AUSTIN, Texas — Analysts expect un-cooled thermal security camera shipments to grow 25% within the next five years, due to the steep declines in average selling prices, according to IHS.
The research firm states that un-cooled thermal cameras are beneficial to the commercial security market, as the devices are able to see in complete darkness and cover wide areas. Additionally, the cameras are not affected by bad weather conditions or altering light conditions, and are well suited to video analytics.
Despite the advantages, un-cooled thermal cameras failed to make inroads within the commercial security sector because they are considered too expensive. Conversely, a new IHS report reveals that some companies have reported price drops in excess of 20% in recent years.
Analysts have credited the continued price decline to two factors: increased competition and new technology developments. In fact, the research firm expects increased competition from new manufacturers entering the thermal camera market to impact prices.
IHS predicts that within 18 to 24 months, traditional visible light camera manufacturers will have new and renewed interest in the un-cooled thermal camera market, prompting these providers to offer total video surveillance solutions on large-scale projects.
Currently, some companies have expanded their product ranges and have begun to offer lower priced entry-level products. The entry-level products would have lower specifications than some current products and are expected to be used to target new end-user markets that are not currently being serviced by thermal cameras.
With some military operations in Iraq and Afghanistan winding down, government funding for un-cooled thermal cameras has slowed, triggering some manufacturers with strong military connections to offer much less expensive thermal cameras to the commercial security market.
“However, the high price decline will mean that revenue growth will be limited for the next couple of years growing, before experiencing increasingly higher growth over this report’s forecast period to 2017,” IHS Market Analyst Oliver Philippou says.