Revenue from analog cameras, IP cameras, digital video recorders/network video recorders (DVRs/NVRs), and IP encoders will grow to $16.4 billion in 2015.
Semiconductor vendors will continue to take advantage of opportunities in sensors, processors, and system security, according to In-Stat.
By 2015, analog camera unit shipments will still be five times greater than IP cameras.
Asia Pacific continues to employ less expensive analog cameras, but the larger unit shipments more than make up for the lower prices.
Boosted by 2011 sales, the video surveillance equipment market has witnessed the rise of the IP camera, which is about to overtake the long-established analog camera in revenues.
In-Stat forecasts that video surveillance semiconductor revenues will approach $3.5 billion in 2015.
“The years 2011 to 2015 will continue to show increased competition and opportunity for chip sales to surveillance video equipment makers, as semiconductor vendors see new specifications and more demand for surveillance video cameras and associated digital video recorders/network video recorders,” said Max Baron, analyst, In-Stat.
“Like digital still cameras, competition, semiconductor price erosion, and the rise of consumer-priced camera volumes shipped, will in time reduce the number of surveillance equipment makers,” Baron added.