Smart home video surveillance to generate $1 billion in revenues in 2014: IHS
December 18, 2014
The market for consumer video surveillance equipment in the smart home is expected to generate more than $1 billion in annual revenue for the first time in 2014, with the US market accounting for about 65% of the total, according to new research from IHS Technology.
The market is still split evenly between analog and network technologies, according to the research, with a large number of end users still protecting homes and small businesses by purchasing an analog video surveillance bundle consisting of cameras and a DVR purchased from a retailer.
However, high-resolution alternatives are becoming available and will prove to be very popular in the consumer market in future, according to IHS.
The market-research company expects unit shipments to grow rapidly over the next two years as equipment is increasingly selected in preference to standard-definition analog bundles.
Nevertheless, standard-definition bundles will not disappear entirely because many price-conscious consumers will continue to prefer analog bundles as an entry-level system.
IHS reckons the biggest story in the consumer video surveillance market will be the growth in demand for network equipment – predicting that more than 11 million consumer and DIY network cameras will be shipped worldwide in 2015.
The vast majority of consumer network cameras are described by the market-research company as “standalone network cameras”, meaning they are designed to be operated by consumers making use of cloud or edge storage, without the need for separate recording hardware.
IHS believes that in future a greater proportion of cameras will be shipped offering smart home functionality – with the potential to connect with third-party of same branded smart home systems.
Smart home-capable cameras sold separately and as part of a larger smart home package are expected to be a major driver in the consumer video surveillance market.
Traditional suppliers to the market are adding additional security and smart home product lines and a number are likely to introduce new smart home systems and related enhanced camera functionalities in 2015.
New services will allow customers to watch live or recorded video on smartphones or tablets, checking if their children have arrived home from school or if pets are well.