1. Introduction
This information is confidential and is not to be provided to any third party without Vicon Industries Inc. prior written consent.

2. 2012 Video Industry Trends
IP Market
Moving forward with technology….

3. Trends… Continued increase in demand for IP & megapixel cameras
Storage demands (internal and external) are still rising
Standardization… IP products talking the same language… ONVIF
Transition from DVR systems to NVR still accelerating…
2012 market showing signs of life..???

4. Megapixel Demand Rising….
“Overall, the growth rate for IP cameras is likely to be over 30% for 2011.”
IP Video Market
2012 growth will slow down due to a maturity in the market.
Primary demand for MP is still in the 2 MP category with 5MP considered for most exception areas
360 degree cameras also increasing in demand
PTZ Domes now offer 2MP resolution
Price, Low-light issues, storage and bandwidth seem to be the significant hold backs for faster growth in the 5 MP category.

5. Storage
Lower costs of cameras and use of higher MP units still driving growth in storage demands
Traditional NVR solutions still using a mix on internal straight storage and external RAID configurations
An increasing requirement for 30 fps recording pushes capacity on storage
Prices still coming down rapidly and new 4TB drives are not far off 5

6. Standards….
ONVIF™…
ONVIF is an open industry forum for the development of a global standard for the interface of IP-based physical security products. ONVIF is committed to the adoption of IP in the security market. The ONVIF specification will ensure interoperability between products regardless of manufacturer. The cornerstones of ONVIF are:
Standardization of communication between IP-based physical security
Interoperability between IP-based physical security products regardless of manufacturer
Open to all companies and organizations

7. Analog – DVR – Pure IP Analog…. DVRs IP Systems
Cameras – Still being developed by Asian companies only
A lot of on-board software development and increased pixel count for super high-res
Very price effective for small and mid-size systems when used with DVRs
Systems…Matrix systems going away for good
DVRs
products also still being developed
Last major change was the use of H.264
It’s all about price now…
IP Systems
Tipping point for IP system sales over analog is projected for late this year
Some believe it has already taken place

8. 2012… Growth??? That’s big growth (19%) Storage only VMS only
the total video surveillance applications market is expected to reach $25.43 billion by 2016 at a CAGR of 19.35% from 2011 to 2016” – (2011 report by MarketsandMarkets)
That’s big growth (19%)
IP is the primary driver in this industry and supports a host of specialized players
Storage only
VMS only
IP cameras only…

9. This information is confidential and is not to be provided to any third party without Vicon Industries Inc. prior written consent.