Video Surveillance Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware, Software, and Video Surveillance as a Service (VSaaS)), By End-User (Commercial, Industrial, Residential and Government), and Regional Forecast, 2019-2026

The global video surveillance market size was valued at USD 19.12 billion in 2018 and is projected to reach USD 33.60 billion by 2026, exhibiting a CAGR of 6.8% during the forecast period. Asia Pacific dominated the global market with a share of 55.33% in 2018.

Applications of artificial intelligence (AI) and deep learning algorithms are likely to impact the market growth. Similarly, the integration of video analytics is likely to create lucrative market opportunities in the coming years. According to the AI global surveillance index, 51.0% of the liberal democracies such as the United States, Canada, and others deployed advanced surveillance systems. Hence, the emergence of AI-enabled surveillance systems is anticipated to surge the market growth. However, the current COVID-19 pandemic is likely to restrict the video surveillance market growth for a specific interval of time.

MARKET TRENDS

Growing Trend of Deep Learning in Video Surveillance Software

Deep learning is the fastest-growing application of artificial intelligence. There is a substantial availability of deep learning algorithms and deep learning infrastructure for pattern analysis to the surveillance industry. The new versions of graphic processing units (GPUs) offered by vendors such as Nvidia Corporation provides deep learning algorithms for cameras and recorders. The capabilities of deep learning technology to facilitate video analytics and reduced calibration of algorithms drive a huge leap in the future use of video surveillance software. As a result, deep learning in surveillance systems is currently trending in the market.

Integration of Video Analytics in a Network Camera is Gaining Momentum

In recent years, there is a growing trend of video analytics integration in network cameras. As advanced microprocessors are becoming available to the video surveillance system manufacturers, there is a substantial increase in the integration of analytics capabilities with the cameras. Surveillance using cameras integrated with intelligent analytics facilitates early detection and identification of criminal events. Owing to the advancements in analytics crowd detection, people-counting, facial recognition, automated number plate detection, and other such technologies can be easily incorporated with the surveillance software. As a result, the integration of video analytics with network cameras would contribute to expanding the video surveillance market size in the coming years.

MARKET DRIVERS

Emergence of AI Surveillance Technology Would Ensure to Drive Growth

Artificial intelligence technology has gained traction in recent years. According to a paper published by Carnegie Endowment for the International Peace Organization, in 2019, out of a total of 176 countries, 75 countries are actively leveraging artificial intelligence capabilities for surveillance purposes including facial recognition systems, smart cities, and others. This data reflects that the growing smart city initiatives & developments and facial recognition applications are likely to drive the adoption of surveillance systems using cameras during the forecast period.

Growing Adoption of Body-worn Cameras Across Several Industries such as Healthcare & Retail to Drive Growth

The increasing use of body-worn cameras by the security forces or law enforcement agencies has led to an adoption of these cameras across other industries such as healthcare and retail. Body-worn cameras have several benefits in industries such as healthcare, retail, and hospitality to improve customer relations, enhance workforce protection, and help prevent unusual activities. A body-worn camera enables the employees to capture real-time events and send real-time threat alerts and notifications to the security authorities.

Hence, considering the above-mentioned factors, the video surveillance market players are integrating body-worn cameras and video analytics capabilities to address the requirements of the end-users. For instance, in March 2020, Avigilon Corporation, a Motorola Solutions company, announced the integration of its video analytics and security portfolio of VideoTag enterprise bodyworn cameras and Avigilon Control Center (ACC) video management tools.

MARKET RESTRAINT

Outbreak of Pandemic COVID-19 has Led to a Severe Downturn in the Global Market

The production of video surveillance equipment is majorly concentrated in China. Due to the outbreak of COVID-19 pandemic in December 2019 in Wuhan, China is exhibiting a reduced production because of the lack of man-power. Also, the local demand for video-surveillance products is likely to decline as all the governments across the world are focusing on pandemic control. The countries and cities are under lockdown across several major regions such as North America, Asia Pacific, and others. It is likely to affect the domestic and cross-border transportation and logistics of the equipment such as CMOS sensors, system-on-chip devices, and others. If the spread of this pandemic is controlled, it would ensure to have a significant impact on the market. However, if the COVID- 19 pandemic continues to spread, then it is likely to restrict this market growth in medium to long-term of the forecast period.

SEGMENTATION

By Component Analysis

Surveillance Hardware Segment Ensures to Hold a Major Share in the Market

Based on component, this market has been segmented into hardware, software, and video surveillance as a service (VSaaS). The hardware segment is expected to account for a major video surveillance market share during the forecast period. Despite the high cost, there is a growing demand for advanced hardware with embedded video analytics solutions and deep-learning applications. The research and development investments by the software startups, surveillance systems vendors, and chip manufacturers have boosted the advancements in hardware.

The software segment is expected to have a significant video surveillance market growth owing to the increasing penetration of network security cameras. The established market players develop their own software while the emerging market players can embed surveillance software from the independent software vendors (ISVs) in the market.

The VSaaS segment is anticipated to exhibit a high growth rate during the forecast period. This service refers to a complete cloud-based solution for surveillance. It includes cybersecurity solutions, video recording, remote viewing, and other services. VSaaS can be integrated with the existing video management solutions. For instance, Milestone Systems (Axis communication AB) provides integrated Arcules VSaaS with its on-premise video management software Xprotect. This integrated solution enables organizations to manage dispersed surveillance systems through a centralized platform.

By Hardware Analysis

Increasing Demand for Surveillance Cameras is Likely to Surge the Market Growth

The hardware segment is further bifurcated into camera, storage devices, and others. The other segment comprises of video encoders and other network devices. Among these sub-segments, cameras are projected to have the largest video surveillance market share. Integration of deep learning applications and video analytics fuels the demand for surveillance cameras for various uses across the end-users. Subsequently, the growing adoption of cloud-based surveillance solutions by the end-users has encouraged the market players to leverage resources such as compute power and storage devices. These factors are driving the demand for data storage devices in the market.

By Camera Analysis

IP Camera is Anticipated to Have a Growing Demand in the Coming Years

The camera segment in this market is further categorized into hybrid camera, analog camera, and IP camera. The hybrid camera sub-segment is expected to have a significant share in the global video surveillance market.

The hybrid security camera system is based on the digital video recorder (DVR). Hybrid surveillance cameras consist of high megapixel image sensors, interchangeable lenses, and use organic light emitting diodes (OLED) or liquid crystal display (LCD) screens. Some of the market players such as Panasonic Corporation are offering a comprehensive product portfolio of hybrid cameras which includes the Lumix GH4 series and HD camcorder HC-W580 series. These cameras are also capable to record 4K videos and can be used for several cases including surveillance. All these above factors are likely to fuel the demand for hybrid surveillance cameras.

Similarly, the analog cameras are ideal for those industries that require pan–tilt–zoom camera (PTZ camera) surveillance continuously. Analog cameras are generally used in the traditional CCTV camera systems. These cameras have a limited resolution and can only cover a limited site range, due to which analog cameras are expected to observe a steady growth rate. The advantage of an analog camera over an IP camera is that the former performs better in low light conditions. Market players such as Pelco offer Spectra Analog V cameras. These cameras encompass a wide range, low light capabilities, and can withstand in -40 degree Celsius to 60-degree Celsius temperature.

Furthermore, IP cameras are likely to showcase an increasing demand during the forecast period. Cisco Systems, Inc. offers video surveillance cameras. These cameras exhibit high-quality video capabilities and efficient network utilization. Similarly, Honeywell International, Inc. provides performance series IP cameras including micro domes IP cameras, IP bullet cameras, and many others. These cameras provide affordable surveillance solutions to cater to the security demands of the end-users.

By Software Analysis

Video Analytics Software is Likely to Have Unprecedented Growth in the Coming Years

The software segment is further divided into video management software and video analytics software. Video management software enable users to view multiple camera footage, manage camera and recording settings, and set alerts for motion detection and unusual activities. For instance, Dahua Technology Co., Ltd. provides Easy4ip, a cloud-based video management software for small scale enterprises or as a mobile application. In December 2019, Avigilon Corporation announced the upgrade of its video management software Avigilon Control center (ACC) 7.4. The upgraded version incorporates facial recognition technology based on the applications of artificial intelligence.

Video analytics software for surveillance cameras is projected to experience a significant growth rate in the coming years. Deploying advanced video analytics software is likely to create lucrative market opportunities for surveillance systems to deliver actionable insights and hindsight across a range of use cases. Video analytics software features can be integrated with the existing video management software (VMS). Honeywell International Inc. offers a wide range of video analytics solutions including active alert and Alarm Management Server (AMS) for video analytics.

By End-User Analysis

The Commercial Sector to Experience Significant Adoption of Video Surveillance Products and Services

Based on end-user, the market has been segmented into commercial, industrial, residential and government. The commercial sector is estimated to hold a major market share. Whereas, the industrial sector is forecasted to experience high CAGR as compared to the other end-users.

The commercial sector comprises of industries such as retail, IT and telecommunication, BFSI, and healthcare. Retailers leverage the surveillance systems to analyze the activities of customers throughout the stores, enhance the store management, and get loitering detection in the store. Installing retail security cameras ensures a safer workplace, provides customer analytics, and offers a superior security performance. These factors contribute to the adoption of surveillance cameras in the retail industry.

Similarly, the adoption of surveillance using cameras has gained traction in the healthcare industry. Hospitals that have embraced the network-based surveillance systems are intending to combine cameras with audio systems and access networks over their IT networks. This integration would enable the hospitals to leverage surveillance cameras that would capture real-time data, generate real-time alerts, streamline the process, and analyze large volumes of data. These factors would ensure to facilitate the deployment of surveillance systems across the healthcare industry.

The industrial sector includes manufacturing & construction industry, automobile industry, and others. The manufacturing industry is prone to a range of security issues including vandalism, theft of expensive machines and raw materials such as optical fibers, copper wires, and steel. As a result, deploying organized surveillance systems using cameras throughout the manufacturing plant is likely to ensure safety and security across the industry.

REGIONAL ANALYSIS

Asia Pacific to Dominate the Market Throughout the Forecast Period

The global market has been analyzed across five major regions including, North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. These regions are further categorized into countries.

Asia Pacific market is expected to emerge dominant during the forecast period. China holds a major share in the market. The government of China has been taking active initiatives for surveillance systems. In 2015, the government initiated a project named ‘Sharp Eyes’, an organized project for surveillance systems. In 2017, it completed the ‘Skynet video surveillance program’, which resulted into the largest video-surveillance network globally. Such active initiatives are likely to drive the video surveillance market growth in the region.

Several major market players in China including Huawei Technologies Co., Ltd., Hangzhou Hikvision Digital Technology Co., Ltd, Dahua Technology Co., Ltd, and ZTE Corporation provide AI surveillance technology globally. Japan’s NEC Corporation is one of the major suppliers of AI surveillance technology following the Chinese players. As a result, the presence of key market players in the region would boost market growth.

North America market for video surveillance is anticipated to observe significant market growth in the coming years. In the United States, many cities have adopted advanced surveillance systems. For instance, as per a report, in 2018 after the Baltimore riots, the local police deployed advanced facial recognition cameras to identify and arrest protestors. The above data illustrates that the increasing external and internal human threats is likely to drive the need for advanced surveillance cameras in the region.

Europe video surveillance market is expected to exhibit a higher growth rate. In 2016, France, ZTE Corporation, and the port city of Marseille partnered to establish big data public tranquility projects. The project refers to a public surveillance network including several CCTV cameras and an intelligent operating center. Similarly, in 2017, Huawei launched a surveillance system in the northern French town of Valenciennes, including high definition CCTV surveillance and a smart command center to identify and detect undesired crowd formations and activities. The above data reflects that there is growing adoption of surveillance solutions for several purposes across the region. As a result, these factors are expected to fuel the market growth in the region.

The Middle East and Africa markets are expected to show moderate growth in the global market. Saudi Arabia is likely to be a business hub for many market players. Huawei is supporting the governing authorities of Saudi Arabia in building safe cities. BAE Systems plc., a U.K. based arms manufacturer sold mass surveillance systems in Saudi Arabia. Whereas, NEC corporation is vending advanced facial recognition cameras in the region. All the above factors contribute to the fact that there are unprecedented video surveillance market opportunities in the region due to less share of market players.

KEY INDUSTRY PLAYERS

Investments in Research and Development by Zhejiang Dahua Technology Co., Ltd. to Empower Technological Innovations

Zhejiang Dahua Technology Co., Ltd. is a provider of video-based smart IoT solutions and service provider. Dahua Technology offers complete security systems, solutions, and services. The company’s surveillance product portfolio includes network video recorder (NVRs), network cameras, and HD cameras. For the upliftment of its business, the company has adopted some of the business strategies such as:

• Increase investments in R&D to facilitate technological innovations in cloud computing, big data analytics, artificial intelligence, and other core technologies.


• Expand and upgrade the product portfolio intending to offer comprehensive solutions and services in the video surveillance industry. For instance,
  
  
  
  • September 2019 - Zhejiang Dahua Technology Co., Ltd. announced the integration of 5 Megapixel IP cameras in its Lite series. The company has also incorporated smart motion detection (SMD) technology for enhanced accuracy and false alarms.
  
  
  • June 2019 - Zhejiang Dahua Technology Co., Ltd. launched the StereoVision camera. StereoVision camera is a people-counting camera consisting of a 3MP dual sensor that incorporates artificial intelligence (AI) capabilities.
  
  
  
  

Key Market Players Strengthening Market Position through Strategic Partnerships

In September 2019, Hangzhou Hikvision Digital Technology Co., Ltd. partnered with Scylla Technologies Inc., a provider of Smart Suspect Identification Systems (SSIS), vehicle identification and tracking (VIT), and preventive threat detection (PTD). This partnership aims to integrate Scylla Technologies’ AI-powered systems with Hikvision cameras and NVRs (network video recorder).

Similarly, in April 2018, Pelco collaborated with IBM Corporation to develop 'Pelco Analytics driven by IBM'. This collaboration aims to integrate IBM‘s deep learning analytics solutions with video management system (VMS) offered by Pelco. The strategic partnerships are likely to encourage the market players to exploit new technology, access new customers, expand business across geographic markets, and extend product portfolio.

List of Key Companies Profiled :

• Avigilon Corporation


• Axis Communications AB


• BCDVideo


• Bosch GmbH


• Dahua Technology Co., Ltd


• FLIR Systems, Inc.


• Hangzhou Hikvision Digital Technology Co., Ltd


• Honeywell International, Inc


• Huawei Technologies Co., Ltd.


• Panasonic Corporation


• Pelco

KEY INDUSTRY DEVELOPMENTS:

• In July 2021, Axis Communications AB announced that its selected camera offerings are ONVIF Profile M conformant. These cameras enable standardized streaming of event and metadata feeding from edge-based analytics use cases in a multi-vendor surveillance arrangement. Conformance to Profile M facilitates integration of events and metadata with ONVIF Profile M conformant users like video management software and services.


• In May 2021, FLIR Systems, Inc. won USD 15.4 million agreement from the United States Army to provide its Black Hornet PRS. PRS is Airborne Personal Reconnaissance System for dismounted soldiers. Under the Army's Soldier Borne Sensor program (SBS), the Black Hornet nano-unmanned aerial vehicles also called as UAVs are deployed to augment reconnaissance capabilities, and squad & unit-level surveillance.


• In April 2021, BCDVideo partnered with Wasabi a hot cloud storage company headquartered in Boston, Massachusetts. Through this partnership the companies aim to offer video surveillance storage in the cloud. Also, the partnership expands the ability of the companies to offer a comprehensive package of BCDVideo’s on-premises, purpose built storage alternatives and Wasabi Technologies hot cloud storage solutions.


• In February 2021, Motorola Solutions established a new video security & analytics manufacturing center in Texas. The new facility is a part of the company’s expansion of shipping and production capabilities and continuous investment in manufacturing in North America to strengthen the development of its video security offerings.


• In March 2020, Axis Communication launched body worn camera solution specifically designed for private security and law enforcement. The Axis body worn camera solution includes docking station, robust camera, and system controller designed on open architecture. The solutions allow integration with a wide range of evidence management systems (EMS), and video management systems (VMS).

REPORT COVERAGE

The video surveillance market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest video surveillance industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. The report examines various paradigm shifts associated with the transformation of hardware and software. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the video surveillance market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2015 - 2026
Base Year	2018
Forecast Period	2019 - 2026
Historical Period	2015 - 2017
Unit	Value (USD billion)
Segmentation	By Component Hardware Camera Hybrid Camera Analog Camera IP Camera Storage devices Others (Video Encoders and Network Devices) Software Video Management Software Video Analytics Software Video as a Service (VSaaS)
By End-User Commercial Industrial Residential Government
By Region North America (U.S. and Canada) Europe (U.K., Germany, France, Italy, and Rest of Europe) Asia Pacific (Japan, China, India, Southeast Asia and Rest of Asia Pacific) Middle East & Africa (South Africa, GCC and Rest of Middle East & Africa) Latin America (Brazil, Mexico, and Rest of Latin America)