IHS report forecasts that the video surveillance market will more than double over the next three years and top $500m in 2018
The growing size and complexity of video surveillance networks also fuels growth in the market for Ethernet switches

With a maturing IT industry becoming ever more consolidated, manufacturers of Ethernet switches are looking for new market segments to diversify. A recent report from IHS points to the video surveillance industry as a potentially lucrative answer.

A prolonged migration from analogue to network video surveillance equipment and the continued worldwide expansion in the use of video surveillance has sustained market growth rates for networked video surveillance equipment, with current growth forecast at 21.6%. However, there is expected to be even more growth in the market for Ethernet switches that are used in video surveillance applications. In fact, IHS forecasts that this market will more than double over the next three years and top $500m in 2018.

Market drivers

Although the majority of networked security cameras have PoE capability, end users are only just realizing the full potential due to increased homogenization between standards bodies and manufacturers. The result is that installers are now designing a video surveillance network with PoE Ethernet switches as standard.

The growing size and complexity of video surveillance networks also fuels growth in the market for Ethernet switches. The development of more sophisticated video surveillance networks undoubtedly puts strain on the cabling and infrastructure. As a result, unsuitable equipment can easily become overloaded. Network bottlenecks are one of the leading causes of video surveillance network problems, yet network infrastructure commands a comparatively low spend when compared to cameras and recorders.

Competitive environment

 Some vendors have been quick to capitalize on growth in this market. For example, a number of leading Ethernet switch manufacturers have started producing a line of products tailored for use in video surveillance applications. Furthermore, there has been a host of new partnerships between video surveillance equipment manufacturers and networking equipment manufacturers such as a recent partnership between Extreme Networks and Milestone Systems. Such partnerships are likely to lead to video surveillance being increasingly incorporated on wider networks with more than one purpose for example telecom, IT, access control and video surveillance.

 However, as this market matures it is likely to be become a difficult one to ignore for even the biggest IT focused switch manufacturers. Right now only a handful offer products tailored for the video surveillance market, such as Allied Telesis, D-link Corporation and Extreme Networks.   

Download PDF version Download PDF version

In case you missed it

How is AI transforming physical security?
How is AI transforming physical security?

In the physical security marketplace, artificial intelligence (AI) has evolved beyond the novelty phase. The emphasis has now shifted to the more practical aspects of implementing...

Sunprime & Dahua: Advanced security for solar plants
Sunprime & Dahua: Advanced security for solar plants

Founded in 2020 by a team of energy professionals in Milan, Sunprime is a fast-growing independent renewable energy producer that develops sustainable photovoltaic plants across It...

ISC West update: New SoCs inside cameras drive intelligence at the edge
ISC West update: New SoCs inside cameras drive intelligence at the edge

For all the emphasis on cloud systems and centralised servers at ISC West, a lot of innovation in security video systems is happening at the edge. New advancements inside video c...

Quick poll
Which trend do you think will define physical security in the next 5 years?