In the early years, the preferred way of running video content analysis was on off-the-shelf computers or servers. This circumvented the need to replace existing video surveillance equipment; and the use of servers provided the required level of processing power. This approach was largely standard amongst the dedicated software suppliers that were formed to target this market. Initially, strong growth prevailed until around 2008, when the industry suffered extensive reputational damage after it had widely overstated the capabilities of video content analysis.

More recently in 2014, according to Aaron Dale, researcher at IHS, a milestone was reached: the first decline in the market for pure server-based video analytics ie dumb cameras connecting to a server that carries out all the processing.

In 2014, the market for pure server only based analytics was estimated to have shrunk by $39.4 million in one year to $81.9 million. This was accompanied by a strong rise in the market for edge-based analytics, indicating a substantial shift in preference. The increasing prevalence of edge-based video analytics comes as no surprise, given the vastly increased processing power on board today’s video surveillance cameras enabling the option, and lower total system and networking costs fuelling it. However, a more steady transition, along with a continued dominance of server-based analytics in certain environments was still forecast.

It is inevitable that the onboard processing power of video surveillance cameras will continue to increase and many applications will be performed at the edge. However demand for high-end server based analytics is expected to be sustained. With the future prospects for server-based video analytics looking ever bleaker for more basic applications, IHS expects that the remaining dedicated software providers will look to partner manufacturers with video surveillance devices to develop the level of intelligence that is embedded on them; this will further drive the trend away from pure server-based analytics in 2016.