP encoders will grow to $16.4 billion in 2015.

  • Semiconductor vendors will continue to take advantage of opportunities in sensors, processors, and system security.

  • By 2015, analog camera unit shipments will still be five times greater than IP cameras.

  • Asia Pacific continues to employ less expensive analog cameras, but the larger unit shipments more than make up for the lower prices.

This Market Alert is drawn from the In-Stat research,  Video Surveillance: Technology Vendors Capitalize on Opportunities in Sensors, Processors, and System Security (#IN1205310MMT), which covers video surveillance equipment primarily as part of a security system intended to capture activity on video. The parts of a video surveillance system covered in this report include cameras, DVRs/NVRs, IP encoders, video analytics, and video management systems. Professional markets and consumer markets are differentiated by features and quality.

  • The report is global in scope and includes five-year forecasts for:
  • 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
  • Coverage of key component vendors, including Ambarella, Aptina, Axis, March Networks, OmniVision, Pixim, Techwell, Texas Instruments, and Zoran
  • Surveillance equipment semiconductor revenue by equipment type and by semiconductor type
  • Analysis of key technologies, semiconductors, and standards for video surveillance equipment

This research is part of In-Stat's Multimedia Technologyservice, which provides comprehensive analysis and forecasts of the market for technologies, IP, and semiconductors that enable next-generation mobile devices, including processors, graphics, modems, GPS, displays, memory, storage, operating systems, software, and human interfaces.

Related In-Stat research:

Camera Interfaces Go Serial—Handsets Leading the Way With MIPI

Worldwide Multiformat Transcoders: Driven by Digital Media Delivery

US Broadcast Storage: Enabling the Digital Media Workflow

MPEG Video SoCs for CE Devices and STBs

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