
The demand for security chips has been on a steady rise in recent years. By 2013, the market is expected to surpass 40 million units. Leading companies such as Hass have captured over 60% of the market share. As the industry evolves, Application-Specific Integrated Circuits (ASICs) are playing a crucial role in driving innovation in security chip technology. Future developments will likely focus on multi-service capabilities and the integration of auxiliary chips with IPC (Internet Protocol Camera) systems.
According to market data, the capacity for security digital compression chips reached nearly 20 million units in 2011, and exceeded 30 million in 2012. Based on current trends, it's anticipated that this number will surpass 40 million by 2013. This growth reflects an increasing reliance on advanced chip solutions in the security sector.
As the security chip market expands, the variety of dedicated chips is also growing. The integration of auxiliary chips into larger markets is leading to more product segmentation. With the expansion of the security chip market, the need for more specialized chips is becoming essential. Compared to the single DSP chips used in the early days of the security industry’s digital transformation, today’s security chips are now categorized based on specific applications.
DVR/NVR chips, such as HiSilicon’s Hi3515 and Hi3520, are widely used in embedded DVR and NVR systems. These chips are designed to meet the demands of multi-channel encoding, multi-service management, and high-bitrate storage. Currently, they represent the largest segment of the market, accounting for around 60% of all main compression chips.
IPC chips are used in network cameras and reflect the maturation of the IP camera market over the past few years. These chips emphasize high-definition video compression, intelligent features, and image signal processing (ISP). While their market size is not yet as large as that of DVR/NVR chips, they are expected to dominate the security market in the near future.
Auxiliary chips, primarily based on DSP and FPGA technologies, are used for intelligent processing and ISP functions. In analog cameras, these chips are commonly used for image enhancement. However, due to the early stage of the intelligent analysis market, the use of DSP chips for such purposes remains limited. As IPC chips become more integrated, some of the functions currently handled by auxiliary chips may eventually be embedded within them, further streamlining the design and performance of security systems.
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