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.