SAN FRANCISCO Robust short-term growth projections for the video surveillance camera market represents a big growth opportunity for chip suppliers and will propel a major shift in semiconductor revenue, according to market research firm iSuppli Corp.
Global video surveillance camera revenue is expected to grow to from $4.9 billion in 2006 to more than $9 billion in 2011, a compound annual growth rate (CAGR) of 13.2 percent, according to iSuppli.
Unit shipments of video surveillance equipment are expected to more than double from 29.8 million in 2006 to 65.7 million in 2011, a 17.1 percent CAGR, iSuppli (El Segundo, Calif.) said.
The projected growth in video surveillance should opportunities for associated semiconductors, iSuppli said. The firm projects the market for surveillance-camera chips will hit $1.25 billion in 2011, more than double the $525 million in 2006.
According to iSuppli's latest report on the subject, the rapid growth in the video surveillance industry is being driven by a combination of rising security needs and a host of technical innovations, including the migration to digital, fully networked systems.
"With the emergence of networked Internet protocol (IP) video surveillance cameras and IP video serversalong with the rising use of digital video recorders (DVRs) video surveillance is moving beyond traditional security and into new applications such as transportation, retail, government and even home networking," said Mark Kirstein, vice president of multimedia content and services at iSuppli. "This expansion is being helped considerably by the idea of networked video surveillance, which allows for greater flexibility, field upgradeability, increased automation and more intelligence to be incorporated into the overall system."
Kirstein said these factors would enable IP cameras to displace existing closed circuit television cameras in 2011. He said he also expects to see the development of a consumer IP camera market. Telecom operators are expected to offer IP video surveillance as a value-added consumer broadband service, he said.
As the result in the growth of the video surveillance market, sales of video processor and interface chips, such as Ethernet, Power over Ethernet and Wi-Fi, will grow dramatically, iSuppli said. But spending on image sensors will fall off based on relentless price declines and accelerated adoption of less-expensive CMOS image sensors, the firm projected.
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