What are IP cameras? Complete guide to Internet Protocol cameras

How do IP cameras work?

IP cameras communicate live video footage to external recording and monitoring devices over the internet. Depending on the business’s needs, footage can be transferred over a hardwired network connection (Ethernet/​USB cables) or communicated wirelessly via a secure Wi-Fi or cellular network, offering great flexibility in terms of installation and design.

Network options

Business and property owners who decide to develop IP camera systems can choose from a few network options that dictate how captured footage is communicated between devices. In some cases, multiple options can be combined to ensure reliable coverage over key areas.

• Wired networks: Ethernet cables physically connect IP cameras to video storage and viewing devices. Wired networks provide fast transmission speeds and secure transfers, with a low risk of signal interference or interception from outside sources.
• Wireless networks: Captured footage is sent to storage and viewing devices over a wireless Wi-Fi network, meaning IP cameras can be placed in areas where installing cables is not possible. However, Wi-Fi communications can be prone to interference.
• Cellular networks: Video data is communicated over a cellular network, enabling video security systems to be developed in areas without internet access or suitable wiring infrastructure. Cell networks are convenient but upload and download speeds can be inconsistent depending on the installation location.

What is an IP camera system?

IP camera systems are combinations of video recording, storage and monitoring devices that rely on an internet connection to communicate data. A typical IP camera system will contain four main components used to capture, transmit, store and view video footage, including: 

• Internet Protocol cameras: Internet Protocol cameras can be installed in key areas to capture live footage of unfolding events.
• Communication network: Depending on the business’s needs, IP cameras may communicate data over Ethernet cables, a Wi-Fi network or a cellular network.
• Network Video Recorders (NVR): As IP cameras can process video data internally, they don’t need to be connected to external processing devices. Instead, they can be linked directly to an NVR that acts as a mass storage device for processed video data.
• Video management system (VMS): Live IP camera footage and files stored on NVRs are sent to an on-site VMS for security staff to review. Cloud-based VMSs may also be utilized to enable staff to view feeds remotely on smart devices and computers.

Different types of IP cameras

As with any other type of security camera, there are numerous types of IP cameras, each with its own features, capabilities and potential use cases. Before you invest in IP cameras, understanding the different IP camera types and their uniqueness should be assessed. Below are some popular types of IP cameras utilized in modern video security systems.

Bullet IP cameras

Bullet IP cameras capture high-quality footage at long-range distances but they usually have a narrow field-of-view. These types of cameras are best used to cover outdoor and open areas like building perimeters, access roads and long hallways. As bullet cameras are often installed outdoors, they usually have weather-resistant casings and feature night vision capabilities.

Dome IP cameras

Dome IP cameras have wide-angle lenses to capture clear footage of expansive areas like warehouses, offices and parking lots. This IP camera type has a protective dome-shaped enclosure that helps prevent the lens from being damaged by individuals or the weather. However, this enclosure can become dirty in outdoor or industrial areas, so regular cleaning is necessary.

Fisheye IP cameras

Fisheye, or 360-degree, Internet Protocol cameras capture panoramic images of target areas, making them a great choice for observing activity over factory floors, retail spaces and restaurants. While 360-degree IP cameras enable businesses to cover larger areas with less hardware, image quality can suffer, meaning IP cameras may not be ideal for high-risk locations where image clarity is crucial.

Turret IP cameras

Turret Internet Protocol cameras have a built-in ball-and-socket joint that enables operators to adjust the device’s viewing angle as required. This unique ability makes turret cameras a great choice for areas where layouts often change, like shop floors and stock rooms. However, staff should be aware that the camera’s moving parts can be susceptible to wear and tear.

PTZ IP cameras

Pan-Tilt-Zoom (PTZ) IP cameras feature motorized joints that enable operators to adjust viewing angles remotely. Objects of interest can be followed through an environment to support security staff in responding to unfolding events. Similarly to turret cameras, the moving parts inside PTZ camera models require continuous maintenance to mitigate damage.

Key features of modern Internet Protocol cameras

Modern Internet Protocol cameras have various key features and capabilities to support business owners and organizations in developing reliable video security solutions. Below are a few key features and add-ons that stakeholders should consider when designing IP camera systems.

Cloud and internal storage 

Many businesses are legally required to retain security footage for a set amount of time, so it’s important to ensure your proposed IP camera systems have ample storage space. Most IP cameras have some internal storage, but external hard drive storage should also be utilized, alongside cloud storage solutions to allow for automated video data backups.

Power-over-Ethernet (PoE)

PoE IP cameras receive power and transmit data over a single Ethernet cable, making for an easier and more reliable installation compared to analog or standard IP alternatives. Consider choosing PoE for cameras, as it produces a more stable connection than comparable Wi-Fi cameras which are also less prone to interference and signal loss issues. 

Remote management tools

One of the major benefits of IP cameras is their ability to transmit footage over the internet, enabling businesses to view, edit and analyze security data from any location. Look for IP cameras with remote management tools, or open API configurations, as this will support security staff in creating and optimizing bespoke cloud-based video security solutions.

Video analytics

AI video analytics help stakeholders develop automated responses to common security threats with algorithms that intelligently analyze target areas for signs of suspicious activity. Threats like people carrying contraband items, crowds forming in unusual areas and movement outside normal business hours can all be detected and addressed using AI analytics or AI security cameras.

Data encryption software

The most prominent disadvantage of IP cameras is their vulnerability to cyber threats as data sent over the internet can be vulnerable to hacking attempts. Businesses can improve their cybersecurity posture by encrypting their data transfers. Therefore, prospective buyers should look for camera systems featuring at-rest and in-transit data encryption tools.

Advantages and disadvantages of IP cameras

Developing an effective video security solution for any organization requires stakeholders to review the unique needs of their facilities. While IP cameras can provide several advantages not matched by comparable analog cameras, they’re not always the best option.

Advantages

• Installation flexibility: Unlike analog cameras, IP cameras are not restricted to use only in areas with wiring infrastructure. This means they can be installed in different locations, with wired and wireless models in the same network.
• Ease of integration: IP cameras, especially those with open API configurations, can be easily integrated into wider security and building management systems, allowing for automated processes between video security, access control, alarm and sensor systems.
• Image quality: IP cameras capture and process digital footage internally, therefore they can produce high-quality and high-resolution images. Captured footage can also be adjusted using digital zoom tools that don’t impact image quality like optical zoom.
• Instant data sharing: If IP cameras are connected to a cloud management system, stakeholders can develop remote alerts and instant data sharing functions. If cameras detect suspicious activity, video footage can be sent to staff via SMS or email.
• Simple scalability: Extra cameras and security devices can be easily connected to IP installations by adding a new network or wireless connection. In an analog system, new coaxial/​power cables would need to be wired throughout the property.

Disadvantages

• Bandwidth demand: IP camera systems require a significant amount of bandwidth to function effectively, averaging around 1 – 2 Mbps for a 1080p 6 – 10fps device.
• Cybersecurity risks: As IP cameras send data over the internet, malicious actors can intercept signals if cybersecurity provisions are not in place.
• System complexity: IP camera systems need multiple accessories to work optimally, including transmitters and connectors, which can be complex to set up. 
• Subscription costs: To safely and reliably operate IP camera systems, subscriptions for the internet, cloud storage, operating software, and cybersecurity are typically required.

What industries can benefit from IP cameras?

The versatility and flexibility of IP camera systems make it easy to create custom networks for a wide range of applications. Commercial business owners, factory operators and even healthcare professionals can combine different types of IP cameras, network infrastructure and monitoring solutions to develop reliable video security systems tailored to unique requirements.

Retail and hospitality

In retail stores and hospitality facilities, like hotels and restaurants, IP cameras can capture continuous footage of high-risk areas like stock rooms, lobbies, shop floors and cash-counting areas, with options for managers and security officers to view live feeds remotely ²⁴⁄₇. Video analytics tools may also be used in retail camera systems to autonomously detect suspicious activity, like shoplifting or violent behavior, with instant alerts sent to operators warning of unfolding events, leading to faster incident response times.

Commercial offices

Commercial IP cameras can be deployed in rented offices to provide reliable coverage of key areas to help protect employees and observe activity after hours. Wired IP cameras can also be a good choice for offices, as business owners can easily scale systems with business needs, adding new cameras, security integrations and management solutions as the organization grows.

Healthcare facilities

The cloud-based capabilities of IP cameras are well-suited to healthcare applications, as staff can remotely check in on vulnerable patients at any time. Healthcare camera systems can also be enhanced with video analytics tools used to autonomously identify contraband items and dangerous activities, with security integrations allowing for automated threat responses.

Industrial environments

Different types of IP cameras can be combined to help ensure reliable coverage of industrial facilities, factories and construction sites, with managers able to add and remove devices as required. These industrial IP cameras enable security teams and managers to observe worker safety, productivity and the delivery of shipments and orders. Wi-Fi and cellular networks can be useful in these settings, as often it’s not possible or logical to install physical wiring infrastructure in factories and temporary sites.

Government buildings

IP camera systems with powerful encryption tools are used in government buildings to provide the benefits of security coverage while mitigating the risk of cyber threats. The ability to closely observe government facilities ²⁴⁄₇ is central to protecting confidential data and important personnel, with high-quality footage ensured via digital IP cameras.

Considerations for choosing and installing IP security cameras

Alongside ensuring your IP cameras have the features and capabilities required to function optimally, security staff need to ensure IP camera systems are installed and configured appropriately. Here are some key considerations for developing reliable IP camera solutions.

Bandwidth requirements

IP cameras require significant bandwidth to work effectively and bandwidth demand will rise with every camera added. Businesses must make sure data plans can support the addition of IP cameras and network solutions without impacting the functionality of existing systems. For reference, the following equation can be used to estimate IP camera bandwidth demand.

Number of cameras x bit rate of cameras = required bandwidth (Mbps)

Camera placements 

Attention must be paid to where cameras are installed to ensure good coverage and prevent tampering. Think about which types of IP cameras will be best suited to different areas, like dome cameras in expansive spaces and bullet cameras for perimeters, and try to install hardware out-of-reach to the public but in locations that can be accessed by maintenance staff. 

Network security 

Access to IP camera operating software and management systems must be secured behind monitored access controls, with multi-factor authentication and zero-trust policies in place to help deter unauthorized access. These provisions should be deployed in cooperation with cybersecurity solutions like endpoint detection and response, encryption and firewall tools.

File sharing features

The ability for IP camera feeds to be viewed remotely ²⁴⁄₇ via cloud VMSs is a major benefit, but this feature can be further enhanced. Look for IP surveillance camera systems with customizable file-sharing functions. This will help improve incident responses, with video clips sent via SMS or email to security staff when suspicious activity is detected.

Integration possibilities

Integrating IP cameras with wider security technology and building management systems can help security staff develop greater situational awareness for enhanced security and improve operational efficiency through automated responses. For example, suspicious access attempts may trigger IP cameras to flag footage and alert operators, while suspicious events spotted by video analytics tools may cause on-site alarms and access control locks to engage automatically.