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Analog to network shift

F.Y. TENG | Feb. 22, 2010
A look at a sea change due in the world of surveillance cameras.

So if you are an operator or an end user and you see an example of an image taken with an analog camera and an HDTV network camera, the difference is so huge that you will want to have that and be willing to even pay a premium for it. I guess it's important because the whole idea with the camera is that if there's an incident, you are able to identify who and what is in it. If you have a blurry picture, what's the use?

Has the global terrorism threat affected your business?
In some countries unfortunately we've had some bad incidents. We've had bombings in Madrid in the transportation sector. The transportation sector is growing rapidly. More cameras are being installed in railway stations, on board trains and buses. One of Axis's biggest installations is actually in Sweden, in transportation where we have 15,000 cameras in the bus system in Stockholm. Probably this has been driven to some extent by the incidents. In London we had the bombings. I think we could see the impact in India after the hotel bombings. There was more interest or concern about installing video surveillance in hotels. This is a bit of a sad thing of course but it is those incidents that drive the need as well.

How much has Axis' share of the global market changed in the past 12 months?
It hasn't changed that much at all. We've just been above 30 per cent market share worldwide for years now. Of course it's changed because from the start we launched the first network camera in 1996 and this was the first camera and the performance then was not at all as today. It was not accepted at all at that time, but of course we had 100 per cent market share because we were the only ones selling it!

Then sometime around 2003, 2004, we started to see competitors also saying, The future is network video. They started bringing out products and that's when the competition really started. But since then we've kept more or less our 30 per cent market share worldwide for network cameras. Maybe there are some fluctuations in percentage points but more or less there. The number two in the market is roughly a third of us.

What's your business strategy of growing your business?
There are a couple of components of the strategy. Obviously, we have had quite an aggressive agenda when it comes to developing new products. Products that are clearly showing the benefits of network video compared to analog, thus making it really attractive of course. That is one part of the agenda. I think we're launching some 20 to 30 products this year. We're continuing at a very high pace there. But that is one area.


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