Abstract

Use of the Internet in Security Surveillance is Spurring Business Opportunities for IP Cameras

The internet has brought the security surveillance industry brand new business opportunities and new usage models. Traditional analog surveillance video cameras became IP cameras after they turned digital and became equipped with built-in video server modules. In high-speed network environments, IP cameras detect and send warning signals on their own; they send instant information, images and voice messages. Users can carry out remote surveillance with several video cameras, thus increasing the efficiency of security surveillance.

Governments in the United States and Europe, the banking and finance sector, the transportation industry and the gambling industry have all adopted new digital security surveillance systems. The United States and Europe are the largest shipment areas for IP cameras. With falling IP camera prices and large-scale sport events and competitions being held around Asia, there has been an increased demand for IP cameras in Asia. In addition, major broadband providers in advanced regions and nations such as East Asia, Western Europe and the United States have been actively making home internet environments into high-speed ones in order to promote more paid value-added services. After Triple Play, household security surveillance and remote healthcare will be the next two areas to develop. This will see various types of IP camera businesses increase deployment in the household and retail markets.

Demand for Video Security Surveillance Differs

Whilst business opportunities have already emerged in the IP camera industry, apart from newly emerging IP camera manufacturers such as Axis and Mobotix, it is worthwhile paying attention to the developments of traditional security surveillance companies and network communications vendors. Because traditional security surveillance companies and network communications vendors have different development in terms of video security surveillance quality and because they have invested different amounts of time, human resources and technology, they will push their products towards different IP camera markets. Traditional CCTV and video surveillance manufacturers such as PSS (Panasonic System Solutions), Pelco, Bosch and GE focus on the quality of security surveillance imaging and storage functions and providing complete solutions. Whether or not the systems they use are open or closed platforms or whether they have added functions such as wireless are not major considerations for these manufacturers and some manufacturers do not even consider adding wireless functions into their mid-range and high-end IP cameras in order to decrease the possibility of security surveillance systems being cracked. These manufacturers will continue to release IP camera products with built-in high resolution and advanced compression format technology specifications. These products will be compatible with traditional security surveillance products and will be paired with high storage capacity equipment and precise surveillance software. Manufacturers of these products will be focusing on markets such as government organizations, the transportation industry, the gambling industry and banking.

For network communications manufacturers, IP cameras represent brand new business opportunities. However, there are entry barriers in terms of hardware and software technology for network communications manufacturers who wish to get into the security surveillance industry. Their ability to seize business opportunities from traditional security surveillance companies' clients in the government sector and the transportation industry is limited. However, with telecommunications and cable television providers around the world providing integrated broadband services, network communications manufacturers' point of entry into the IP camera market is to follow broadband service providers' residential surveillance applications and push low-priced IP cameras into the home. Also, they can increase the added value of products by including functions such as wireless, VoIP, and plug and play. In addition, they are also entering the retail market and cooperating with SI companies. Retail products are attractive to users who wish to carry out installation by themselves, whilst cooperation with SI companies can result in orders from small businesses and community-based security surveillance systems.

Appendix

Research Scope

The IP camera scope in this report mainly focuses on CCTV and video surveillance applications. This report analyzes IP camera technology, major worldwide IP camera manufacturers, and product deployment of Taiwanese IP camera makers.

Definitions

IP Camera

Different to web cameras, IP (Internet Protocol) cameras can operate independently in WAN and LAN environments and can transmit digital images via the internet. IP cameras can also be combined with video servers, digital storage devices and PCs to provide advanced image storage and security surveillance analysis. In addition, IP cameras can be integrated with mobile broadband services of mobile communications providers to provide users with a view of their home situation at any time. With broadband internet becoming more prevalent, IP cameras are now a rapidly growing area in the security surveillance industry.

Glossary of Terms

List of Companies