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Videosurveillanceharddrivemarkettohit$1billion
El Segundo, Ca (USA)
Revenue for both internal and ex-
ternal HDDs in video-surveillance
applications will rise from $638.7
million this year to $1.0 billion
by 2017, a remarkable 57 percent
increase. Growth this year alone is
forecast to reach 23 percent from
2012 revenue of $521.1 mil-
lion, and double-digit-percentage
revenue expansion will ensue each
year for the next four years, as
shown in the attached figure.
The revenue figures translate to
7.3 million units in shipments by
2017, up from 2.4 million units in
2012 and a projected 3.5 million
units this year.
"The HDD industry as a
whole will reap the benefits of a
fast-growing video surveillance
industry that requires ample
storage, with the need for higher-
quality video, network connectiv-
ity and cloud storage also driving
the market," said Fang Zhang,
analyst for storage systems at IHS.
"At present, internal HDDs that
combine storage capacity with
the recording system in one unit
have a larger market than external
HDDs in which the drive is
separate. Shipments of HDDs for
internal storage were higher than
those for HDDs in external stor-
age during 2012 a feat that will
be replicated this year."
Products on the market today
that use internal HDDs for video
surveillance include internal direct
attached storage (DAS), enterprise
digital video recording (DVR), box
appliance network video recorder
(NVR) and PC-based network
video recorders.
Next year, however, the tables
get turned permanently as external
storage HDD shipments take the
lead. From a 48 percent share of the
market in shipments last year of the
total HDD space for video surveil-
lance, external HDDs leap over in-
ternal HDDs in 2014 with a slight
majority of 51 percent share of the
market. And while internal HDDs
continue to retain a viable portion
of the market, external HDDs will
keep gaining in the market with
their share hitting approximately 54
percent by 2017.
While internal storage is a
cost-effective way of storing video
data, external storage boasts larger
capacities that can be added flex-
ibly to a system as the need arises.
External storage also has more
versatile applications as it can be
connected or viewed anywhere,
such as in the cloud, where the
potential for external storage
is plentiful and abundant. The
capability of external systems
to scale and accommodate large
amounts of video data is one
reason why more hard disk drives
will be needed in the coming
years, pushing both shipments and
revenues up. Another reason is
that high-quality video itself will
demand more storage space, which
also will help boost HDD use in
video surveillance.
All told, IHS believes that total
HDD shipments for video surveil-
lance will grow at a compound
annual growth rate of 29 percent
from 2012 to 2017, with revenue
likewise increasing at a lower but
still-solid rate of 14 percent.
Worldwide Forecast of Video Surveillance HDD Revenue (Millions of US Dollars)
2012
2013
2014
2015
2016
2017
Millions of Units
521,1
638,7
702,1
798,0
879,2
1 005,1
Source: IHS Inc., June 2013
Source: IHS Inc., June 2013
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
2012
2013
2014
2015
2016
2017
Worldwide Forecast of Video Surveillance HDD Revenue
(Millions of US Dollars)
The market for hard disk drives (HDDs) used in video
surveillance will hit the billion-dollar level in less than
five years, as safety concerns and the requirement for
higher image quality spur demand for more data stor-
age, according to a Storage Space Market Brief from
information and analytics provider IHS.
Worldwide, revenue for electronic
security equipment in city security
will expand at a compound annual
growth rate of 17.8 percent from
2012 to 2017. By 2017, wireless
infrastructure and CCTV and
video surveillance equipment will
amount to just over $3.2 billion,
up from $1.4 billion in 2012.
City surveillance is a key tool
for police departments to manage
metropolitan centre locations,
with crime reduction typically
being the main goal. Using this
technology, police can access video
surveillance feeds from mobile
command centres when respond-
ing to an incident. This allows
the police to coordinate efficient,
quick responses to any event.
Several threats
Cities face a number of threats,
ranging from the kind of wide-
spread civil unrest that recently
affected Istanbul to lone-wolf and
terrorist attacks, like the recent
Boston marathon bombings.
These threats underscore the need
to provide fast access for video
surveillance systems.
"City video surveillance
systems have a key requirement
to provide clear, useable images so
that police departments can con-
duct effective investigations when
needed," said Paul Bremner,
market analyst for Safe Cities
and Security Services at IHS.
"If the video surveillance system
can't do that, then it is failing in
its primary purpose."
Video streams
Along with fast access for video
surveillance systems, the re-
quirement to push video streams
out to various individuals and
organisations across the city has
increased. The mobility offered
by these video systems is a key
tool for police departments
when managing city-centre
locations.
"For cities the focus has
shifted from basic surveillance
needs toward mobile surveil-
lance," Bremner continued.
"Emerging technology can send
the video to police officers on
the street, streaming that video
directly to the smartphones or
laptops in their patrol cars. Such
mobile surveillance technology
will act as a force multiplier for
the officers on the ground."
The IHS report entitled
"Vertical Insights Video
Surveillance and Security in City
Surveillance World 2013
Edition" combines feedback
from end users, integrators and
consultants working within
the city surveillance market.
The report explores the threats
faced by cities, critical success
factors for security systems and
the decision processes behind
city surveillance projects. The
report presents market sizes and
forecasts to 2017 for EMEA,
Asia and the Americas. It is part
of a series of reports focused on
six different end-user industries
including banking and finance,
city surveillance, critical infra-
structure, education, retail and
transportation.
The global market for electronic security equipment
aimed at city surveillance applications will more than
double in size from 2012 to 2017 as metropolitan
areas adopt mobile technology to deal with threats
more efficiently. This is according to a new report
from IHS.
Citysurveillancemarkettomorethandoubleby2017