Some companies, like Nextchip, have continued to develop technology for analogue solutions despite the IP trend

The growing sales of IP-based solutions in the surveillance market is a well-discussed topic. Security companies are rushing to grab a slice of this lucrative pie. However, at the same time, analogue surveillance systems have continued to retain their appeal for many end users. Aware of this demand, some companies have continued to develop technology for analogue solutions despite the IP trend.

One company driving this force is Nextchip, the company behind AHD™. Up until recently, the Korean company has mostly played behind the scenes, supplying its high-quality chipsets to manufacturers worldwide. The company has been changing the face of analogue solutions with its latest technology for high definition analogue solutions - AHD™.

Sizable analogue market welcomes HD analogue solutions

Accounting for up to 70 percent of Nextchip’s total sales, the AHD™ adoption rate is gaining momentum, and the company recently announced that the adoption rate has reached 100 million channels. One of the reasons for the growth, according to Julie Kim, General Manager of Strategic Marketing Department at Nextchip, is that the majority of analogue manufacturers have continued to focus on the analogue market.

While new installations usually opt for IP-based solutions from the get-go, there is still a sizeable number of analogue systems in place. These end users welcome the ability to upgrade their existing analogue systems with high-definition solutions that security companies are offering, as upgrading is faster, more cost-effective and causes the least amount of disruption compared to overhauling and replacing an entire system.

Nextchip has been changing the face of analogue solutions with its latest technology for HD analogue solutions - AHD

Traditionally, one argument for switching to IP-based systems is the high-quality images that analogue systems cannot deliver, but that is no longer the case. High definition analogue solutions that incorporate the likes of HD-SDI, HDCVI, HDTVI and HD-AHD technologies retain the simplicity of installation that system integrators, installers and end users are used to in analogue systems, but provide high definition images that rival those achieved by IP-based solutions.

Cost-effective upgrade of existing surveillance systems

Kim explains that upgrading image resolution from D1 to HD/FHD (720p/1080p) has previously involved higher costs. Nextchip decided to invest in developing high-definition analogue solutions because it saw a need to overcome transmission and cost issues associated with higher image quality transmission.

D1(760H/960H) was the standard within the surveillance market for a long time, but as image levels reached higher resolutions (HD/FHD), CMOS HD and FHD were introduced (megapixel CCD was not applied for cost reasons). CMOS and ISP were ready but required a transmission solution to transmit the megapixel resolution, which led to the development of HD-SDI. However, the cost of these was too high. In addition, HD-SDI transmission is limited to 100 metres, after which a repeater is necessary, thereby increasing costs.

The technology behind AHD™ enables high definition video and audio transmission over coaxial cable up to a distance of 500 metres without any latencies or quality losses that can sometimes be seen in IP-based solutions. An upgrade of the existing analogue system can now be achieved with the simple replacement of the cameras and DVRs.

AHD™ applications beyond surveillance

Nevertheless, Nextchip is well aware that the switch to IP-based systems is inevitable and will affect its existing analogue business. Hence, the company has developed AHD™ with universality in mind and is already branching out the technology beyond the security market into the automotive industry.

AHD™ is cable-independent technology. Its applications can expand beyond surveillance to include others that can benefit from high-resolution images, such as the automotive industry.

In addition to its home market, Nextchip is focusing on the European market, where the majority of automotive manufacturers are located and is already in talks with them on incorporating Nextchip’s solutions into their vehicles.

Nextchip 2016 roadmap revealed

After years of playing behind the scenes, Nextchip is now working to increase its brand awareness beyond manufacturers. To this end, the company has strategically revamped its website for the first time in a decade. It is also working on increasing its presence in its end user markets and making its brand known to installers and system integrators, with plans to establish international branch offices in the pipeline.

In terms of sales, Kim sees demand for 1080p chipsets growing in 2016 as the technology commercialises. Up until last year, the 720p chipsets generated the most sales, accounting for up to 65 percent of the company’s total sales.