VsaaS Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

VsaaS Market Size

VsaaS Market Growth Drivers & Opportunities

Cloud-Based Services Are Key Market Trends

• Video surveillance as a service is being popularly availed via cloud-based solutions.
• The advancements in cloud computing and increase in the bandwidths available make this kind of deployment more appealing to end users and lucrative for vendors.
• Cloud-based services, in particular, are seeing a rapid increase in acceptance by users in the surveillance industry.
• When the details are examined, there are substantial advantages of transferring locally captured video data to the cloud.
• They include ease of granting access to security monitoring teams, who ensure better coverage, evidence tampering prevention, and faster response.
• Currently, advanced VSaaS solutions provide numerous functionalities, such as video data compression and the establishment of event-based rules, particularly to optimize the incoming video for varying connection speeds.

Growing Incidence of Security Breaches Drives Market

• The biggest driver for the video surveillance as a service market is the increasing incidence of break-ins and security breaches in homes and critical places.
• In 2022, 847,522 burglaries were reported to the FBI in the U.S. Further, as per the Word Bank, companies around the world lost 5.7% of their annual revenue due to vandalisms and thefts in 2023.
• The problem of break-ins and authorized access is also common on international borders.
• Among the most active in this regard is the Line of Control in Jammu and Kashmir, where the army foils numerous infiltration bids each year, especially just before snow covers the mountain passes.
• In 2023, security forces killed 40 militants trying to cross the LoC compared to 18 the previous year.
• Moreover, the Director General of Police of J&K said in June 2024 that 70 militants were waiting to cross over to India from POK.
• Since 2021, the Indian government has strengthened the entire length of the India–Pakistan border with integrated surveillance systems integrated with CCTV/PTZ cameras, infrared alarms, and IR sensors.
• Similarly, as per a report of BBC, over 6.3 million people have been detained while trying to illegally cross over to the U.S. from Mexico.
• As such incidents continue to increase in number across critical places, pieces of infrastructure, and industries, the demand for VsaaS solutions will continue to boom.

Data Security Concerns Could Hamper Market Growth

• Surveillance always carries the risk of illegal spying on people, which is why developed countries have stringent identity and consumer data protection rules in place.
• Software-based approaches are already susceptible to cyberattacks, with those deployed on the cloud facing even more scrutiny.
• Breaches in the data storage system could enable criminals to spy on people or use videos and images of them to perpetrate any kind of attack, from extortion to physical injury.
• This is why VsaaS solutions must be bolstered with effective cloud security tools, which raises costs for end users.

VsaaS Market Analysis

Type Analysis

The largest market share, of 55%, is held by the hosted category in 2024. This is attributed to the increasing usage of hosted VSaaS throughout the residential and retail sectors, as well as the rampant establishment of smart cities. Furthermore, the rising smartphone penetration, commercialization of 5G services, and availability of high-speed internet are all contributing to the growth of the hosted VSaaS industry. Moreover, the reducing cloud storage costs have resulted in lower subscription fees, thus leading to a rise in the count of customers preferring hosted video services across verticals.

Furthermore, managed VSaaS is gaining popularity in the video surveillance as a service market as it helps minimize security staffing costs, increase security incident response time, and reduce the risk of liabilities and spending on insurance.

The hybrid category is expected to grow at the highest CAGR, of 17%, over the forecast period. This can be ascribed to the benefits the combination of managed video services and on-premises video recording hybrid VSaaS provides. In this model, the recorded data is stored at both the customer and service provider’s ends; the main reason for the popularity of this model is the concerns regarding the security of the data that is solely stored on the cloud.

We have covered the following types in the report:

• Hosted (Largest Category)
• Managed
• Hybrid (Fastest-Growing Category)

Vertical Analysis

The BFSI category dominates the market with 30% share as this sector has grown tremendously in recent years owing to people’s rising disposable income. The adoption of VSaaS in financial institutions to monitor customers and staff activities has been increasing over the last few years due to the advantages offered by VSaaS, such as lower initial investments, flexibility in adding devices, and remote access to surveillance data. Moreover, these services prevent kidnapping and robberies, help in detecting vandalism and fraud at cash points, and integrate security and safety concepts into banking processes.

The government & security category will have the highest CAGR, of 18%, over the forecast period. This is attributed to the growing government spending on strengthening their military capabilities across borders and critical armed forces bases, such as ammunition depots, cantonments, air force stations, naval bases, radar stations, and ordnance factories. Moreover, local administrations are increasingly installing CCTV cameras at busy intersections, along key roads, in major markets, and other places that witness a high footfall, such as bus depots, railway and metro stations, airports, government office complexes, and large industrial facilities. As per a January 2024 article in Hindustan Times, Delhi had 246,424 CCTVs for various purposes, most installed by the PWD and other government bodies, and by the end of this year, the number is targeted to rise to at least 280,000.

These verticals have been analyzed:

• BFSI (Largest Category)
• Manufacturing & Corporate
• Residential
• Government & Security (Fastest-Growing Category)
• Retail
• Healthcare
• Others

Regional Analysis

• North America dominates the video surveillance as a service market, with a revenue share of 40% in 2024. This is due to the rising crime rates, growing terrorism, and government measures to set up advanced monitoring systems in public areas and government buildings.
• In the U.S., business establishments, such as hotels, restaurants, and office complexes, are the most-common users of video surveillance as a service.
• The government of the country has launched many programs to install advanced surveillance systems in public places and official buildings.
• It is also focused on increasing the penetration of these services throughout the defense and infrastructure industries.
• Moreover, the Canadian market is growing as the country is witnessing a high crime rate, which is forcing the government to invest in video surveillance as a service.
• APAC will be the fastest-growing market in the forecast period because of the huge population of the region.
• This leads to a high crime rate, for which video surveillance is necessary at public, high-security government, and private premises.
• Moreover, the region is home a large number of SMEs, who prefer cloud-based solutions for their cost-effectiveness over those deployed on in-house computers and servers.
• Additionally, the expanding 5G infrastructure enables the quick storage, analysis, and sharing of surveillance videos among concerned parties, be it military bodies, police, or private companies and residents.

The report offers insights on the following regions and countries:

• North America (Largest Regional Market)
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Fastest-Growing Country Market)
  • U.K. (Largest Country Market)
  • France
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Argentina
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

VsaaS Market Share

The video surveillance as a service market is fragmented as there is a huge diversity of solutions available on various public and private clouds for different uses. Additionally, developing such solutions does not demand extensive R&D and IT investments, which is why even emerging software vendors make good business. Further, often software is basic features is used for home security, while those with advanced functionalities is majorly used by well-funded and government enterprises. Stakeholders have been able to develop cutting-edge solutions owing to the rapid technological breakthroughs and the entrance of cloud computing and artificial intelligence into the market landscape. To obtain a competitive advantage, market participants are expected to propose more creative solutions in the near future.

VsaaS Market News

• In August 2024, Axis Communications AB launched the Q1809-LE bullet camera, which complies with FIPS 140-3 Level 3 standards.
• In August 2024, Genetec Inc. announced that Microsoft Azure cloud will host its Security Center SaaS, which offers capabilities for video management, unifies access control, automation, and intrusion monitoring.
• In January 2024, Honeywell International Inc. announced a partnership with Analog Devices Inc. to advance building automation technologies. The partnership will see Honeywell integrate Analog Devices’ software and single-pair Ethernet solutions into its building automation solutions.
• In August 2023, ADT Security Services Inc. finalized plans to sell its commercial business to GTCR for USD 1.6 billion, to strengthen its financial profile.