Opportunity Knocks for Channel as IP Camera Market Hits Tipping Point

LONDON - Feb. 17, 2015 - PRLog -- London - The IP camera market has reached a tipping point in Europe, accounting for around half of all revenue from surveillance and security camera sales as businesses look to migrate from legacy CCTV technology, according to European market research firm CONTEXT.

The market watcher has compiled data from across the region to provide fresh insight into a burgeoning market set to offer the channel huge growth opportunities.

"IP cameras and connected home markets have seen some key business developments last year such as the buy of DropCam by Nest (Google) for 555m dollars”, says Gurvan Meyer, analyst at CONTEXT. “The late 2015 plan from Canon to buy Axis for 2.8bn dollars is one more move into pulling out IP cameras out of the hand of the Security market only. For 2015, we anticipate more mergers in the IP camera market where smaller, specialist players are snapped up by larger IT and electronic giants moving into this space.”

The past couple of years in Europe (including Central and Eastern Europe and Russia) have witnessed impressive year-on-year unit sales growth of 34% (2013) and 6% (2014) as businesses look to invest in technology to replace a CCTV market worth an estimated total of $2 billion back in 2013.

IP camera revenue grew by 26% from 2012 to 2013, reaching 56 million Euros Revenues. However, value sales took a year-on-year dip of 3% in 2014 as IP camera prices reduced due to rising unit growth, according to CONTEXT.

France was undoubtedly the largest market in Europe, accounting for an 18% share – up from 13% in 2012. Italy (14%) and Russia and the UK (12%) were second and joint third respectively.

While Russia’s share has fallen hard from 2012, when it led the way in Europe with 21%, demand for IP cameras in the UK could be on the rise again after huge legacy investments there in CCTV in the 80s and 90s.

These public and private sector organizations will obviously be slow to adopt the newer technology as they don’t want to write off these huge investments. However, a 2013 study* found that 58% of UK retailers were prepared to migrate – attracted by the raft of new, intelligent applications that sit on top of the IP platform.

D-Link is by far the largest vendor of IP cameras in Europe, having steadily grown its market share from 2012 (58%), to 2013 (66%) and 2014 (68%).

Axis is second with a market share in 2014 of around 12% and Trendnet makes up the top three with a share of around 5%.

When it comes to revenues, Axis – which produces high-end and value-add IP cameras – was the clear leader in Europe with a high of 41% in 2012 but has seen its revenues share drop to 37% in 2013 to increase again to 40% in 2014.

D-Link has conversely grown its revenue share over 2012 (32%), 2013 (37%) and 2014 (41%), while Trendnet’s has remained steady over the past three years at around 3.5%.

* commissioned by Axis Communications

Growth by country:

Revenues euros  2012/2013  2013/2014
Austria  3%  -6%
Belgium  -2%  -28%
Switzerland  15%  14%
Czech Republic  9%  6%
Germany  8%  4%
Denmark  20%  -5%
Spain  88%  -21%
Finland  54%  -13%
France  35%  14%
UK  37%  42%
Ireland  362%  -13%
Italy  4%  -8%
Netherlands  48%  -20%
Norway  8%  -25%
Poland  -15%  22%
Russia  92%  -27%
Sweden  -6%  3%
Slovakia  6%  119%
Turkey   12%  870%

Units  2012/2013  2013/2014
Austria  -4%  -5%
Belgium  20%  -8%
Switzerland  38%  18%
Czech Republic  12%  18%
Germany  43%  -14%
Denmark  -1%  23%
Spain  52%  7%
Finland  97%  54%
France  79%  13%
UK  66%  57%
Ireland  1218%  -30%
Italy  21%  2%
Netherlands  190%  -25%
Norway  11%  -15%
Poland  -12%  69%
Russia  -8%  -14%
Sweden  6%  38%
Slovakia  1%  126%
Turkey   29%  120%

About CONTEXT
Headquartered in London with over 200 staff in 15 countries, CONTEXT specialises in tracking technology sales and pricing across the globe. Supported by the largest Distribution Channel Sales Database in the world, CONTEXT tracks Channel sales in most countries across EMEA where we are the official data partners with all members of the Global Technology Distribution Council (GTDC). CONTEXT reports and services enable our customers to assess their business operations in the light of actual sell out figures, and make business critical decisions based on hard data. Follow us on Twitter: @contextworld.com or visit our website: www.contextworld.com

Media contacts
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Funda@contextworld.com
Tel: +44 7876 616 246