Since growth for IP video surveillance depends on the number of new installations, the slow growth in emerging countries dampened the growth rate of IP video surveillance companies. One bright spot for IP is demand for retrofit projects in developed countries. However, the rate of end users replacing their old legacy analog systems with new IP systems has not exceeded expectations.

IP video surveillance is still hot, but revenue growth is tapering off, as seen in the earnings from Axis Communications, Mobotix, and Milestone Systems. Axis Communications grew 28.7% in 2010, 22.9% in 2011 and hit 17% in 2012. Mobotix grew 19.9% in 2010, peaked to 35.9% in 2011 and fell to 11.5% in 2012. VMS provider Milestone grew 55.8% in 2010, which dropped to 22.5% in 2011 and 19.4% in 2012. VIVOTEK grew by 57.5% in 2010 and 62.1% in 2011; however, growth slowed significantly to 20.7% in 2012.

Of the IP providers, only Avigilon remained in the comparatively high-growth stage. Its revenue grew 67% in 2012, which was at 86% in 2011, and 91.2% in 2010. Although the factors for moderate growth include myriad global economic influences, major IP security companies will be challenged to maintain annual revenue growth above 20 % with high profit margins in the next few years.

Sourced from security magazine