Video Surveillance Market

Market Overview

The global video surveillance market size was valued at USD 49.5 billion in 2022. It is projected to reach USD 112.9 billion by 2031, growing at a CAGR of 9.6% during the forecast period (2023–2031).

Video surveillance technologies capture videos and images that can be compressed, stored, or sent over communication networks in any environment. Cameras are often connected to a recording device or IP network and can be watched remotely or locally. Video surveillance is a great security solution for government buildings, corporations, businesses, and other large entities. Rising security concerns have been driving demand for highly efficient, time-saving surveillance systems at affordable costs. Video surveillance in business, the emergence of video surveillance-as-a-Service, and the introduction of new IP-based digital technologies are expected to provide impetus to market growth in coming years. The emergence of video surveillance-as-a-Service has been boosting the market growth. It is a web-hosted, wireless security system that allows users to store, manage, remotely record, play, and monitor surveillance footage entirely in the cloud.

Market Dynamics

What Are the Key Factors Driving Industry Growth?

Increased Demand for IP Cameras

In the early stages of video surveillance, analog cameras were utilized. However, the market transformed with the rising acceptance and usage of IP cameras. The quick switch from analog to IP cameras transformed the adoption of video surveillance solutions, bringing advancements in video analytics, neural networks, and crisper, higher-definition digital images. Since IP cameras send genuinely digital signals, they provide greater video detail, which makes them better suited for license plate recognition and facial recognition. Prices dropped due to the rise in production, which also increased adoption. It is possible to detect unexpected and unattended objects or parcels, line crossing, path tracking, and detecting "grab and run" occurrences with the integration of software solutions into video surveillance. For real-time monitoring, companies like Dahua Technology, a video surveillance firm, have released a range of IP cameras with built-in face identification and facial recognition driven by deep-learning AI algorithms. As a result, accurate face capture and face attribute analysis are made possible for real-time monitoring, primarily in business parks, airports, schools, banks, and other crucial locations, causing the market for video surveillance to expand.

Low Investment Costs with VSaaS

Since the video data is stored in the cloud, VSaaS allows service providers to manage the video data at a significantly reduced cost. The absence of physical data storage equipment and personnel lowers the cost of IT staffing significantly, including salaries, benefits, and other related expenses. All surveillance-related tasks, such as recording, monitoring, and upkeep, are managed by service providers. Because little hardware is required, businesses can take advantage of the solution's cost-effectiveness, produce better results, and increase their return on investment (RoI). End users can save hundreds of dollars on equipment by not having to buy servers, hard drives, or camera licenses and use that money to buy more cameras or to expand their business in other ways. As a result, VSaaS lowers up-front capital expenses. The rise in wireless security cameras was seen so that end users could set them up quickly. Some competitors provide camera and cloud surveillance as a combined solution, with various subscription options to suit the various requirements of various businesses. Low initial costs for VSaaS are growing its presence globally for numerous applications.

What Are the Main Obstacles to The Market Expansion for Video Surveillance?

Privacy and Security Issues

Both public and private spaces use video surveillance equipment. A video surveillance system is deployed wherever safety is most significant, including highways, parks, transportation hubs, retail establishments, and financial and educational institutions. However, many civil liberties groups and activists have protested these video monitoring devices because they believe they violate people's privacy. People anticipate that their personal information will only be used for appropriate and particular purposes; therefore, there have been growing concerns about who views the video and how it might be abused. The general public is accustomed to seeing CCTV cameras on every street since many nations rely extensively on video surveillance to combat crime and prevent terrorism. Although such systems continue to have widespread support, they require intrusion into the daily lives of regular people and can cause privacy issues.

What Are the Future Prospects of Video Surveillance?

Technological Advances to Boost Market Opportunities

Businesses need a video surveillance system with analytical capabilities and smart surveillance cameras in the modern world. Realizing the advantages of video surveillance systems, companies will employ video analytics to stop, regulate, and prevent invasions and theft rather than just recording crime that occurs on-site. Cloud-based AI-based solutions are replacing traditional video surveillance technologies due to advancements in artificial intelligence (AI), peripherals, and 5G networks. With built-in features like human analytics, facial recognition, and retail analytics integrated directly into the camera using an AI-enabled chipset, this technology has advanced to a compelling and commercially viable level, enabling quick deployment and limitless scalability at corporate sites.

Regional Analysis

Asia Pacific Dominates the Global Market.

The global video surveillance market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific is the most significant shareholder in the global video surveillance market and is expected to grow at a CAGR of 9.1% during the forecast period. The Asia-Pacific video surveillance market analysis includes China, India, Japan, Australia, and the rest of Asia-Pacific. The regional market has a significant contribution from nations like China and Japan. The adoption of the smart city idea in China primarily drives the global market for video surveillance systems. Complex video surveillance systems have been incorporated into local management to boost efficiency. A cutting-edge example of a smart city is Yinchuan, China, where everything is integrated into a single system, from buses to trash cans. The Indian security and surveillance market is expanding rapidly due to the massive growth in industries like airport security, manufacturing infrastructure companies, smart cities, and city surveillance. Other factors boosting the market growth in the Asia Pacific region include expanding manufacturing capabilities and rising consumer spending in China. The Chinese government has been heavily investing in initiatives to create safe cities, concentrating on traffic control and city surveillance, propelling market expansion in the nation.

North America is expected to grow at the fastest CAGR of 10.3% during the forecast period. The U.S. and Canada are included in the analysis of the video surveillance market in North America. A significant market for video surveillance exists here because of the rising security and safety concerns. Adequate security and surveillance have become increasingly important due to terrorist attacks and crimes like the Boston Marathon bombing and the 9/11 terror attacks. In addition, technological developments like cloud storage and video surveillance as a service offer lucrative opportunities for both established vendors of analog cameras and new businesses entering the video surveillance market. To protect the citizens of Memphis, Tennessee, in the United States, Hikvision, the world's top provider of cutting-edge video surveillance products, partnered with the Memphis Police Department (MPD). The two organizations used a variety of security solutions to deter and prevent crime.

Segmental Analysis

The market is segmented by type, component, and vertical.

Based on type, the global video surveillance market is bifurcated into analog, IP, and hybrid.

The IP segment is the highest contributor to the market and is expected to grow at a CAGR of 9.2% during the forecast period. In addition to the fundamental features, advanced IP cameras have improved filtering abilities, enabling them to monitor image and video data even in dimly lit areas. The data is transmitted through the network interface and PoE interface. Motor drivers can rotate the camera with PTZ capabilities for advanced features like PTZ and PWM. Despite having a higher initial outlay than analog CCTV systems, IP video surveillance systems have a lower overall cost of ownership (TCO) than analog video surveillance systems.

Based on components, the global video surveillance market is bifurcated into hardware and software. Hardware is further sub-segmented into Camera and Storage. Software is further sub-segmented into Video Analytics and Video Management Software.

The hardware segment is the highest contributor to the market and is expected to grow at a CAGR of 9.9% during the forecast period. The Camera segment is the highest contributor to the hardware market. Cameras can be used for various video surveillance functions, such as automatic number plate recognition, scene monitoring, facial recognition, smoke detection, and remote video monitoring. Private businesses and houses are beginning to connect their cameras to police networks and are investing in CCTV networks powered by AI that can thoroughly monitor the public. Authentic and reliable video surveillance systems with sophisticated video processing abilities have been developed for prevention, detection, and intervention purposes.

Based on vertical, the global video surveillance market is bifurcated into commercial, industrial, defense, residential, and others.

The commercial segment is the highest contributor to the market and is expected to grow at a CAGR of 10.5% during the forecast period. Technologies like Verint Systems are gaining popularity in the commercial industry, particularly their advanced security solutions that use artificial intelligence (AI). These video solutions provide remote monitoring and extensive analytic capabilities, such as generating warnings based on predefined patterns or images indicating high-risk situations. Video surveillance is one of the most effective security measures for quick-service restaurants. In addition, introducing new companies is anticipated to satisfy market demand.

Recent Developments

• July 2022 - Samsung Electronics Co. launched the Samsung Newsroom in Singapore, which will serve as the official Samsung Electronics news source for local consumers and media.
• July 2022 - Schneider Electric SE launched its omnichannel retail outreach called Schneider Electric SE Retail Pavilion in India.