NVRs, hybrid models to rule DVR market in 2 years

  NVRs, hybrid models to rule DVR market in 2 years Posted : September 02, 2008
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   Hybrid DVR model MEX from South Korea's 3H Picaso is based on a hardware MPEG-4 ASIC chipset and features mirroring for automatic archiving.

Network-enabled and digital DVRs are next in line. Popular models support 4ch to 16ch inputs and MPEG-4/H.264 formats.

The global market for DVRs will no doubt grow in the next few years, but the industry direction is now clearer. The gradual shift to digital surveillance storage is becoming evident with the increasing supply of DVR products that support IP and networking as well as provide video analytics. Among the DVR products, network video recorders (NVR) and hybrid DVRs are expected to gain the highest growth rate in the next few years.

Standalone DVRs are the mainstream products in mainland China, Hong Kong SAR and Taiwan. Multifeature models with advanced display, storage and connectivity characterize the latest releases. Aside from standalone DVRs, hybrid DVRs are also mainstream in Taiwan.

DVRs that support four to 16 channels are mainstream models. MPEG-4 and H.264 are the commonly used compression technologies but H.264 will be widely adopted in standalone models. South Korea makers have yet to release traditional PC-based and standalone DVRs that support H.264 compression. They will continue to use MPEG-4 format for their hybrid DVRs.

DVR companies are focusing on network capability, integration, higher resolution, intelligent functions and better compression techniques. Product customization is also an important R&D aspect.

DVR production bases expand, anticipate growth
4ch to 16ch standalone models still mainstream
Multiple compression, storage options available
IP support key consideration in hybrid DVRs
Video analytics central to network DVR development
OEM, ODM business account for bulk of exports
Makers highlight in-house R&D, QC competence
back to top DVR production bases expand, anticipate growth

The world DVR market is forecast to reach $2.96 billion by 2010 with an average annual growth rate of 25 percent from 2006 to 2010, according to a study by J.P. Freeman. IP cameras and NVRs would grow by about 36 percent per year on average, exceeding the total growth rate of the video security products industry.

Big-name brands such as Bosch, GE, Honeywell and Siemens continue to dominate the global supply of DVR products, but expanding production bases across Asia confirm that growth is also trickling down to the small and midsize companies, particularly the OEM/ODM businesses. At least 300 suppliers in mainland China, Hong Kong, Taiwan and South Korea are actively developing and mass-producing DVR products such as standalone DVRs, network DVRs, DVR servers or network video servers (NVS), hybrid DVRs, NVRs and mobile DVRs.

In 2007, mainland China's 250-plus DVR manufacturers achieved a year-on-year growth of 30 percent and project another 30 percent increase in 2008.

Approximately 35 percent of the world's DVR products come from South Korea. The local industry has been growing by an average of 20 to 30 percent per year since 2006. Aside from traditional DVR products, the region is known for its hybrid DVRs and NVRs. With the security industry rapidly becoming digital, market research firms project that hybrid DVRs and NVRs will take over standalone DVRs in the next few years, making the region strategically positioned for the shift.

At this point, however, South Korea suppliers acknowledge that market adoption of hybrid DVRs and NVRs may take some time, even if the region's current network infrastructure supports the development of these two products. Demand is relatively low for hybrid DVRs and only five companies offer one or two models. Meanwhile, only four companies—Idis, Win4Net, Argus and Comart System—are planning to release NVRs by the end of 2008.

In Taiwan, more than 50 companies supply digital storage solutions. DVR makers mainly offer standalone and hybrid DVRs. The island's strong ICT industry gives DVR companies the skills in telecom networking, software/firmware design and mass production necessary for DVR development. Taiwan companies mainly provide OEM/ODM and integrated solution services, but there are some whose names are now recognized in export circles. These include AV TECH Corp., Topco Scientific, Yoko Technology, Ever Focus and GeoVision. An increasing number of small and midsize companies are still scrambling to grab a share of the lucrative DVR market, offering their engineering and system integration capability as added value.

In Hong Kong, at least 10 companies mainly offer standalone DVRs, including some whose in-house brands have steadily gained recognition over the years, such as SecuRex (Join Link) and ProVista (Protronic). Some are homegrown companies, while others work with overseas security companies. The supplier base is a mixture of pure exporters and system integrators whose main markets are in Hong Kong and mainland China. Their production facilities are located in mainland China, while their Hong Kong offices handle accounting, sales and marketing tasks. A few suppliers carry out assembly and testing in the head offices.

Most Hong Kong suppliers develop standalone DVRs to complement their main CCTV products. In terms of volume sales and exports, their DVR products still lag behind CCTV cameras. Maintaining price competitiveness is the biggest challenge for these suppliers.

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   Taiwan's Kguard offers the S130 series of standalone DVRs with network capability and H.264 compression technology. 4ch to 16ch standalone models still mainstream

The CCTV line is moving toward a digital environment. Most standalone DVRs from mainland China are network-enabled and designed with intelligent features and user-friendly interfaces. Although some companies can provide DVRs with up to 32 input channels, the 4ch to 16ch models are still the most in demand. Mainland makers believe these DVRs will continue to be the mainstream products for some time. Thus, their focus is on improving the devices' system stability, video quality, intelligent functions and search feature while strengthening their customizing capability.

East China manufacturers mainly produce 4ch, 8ch and 16ch DVRs. Zhejiang Dahua Technology Co. Ltd's DH-DVR1604GB GBE SATA series can support 4, 8 or 16 channels of camera input and realtime recording at 4CIF (D1) resolution. Considered high-end models, the series compresses files with the H.264 format and provides SATA and USB 2.0 interfaces. It stores video via eight HDDs and supports CD-RW and DVD-RW discs. The series comes with PTZ and speed dome control. When used with Zhejiang Dahua's speed dome camera, the DH-DVR1604GB can achieve 3D intelligent positioning.

Zhuhai RaySharp Technology Co. Ltd has unveiled model D6016, a 16ch MPEG-4 standalone DVR designed to perform triplex operation, 16ch BNC video input and 2ch BNC video output. It operates on Linux, and supports networking and multiple recording modes.

Standalone models are the mainstream DVR offerings from Hong Kong suppliers. Entry-level models with basic features are available, but multifunction DVRs with advanced display, storage and connectivity options characterize the latest releases. Suppliers have enhanced their products' user interfaces through external input devices such as a mouse or IR remote control, as well as a remote management system over a LAN or via the Internet.

DVR shipments from Hong Kong are primarily 4ch to 16ch models that provide simultaneous realtime viewing and recording. Diss Tech (STL Solution) has the KE-8000MX, a standalone DVR that offers the convenience of a PC-based version. Available in 4ch, 8ch and 16ch models, the KE-8000MX comes with a full-function USB mouse and graphical user interface. It supports 4ch realtime recording in half D1 and video display in CIF to D1 resolution. The product can achieve 240fps (NTSC) and 200fps (PAL) recording in CIF through hardware MPEG-4 compression.

The AVS-MT200 standalone DVR from Torga Industrial (HK) Co. Ltd has 8ch video input and H.264 compression. It displays one, four or eight frames simultaneously, with 1ch display during multichannel realtime recording or multichannel realtime transmission over the Internet. Realtime display is 25fps for PAL and 30fps for NTSC at D1 resolution, with eight image quality settings. D1 and CIF resolution are available during recording.

Taiwan's Kguard Security Co. Ltd offers a series of standalone DVRs with 4ch, 9ch and 16ch camera input options, H.264 compression technology and central management system (CMS) control.

The company is currently focusing on software/hardware integration and user-friendly design. It has added input devices—a keyboard, mouse, touchscreen and remote controller—in its DVR systems to benefit both PC and non-PC users.

Kguard's 9ch standalone DVR model KG-S330 is network-enabled and compresses files with H.264. The series features multiplex operation, remote access via Internet/Ethernet, remote setup, e-mail alarm notification, FTP file storage and software upgrade. The product is compatible with Kguard's CMS2000 system, which is capable of controlling up to 100 cameras in a global business setup, depending on the bandwidth.

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   Diss Tech's KE-8000MX standalone DVR series from Hong Kong supports realtime viewing and recording via HDD, CD/DVD burner, USB flash drive and external hard disk. Multiple compression, storage options available

The H.264 and MPEG-4 compression technologies are widely used in traditional standalone DVRs, network DVRs and hybrid DVRs. While Taiwan suppliers expect H.264 to become the mainstream format soon, they continue to offer MPEG-4 and M-JPEG models for various markets and applications. Manufacturers are improving their products to be able to offer network connectivity, D1 resolution and customized models.

Taiwan-based Softwell Technology Co. Ltd is developing H.264 compression for its largely Linux-based DVR solutions. Derek Chen, vice president for product management at Softwell, said that the H.264 codec can compress videos into smaller files (bytes). "Smaller bytes with good enough video quality makes H.264 a nearly perfect codec for video streaming, especially suitable for remote management applications," he said.

The company offers PC DVR kits running on Linux OS. Its turnkey DVR solutions are usually embedded or standalone, targeted at access control, point-of-sale (POS), ATM and mobile applications. Softwell's core competence is in storage solutions. Standalone DVRs will dominate the company's production output this year, with network capability leading its product development activities. It also plans to expand to the NVR line.

Chateau Technical Corp. has introduced an embedded standalone DVR featuring H.264 DSP hardware (realtime) compression. The system supports 704x480-pixel (NTSC) and 704x576-pixel (PAL) resolution, realtime monitoring and remote monitoring using software the company has designed for the IE browser.

Makers in South Korea, on the other hand, think that the use of H.264 will be limited to traditional standalone DVRs, PC DVRs and network DVRs. The first hybrid DVRs in the region were PC-based systems. DVR makers are about to launch standalone versions that will operate on MPEG-4 technology. They expect H.264 hybrid DVRs to enter the market much later. For network DVRs, MPEG-4 continues to reign, but H.264 models are relied upon to solve problems of mammoth proportions.

One of the current R&D projects of Idis Co. Ltd is to develop its own H.264 chip, and produce its first H.264 DVR in both PC and standalone units within H1 2009. In addition, the company is developing video analysis software for its DVRs that features flow detection and people counting. It will introduce a PC DVR with video analysis functions by yearend.

Zhejiang Dahua's H.264 standalone DVRs use embedded Linux and feature multiple backup modes through flash disk, USB HDD, USB CD-RW, DVD-RW, built-in IDE burner and network download. The company is working on adding intelligence to the DVR's analysis, tracking and search functions.

There are multiple storage options for Diss Tech's KE-8000MX such as through an internal CD/DVD burner and external CD/DVD burner, hard disk or flash drive. Aside from a low data rate of 2KB to 3KB per CIF frame, the KE-8000MX offers numerous options to extend the video storage capacity. It has full time, schedule, motion and alarm recording modes to avoid unnecessary filming. The motion detection function supports multiple zones, multiple channels, sensor input and output control. An RS-485 port is included for controlling PTZ cameras.

Torga's AVS-MT200 comes with a 2ch PAL/NTSC display, 1.0Vp-p, 75ohms BNC, compound video and VGA output. An RS-485 serial port is included for connecting a PTZ decoder without an extra RS-232 switcher, and an Ethernet port is added for LAN, WAN or Internet connection.

The product also provides 8ch audio input and 2ch audio output. It comes with multiple IDE ports that support eight or more 300GB disks. Other storage backups via USB and CD/DVD burner are optional. A remote control is bundled with each unit.The 16ch version from Torga, model AVS-MH400, uses MPEG-4 compression instead of H.264.

back to top IP support key consideration in hybrid DVRs

Majority of hybrid DVRs in South Korea have a variety of function and feature options. Display and recording speeds range from 120fps to 480fps. Some models support POS and ATM systems. HDD/ODD storage and two-way voice communication are basic. Built-in CD-RW and DVD-RW are optional.

Buyers usually look at manufacturers' capability to develop a hybrid DVR that supports IP because of the lack of standard for IP cameras. Most South Korea makers have this capability. They also highlight product stability and reliability, a user-friendly graphical interface, software, CMS and after-sales support as key strengths.

3H Picaso Co. Ltd's existing standalone and PC-based DVRs have been redeveloped and upgraded to support IP cameras. The MEX series of standalone hybrid DVRs, which includes models 7009, 5016, 6016 and 7016, supports 480fps realtime display and recording, as well as 480fps of network transmission with 16 channels for analog CCD cameras and IP cameras.

Adopting a turbo engine, the model can switch to a higher recording speed and image resolution when motion detection is enabled. The product features POS text insertion and interface. Dynamic IP is supported with DDNS.

The MH series, including MH 5016, 6016, 7009, 7016 and 7004, is 3H Picaso's line of PC-based hybrid DVRs. They are also available with POS interface, built-in mirroring function and CTMS for up to 400 units of DVRs installed at different sites. The MH series supports network-attached storage (NAS) and pentaplex operation. 3H Picaso uses its own ASIC hardware MPEG-4 chipset for all its DVR models, including the MEX series. Using its own chipset, the company hastens delivery of orders and can easily customize models.

Grandport Co. Ltd's H series of PC-based hybrid DVRs includes models H120, H240 and H480. The H series features 16 loop outputs and 16 audio inputs, and supports pentaplex operation, fixed IP, DHCP and dynamic IP. The models' four HDDs store up to 3TB of video, and an optional CD-RW can also be installed. The series offers the patent-pending Air Mouse.

The IDR H4032 from Idis offers 16ch BNC input and 16ch network camera input. It supports LAN (10/100/1000Base Ethernet) with 120ips maximum transmission speed. It has an RS-232 port for text-in devices such as POS or ATM systems, and an RS-485 port for PTZ control.

The IDR H4032 supports chained fingerprint and smart watermark functions. The hardware watchdog function is also available, allowing the model to automatically reboot by itself after power failure.

Mainland China's Hikvision is developing the DS-9000 series of network DVRs targeted for release in November 2008. The series is a new generation of hybrid DVRs that support various video compression standards, including H.264, MPEG-4 and AVS. It is specially designed with multiple interfaces such as SATA (eight HDDs with a maximum size of 2TB each), eSATA and USB 2.0 (two ports compatible with USB flash, USB HDD or USB CD-RW).

The products also have a VGA interface that supports resolutions of 800x600 (60Hz/75Hz), 1024x768 (60Hz/75Hz) and 1280x1024 (60Hz), and alarm I/O (16ch sensor input/4ch relay output, 12ch sensor input extensible). The DS-9000 adopts several patents for its advanced IT technologies in video encoding/decoding, embedded OS, storage, network and intelligence.

South Korea-based company ServnTec Co. Ltd has introduced hybrid DVR models HYR-4832 and HYR-4816.The HYR series supports 16 or 32 analog channels and four IP channels. Based on MPEG-4 compression, the HYR-4832 features realtime display, and includes six built-in IDE and SATA HDDs that support up to 4TB.

The HYR-4832 can also perform synchronized live monitoring and recording with audio, as well as two-way audio function. ServnTec bundles free application software programs such as POS and PDA client software with the DVRs.

ServnTec's products are used in casinos, airports and semiconductor factories. The company's hybrid DVR models are compatible with global IP cameras from leading international suppliers and have a minimum recording speed of 480fps.

ServnTec continues to work on product compatibility and higher recording speed to achieve a relatively better price-to-performance ratio. The company has an in-house software platform that supports up to 128 IP channels. It will further add IP channels to its upcoming releases.

back to top Video analytics central to network DVR development

The assumption that future security equipment and systems will eventually be fully networked, integrated and intelligent is the root of network DVR and NVR development. The constantly improving network infrastructure and technologies aid the adoption of network DVRs and NVRs in many fields. As market adoption widens, buyers clamor for higher storage capacity and easier installation and maintenance. Thus, network DVRs that meet those requirements are hot items in the market and are also increasing in supply.

In South Korea, suppliers eye emerging home network systems and intelligent traffic systems as prospective markets, with their need for integrated network security in their systems. Network DVR makers are also pushing for video analytics in their products.

Win4Net Co. Ltd, a network DVR developer since 2006, offers the NetSafe series. The product's core technology is the video analysis function, which includes virtual fence and specific area detection. NetSafe series models have a smoke detection feature in its video analytics system that also functions as a fire alarm. The company recently completed development of a network DVR model with face detection, and the product is set to be released in the fourth quarter of 2008.

Win4Net has been enhancing its CMS for NVRs, to support 64 to 128 channels of peripheral IP equipment, including IP cameras. Its CMS is being used mainly in the local setting by independent entities. The company is also keen on improving storage capacity, especially when the NVR or network DVR is used in a large number of channels that require high resolution.

ServnTec is developing video analytics functions, including missing object detection, object tracking and event detection.

The video analytics system in Posdata Co. Ltd's network DVRs includes advanced functions such as trip wire and object clarification. The trip wire function alerts the system that an object or person has crossed a particular line in the monitoring area. The object clarification function verifies the image of a subject, whether it is an inanimate object or a human being. This function is closely tied up to people counting, automatically enabling the DVR to count the number of humans in the area. For future products, Posdata plans to embed the CMS in its network DVRs to simplify maintenance.

The POS-Watch IMS-7520X is an MPEG-4-based central integrated control device for Posdata's network DVR system. It is commonly used in enterprises with large video monitoring requirements such as in production lines. It can monitor images in realtime from up to 75 camera channels and simultaneously perform live viewing, playback and system monitoring. The IMS-7520X has a built-in HDD with up to 8TB of storage capacity as well as external storage device support. It can store files from 64 to 128 channels simultaneously. Remote and wireless monitoring are also supported.

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   The DS-9000 series of hybrid DVRs from Hikvision of mainland china supports various video compression standards, including H.264, MPEG-4 and AVS. OEM, ODM business account for bulk of exports

Most mainland China DVR makers export about 70 percent of their products, mainly through OEM and ODM contracts. OEM/ODM projects account for up to 90 percent of the suppliers' export business, contributing to its yearly growth. For 2008, makers target a 30 to 50 percent increase in export sales, especially in its major markets in North America, Europe and East Asia.

Zhejiang Dahua exports 80 percent of its DVRs, while Zhuhai RaySharp exports about 70 percent. Zhejiang Dahua uses its own brand in 30 percent of its DVRs and manufactures the rest for OEM/ODM buyers. Zhuhai RaySharp's brand is stamped in only 5 percent of its products. The rest go to OEM/ODM buyers. Both companies mainly export to the US and Europe, with Asia as an emerging new market. Zhuhai RaySharp targets an export volume increase of 50 percent in 2008.

Hikvision's major export destinations include the US, the UK, France, Italy and Japan. It also ships to Hong Kong and Taiwan. The company targets an export increase of 30 percent in 2008.

Although Hong Kong suppliers tried reducing costs to improve efficiency, rising production expenses and the steady appreciation of the yuan have eroded profit margins, causing some suppliers to hike up prices by as much as 10 percent. Entry-level to high-end price points for DVRs from Hong Kong have not changed dramatically over the past two years. However, functions and features available for each price segment have expanded. A 4ch DVR is priced at $200 to $400, while an 8ch model is quoted at $500 to $700. The 16ch DVR can sell for $700 to more than $2,000 per unit.

Diss Tech's main export markets are Western Europe, the US and Asia. Ten percent of its DVR output is distributed in mainland China. Some well-known security industry brands in Asia such as Chubb HK and Yoko Taiwan are among Diss Tech's customers.

Torga's Avision brand of CCTV products is exported to distributors in more than 30 countries, including Canada, Russia and India. Its brand was voted as one of mainland China's top 10 CCTV trademarks in a 2006 poll conducted by the Xinhua News Agency.

Eighty percent of Taiwan-based Softwell's sales revenue comes from OEM/ODM exports, mainly to EU countries (France and Italy), North America, Asia (Japan) and Oceania (New Zealand). Softwell's target customers are brand vendors, system integrators and hardware manufacturers. It uses the brand name Wit-eye for OBM.

Kguard's products are mainly shipped under its own brand, taking around 85 percent of sales. The rest of the revenue comes from OEM and private label business. Kguard exports 80 percent of its products mainly to the US, Southeast Asia, the Middle East and Africa. It targets system integrators, installers and distributors as customers.

Chateau ships 30 percent of its DVRs out of Taoyuan, Taiwan, with delivery time of seven days. The company exports mainly to Hong Kong, North America, Central and South America, Europe, and the Middle East.

According to South Korea makers, prices of network DVRs are still higher than current ordinary DVRs. One of the reasons cited was the late release of H.264 chips from South Korea chipmakers. Interviewed companies agree, however, that the network DVR is more cost-efficient in the long-term because it is simpler to install and maintain. The product does not require a bundle of coaxial cables, just a single network line for the entire range of equipment. Network DVRs are being used in large industrial complexes, public institutions, colleges and others.

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   Softwell from Taiwan offers Linux-based DVR turnkey solutions. Makers highlight in-house R&D, QC competence

Hikvision maintains a 6,000sqm factory in Hangzhou, Zhejiang province. The factory handles product development and design, final assembly and QC. In 2008, Hikvision's monthly DVR output reached 20,000 sets.

Zhejiang Dahua has a 20,000sqm property in Hangzhou that houses its headquarters and production facilities. Product design, R&D and QC are done here. Monthly output is about 20,000 DVR units.

Zhuhai RaySharp handles cosmetic, structural, software, hardware and package designs in-house. The company holds 15 design patents and eight function patents, and invests 10 percent of its sales revenue on R&D. It conducts five main QC procedures to achieve standard quality: material test, semi-finished product test, 48hr high-temperature aging test, finished product test and IQC test. It has an average monthly output of 21,000 units.

Diss Tech specializes in combined security solutions and mobile security services, and also manufactures PC-based DVRs. Its DVRs use technology developed in Seoul, South Korea, where its R&D center is located. About 15 percent of the company's annual revenue is invested in R&D. The company handles product design, assembly and QC in its Hong Kong and Shenzhen factories. The products undergo three-stage testing after assembly. Monthly output is about 5,000 DVRs.

Torga, an affiliate of Shenzhen Torga Video Technology, manufactures a wide range of CCTV equipment, with surveillance cameras as its main product. Its R&D department and manufacturing plant are in Shenzhen.

Softwell maintains its headquarters in Taipei. The company conducts IQC and FQC processes, and product development. It offers DVR kits, CMS solutions, standalone DVRs, IP surveillance devices and accessories.

Kguard positions itself as a solution provider, particularly for PC-based surveillance in multinational companies. Its engineers come from the ICT industry and are experienced in telecoms, handwriting/digital identification and driver firmware. Kguard prefers to keep its manufacturing and QC/testing facilities in Taiwan.

Chateau Technical started producing PC DVR cards in 1997 and standalone network DVRs in 2006. Chateau has five engineers who handle system development for DVR and 10 engineers in charge of software design. It outsources cosmetic design but retains product testing in-house.

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