World Digital Video Recorder Markets Report from Frost & Sullivan.
Bridging the Gap Between Manufacturers and End Users Will Drive Growth in Digital Video Recorders Market
New analysis from Frost & Sullivan World Digital Video Recorder Markets reveals that this market generated revenues worth $1.05 billion in 2002 and is likely to reach $15.59 billion by 2009.
Frost & Sullivan Research Analyst Karthik Nagarajan says...
"Extensive video storage, image quality and retrieval time are relatively less important for end-users such as retail shops and residences. Therefore, installations in these `mom n pop' shops are designed to store video of about 30 days only, for which DVRs are not required"
At present, the DVR market is crowded with about 400 manufacturers and the majority of them are small companies that provide a bare minimum DVR solution to their customers. This is resulting in permeation of similar and low quality products, which is curtailing market penetration as well as the migration from analog to digital platform.
"Falling quality standards, lack of reliability and absence of technical expertise to distinguish between branded products and cheap imitations are forcing end users to stick with time-tested technologies, despite the slash in DVR prices"
However, nearly 70 percent of the small companies are likely to be taken over or closed down in the next three years as a result of the ongoing market consolidation. This will narrow down the choices posed to end users and also increase the visibility of true market leaders.
Large DVR manufacturers should focus on training and educating end users that will enable them to identify genuine products. The ability to understand different network technologies associated with DVRs are likely to enable customers to choose appropriate products suiting their exact requirements.
Meanwhile, market participants are receiving criticism from media owners and broadcasters for incorporating features such as "ad-skipping" and sharing of recorded content over the Internet in home entertainment DVRs. This poses a direct risk to advertising-based business models of many television channels.
"The biggest driver for the entertainment segment will be the entry of major consumer electronics players into the market, whereas the security segment will be driven by the growing security concerns across the world, as well as technological developments like motion detection and advanced compression algorithms"
The advent of standalone DVRs with embedded operating systems has influenced both segments positively and this could lead to its utilization in many other applications.
In the security segment, participants are eyeing emerging markets such as Asia Pacific and Europe to widen their business scope. They are also working toward a standard framework in use of innovative technologies such as watermarking and encryption, which will be pivotal for bringing legal credibility for surveillance video.
The World Digital Video Recorder Markets is part of the AutoID Subscription, which offers insights on the growing importance of DVRs across the world, in both the security and entertainment segments. A compelling discussion on technological innovations, competing technologies and market challenges has also been provided. Executive summaries and interviews are available to the press.