Analog Cameras Still Dominate Home Surveillance Market
Since presumably most of the security cameras purchased by consumers are for residential use, it’s logical to conclude that analog cameras are still dominant in homes vs. network-based cameras.
The report adds that unlike the professional market, the consumer market is not predicted to see a significant revenue transition from analog to network video surveillance equipment in the next five years.
This is for two main reasons. First, in a highly price-sensitive market, consumer network cameras are on average, double the price of analog cameras. Second, many of the major suppliers to the consumer market are primarily focused on analog equipment and have comparatively small ranges of network products.
“Consumer analog video surveillance equipment is primarily sold bundled as a complete system containing at least one camera and a DVR,” says Josh Woodhouse, market analyst and report author. “Conversely, network cameras largely are not available in four or eight camera bundles. Whilst consumer network security equipment offers some interesting solutions it is often not an equivalent product to analog equipment. Typically, network cameras appeal to a different type of end-user who initially installs a single camera to monitor a particular area of their home.”
Despite the difficult retail climate, the consumer market for video surveillance equipment has continued to perform well, with double-digit growth forecast for both analog and network product categories.
“Many retailers stocking video surveillance equipment realize it is a growing category that has not yet reached saturation,” Woodhouse adds. “The faster growth seen in network equipment has not cannibalized sales of analog equipment; there is still organic growth in both product lines. For standard multiple camera installations, analog offers a cheaper solution complete with many of the functions available from network equipment. Analog bundles will remain fit for purpose for many consumers in the future.”