Video surveillance storage market is forecasted to grow over $5.6 billion by 2013

IMS Research has forecasted the world market for video surveillance storage will exceed $5.6bn in 2013.

IMS says, new technologies such as network storage or Hosted video or Video Surveillance as a Service (VSaaS) is another area that may drive the decline of the presently popular DVR. But the DVR solutions should not be ruled out, as there will continue to be a sizeable need for a locally recorded 'plug and play solution' particularly in low-end applications.

IMS Research Market Analyst, William Rhodes suggests "although the market is currently dominated by DVR solutions; network surveillance storage is gaining traction and is more scalable and flexible to the needs of some end-users."

William Rhodes comments that "The target market for VSaaS vendors is SMB or residential deployments; essentially low-camera count installations with minimal recording capabilities and little requirement for constant monitoring. The market is currently small and nascent. However, if brought to the market in the right way and at the right time, it has the potential to disrupt the traditional DVR market."