Slowdown in pace of market growth for network video

Slowdown in pace of market growth for network video

The market research institute IMS Research announced today in a press release
that the growth for network video products on the American market has slowed
down. This affects the ongoing technology shift from analog to digital
surveillance negatively.  



For a number of years, IMS has forecast that the market for installations of
network video products has an annual global growth rate of approximately 40
percent. IMS expects slower growth in 2008 than in the preceding year as a
consequence of the receding American economy. However, their estimation is that
network video products will grow by at least 30 percent in the US. 

Axis' ambition, as announced previously, is to grow in pace with the market. The
interest for network video products has been considerable during spring and the
inflow of new projects continued to be satisfactory, but the current financial
turbulence has impacted new investments and expansion plans. This has now
affected growth in the network video market.   

“We have seen signals from the market, e.g. from the retail trade in Europe but
particularly in the US where major retail chains have chosen not to expand as
planned. As approximately 25 percent of all video  installations are performed
within the segment, we have drawn the conclusion that the pace of the technology
shift from analog to digital network video has slowed down”, says Ray
Mauritsson, President, Axis Communications.

Axis' goal and expansion plans remain unchanged notwithstanding a slowdown in
the pace of the technology shift. The company's objective is to maintain and
strengthen the company's position as the market leading supplier of network
video solutions.


For further information, please contact:
Margareta Lantz, Manager IR&Corporate Communications, Axis Communications 
Phone: + 46 46 272 18 00, E-mail: pressoffice@axis.com


About Axis Communications
Axis is an IT company offering network video solutions for professional
installations. The company is the global market leader in network video, driving
the ongoing shift from analog to digital video surveillance. Axis products and
solutions focus on security surveillance and remote monitoring, and are based on
innovative, open technology platforms.
Axis is a Swedish-based company, operating worldwide with offices in 18
countries and cooperating with partners in more than 70 countries. Founded in
1984, Axis is listed on the OMX Nordic Exchange, Large Cap and Information
Technology. For more information about Axis, please visit our website at
www.axis.com.