VSaaS Market Size, Share & Industry Analysis, By End-user (Commercial, Industrial, Government, Defense and Public Sector, and Residential) and Regional Forecast, 2024-2032

The global VSaaS market size was valued at USD 4.76 billion in 2023 and is projected to grow from USD 5.59 billion in 2024 to USD 19.57 billion by 2032, exhibiting a CAGR of 17.0% during the forecast period. North America dominated the VSaaS market with a market share of 40.55% in 2023.

In our market study, we have considered various VSaaS solutions offered by the market players such as Honeywell International Inc.’s MAXPRO Cloud, Genetec Inc.’s Stratocast, and Motorola Solutions Inc.’s Avigilon Cloud Services (ACS) platform, among others. In addition, our study also covers Eagle Eye Networks Inc.’s Eagle Eye Cloud VMS and Alarm.com’s OpenEye Cloud-based Video Surveillance.

The global VSaaS market growth can be attributed to several factors such as the rising adoption of cloud and analytics across enterprises. In addition, the surge in demand for high-resolution cameras and increased demand for security solutions create ample opportunities for market growth.

The COVID-19 pandemic has majorly affected the electronics and semiconductor industry. Several manufacturing units and businesses across nations were closed due to social distancing measures. In addition, travel and international trade restrictions decreased the overall sales of the products. Furthermore, the lockdown disrupted the global supply chains, which significantly impacted the sales of video surveillance cameras for a short time.

Whereas, the surge in adoption of cloud across industries, such as healthcare, manufacturing, IT & telecom, BFSI, and public sector, among others, creates new market opportunities for cloud-based video surveillance systems. For instance, according to the Accenture Digital Health Technology Vision 2021 report, 66% of healthcare professionals plan to shift their technology infrastructures in the cloud by 2022 and 96% by 2024.    

The increased innovation and integration of technologies across surveillance systems to detect and monitor crowded areas during the pandemic is anticipated to fuel market growth in the coming years. For instance,

• August 2021 - Ava Security introduced its Cloud Connector to transform video surveillance solutions to the cloud. This enables Ava's security and advanced analytics to existing surveillance cameras by incorporating the Aware Cloud platform.

Thus, such active efforts by prominent market players are likely to propel market growth in the coming years.

VSaaS Market Trends

Growing Adoption of 5G Networks and HD Cameras Acts as a Key Trend

5G deployments aid to streamline video surveillance systems, as well as process data in real-time, change the system to the cloud, and allow continuous video streaming. The implementation of 5G will lead to the acceptance of VSaaS due to high-speed networks, secure connections, and low latency. 5G offers massive bandwidth compared to previous generations. This means VSaaS systems can handle the data demands of crystal-clear HD cameras, even 4K and 8K resolutions. Thus, the combination of 5G and HD cameras provides unparalleled situational awareness, leading to more effective security measures. For instance,

• In October 2021, Vodafone Idea, and Larsen & Turbo teamed up to test smart city solutions using 5G. The solution is based on image AI and the Internet of Things technology. It uses a smart city platform called 'Fusion' by L&T for testing 5G networks in smart cities, which will help address safety, security, and urbanization challenges.

Similarly, high-resolution videos help identify and analyze objects/people in the crowd, trigger an alarm when certain conditions are met, filter and search for videos, and get more accurate information from video metadata. The introduction of high-resolution cameras integrated with advanced capabilities by key players is likely to propel the market in the coming years. For example,

• In September 2020, Amazon.com, Inc. introduced the Blink outdoor and indoor HD wireless security cameras in the U.S. and Canada. These cameras offer IR night vision, 1080p HD video resolution, longer battery life, and two-way audio. Thus, HD videos will help monitor home security closely with clear pixels, which is expected to bolster the VSaaS market growth.

VSaaS Market Growth Factors

Rise of the ‘As-a-Service’ Business Model to Fuel the Market Growth

The increasing adoption of the cloud among enterprises is anticipated to create demand for VSaaS. In addition, the demand for public cloud application services is increasing due to a surge in cloud regions and applications. For instance,

• August 2022 – Google LLC planned to develop three cloud regions across New Zealand, Thailand, and Malaysia in Asia Pacific. The surge in demand for cloud services locally drives the cloud region expansion across the countries.

Similarly, organizations are mainly adopting the as-a-service (aaS) model, allowing users to customize the solution per their needs. The aaS model offers cost-effective, on-demand, and scalable solutions, which enterprises don’t need to own. Due to the flexible scalability offered by VSaaS, it responds quickly to changing market conditions and maximizes the benefits of advanced analytics with updated or new products and services to improve operations.

The as-a-service approach helps customers to reduce the capital expenditure required for hardware storage by delivering cloud services under the operating expenses framework. In this model, vendors offer services on a subscription basis, eliminating the need for on-premise servers or recorders for video surveillance systems. Similarly, it allows organizations to install and manage video surveillance systems without time-consuming and complex network configurations. These factors are expected to surge the demand for VSaaS systems.

RESTRAINING FACTORS

Increasing Cybercrime in Cloud Hinders the Market Growth

The rising data breaches and cybercrimes across the Internet of Things (IoT) devices, smartphones, and video surveillance or CCTV cameras restrict the market growth. The increasing privacy concerns about protecting video data from hackers and cybercriminals are expected to hinder the adoption of cloud-based video surveillance.

The high risk of misuse of video data stored in the public cloud and growing data breaches restrict organizations from storing video footage on the cloud. Networked video surveillance systems are more vulnerable to cyberattacks, and hackers create Distributed Denial of Service (DDoS) attacks on targeted systems.

For instance, in 2021, according to a Cloud Security Alliance, 58% of respondents stated network security is the major concern for cloud adoption in their organization.

• March 2021- Verkada Inc., a data breach exposed the content from 150,000 cameras across hospitals, companies, schools, prisons, and police departments. This data breaching activity exposed the video footage of major industry players such as Florida hospital Halifax Health, Cloudflare` Inc., and Tesla Inc. Thus, data breaches and cybercrimes are expected to hinder the market growth.

VSaaS Market Segmentation Analysis

By End-user Analysis

Commercial Users to Create Demand for VSaaS in the Coming Years

In terms of end-user, the global market is classified into commercial, industrial, government, defense and public sector, and residential.

The commercial segment held the largest share in 2021 and is anticipated to grow with the highest CAGR during the projection period. The commercial segment growth is attributed to the growing adoption of VSaaS in hospitality centers, retail, warehouses, bank and financial institutions, and others.

VSaaS aids to improve security and decrease thefts across commercial areas. Additionally, video surveillance as-a-service solutions increased traction through banks & financial institutions as it allows monitoring security at ATMs. The increasing demand for safety and security in public places rushed the execution of video surveillance cameras across homes and buildings, traffic signals, and tourist places. Furthermore, VSaaS providers typically offer robust security features, including data encryption and access controls, which can be a major selling point for businesses. Moreover, VSaaS aids in preventing inventory theft, monitoring employee activity, and improving overall security within warehouses.

REGIONAL INSIGHTS

Geographically, the market is divided into five major regions such as North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

North America is likely to hold the maximum market share throughout the projected period. It is expected to generate the most cloud traffic among other regions. According to IDC, the U.S. will be the most significant public cloud services market by 2023, accounting for more than half of all global public cloud spending.

The increasing adoption of smart home security cameras through the U.S. and Canada will likely upsurge the demand for video surveillance as-a-service in the coming years. Furthermore, North American companies often require advanced features, such as video analytics and megapixel cameras, which VSaaS providers readily offer. Additionally, smart city initiatives across North America often incorporate VSaaS for better traffic management, urban planning, and public safety. For instance,

• May 2020 – Mexico City completed the implementation of surveillance cameras with Eagle Eye Networks as part of a cloud surveillance project.

The Europe VSaaS market is anticipated to increase traction in the impending years. The Cloud First strategy of the U.K. government has been a real technology program and a key feature in the Technology Code of Practice; it might contribute to the implementation rate of cloud-based surveillance systems in Europe. Moreover, Europe’s increasing comfort with cloud-based solutions fosters VSaaS adoption. Businesses recognize the benefits of remote access, data flexibility, and ongoing maintenance handled by the provider.

• April 2022 – Reolink, an innovative home security solution provider, launched cloud services across the U.K. and European countries. Reolink customers in Germany, Britain, France, Portugal, Spain, Italy, and other European countries enable to connect the Argus series, Duo series, Lumus, E1 series, and Go series cameras through their cloud accounts for uploading video when the camera detects motion.

Asia Pacific is projected to show exponential growth during the projection period. Developing nations in the region, such as India, are making significant advancements toward digitization and facilitating robust video solutions for national border security and defense services. Similarly, a rise in investment in countries, including Southeast Asia, South Korea, Oceania, and others to build cloud infrastructure and bring digital transformation across the country is likely to fuel the adoption of VSaaS. For instance,

• March 2022 – Alibaba Cloud launched a data center in South Korea to support digital transformation. The data center availability gives South Korean businesses and SMBs full access to the range of cloud solutions provided by Alibaba Cloud.

The video surveillance as-a-service will gain demand across the Middle East & Africa, owing to increased partnerships, business expansions, and collaborations. Similarly,

• August 2022 – Dallmeier expanded its business in Turkey, Dallmeier Türkiye. Alsancak Stadium, Istanbul Airport, and the Merit Hotel & Casino Group installed the video surveillance technology offered by Dallmeier.

South America is expected to show moderate growth during the forecast period owing to investment by government and high-tech companies to improve IT & telecommunication and the growing adoption of technologies such as AI, Cloud, and 5G.

List of Key Companies in VSaaS Market

Market Players to Drive Merger and Acquisition Strategies to Expand the Shares

Prominent players operating in the global market are focusing on expanding their global presence and market share through the merger and acquisition strategy. These companies are aiming to acquire small and local firms to expand their business presence.

List of Key Companies Profiled:

• Canon Inc. (Japan)


• Honeywell International Inc. (U.S.)


• ADT Inc. (U.S.)


• Motorola Solutions Inc. (U.S.)


• Robert Bosch GmbH (Germany)


• Alarm.com (U.S.)


• Johnson Controls International Plc (Ireland)


• Arcules Inc. (U.S.)


• Genetec Inc. (Canada)


• Eagle Eye Networks Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Canon Inc. announced the launch of “Video Enhancement Software Version 1.0” - software for the higher sensitivity camera series1, which expands video visibility over sound reduction processing using AI.


• August 2023 – GTCR announced the acquisition of ADT’s commercial fire and security segment with former GTCR executives. The partnership within the firm implements a strategy to drive continued innovation and growth, with additional capital available to aid fund strategic M&A opportunities.


• March 2023 – Honeywell International Inc. declared the implementation of the Bangalore Safe City Project, which aims to secure a safe, efficient, and empowering environment for women through Honeywell’s smart and connected safety and security technology. The deployed solutions will aid in improving detection and response times for incidents through remote monitoring of public spaces and through real-time data collection for future analysis.


• March 2022 - Eagle Eye Networks launched a new functionality, Eagle Eye Smart Video Search. It enables users to search across all cameras and quickly find and share video clips they are searching for.


• January 2022 – Ford and ADT Inc. formed a joint venture named Canopy that combines Ford’s AI-driven video camera and ADT’s professional security monitoring technology to aid customers in strengthening the security of innovative and existing vehicles across automotive brands. Combining technologies and deep security experience generates a new protection category for work and personal vehicles.

REPORT COVERAGE

The research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, software types, and leading applications of the software and services. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION