Contents:

Executive Summary Introduction to the Video Surveillance Industry Overview of Digital Video Recording The Surveillance Revolution—The CCTV Transition Key Market characteristics and trends Customer Segments Government Education Transportation Industrial Banking & Finance Commercial and Retail Residential/Consumer Digital & Networked Video Surveillance Physical Security Meets Information Technology (IT) Buying and Selling Process Industry Competitors Broad-based competitors Market Inhibitors: Why isn’t the market migrating to IP/Networked Video Surveillance Faster? Market Trends Video Surveillance Value Chain Value-Added Resellers and Security Dealers, Installers Distribution System Integrators Manufacturers & Products Technology Companies Video Management Software (VMS) & Physical Security Information Management (PSIM) Software Video Content Analytics Software Semiconductors Video Surveillance Installations Video Surveillance Product Segments Video Surveillance Systems and Equipment Competitors Legacy Competitors IT-Oriented Competitors Network-Focused Surveillance Competitors Surveillance Cameras DIY/Consumer Cameras IP Video Servers/Streamers/Encoders Digital Video Recorders (DVRs), NVRs and Storage Video Management Software & Solutions Wireless Mesh Video Content Analytics Digital Video Channel Analysis Video Surveillance Technology Segments Image Sensors Video Codecs & Standards MJPEG MPEG-4 & H.264 Codecs MPEG-7 Video Signal Processing & Codec Interfaces Power over Ethernet (PoE) Wireless & 802.11 Coax & Powerline Networking Analog Methodology List of Tables Table 1. Worldwide Video Surveillance Equipment Revenue by Type ($M) Table 2. Worldwide Video Surveillance CCTV & Digital Channels by Equipment Type (K Units) Table 3. Overall Surveillance Equipment Semiconductor Revenue by Equipment Product Type ($M) Table 4. Worldwide Video Surveillance Equipment Market by Geography (Asia, Americas, Europe) ($M) Table 5. Worldwide IP/Networked Video Surveillance Market Revenue by Geography (Asia, Americas, Europe) ($M) Table 6. Worldwide Video Surveillance Equipment Market by Product Segment (Cameras, Encoders/Streamers, Video Recorders) ($M) Table 7. Worldwide Video Surveillance Market: Traditional vs IP/Networked ($M) Table 8. Worldwide Video Surveillance Camera Market by Type (CCTV, Networked) ($M Revenue, K Units) Table 9. Worldwide Video Surveillance CCTV Camera Market by Geography (Asia, Americas, Europe) ($M Revenue, K Units) Table 10. Worldwide IP Camera Market by Geography (Asia, Americas, Europe) ($M Revenue, K Units) Table 11. Worldwide CCTV and IP/Networked Video Surveillance Camera Units by Type (Professional, Consumer/DIY) (K Units) Table 12. Worldwide IP/Networked Camera Market Revenue ($M Revenue) Table 13. Worldwide Network Encoder/Streamer Market (Units, ASPs, Revenue) Table 14. Worldwide Surveillance Video Recorder Market by Product Segment (PC-Card Based, Embedded DVR, Embedded Hybrid DVR, NVR,) ($M Revenue, K Units) Table 15. Worldwide Surveillance Video Recorder Market by Geography (Asia, Americas, Europe) ($M) Table 16. Video Surveillance Video Content Analytics Market (K units deployed, $M Revenue) Table 17. Worldwide Video Surveillance CCTV & Digital Channels by Equipment Type (Networked Cameras, Network Encoders/Streamers, Embedded DVRs, PC-Based DVR) (K Units) Table 18. Average number of Video Channels for DVRs and IP Encoders/Streamers Table 19. Overall Surveillance Equipment Semiconductor Revenue by Equipment Product Type ($M) Table 20. Overall Surveillance Equipment Semiconductor Revenue by Semiconductor Product Type ($M) Table 21. Semiconductor ASPs per Digital Channel by Semiconductor Product Type Table 22. Surveillance Video Recorder Revenue by Semiconductor Product Type ($K) Table 23. IP/Networked Video Surveillance Camera Semiconductor Revenue by Semiconductor Product Type ($K) Table 24. IP/Networked Encoder/Steamer Semiconductor Revenue by Semiconductor Product Type ($K) Table 25. CCTV Video Surveillance Camera Semiconductor Revenue by Semiconductor Product Type ($K) Table 26. CCD & CMOS Image Sensor Comparison Table 27. CCTV and IP Camera Image Sensor Units by CMOS vs CCD ($K Revenue, K Units) Table 28. CCTV and IP Camera Image Sensor Units by Resolution (Low, Standard, High, Megapixel) Table 29. Total Worldwide Video Processor Revenue for NVR, DVR and Surveillance Cameras ($K) Table 30. Video Processor/Codec Competitors Categorized by Architecture Table 31. Networked Camera Shipments with PoE (K Units) Table 32. Networked Camera Shipments with Wireless (K Units) List of Figures Figure 1. DVR Classifications Figure 2. Hybrid CCTV & IP Video Surveillance Network Figure 3. Transition from CCTV to Networked Video Surveillance Figure 4. Video Surveillance End Customer Segments Figure 5. Growing Field of fragmented competitors: IT-Oriented, Legacy, IP/Network-Oriented Figure 6. Video Surveillance Market Value Chain- Users to Technology Providers Figure 7. Video Surveillance Market Value Chain- Users to Technology Providers Figure 8. Video Recorder Semiconductor Block Diagram Figure 9. Networked Video Surveillance Camera Semiconductor Block Diagram Figure 10. Progression of Codec Technologies- 2008, 2010 Figure 11. SVC Framework- Base Layer plus Enhancement

Summary:

The transition from traditional CCTV surveillance to (Internet Protocol) IP/networked digital surveillance is revolutionary for the physical security industry. Yet, this transition is also seen as over-hyped and under-performing compared to many expectations. Both are true. Overall, network surveillance cameras still represent only 8% of the overall surveillance camera market on a revenue basis. However, this segment is growing over four times the rate of the broader video surveillance market. Manufacturers across the fragmented supply base have introduced IP/networked products. An entire new set of competitors has entered the market to capture the emerging opportunities in networked video surveillance. Key market trends include: - Progressive conversion to Digital and Networking technologies - The conversion from VCR to DVR is nearly complete - DVRs are adding network connections for remote control, maintenance, and monitoring. Embedded DVRs are also supporting both analog and IP cameras as hybrid NVR/DVRs. - CCTV cameras are gradually converting to networked digital surveillance (IP Cameras) - Product line expansion among manufacturers for “end-to-end” solutions, including an increased emphasis on software - Product simplification in the IP/Networked categories - Simpler product lines and programs to ease purchasing and installation of IP-based products, including a consumer/DIY segment - Proven, application-based Video Content Analytics - Complete design kits and software from semiconductor manufacturers to ease market entry for low-end manufacturers The revolutionary impact of networked surveillance has yet to come into full force. Many barriers remain. We expect some barriers will prove enduring, contributing to a slower adoption of IP/Networked video surveillance than many in the industry would like. Among the barriers are: - Integrators, dealers and customers are not adequately educated on network video. The sales channel largely does not recommend it to users. - Adoption of networked surveillance will drive the purchasing process to transition from the physical security organization to the Information Technology (IT) organization. This fundamental organizational change will not happen quickly. - Legacy installations have very long replacement cycles. - Early IP products were positioned as “premium” products, not mainstream. - Systems can be too complex for mainstream. Early “best of breed” solutions put too much selection, purchase, installation, and maintenance burden on end-users and integrators. - IP-based systems not interoperable among different manufacturers. - There is resistance to consuming corporate network bandwidth with surveillance video. - The Storage costs for video are high. The trend to higher resolution cameras increases this challenge.

Companies Mentioned

- Analog Devices Inc (ADI) - IBM - Pelco - Aptina - Ingram Micro - PentaMicro - Aruba Networks - Intel Pixim - AT&T Intellivision - Sanyo - Avnet - Ioimage - Samsung Electronics - Axis Communications - iOmniscient - Seagate - BelAir Networks - IPVision - Sharp - Bosch - IQinVision - Sony - Canon - JVC - Steelbox Networks - Cernium - LinkSys (Cisco) - Stream processors - Cisco Systems - Logitech/WiLife - Stretch - CNB Technology - Lumenera - Strix Systems - Conexant Systems, Inc. - Mango DSP - Swann Communications - DLink - March Networks - Techwell - DynaColor - Meru Networks - Texas Instruments - DVTel - Milestone Systems - Toshiba - EMC - Mitsubishi - Tropos Networks - Exacq - Mobilygen - Tyco Fire & Security - Faraday Technology - Mobotix - Verint - Firetide - Motorola - Vidient - Fluidmesh Networks - NextChip - VidSys - General Electric - Nice Systems - Vivotek - Genetec - ObjectVideo - Wren Solutions - On-Net Surveillance Systems (OnSSI) - Zarlink Semiconductors - Hikvsion - Omnivision