On account of increasing adoption of advanced surveillance by the government sector, manufacturers have realized the need for optimum IP surveillance systems. Projected growth of multi-brand retail and increased infrastructure spending is expected spur video surveillance and VSaaS systems implementation. The market is expected to witness the adoption of remote monitoring, cloud services and video surveillance & VSaaS systems. Growing popularity of video surveillance has generated demand for storage systems such as VSaaS. Increasing awareness about the benefits of video surveillance software such as enhanced system health management, improved video content analysis and easy retrieval of video information is expected to drive the video surveillance & VSaaS market. The storage capacity of cloud-based solutions in current surveillance systems is comparatively high on account of video management and video analytics software. IP surveillance is estimated to increase in developing markets such as Asia Pacific and is broadly accepted in developed markets.
The market is undergoing evolutionary transitions as analog surveillance systems are being substituted by IP-based surveillance systems. Rising security concerns, favorable regulatory impositions and increasing awareness about IP-based surveillance systems are the factors expected to catalyze video surveillance & VSaaS market growth.
Global video surveillance & VSaaS market by product, (USD Billion), 2012 - 2020
The video surveillance & VSaaS market is bifurcated into IP-based and analog video surveillance. The IP-based surveillance segment is expected to witness high growth over the next six years. This can be attributed to high scalability and flexibility features offered as compared to the conventional analog surveillance. In addition, penetration of internet protocol in surveillance and mounting installations of IP cameras with enhanced video quality has created significant potential for IP-based systems.
On the basis of component, the market is segmented into hardware, software and services. The hardware sub-segment includes recorders, encoders, monitors and cameras. The surveillance cameras market is estimated to exhibit high growth, which can be attributed to growing sales of IP cameras with in-built recorders. Services sub-segment comprises hybrid, managed and hosted services. Technological innovation such as increasing storage capacities to petabytes (PBs) coupled with the reducing cost of storing surveillance data is expected to drive demand for VSaaS services.
Video surveillance & VSaaS application segments mainly include residential, corporate, retail, transportation, government, hospitality, industrial, and healthcare. Retail and transportation are expected to be the largest markets through the forecast period. This is primarily due to increasing demand for cloud services and increasing awareness about video surveillance application management. Home offices, residential and commercial real estate projects are expected to adopt VSaaS services along with the banking sector. Decreasing IT costs, need for centralized data & application management and technological advancement in high resolution video and imaging analytics is expected to drive video surveillance & VSaaS acceptance in various industry verticals.
North America is a major contributor to the video surveillance & VSaaS market. However, advancements in technology led by high level of security issues in markets such as India, China and Japan is expected to propel regional market growth over the next six years. The business and cost benefits for end users in this region, including better streamlined expenditure for enterprise, is expected to further drive the popularity of surveillance & VSaaS. Initiatives to replace traditional analog cameras with IP based systems is expected to drive the regional market.
Key market players include Honeywell Security Group, Zhejiang Dahua Technology Co. Ltd., Pelco Inc., Cisco Systems Inc., Panasonic System Networks Co. Ltd, Genetec Inc, Geovision, Canon Inc, Agent Video Intelligence, Bosch Security Systems Inc, Axis Communications AB and HikVision Digital Technology Co. Ltd. Companies operating in the video surveillance & VSaaS market focus on development of new components and wide distribution network initiatives. Strategic collaborations are also employed for business expansion.