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While some sectors – education, gaming, public safety, retail, and transportation – have been eager to adopt network surveillance solutions, others have been more reluctant to integrate security functionality into their network infrastructure. However, advances in camera and access technologies, as well as reduced hardware price points, are converging to create a perfect surveillance storm.

"Market changes are causing a major shift in the way organizations protect their business assets," said Chris Chute, research manager, Worldwide Digital Imaging Solutions and Services at IDC. "Moving forward, security administrators will rely less on human observation to address their most critical security demands. The opportunity is tremendous for those who understand how to position themselves in this evolving space."

In addition to protecting sensitive resources and property, companies are beginning to recognize how surveillance data can be used to improve/streamline a growing number of business processes. Retail, transportation, and gaming verticals are successfully implementing network surveillance as a business enablement tool. The retail industry has utilized video analytics to track customer flows through stores and used that information to adjust merchandise placement. The transportation industry can respond to traffic incidents in a more timely fashion, using the data to make fact-based decisions on future infrastructure initiatives. Beyond the critical security that surveillance offers the gaming industry, it also provides important business information about the games’ popularity and ultimately its placement on the casino floor.

Additional findings from the study include the following:

* Captured and archived network surveillance content are expected to grow by 51.7% and 50.1% respectively in the next five years

* Worldwide network surveillance camera shipments are expected to increase by an average of 45.0% yearly from 2009 to 2013

* Network camera shipments will surpass those of analog cameras in 2012

* The growth of deployed cameras and content will drive the physical security information management software market to over $5.3 billion in 2013

IDC’s special study, Monitoring the Network Surveillance Market Value Chain (Doc #218039), provides a global view of the network surveillance market, including analog and network cameras, video content, and physical security information management software. It contains actual shipment and revenue data for 2006–2008, as well as IDC’s forecasts for 2009–2013. This study provides detailed profiles for 15 key vendors, as well.