The market research institute IMS Research announced today in a press release that the growth for network video products on the American market has slowed down. This affects the ongoing technology shift from analog to digital surveillance negatively.
For a number of years, IMS has forecast that the market for installations of network video products has an annual global growth rate of approximately 40 percent. IMS expects slower growth in 2008 than in the preceding year as a consequence of the receding American economy. However, their estimation is that network video products will grow by at least 30 percent in the US.
Axis’ ambition, as announced previously, is to grow in pace with the market. The interest for network video products has been considerable during spring and the inflow of new projects continued to be satisfactory, but the current financial turbulence has impacted new investments and expansion plans. This has now affected growth in the network video market.
“We have seen signals from the market, e.g. from the retail trade in Europe but particularly in the US where major retail chains have chosen not to expand as planned. As approximately 25 percent of all video installations are performed within the segment, we have drawn the conclusion that the pace of the technology shift from analog to digital network video has slowed down”, says Ray Mauritsson, President, Axis Communications.
Axis’ goal and expansion plans remain unchanged notwithstanding a slowdown in the pace of the technology shift. The company’s objective is to maintain and strengthen the company’s position as the market leading supplier of network video solutions.