An estimated $1.25 billion worth of semiconductor devices will be used in Video Surveillance and Security market during the year 2007. These devices include chips, sensors and other such devices that go into various components of Video Surveillance solutions including Cameras and DVRs. Cameras will consume an expected $849 million worth of chips while other elements will consume about $401 million worth of chips during the year 2007.
With the theme results I have, it looks that 2010 will be the first year when major shift from analog to IP will happen for cameras in the video surveillance market.
2010 will see a significant declining growth rate for analog cameras. There is expected to be an estimated 33% decline in the growth rate of analog cameras. IP cameras at this stage should hold 20% of the market share.
With further deployments, prices of IP cameras are expected to drop and for next 3-5 years the average growth rate for IP cameras is expected at above 30%.