Video Surveillance as a Service (VSaaS) Market

Market Overview

The global video surveillance as a service (VSaaS) market size was valued at USD 5,223.01 million in 2022. It is estimated to reach USD 20,503.75 million by 2031, growing at a CAGR of 16.41% during the forecast period (2023–2031).

VSaaS is a cloud-based video surveillance platform marketed as a service over the Internet. The price of a VSaaS solution varies depending on the plan's features, which include several cameras, amount of storage, software features, and others. The VSaaS system is made available to clients for a monthly subscription fee. It is ideal for consumers with multiple businesses at different locations or small companies requiring security services without the installation hassle.

VSaaS enables remote monitoring from various computing platforms, including iOS, Android, and Windows. VSaaS reduces capital costs, lower operational expenses, and reduces power usage. Installation of the system is easy when switching over to VSaaS. Convenient payment methods and fully scalable solutions customized as per customers' needs are some of the key benefits of VSaaS.

Highlights

• Hosted dominates the type segment
• Commercial dominates the application segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Video Surveillance as a Service (VSaaS) Market Drivers

Increased Investments by Government Sector to Enhance the Public Safety Infrastructure

By installing many public safety and transportation infrastructure cameras, VSaaS has become essential to public safety. For instance, countries like the U.K. and France have invested heavily in CCTV monitoring. In contrast, some United States cities, such as Chicago, are estimated to have as many as 24,000 cameras connected throughout the city. Moreover, with rising public security awareness, increasing government security spending through initiatives such as smart cities, and surging digitization, the demand for VSaaS from the government sector is set to increase.

Additionally, the government sector is expected to become a major player in the VSaaS market globally as more big cities adopt VSaaS solutions such as surveillance video cameras to fight crime, especially as police departments face the grim prospect of budget cuts and reduced workforce. Moreover, escalating video surveillance adaptation rate and increasing demand for high-tech technologies in the private sector also aid the market's growth.

Dropping Prices and Increased Technology Performance

VSaaS system is practically limitless in terms of expandability and architecture. The video surveillance services offered through Cisco provide servers that encode up to 64 video channels and back them up with up to 12 TB of storage. Video feeds can be viewed on any web-enabled device anywhere in the world. Moreover, VSaaS systems like this are often adaptable to an extensive range of third-party IP cameras, simplifying the upgrade from a physical DVR to a cloud-based system.

Monthly VSaaS costs range from USD 2 to USD 8 per camera. This includes monitoring and data storage. It excludes the cost of the IP cameras, which typically range between USD 140 and USD 2,300 per unit, depending on their features. Moreover, most IP camera solutions have mobile device integration regardless of price. This helps consumers to control and monitor the cameras more conveniently and remotely. Similarly, the rising proliferation of smartphones and tablets has enabled average consumers to integrate video surveillance into their everyday lives, thus driving the demand for VSaaS among small businesses.

Global Video Surveillance as a Service (VSaaS) Market Restraint

Increasing Cyberattacks and Data Theft Activities 

Even though organizations are increasingly and widely using specialized software to automate processes with information technology security, cyberattacks are becoming stealthier and more sophisticated, creating a complex and dynamic risk environment for IT-based operations. Risks have grown significantly around cyberattacks, information breaches from third-party vendors, and information theft.

Additionally, because of the importance of the information gathered by security cameras and its potential uses, a new breed of hackers is looking for information to steal and sell. New cyber vulnerabilities are discovered frequently, posing a critical threat to adopting VSaaS solutions. Moreover, the advances in digital video mean that connected IP cameras and associated devices on the network are at risk of being hacked. This also increases the need for high-cost security systems, which hampers the adoption of the VSaaS market.

Global Video Surveillance as a Service (VSaaS) Market Opportunities

Development of IoT and a Cloud-Based Video Surveillance

The Internet of Things (IoT) aids in connecting people and devices via the Internet. According to Congressional Research Service, active IoT devices will grow from 9.9 billion in 2019 to 21.5 billion in 2025. In several regions, most homes now have at least one networked IoT device. Moreover, video surveillance and IoT are tied together, as equipment such as cameras and recorders use Internet Protocol (IP) and are connected to the Internet. According to The Open Group, about 85% of businesses worldwide use cloud technology to store information.

A versatile mix of on-premise and cloud storage is available with advanced cloud systems. Customers receive the same easy access regardless of where the movie is kept or viewed. The resolution or retention period can be instantly increased without modifying the existing hardware. In addition, cloud systems utilize a large shared cloud infrastructure for video storage, providing tremendous economies of scale and flexibility. Therefore, developing IoT and cloud-based VSaaS systems is anticipated to offer growth opportunities for the market.

Regional Analysis

The global VSaaS market is bifurcated based on region into North America, Europe, Asia-Pacific, and RoW. 

North America Dominates the Global Market

North America is the most significant global VSaaS market shareholder and is anticipated to exhibit a CAGR of 14.80% during the forecast period. North America is considered the largest player in the market as countries such as the U.S. and Canada contribute significantly to the overall revenue. These countries adopt new technologies at a very early stage. North America dominated technological adoption compared to other geographic regions; thus, the demand for a hybrid system, megapixel camera, and analytics is high. In North America, the continuing developments in communication networks have also expedited the growth of VSaaS systems. Technological innovations, real-time access, integration of wireless technologies, video analytics, affordability of IP surveillance systems, and government initiatives have optimistically influenced the adoption of IP surveillance technology in North America. In addition, the U.S. has nearly 70 million surveillance cameras installed, up to 4.6 people per installed camera. Surveillance cameras are most common in the U.S. among private-sector retail and commercial establishments, such as hotels, restaurants, and office complexes, driving the market growth.

Europe is estimated to exhibit a CAGR of 15.64% over the forecast period. Due to the swift market expansion in countries like the United Kingdom and France, the European continent has a sizable potential for market growth. Regarding region, the UK leads in the adoption rate of Internet Protocol in small and medium-sized businesses. It is anticipated that the UK will see a rise in the adoption of VSaaS because small firms there are shown interest in IP technology. A rise in wireless IP surveillance and the development of video analytics and intelligent video surveillance are some trends driving the market during the forecast period.

Europe's video surveillance system market is driven by increasing IT spending, rising terrorist activities, and increasing security spending and government initiatives toward developing advanced security systems in the region. In addition, due to features like real-time access, technological innovation, integration of wireless technologies, and affordability, the IP surveillance segment dominates the European market for video surveillance systems. The government, transportation, hospitality, and healthcare sectors are also witnessing an escalating need to install a VSaaS system in Europe.

The Asia-Pacific market is expected to grow at a strong CAGR as technological awareness rises over the forecast period. The Asia-Pacific market is showcasing a positive inclination toward IP surveillance systems owing to rising security concerns. The ongoing developments in communication networks in the Asia-Pacific region have also fueled the growth of VSaaS systems. The rising terrorism activities in these countries can be perceived as a major factor responsible for governments adopting IP surveillance for high-security regions and buildings. For example, in Malaysia, the government offers subsidized large-scale apartments with integrated security systems, NVRs, and CMX software. In addition, China currently has more installed surveillance cameras than any other country. China has 349 million surveillance cameras installed, up to 4.1 people per installed camera. Cameras in China are heavily focused on public spaces and are bankrolled by the government to provide widespread video surveillance coverage within public areas, boosting market expansion.

The RoW comprises the Middle East and Africa, and Latin America region. The regions are projected to witness modest growth over the forecast period. Dahua Technology, a Chinese company, collaborated with the Bank of Brazil to upgrade DVRs and analog cameras in the bank security system. The project involves many cities in Brazil and uses more than 20,000 units of analog cameras and 1,500 units of DVRs. Furthermore, Under Vision 2030, the Saudi Arabian government has passed a plan to invest in infrastructural development and allow FDI in commercial and retail sectors, resulting in a major infrastructure expansion. The KSA government has mandated the compulsory installation of video surveillance systems in major verticals, propelling the market growth.

Segmental Analysis

The global VSaaS market is segmented by type and application.

Based on type, the global VSaaS market is bifurcated into hosted, managed, and hybrid. 

The hosted segment dominates the global market and is projected to exhibit a CAGR of 15.66% over the forecast period. As technology advances, more companies are seriously considering hosted video monitoring systems. The practicality of hosted video and several other business applications moving to the cloud have made hosted surveillance more attractive. Cloud-hosted video records video footage directly to the cloud rather than a DVR or memory device on the same site as the camera. While the features and functions of different cloud-hosted cameras may vary, they share the ability to be directly accessed over a network connection. In full VSaaS models, video is not stored in the same place where the user's cameras capture it. It is streamed to a video provider or third-party company for storage and management.

Hybrid VSaaS is a combination of managed and hosted video surveillance. This solution frequently entails on-site storage of all the video surveillance data and remote backup of the entire or a portion of the footage. Hybrid video surveillance as a service combines both analog video inputs and IP video inputs in the same unit. This allows users to connect all their existing cameras and add IP cameras when it makes sense. In hybrid VSaaS, video recording and storage happen on-site at users' businesses. Still, video management is handled by a video manufacturer/provider, who hosts the central video server that manages devices. Several providers also offer backup storage of some of the user's video files. A Hybrid VSaaS provides flexibility and expandability in an open platform format while future-proofing the investment to the greatest extent possible.

Based on application, the global VSaaS market is segmented into commercial, infrastructure, residential, military and defense, and others. 

The commercial segment owns the highest market share and is estimated to exhibit a CAGR of 15.60% during the forecast period. Video surveillance or CCTV is of huge advantage for protecting industrial and commercial objects. In addition to traditional protection tasks such as perimeter and external surveillance against damage, break-ins, and espionage, video systems also help optimize processes and ensure health and safety at the workplace. There are instant commercial needs for smart video surveillance systems that can utilize the existing camera network for more intelligent security systems and give in more applications rather than security applications. This work introduces a new classification for video surveillance as a service system depending on its commercial applications. VSaaS helps to identify potential criminals perpetrating the crime thanks to facial recognition. Video cameras provide an overview of the division and can also be directly integrated into systems to monitor processes where they happen.

VSaaS system monitors normal proceedings at an event and spots violent acts, theft, or accidents. Museums, gallery openings, or exhibition spaces are being increasingly targeted by art thieves, which can be prevented by using VSaaS. However, when confronted with cameras, potential thieves, vandals, or cheeky visitors feel compelled to behave correctly. Video surveillance has several applications in road safety, ranging from video cameras on buses and trains to surveillance in multi-story car parks. Numerous people feel at risk in underground garages and parking decks, and video surveillance provides the security they need. Video surveillance in public areas is for everybody's benefit and enhances safety. In an urban environment, video surveillance helps improve security in car parks, public transport, cultural events, or busy places such as hospitals, schools, universities, or churches.

Recent Developments

• May 2023- The Broadband Service Provider announced that Converge ICT and KT Corp of South Korea agreed to pursue a future business collaboration and partnership. Among the prospective deals that Converge is eyeing with KT Corp, formerly known as Korea Telecom, are a cloud-based video surveillance solution called Video Surveillance as a Service (VSaaS) and a technology for transportation management called Mobility as a Service (MaaS).

• September 2022- The leading global IP surveillance solution provider, VIVOTEK, announced the launch of its eagerly anticipated cloud-based video surveillance as a service (VSaaS), VORTEX, in the US, indicating not only the company's grand launch in the subscription-based market but also its ability to consolidate camera, web, app, cloud, and deep learning technology into a cohesive, powerful AI surveillance solution.