Network Camera Market worth $5,760.27 Million by 2017

According to a new market research report “Network Camera and Video Analytics Market - Global Forecast, Trend & Analysis – Segmentation by Technology, Function, Resolution, Product & Service Type, System Architecture, Verticals, Application and Geography (2012 - 2017),  the network camera and video analytics market, on the whole, is expected to reach $5,760.27 million by 2017, at a CAGR of 22.4% from 2012 to 2017.

Networked video surveillance has become a key component of the overall physical security market. Video and audio streams, as well as other data, are communicated over the wired or wireless IP (Internet Protocol) network infrastructure. Network video provides many advantages over traditional analog CCTV (closed-circuit television) systems. This has led the network camera and video analytics market to gain momentum in the last couple of years. The demand for networked video surveillance is expected to grow with a healthy growth rates from 2012 to 2017 owing to some dominant driving forces for the market growth.

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The global network camera market is estimated to be worth $1.85 billion in 2012 and expected to reach $4.5 billion in 2017 at a CAGR of 19.5% from 2012 to 2017. The key factors driving the network camera market is need for high resolution, reduction of total cost of ownership (TCO), backed by government investments and increasing demand from non security applications. On the other side, the network camera market growth is hammered by factors like high bandwidth requirements of network camera and lack of data privacy. Embedding the edge-based video analytics in network camera could add a competitive advantage to network camera manufacturers.

As of 2012, market share of day-night camera is 78%, higher as compared to other technology-based network camera. From the global point of view, the fixed and dome types of network camera held relatively the same market share in 2011 and are expected to grow at an estimated CAGR of 18.9% and 20% respectively from 2012 to 2017. In 2011, the “government” vertical dominated the market with revenue of $0.91 billion (60% of market share). The “institutional” market segment is expected to grow at a CAGR of 20.5% from 2012 to 2017. The global “network camera” market is evenly distributed across various geographies. As of 2011, “Americas” led the “suppliers” segment with market share of 30% in the year 2011. However, APAC is expected to grow at a relatively higher CAGR of 20.4% during the projected period.

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The global video analytics market is estimated to be worth $250 million in 2012 and expected to reach $1,260.27 million in 2017 at a CAGR of 38.6% from 2012 to 2017. The key factors driving video analytics market is the transition of video surveillance system from analog to network (digital), emergence of open standards, increase in the efficiency of video surveillance system; while the video analytics complexity, clubbed with higher cost of maintenance of analytics and occurrence of false alarm are key inhibitors of video analytics market. Video analytics market’s non security application like entertainment & visual communication are considered as lucrative market.

There are two broad categories of systems for implementing video analytics - centralized or server-based analytics and distributed or edge-based analytics. The report segments the market in the similar manner. The segmentation according to verticals is based on the similarity in implementation of video analytics in different verticals. The segmentation includes institutional, government commercial, and other verticals. The global video analytics market has been segmented into four major regions; namely Americas, Europe, Asia-Pacific (APAC), and Rest of the world (ROW). The market is divided into the above-mentioned regions to depict the economic characteristics and trends pertaining to them.

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