The increasing demand for wireless network infrastructure is the key growth driver for this market.Wireless video surveillance provides security to critical infrastructures such as airports and cities without the additional installation and maintenance cost. The shift from analog to IP cameras is expected to boost the market growth during the forecast period. The demand for IP cameras is growing as the total cost of operation of IP cameras is much lower than analog cameras. They are more flexible, scalable, and can be easily installed when compared to analog cameras. Moreover, IP cameras have built-in servers or encoders that help in image encryption and provide multi-level user access control, which prevents third-party manipulation.
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Product segmentation and analysis of the video surveillance market
Digital video recorder (DVR)
Network video recorder (NVR)
Analog cameras accounted for the largest market share during 2015. However, Technavios analyst predicts its market share to decrease over the next few years due to the introduction of IP cameras.
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Segmentation by deployment type and analysis of the video surveillance market
The on-premise segment dominated the video surveillance market, accounting for over 36% share during 2015. However, the total implementation cost of on-premises video surveillance solutions is high, preventing enterprises from adopting them. As a result, this segment is expected to witness a decline in shares during the forecast period.
Geographical segmentation and analysis of the video surveillance market
During 2015, North America led the global video surveillance market with a market share of around 40%. The presence of a highly developed network infrastructure that ensures seamless connectivity between video surveillance components is the key growth driver for the market in this region. However, the report anticipates the region to witness a decline in market shares by the end of the forecast period due to market saturation.
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Competitive landscape and key vendors
The intense competition and the declining profit margins constitute significant risk factors for the vendors in this market. The market consolidation is growing with the trend of small entities being acquired by or merged with major players. The rapidly changing technological environment is a major challenge for the global vendors along with the increase in the influx of private labels in the market. Hence, to survive and succeed in the intensely competitive environment, it is imperative for vendors to distinguish their product and service offerings through precise and unique selling propositions.
The leading vendors in the market are –
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