IP Video Surveillance and VSaaS Market by Component (IP Camera, NVR, Encoder/Decoder), by Service Type (Hosted, Managed, Hybrid), by Application (Government and Transportation, Military/Defense, Residential, Commercial Offices, Healthcare, Hospitality, BFSI, Retail, Industrial and Manufacturing, Education], by Geography (U.S., Canada, Mexico, Brazil, Argentina, U.K., Germany, Italy, France, Russia, China, Japan, India, Saudi Arabia, U.A.E., South Africa) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2030

IP Video Surveillance and VSaaS Market Overview

A video surveillance system is a combination of software and hardware components and is used to capture and analyze video. Though, analog video surveillance acquired steady grip in the market, however, IP video surveillance registering potential growth year-over-year. Several developed markets including, U.S., U.K., and Germany accounted for majority of the IP video surveillance systems deployment in several application sectors. On the contrary, emerging economies, predominantly, China, India, and Brazil, are registering immense growth towards the same. Due to the rising need for surveillance cameras with improved video quality, the demand for IP-based video surveillance systems is increasing worldwide.

In terms of video surveillance as a service or VSaaS market, both developed and emerging markets recording highest growth in application areas such as, city surveillance and traffic management. Apart from this, VSaaS solutions deployment being witnessed in institutional, infrastructural, commercial, industrial, and residential applications. Storage of enhanced data for LTE, intelligent business services, and mobile device access are some of the opportunities anticipated to open new prospects for the growth of the IP video surveillance and the VSaaS market.

The industry is undergoing substantial growth in demand for video analytics solutions and cloud-based surveillance solutions. Video analytics reduces the need for humans to analyze and monitor video feeds in real time. The overall IP video surveillance and VsaaS market is exhibiting increasing demand for intelligent surveillance solutions in relation with, organizations to provide real time understanding, with automatic alarm and event notifications.

Geographically, North America and Europe accounts for highest share of the market. High growth is expected from Asia-Pacific countries such as Japan, China, and India, owing to the constant demand for VSaaS in this region. Apart from this, in MEA region, countries like Saudi Arabia, U.A.E., and Qatar to witness substantial growth in the coming years, attributed to Saudi Vision 2030, and major upcoming events such as, World Expo 2020 in U.A.E., and World Cup 2022 in Qatar.

The Asia-Pacific region is anticipated to grow at a tremendous rate, due to the increasing consciousness of video surveillance, the growth of technology, and the constant increasing need for cloud services as a preference for efficient application and data management. Corporate and bandwidth protocols, high infrastructure cost and network security are the major challenges in the growth of the market.

Market Dynamics

Trends
Some of the major trends in the IP videmarket are rising adoption of cloud-based video surveillance solutions, growing awareness of users towards connected systems, increasing use of intelligent video surveillance cameras. Out of these factors, rising inclination of users towards connected systems being exhibited as the most crucial factor impacting the growth of the market. This is attributed to the capabilities of IP-based systems including real-time analysis, superior image quality, and distributed intelligent video capabilities.

Drivers

Surging demand for safe and convenient security alternatives are intensifying the IP video surveillance and VSaaS market. Rising security concerns with increasing crime rate and terrorist threats buoyed the heavy adoption of these solutions. Additionally, due to the fact that the entire surveillance, that includes recording, storing, managing, monitoring and storing, is on cloud, the systems do not require dedicated servers, unlike traditional surveillance systems. Requirement of minimal maintenance in these systems is a major factor for their wide adoption for commercial and residential purposes.

Moreover, this remote approach for video surveillance helps the deployers to prevent their footage from any sort of vandalism or tampering. This results in organizational buildings with critical security requirements to heavily adopt these systems, which further leads to a propelling the market. Additionally, with booming IP market, the users are realizing the use of real-time analytics and access control for security measures, further resulting rise in number of users pertaining to increasing awareness about the systems.

Restraints

Some of the factors hampering the growth of the market include, high cost of these systems as compared to traditional analog cameras, and continuous dependence of deployers on bandwidth and network connectivity.

Moreover, stringent regulatory and compliance issues in IP video surveillance systems, hindering the growth of the market. This is attributed to the fact that remotely hosted systems can be accessed online with the access to right credentials, which leads to security risk, and the whole online working and usage of the system requires strict privacy rules to comply by. For instance, in U.K., surveillance operators are subject to ‘Data Protection Act 1998’, hence, the hassle of online security norms compliance and high cost of IP surveillance cameras lead to hinderance in the market.

Opportunity

Growing IoT market and rising inclination towards smart city surveillance, especially in developing countries with challenging security conditions, are expected to offer lucrative growth opportunities to the market in near future. IoT applications are likely to play a significant role in security equipment used for protecting industries, banks, offices, residences, and critical installments, such as nuclear power stations.

Additionally, the market is registering highest growth potential towards smart city surveillance. Recently, several countries including U.S., U.K., China, India, Japan, South Korea, France, Saudi Arabia, and U.A.E., cited major smart city projects; for instance, in the last quarter of 2017, Saudi Arabia reported $500 billion worth plan to build a new megacity. This factor is likely to proliferate the video-based surveillance requirements for traffic control, traffic monitoring, and other security-related applications.

Competitive Landscape

The intensity of rivalry in the IP video surveillance and VSaaS market is high. Leading companies in the industry such as Axis Communications AB, Bosch Security System, Inc., Honeywell International Inc., and Panasonic Corporation, are registering high competition from Chinese players, including Hikvision and Dahua, who are offering solutions at lower prices.

Some of the key players operating in the market are Axis Communications AB, Hangzhou Hikvision Digital Technology Co., Ltd., Dahua Technology Co., Ltd., Avigilon Corporation, Bosch Security System, Inc., Panasonic Corporation, Honeywell International Inc., Genetec Inc., Ivideon, and Brivo.