The researcher also comments that this acquisition will give Axis a stake in the market for audio and video door phones, which IHS forecast will reach nearly $2.6 billion by 2020. However, IHS believes that the true value in the acquisition is not likely to come from Axis’s ability to penetrate the audio and video door phone market but in its strengthened ability to provide a more complete IP security solution - a position that Axis have been building in recent years.

The market for open IP audio and video door phones is forecast by IHS to grow much faster than the alternative market for traditional analogue door phones. However in recent years there has been the emergence of a third market, in the form of video doorbells, which has the potential to hamper sales of IP video door phone. These products have similar functionality to a residential video door phone, with two-way audio and an integrated HD camera. The main difference is the outdoor unit is synced to the user’s smartphone rather than a fixed indoor unit.

Vendors have already announced partnerships with large residential security companies and the video doorbells will offer additional product options in the smart home and residential security businesses. The video doorbell market also attracted considerable investment over the two years to 2016, which has allowed for comprehensive marketing and advertising campaigns.