The Evolving Face, Use of Digital Video Surveillance

Among the large, established products in the security industry, digital video surveillance is the fastest area of growth. In our new 2003 report, “Worldwide Closed Circuit TV & Digital Video Surveillance Market,” security dealers were surveyed regarding the current digital video surveillance market and where they believe the strongest digital video product opportunities will be for them in 2007.

Dealers’ total CCTV systems business currently receives the highest rate of importance, followed by digital recorders; digital mux/recorders; digital muxes; local networked video systems; and remote (IP) video systems. Looking ahead to 2007, however, and the list changes.

For instance, digital recorders are expected to outrank a dealer’s whole CCTV business in 2007. New storage features are likely to emerge and prices will continue to fall. Meanwhile, there are still more analog-based system users who will convert to a digital system. A replacement cycle with the units will also probably take place within the next five years.

The biggest single change to occur in 2007 will be with remote (IP) video. In addition to the current advances in digital technology, remote video is expected to grow as the use of broadband connections throughout the United States increases. Approximately 16 percent of U.S. households now have broadband connections, with about 18 million homes using dial-up.

Despite the current demand in digital video surveillance products, the main obstacle to increased sales has been a weak economy. Capital spending remains low, but there are signs of improvement, as corporations beat their recent earning estimates and provide a positive business outlook for 2003.

Joe Freeman is CEO of J.P. Freeman Co. and J.P. Freeman Labs in Newtown, Conn. Freeman can be reached at (203) 426-6023 or E-mailed at [email protected].  Visit his company’s Web site at

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