IHS: Market for wireless infrastructure radios to hit $705m by 2017

Low-cost systems help drive growth
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Tuesday, April 2, 2013

LONDON—The market for wireless infrastructure radios used in video surveillance applications grew 11 percent last year, rising from $274 million in 2011 to $304 million in 2012, according to a study by the research firm IHS. Demand will continue to increase, IHS predicts, and global revenues will reach $705 million in 2017.

While much of the growth is expected to come from China and India, “the North American market is currently the largest market and is expected to exhibit steady year-on-year growth,” Josh Woodhouse, IHS video surveillance analyst, told Security Systems News.

This study looked at wireless infrastructure radios used in video surveillance applications. “Typically these are deployed in either point-to-point, point-to-multipoint or mesh topologies to form a wireless network,” Woodhouse explained. “Like all of our equipment reports, the revenues relate only to physical sales of the equipment, not service, installation or maintenance revenues.”

He listed Cisco, Motorola Solutions, Cambium Networks (a company formed from venture capital acquisition of some Motorola Solutions product lines) and Firetide as major suppliers to the market. Cisco had an 11.7 percent market share in 2012, he said.

Benefits of using wireless infrastructure include possible cost savings, “quicker deployment and increased future scalability compared with wired solutions,” Woodhouse said.
 
There are also niche areas where wireless is the only option, he noted, such as “installations covering long or remote distance, or installations that require mobility.”

Much of the demand will be driven by low-cost and lower complexity wireless systems in regions where there is not much video surveillance infrastructure, but it will also occur in North America, Woodhouse said.

Wireless infrastructure is often used for large projects such as city surveillance, but Woodhouse said there’s a “split in the market between the high-end, large-scale installations you think of, and smaller low-cost installations often at a commercial site.”

“Different companies serve these different markets. Wireless is increasingly used as a simple wireless cable where one camera can be connected wirelessly to an existing video surveillance network,” he said. He cited cameras in an office car park as an example.
 
IHS expects increased penetration in city surveillance projects, which Woodhouse said is the largest vertical market for wireless systems, as well as in the transportation and utilities verticals, particularly in oil, gas and mining.