Pick the Right Pieces for Network Video Masterpieces

The target segment of the security market today is network video. The growth rate is the fastest among all product categories. The sole exception could be biometrics, but products from that market still represent a much smaller piece of the overall marketplace compared to network video.

There are still thousands of standalone video systems out there for end users to choose that could benefit mightily from networked architectures. Dealers and integrators are trying to find the right combination of equipment to make a networked system happen.

To manufacturers, networked video is a no-brainer. To many end users, it’s still a bit of a mystery. Even to some dealers and integrators, the subject can be intimidating and even humiliating since a working knowledge of these systems may not yet be fully mastered. As a result, the user does not get the best advice.

For this reason, one of the primary areas of resource allocation for manufacturers is the training budget. In today’s IT-convergent world, this is a significant part of the business development budget. It means revenue opportunities for installing companies as well as for manufacturers.

DVRs Dominate Network Video
As the finishing touches were made on J.P. Freeman Co.’s 2005 report on the network and IP video market, a look was made at the sales levels for equipment in this hot market according to dealers and integrators.

To little surprise, the overwhelming leader was digital video recorders (DVRs). However, it was still surprising to see just how strong DVR sales are.

The chart on this page shows the full range of product sales velocity in terms of our five-point rating system. Out of a possible 5 rating, DVRs racked up a rarely seen 4.2 — far above the next closest product category. That includes network video recorders (NVRs), video servers and analog recorders, all of which are rated at a collective 2.9. These ratings are statistical measurements of market demand, which are converted to market size and sales forecasts for factories to use in planning their production schedules.

Remote, Smart Cameras Heating Up
Beyond DVRs, remote video systems — essentially IP-network systems — are rated third but still at a moderate 2.8 sales rating level.

Remote (IP) cameras, at 2.1, are under the midpoint rating of 2.5 and still getting their feet as a hot product category. However, the new network and IP video market report predicts this category is about to take off in a major way.

Analog recorders’ sales rate has fallen off sharply and will continue to drift to only a nominal level in time as networked video systems go digital.

While smart cameras are rated at only 1.6, this is a precursor to what will become a very strong product category in the future. J.P. Freeman Co. is doing consulting work in this field right now, and there is no question that these products will be right up there in the next year or so. Smart cameras will command an ever-increasing share of camera sales as the industry expands.


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