The intelligent network camera market is forecasted to
grow faster than the intelligent video encoder, embedded NVR and DVR markets up
to 2012. IMS Research notes more vendors now offer VCA-embedded camera solutions
and forecasts this trend to continue.

Global shipments of VCA embedded network cameras are
expected to exceed 2.5 million units by 2012. However, this forecast assumes
that more than 60 percent of the intelligent cameras will be embedded with only
low-end analytics, such as camera tampering detection and system health checks.

“Network camera manufacturers are employing the latest
technologies, such as H.264 compression, megapixel image sensors and VCA, to
add value to their products to fight off commoditization,” says James McManus,
an IMS Research analyst. “Within 5 years, a large number of cameras will enter
the market with at least basic VCA functionality.”