IP Cameras vs Analog Security Cameras: Which System is Best for You?

Surveillance and security tech has never been more affordable and available for homes, small businesses, and larger enterprises. With the advent of IP cameras and Power over Ethernet (PoE) technology, security camera systems have become more widespread and far easier to install and manage, even by novices. The global IP camera market is expected to grow from $14.06 billion in 2024 to $16.04 billion in 2025 with a compound annual growth rate of 14.1% — that’s how fast IP-based solutions are taking over. Here’s how that applies to security cameras: with IP and Power over Ethernet (PoE) and WiFi-enabled models, security camera systems are more widespread and easier to install and manage even for beginners.

Traditional analog cameras and systems are often plagued with cabling and power delivery issues. PoE security cameras get power and data over a single Ethernet cable, usually the same type used for computer networking. Wireless IP cameras get power from small adapters and can join a wireless network like a laptop or smartphone. And that’s what IP security cameras are: little computers that offer better clarity, more analytical features, and ultimately better performance than their older analog counterparts. If you’re searching for a security camera system to install in your home or business or just want to know what’s out there, this guide will help you understand the difference between IP and analog cameras.

What are IP Cameras?

Most people who contact us express that they’re completely new to the field and are overwhelmed by the large number of products and jargon in the surveillance industry. The term "IP cameras" itself could be considered lingo by those who don’t work with them every day. Simply put, IP cameras, short for internet protocol cameras (aka network-based cameras), are devices that contain digital imaging technology to capture video and are able to send the video data over network protocols. As network-based cameras, they use Ethernet cables rather than the thicker and more cumbersome coaxial cables that analog cameras use.

Do IP Security Cameras need the Internet?

Now the next question that is asked is: Do IP cameras need the Internet to work? The short answer is no; despite the Internet Protocol moniker, the internet is not required to use IP cameras because the protocol is used in local computer networking as well. However, an internet connection is required to view cameras when you’re away from your smartphone or laptop computer.

What’s the difference between Power over Ethernet and WiFi IP cameras?

Power over Ethernet cameras, or PoE cams for short, require cables to be connected between a Network Video Recorder (NVR), PoE injector, or PoE switch and the camera for power and data transmission.

WiFi cameras are typically powered by small power adapters and have the ability to wirelessly connect to a WiFi NVR, router, or modem’s wireless network using the network name (SSID) and password or passkey. An important difference between wireless and wire-free cameras is wire-free cameras do not require a power supply but are far less reliable than professional WiFi cameras.

Can I record without an NVR?

First, let’s define what an NVR is. An NVR, short for network video recorder, can be thought of as the brains of an IP security camera system, and the cameras are the eyes. In this analogy, the eyes send their information to the brain for storage. NVRs are responsible for recording the video data from cameras to an internal hard drive for long-term storage and playback at a later date.

However, this raises the question: Do I need an NVR to record IP PoE cameras? The short answer is no, you do not need an NVR to record IP PoE security cameras. The long answer for you really depends on what you need the camera for.

Some cameras contain microSD card slots for internal recording of up to a few days of continuous video. With event- or motion-based recording, you may be able to stretch MicroSD card recording up to a week or two. But if you need long-term and surefire reliability, you can’t go wrong with an NVR recorder. In the event of theft or recorder damage, microSD cards can be used with an NVR as an on-board backup to prevent footage loss.

Using automatic network replenishment (ANR) technology available in our professional security camera systems, cameras can sync video stored on the microSD with the recorder and fill in any gaps due to the recorder losing connection with the cameras.

It’s also worth mentioning there are PC-based software solutions for recording network cameras, but they are not as efficient as a standalone NVR or internal SD card and are certainly more difficult to set up for laymen.

Last but not least is cloud storage. In our opinion, cloud storage should not be considered for professional surveillance and is better suited for video doorbells or nanny cams due to monthly storage fees as well as reliability concerns.

IP Network Cameras vs. Analog Cameras: 2025 Comparison

To keep things simple, let’s take a look at the following key differences between IP and analog cameras.

Benefits of IP-Based Cameras to Look Out for in 2025

With the key differences between IP network-based cameras and analog CCTV technology outlined above, we can dive deeper and explain the benefits of network security cameras you should be aware of.

4K High-Resolution Video

Although both types of cameras support resolutions up to 4K as of 2025, there are several limitations when sending 4K video over coaxial cables that PoE 4K cameras simply don’t have. Let’s compare how easy 4K video is for network cameras versus the challenges that analog CCTV 4K presents. Keep in mind the following information is based on fixed-lens cameras; there are some cabling and power limitations for powerful and large 4K PTZ IP cameras.

Single-Cable Installation

One of the biggest benefits of PoE technology is simplicity. With one Ethernet cable, PoE cams can send power and record 4K video with ease. That cable can extend up to 328 feet from your NVR or PoE switch without any voltage drop, making it easy and reliable to install.

For low-power network cameras that require 10 watts or less, some PoE switches with extended power mode can even push that distance further, powering cameras up to 600 feet away. That’s really useful for larger properties or installations where cameras need to be far from the network source.

In contrast, analog CCTV systems have many limitations. While premade cables for 4K coaxial cameras are available, they’re often too thin or lack solid copper conductors, making them not suitable for long runs. Our testing has shown that 24/7 reliability requires high-quality, solid copper RG59U cabling from a roll. Even then, some 4K analog cameras are picky about 12V DC voltage drops on cable lengths over 100 ft, which can cause the camera to malfunction.

Significant voltage drops may prevent CCTV cameras from powering on or cause them to shut off at night when infrared LEDs demand more power. Electrical interference, such as voltage injection from damaged pre-made wire, can cause video artifacts like glitches, image duplication, or rolling lines. In the worst cases, it can cause irreversible damage to the DVR.

Flexible Storage Options

Storage options is an aspect where network cameras continue to show benefits over traditional analog. Standalone network security cameras can record to an internal SD card, an NVR, an FTP (file transfer protocol) server, NAS (network-attached storage), or a computer using security camera software. Even in a system with an NVR, you may want to consider purchasing cameras with a microSD card for redundancy in case your recorder is stolen or damaged.

Coaxial cameras require a DVR for recording. Experts in the industry may recall analog-based PC capture cards, but as far as we’re aware, those are no longer made and came with their own challenges.

AI and Smart Detection Features

Another massive improvement that network security cameras have introduced into surveillance is AI-powered analytics, otherwise known as Smart Event Detection. These features utilize AI algorithms that actively analyze video as it’s being captured at the camera to detect the presence of objects of interest such as humans or vehicles for more accurate alerts and useful recordings. This massive improvement in event detection means you no longer have to sift through hours of continuous video or rely on video-based motion detection that was prone to false alerts from irrelevant triggers.

Generally speaking, there are two types of AI and Smart Detection: rule-based and smart motion.

Rule based AI Detection

Rule-based AI requires the user to configure rules such as digital tripwires, lines, intrusion detection boxes, and other shapes to narrow the algorithm's focus to specific areas within the camera’s view. The object must cross the line or enter a zone the user has created to trigger alerts and recording. Some of the more advanced types of rule-based detection include face detection, loitering detection, abandoned or missing object detection, and people counting, just to name a few.

Smart Motion Detection

Smart motion detection, on the other hand, attempts to analyze the whole view or a specified region to detect if a human or vehicle appears. It’s named this way because it essentially works like motion detection, but instead of relying on changes in the color or shade of pixels, it uses an AI algorithm to search for objects that resemble humans or vehicles, depending on what filter the user chooses.

Analog coaxial camera systems just recently started to see the addition of AI detection technology within the last year or two. The DVR performs video analysis due to the absence of onboard hardware in the cameras. This limitation means DVRs can typically only analyze video from the first few channels. For example, many 4-channel DVRs with AI are only able to analyze video from a single camera connected to the first channel.

Conclusion

What you want from your security cameras ultimately determines what you purchase. While analog CCTV may seem cheap up front, the video quality, installation complexity, and lack of smart features make it not practical for long-term use. IP network cameras (especially PoE) give you better clarity, easier installation with a single cable setup, flexible storage options, and AI-powered detection. Whether you are securing a home, small business, or larger property, you are getting the most reliable and future-proof solution today by investing in an IP PoE security camera system.