North America IP Camera Market size exceeded USD 3.5 billion in 2019 and is predicted to register a growth of over 15.5% from 2020 to 2026.
The market growth is due to increased security threats in the U.S. For instance, in January 2021, the U.S. Department of Homeland Security (DHS) declared a nationwide terrorism alert due to potential threats from domestic anti-government extremists, opposing the exercise of governmental authority. This has led to the increased adoption of advanced video surveillance systems in the government sector to safeguard citizens. The installation of IP cameras helps in establishing a secure environment at the government buildings and facilities. Capabilities of live monitoring and video analytics enable detection of suspicious activities and crimes in real-time.
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The rising digitization and industrialization will drive the North American IP camera industry expansion. Large number of retailers are expanding their presence across the region, resulting in an increased demand for effective security solutions. For instance, in September 2020, Costco Wholesale Corporation announced to expand its share in the retail sector with the opening of six new stores across the U.S. and Canada. With the expansion of these business establishments, the adoption of IP video surveillance cameras is increasing. These advanced security solutions provide numerous long-term benefits to retailers such as lowered insurance rates, a decrease in the number of theft cases, maximized store profits, and reduced retail shrinkage.
The ongoing COVID-19 pandemic has negatively impacted the North America IP camera market revenue in FY2020. The imposition of lockdown measures resulted in a temporary closure of manufacturing facilities and travel restrictions across the region. IP camera manufacturers witnessed a significant decline in their revenue due to supply chain disruptions and reduced customer demand. However, with the gradual resumption of manufacturing operations and relaxation of travel restrictions, the market will gain traction over the coming years.
PTZ cameras are anticipated to expand at a significant CAGR during the forecast timeframe. Growth can be attributed to the benefit of easily controlling the position and moving the camera lens from a remote position. The optical zoom feature allows users to focus on fine details such as faces and license plates. Prominent players are introducing innovative cameras for a wide range of video surveillance applications. For instance, in February 2020, Zebronics launched a smart PTZ camera for home automation applications. The camera includes connectivity to Wi-Fi/LAN/Hotspot and a microSD card slot that provides 512 GB storage for recording data.
Decentralized cameras are expected to witness high adoption in market through 2026. The decentralized architecture stores the video data and configuration information on a local server, such as Network Video Recorder (NVR), Network Attached Storage (NAS), and Hard Disk Drive (HDD), to reduce the cost of purchasing storage devices. The benefit of increased flexibility and reliability to operate in multi-server environments has encouraged enterprises to install decentralized solutions. Furthermore, during WAN fails, the solution enables enterprises to continue monitoring remote locations using their local NVR server.
The BFSI application segment is estimated to dominate the North American IP camera market from 2020 to 2026. Rising incidents of thefts are encouraging financial institutions to install advanced video surveillance systems. For instance, in February 2018, the Royal Bank of Canada was robbed that led to the closure of the bank for preliminary investigation. The rise in security concerns has led to an increased demand for high-grade video surveillance systems for monitoring transaction offices and branches. IP cameras provide recorded video footage that enables easy identification of suspects involved in thefts or other crimes that occur in banking facilities.
Key players operating in the market include Canon Inc., Bosch Security Systems, Dahua Technology, Panasonic Corporation, Pelco by Schneider Electric, and Tyco International. Players are entering into strategic collaborations with other prominent players to strengthen their market share. For instance, in June 2019, Vivotek, Inc. partnered with Trend Micro, Inc., a cybersecurity company, to integrate IoT security solutions in IP cameras and provide superior protection against attempted cyberattacks.