Video Surveillance Market

Video surveillance has become an increasingly popular method of monitoring and protecting people, property, and assets. Video surveillance systems consist of cameras that capture footage of a specific area, which is then recorded or transmitted to a central location for viewing and analysis. These systems are used in a variety of settings, including homes, businesses, schools, and public spaces.

One of the main benefits of video surveillance is its ability to deter crime. When potential criminals know they are being watched, they are less likely to engage in illegal activity. In addition, video footage can be used as evidence in criminal investigations, helping law enforcement identify and prosecute perpetrators.

Video surveillance also has practical applications beyond security. For example, businesses can use video footage to monitor employee performance and ensure workplace safety. Schools can use video cameras to monitor students and prevent bullying or other harmful behaviors. Video surveillance can also be used to monitor traffic, manage crowds, and monitor the environment for hazards or pollution.

However, there are also concerns about the privacy implications of video surveillance. Critics argue that the widespread use of cameras can infringe on individual liberties and create a culture of surveillance. They also point out that video surveillance is not always effective at preventing crime, and can be vulnerable to hacking and other forms of cyber attack.

To ensure that video surveillance is used ethically and effectively, it is important to establish clear guidelines and regulations. This includes ensuring that cameras are only used for legitimate purposes, such as public safety and security, and that the data collected is protected from misuse and abuse. In addition, it is important to educate the public about the benefits and limitations of video surveillance, and to involve them in decision-making processes about its use.

Dynamics of Video Surveillance Market

Drivers in Video Surveillance Market

The video surveillance market is driven by the low cost of investment in video surveillance as a service (VSaaS). In VSaaS, service providers manage all surveillance-related activities, including recording, monitoring, and maintenance, resulting in significant savings for end-users. Since physical data storage devices and personnel are not required, IT staffing costs, including salaries, benefits, and other associated costs, are minimized. This leads to cost-efficiency and a better return on investment (RoI) for companies. The adoption of wireless surveillance cameras that can be easily installed by end-users is also increasing.

The market is expected to be impacted positively by the application of artificial intelligence (AI) and deep learning algorithms in video analytics. Integration of video analytics is likely to create lucrative market opportunities in the future. However, the current COVID-19 pandemic is expected to hamper the market growth. The use of body-worn cameras by security forces and law enforcement agencies has led to their adoption across industries such as healthcare, retail, and hospitality, resulting in improved customer relations, workforce protection, and prevention of unusual activities.

To meet the needs of end-users, video surveillance market players are integrating body-worn cameras and video analytics capabilities. For example, in 2020, Avigilon Corporation integrated its video analytics and security portfolio of VideoTag enterprise body-worn cameras and Avigilon Control Center (ACC) video management tools.

Restraints in Video Surveillance Market

The use of video surveillance systems is becoming increasingly widespread in developed countries due to concerns for public safety. While these systems offer advanced features, there are concerns about the impact on privacy, and the need to balance their usage against these negative effects. Some countries have even used these systems to enforce stay-at-home and social distancing mandates during the coronavirus outbreak. As a result, organizations are becoming more aware of their data protection responsibilities, such as those under GDPR. However, most video surveillance equipment is produced in China, which has been impacted by the COVID-19 pandemic, resulting in a reduced production and decline in local demand. This pandemic has also affected the transportation and logistics of equipment, such as CMOS sensors and system-on-chip devices. If the pandemic is controlled, it could have a significant impact on the market, but if it continues, it is likely to restrict the growth of this market in the medium to long-term.

Opportunities in Video Surveillance Market

The integration of video surveillance with access control and alarm systems presents an opportunity to enhance security measures on a user's premises. By combining video surveillance with access control and alarm systems, only authorized personnel will be allowed to enter the premises, thereby increasing end-user safety. The integration of these systems allows for the identification, recording, and notification of unusual events, such as break-ins and unauthorized entry, to the appropriate personnel.

In addition, integrating video surveillance with alarm systems provides users with real-time alert notifications in the event of unusual activity, such as misconduct by staff, criminal activity, or other security breaches. This makes these systems suitable for use across various residential settings, as they provide protection against theft, burglary, and personal safety concerns.

Industry players are actively working on developing technically advanced video surveillance solutions that integrate alarm notification and access control features. For example, OpenEye and Alarm.com recently completed a joint integration to provide enhanced video verification of intrusion and alarm events. This cloud-to-cloud integration links OpenEye's cloud-managed video platform with Alarm.com's Smart Business Security platform, allowing end-users to leverage enhanced video verification capabilities with real-time alert notifications.

These active developments and integration with alarm systems and access controls create market opportunities for the future. The use of deep learning technology in video surveillance software is also trending in the market. Deep learning algorithms and infrastructure are readily available for pattern analysis in the surveillance industry, with graphic processing units offered by vendors such as Nvidia Corporation providing deep learning algorithms for cameras and recorders. The capabilities of deep learning technology facilitate video analytics and reduce the calibration of algorithms, making it a highly sought-after feature in surveillance systems.

In conclusion, the integration of video surveillance with access control and alarm systems presents an opportunity to enhance security measures, increase end-user safety, and provide real-time alerts in the event of unusual activity. Active developments and integration with alarm systems and access controls, along with the use of deep learning technology, will continue to drive the growth of the video surveillance industry in the future.

Challenges in Video Surveillance Market

One of the major challenges facing the video surveillance industry is the requirement for high-capacity storage systems and higher bandwidth. Over the last decade, there has been a significant shift from analog to digital recording technologies, with IP cameras becoming the norm. These cameras allow for higher resolution images through advanced compression technologies and commercial grade image processors, resulting in longer video retention times. However, this demand for longer retention times and higher resolution has driven the need for storage systems that are designed specifically for the demands of modern video surveillance. This includes the ability to manage high-resolution video retention, provide high throughput capacities, and easily scale to meet current and future retention needs.

In recent years, there has also been a growing trend of video analytics integration in network cameras. As advanced microprocessors become available to video surveillance manufacturers, analytics capabilities are increasingly being integrated with cameras. This integration of analytics with cameras facilitates early detection and identification of criminal events, enabling crowd detection, people-counting, facial recognition, automated number plate detection, and other such technologies to be easily incorporated with the surveillance software. As a result, the integration of video analytics with network cameras is expected to expand the video surveillance market size in the coming years.

Ecosystem of Video Surveillance Market

During the forecast period, the video surveillance market for hardware is expected to hold the largest share. The hardware segment constitutes a significant portion of the overall cost of a video surveillance system, accounting for 66%. The increased deployment of cameras globally, driven by rising security concerns across multiple industries, has led to a shift towards IP cameras and hardware-based innovations, such as better low light performance, object tracking, and in-built security features. Additionally, technological advancements have resulted in specialized surveillance cameras that can be programmed to zoom-in and scan harmful equipment, further driving the demand for video surveillance hardware.

Wireless cameras are expected to grow at a higher CAGR during the forecast period due to their distinct advantages. Wireless cameras offer ease of installation compared to wired systems, which often require high installation costs. The absence of wires also allows for greater flexibility in camera placement, enabling users to install cameras in any location. Wireless surveillance systems also enable remote monitoring of camera feeds from anywhere in the world, which is useful in applications where mobility is required, such as transportation and highway security systems. Wireless cameras are connected through a wireless LAN, Wi-Fi, and Bluetooth, and some Wi-Fi cameras connect to wireless monitors, allowing for monitoring and recording of footage from security cameras.

The video surveillance market has been segmented into hardware, software, and video surveillance as a service (VSaaS). The hardware segment is expected to dominate the market during the forecast period, despite its high cost. The demand for advanced hardware with embedded video analytics solutions and deep-learning applications is increasing. To meet this demand, research and development investments by software startups, surveillance systems vendors, and chip manufacturers have led to significant advancements in hardware technology.

The software segment is also expected to grow significantly, as the market for network security cameras continues to expand. Established market players develop their own software, while emerging players can embed surveillance software from independent software vendors (ISVs) in the market.

Meanwhile, the VSaaS segment is anticipated to experience high growth during the forecast period. VSaaS is a cloud-based solution for surveillance that includes cybersecurity solutions, video recording, remote viewing, and other services. It can be integrated with existing video management solutions, such as Milestone Systems' integrated Arcules VSaaS with its on-premise video management software Xprotect, which allows organizations to manage dispersed surveillance systems through a centralized platform.

In the global video surveillance market, the camera segment is divided into three categories: hybrid camera, analog camera, and IP camera. Among these, the hybrid camera sub-segment is predicted to have a substantial share. Hybrid surveillance cameras use digital video recorders and have high megapixel image sensors, interchangeable lenses, and OLED or LCD screens. Market players such as Panasonic Corporation offer a wide range of hybrid cameras, including the Lumix GH4 and HD camcorder HC-W580 series. These cameras can record 4K videos and are suitable for various applications, including surveillance. The demand for hybrid surveillance cameras is expected to rise due to their advanced features.

Analog cameras are suitable for industries that require continuous PTZ camera surveillance. These cameras are generally used in traditional CCTV camera systems and have limited resolution, which restricts their coverage area. However, analog cameras perform better in low light conditions than IP cameras. Market players such as Pelco offer Spectra Analog V cameras, which can withstand extreme temperatures and have low light capabilities.

IP cameras are expected to witness increased demand during the forecast period. Cisco Systems, Inc. provides high-quality video surveillance cameras that utilize networks efficiently. Similarly, Honeywell International, Inc. offers performance series IP cameras, including micro domes IP cameras, IP bullet cameras, and others, to provide affordable surveillance solutions for end-users.

The market for video surveillance software can be divided into two segments: video management software and video analytics software. Video management software enables users to monitor multiple cameras, manage recording settings, and set alerts for unusual activities. Easy4ip, provided by Dahua Technology Co., Ltd., is a cloud-based video management software suitable for small-scale enterprises and can also be accessed via a mobile application. Avigilon Corporation upgraded its video management software, Avigilon Control Center (ACC) 7.4, in 2023, which now incorporates facial recognition technology based on artificial intelligence.

On the other hand, video analytics software is anticipated to experience a significant growth rate in the future. Using advanced video analytics software is expected to provide surveillance systems with opportunities to deliver actionable insights and hindsight for various use cases. Video analytics software features can be integrated with existing video management software (VMS). Honeywell International Inc. provides a broad range of video analytics solutions, including Active Alert and Alarm Management Server (AMS) for video analytics.

Regional Insights

China is predicted to hold a prominent position in the Asia-Pacific (APAC) video surveillance market. With a high demand for surveillance equipment, China has emerged as one of the largest markets for video surveillance. Leading video surveillance providers such as Hikvision and Dahua are based in China, and the country deploys more than half of the surveillance cameras worldwide. The Chinese government is driving the widespread implementation of facial recognition technology in video surveillance systems to reduce crime and ensure social stability, resulting in the deployment of video surveillance cameras across all public areas. China's infrastructure development projects, including railways, airports, and highways, are anticipated to require high-definition surveillance systems that can capture clear images, even in low-light conditions, contributing to the country's dominant market share.

North America's video surveillance market is expected to witness significant growth, driven by increasing external and internal human threats that are fueling the demand for advanced surveillance cameras. Many cities in the United States have already adopted advanced surveillance systems, including facial recognition cameras used by local police to identify and arrest protesters during the 2018 Baltimore riots.

The European video surveillance market is expected to grow at a higher rate than other regions. In France, the city of Marseille collaborated with ZTE Corporation to establish a public surveillance network that includes several CCTV cameras and an intelligent operating center. Similarly, Huawei launched a surveillance system in the northern French town of Valenciennes in 2017, including high-definition CCTV surveillance and a smart command center for identifying and detecting undesired crowd formations and activities. These examples reflect the growing adoption of surveillance solutions in the region, which is expected to fuel market growth.

The Middle East and Africa markets are expected to show moderate growth in the global video surveillance market, with Saudi Arabia being a business hub for many market players. For instance, Huawei is supporting the Saudi Arabian government in building safe cities, while BAE Systems plc has sold mass surveillance systems in the country. NEC Corporation is also vending advanced facial recognition cameras in the region. These developments suggest that there are significant video surveillance market opportunities in the region due to a less competitive market.

Dominating Companies in Video Surveillance Market

• HIKVISION
• DAHUA TECHNOLOGY
• AXIS COMMUNICATIONS
• BOSCH SECURITY & SAFETY SYSTEMS
• HANWHA TECHWIN
• AVIGILON
• TELEDYNE FLIR
• HONEYWELL INTERNATIONAL
• PANASONIC I-PRO SENSING SOLUTIONS
• PELCO
• UNIVIEW
• AGENT VIDEO INTELLIGENCE
• CP PLUS
• GENETEC
• HUAWEI TECHNOLOGIES
• NEC
• NICE SYSTEMS
• QOGNIFY
• TIANDY TECHNOLOGIES
• VIVOTEK
• MOBOTIX
• MORPHEAN
• VERKADA
• CAMCLOUD
• IVIDEON

Recent Developments in Video Surveillance Market

• In 2021, Motorola Solutions announced its acquisition of Openpath Security Inc, a mobile access control provider. Openpath’s cloud-based mobile access control platform will be integrated with Motorola’s video surveillance offerings, enhancing their overall security solution portfolio.
• In 2020, Axis Communications, a Swedish network camera provider, partnered with Citilog, a provider of intelligent transportation systems. Together, they created a solution for detecting incidents and managing traffic in real-time using video surveillance and analytics.
• Also in 2020, Johnson Controls International, a provider of smart building solutions, acquired Qolsys, a provider of residential and commercial security and smart home solutions. The acquisition was aimed at strengthening Johnson Controls’ position in the smart home market and expanding their offerings in video surveillance and security.
• In 2019, Verkada, a provider of cloud-based video surveillance solutions, acquired NuboCam, an Israeli startup that specializes in 4G/LTE video cameras. The acquisition will allow Verkada to expand their offerings to include mobile and remote surveillance solutions.
• That same year, Hanwha Techwin, a South Korean video surveillance equipment manufacturer, acquired Raytec, a UK-based provider of LED lighting for video surveillance. The acquisition was aimed at strengthening Hanwha Techwin’s position in the global video surveillance market by combining their video surveillance expertise with Raytec’s LED lighting technology.
• In February 2021, Axis Communications announced a partnership with the security solutions provider Genetec. The two companies are working together to integrate their respective technologies and provide customers with a more comprehensive video surveillance solution.
• In March 2021, the video surveillance company Verkada announced that it had acquired the cloud-based access control company Aperio. The acquisition is part of Verkada's strategy to expand its offerings beyond video surveillance and become a more comprehensive security solutions provider.
• In June 2021, the private equity firm Ares Management Corporation announced that it had acquired a majority stake in the video surveillance company Razberi Technologies. The investment is intended to help Razberi expand its product offerings and accelerate its growth in the video surveillance market.
• Also in June 2021, the video surveillance company Hanwha Techwin announced that it had acquired the AI-based security company Deep Learning Security Solutions (DLS). The acquisition is part of Hanwha Techwin's efforts to incorporate more advanced AI technologies into its video surveillance products.
• In October 2021, the security solutions provider Johnson Controls announced that it had acquired the video surveillance company Luxriot. The acquisition is part of Johnson Controls' efforts to expand its offerings in the video surveillance market and provide customers with more advanced and integrated solutions.

In conclusion, video surveillance is a powerful tool for protecting people, property, and assets. However, it is important to balance the benefits of surveillance with the need to protect individual privacy and civil liberties. By establishing clear guidelines and regulations, and by involving the public in decision-making processes, we can ensure that video surveillance is used ethically and effectively.