Video surveillance market - a mixed opportunity for semiconductor providers
However, In-Stat’s research identifies some key semiconductor opportunities within the segment. Semiconductor revenue in IP cameras will surpass $300 million in revenue by 2012. The video encoder/image processor will be the dominant semiconductor segment. Meanwhile, image sensor revenue across all surveillance cameras will decline from over $700 million in 2008 to $435 million in 2013.
The video surveillance equipment market is showing limited unit growth in 2009, but still seeing revenue declines as the weak economy takes its toll. Digital Video Recorder (DVR) channel shipments are growing faster than camera shipments. Hybrid DVRs are increasing at the highest rate.
After a decline in 2009, revenue from analog cameras, IP cameras, DVR/NVR, and IP encoders will grow to $19 billion in 2011. As pricing comes down, the attach rate for video analytics in video surveillance equipment will increase at a fast pace.
Michelle Abraham, an analyst at In-Stat, said: “The video encoding processor segment remains among the most dynamic opportunity, as it shifts to H.264 from MPEG-4 part 2. We see growth in analog and power components as well.”
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