IP video hits 'tipping point'

IP video surveillance has reached a 'tipping point' of market acceptance as analogue CCTV systems start to give way to a new generation of IP-based security cameras, according to Swedish network video vendor Axis Communications.

"We are well on that way for that change -- the ball has started to roll, Ray Mauritsson, president & CEO at Axis Communications told CRN.

Still, market and channel education was the key to the success of IP video and its global penetration was quite low when compared to traditional analogue CCTV systems.

Globally, the CCTV market was worth US$5 billion at an annual growth rate of 10 percent while network video was worth US$221 million, but at a much higher annual growth rate of 40 percent, according to Axis.

Research conducted by analyst JP Freeman also found that by 2007 network cameras would outsell analogue cameras.

"There are still alot of areas that we have not penetrated, Mauritsson said.

Axis had an installed base of more than 400,000 network cameras, which made up 81 percent of its sales. Its network print server business was declining although it had sold 3 milllion units worldwide.

Big industry players such as consumer electronics companies Sony, Panasonic and storage maker EMC had already thrown their weight behind IP surveillance which would also drive the market, he added.

"We've come to a point where these companies have decided to push IP-based solutions. EMC is going to accelerate video as a content generator. This is the tipping point now, the future is IP surveillance and the shift is happening," he said.

There was also a requirement for systems integrators to play a big part in the growth of IP surveillance. Markets such as retail and education were key. Today, 25 percent of global CCTV installations go into retail, he said.

Axis' network camera and video server products are distributed in Australia through Alloys International, LAN 1, Anixter, Hillls Transmission Solutions and Security Merchants Australia.

Byron Connolly travelled to Sweden as a guest of Axis Communications.

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