VSaaS Market Size, Share & COVID-19 Impact Analysis, By End-user (Commercial, Industrial, Government, Defense and Public Sector, and Residential) and Regional Forecast, 2022-2029

The global VSaaS market size was valued at USD 3.54 billion in 2021 and is projected to grow from USD 4.09 billion in 2022 to USD 13.16 billion by 2029, exhibiting a CAGR of 18.2% during the forecast period (2022-2029). North America accounted for a market value of USD 1.44 billion in 2021. Based on our analysis, the global video surveillance as a service market exhibited an average growth of 14.1% in 2020 as compared to 2019.

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 video surveillance as a service market exhibited an average growth of 14.1% in 2020 as compared to 2019.  

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.

COVID-19 IMPACT

COVID-19 to Create Unprecedented Opportunities for Market Players for Long-term

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.

However, the need to track operations at COVID-19 wards and hospitals, as well as avoid vaccine fraud, increased the adoption of cloud-based surveillance cameras at healthcare organizations. Cloud-based systems send motion detection alerts to the user’s smartphone or tablet, and enable easy installation and deployment of video surveillance systems compared to conventional surveillance cameras. Thus, the COVID-19 pandemic accelerated the cloud-based video surveillance installation.

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 VSaaS 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.

LATEST TRENDS

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

5G deployments help to modernize video surveillance systems, as well as process data in real-time, move the system to the cloud, and enable continuous video streaming. The adoption of 5G will lead to the adoption of VSaaS due to secure connections, high-speed networks, and low latency. 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 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.

SEGMENTATION

By End-user Analysis

Commercial Users to Create Demand for VSaaS in the Coming Years

In terms of end-user, the VSaaS 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 helps to improve security and reduce thefts across commercial sectors. In addition, video surveillance as a service solutions gained traction across banks & financial institutions as it enables monitoring security at ATMs. The increased demand for safety and security in public places surged the implementation of video surveillance cameras across traffic signals, homes and buildings, and tourist places.

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 VSaaS 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 rising adoption of smart home security cameras across the U.S. and Canada will likely increase the demand for video surveillance as-a-service in the coming years. 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 video surveillance as a service market is expected to gain traction in the coming years. The Cloud First strategy of the U.K. government has been an effective technology program and a key feature in the Technology Code of Practice; it may contribute to the adoption rate of cloud-based surveillance systems in Europe.

• 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.

KEY INDUSTRY PLAYERS

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

Prominent players operating in the VSaaS 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 the Key Companies Profiled in VSaaS Market:

• 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:

• July 2022 - Arcules partnered with Canon Marketing Japan. Through this partnership, Canon will distribute Arcules as a hybrid VSaaS in Japan.


• 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.


• October 2021 – Genetec Inc. partnered with TELUS to streamline video surveillance for SMBs in Canada. The collaboration offers TELUS security cameras integrated with Genetec subscription-based cloud video management solution, Stratocast. It enables Canadian businesses to monitor the security of businesses efficiently from anywhere and eliminate the cost of video recording hardware.


• September 2021 – Genetec Inc. implemented its cloud-based video monitoring solution and security center platform, Stratocast, as part of a public-private initiative in the city of Chattanooga. The solution enables participating businesses to connect their surveillance cameras with the Chattanooga Police Department’s Intelligence Center for better public safety.


• February 2021 – Honeywell International Inc. expanded the capabilities of the MAXPRO Cloud portfolio with the launch of access control panels, MPA1 and MPA2 that provide web-based, cloud, and on-premise deployment options. The MPA1 and MPA2 control panels strengthened the MAXPRO Cloud offering by providing customers with real-time security and cost-effective access control panels from anywhere.


• April 2020 - Robert Bosch introduced INTEOX, the smart camera platform in response to increasing demand from the safety and security industry. The platform offers in-built intelligent video analytics solutions and it can be customized as per the user.

REPORT COVERAGE

The VSaaS market 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