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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. 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 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 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,
Thus, such active efforts by prominent market players are likely to propel market growth in the coming years.
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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,
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,
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,
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.
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.
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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.
North America VSaaS Market Size, 2021 (USD Billion)
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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,
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.
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,
The video surveillance as-a-service will gain demand across the Middle East & Africa, owing to increased partnerships, business expansions, and collaborations. Similarly,
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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.
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.
An Infographic Representation of VSaaS Market
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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.
Value (USD Billion)
By End-user and Geography
The market is projected to reach USD 13.16 billion by 2029.
In 2021, the market value stood at USD 3.54 billion.
The market is projected to grow at a CAGR of 18.2%.
The commercial user of video surveillance as a service solution is likely to lead the market.
The increasing demand for ‘as-a-service’ business model will drive the market.
Canon Inc., Honeywell International Inc., ADT Inc., Motorola Solutions Inc., Robert Bosch GmbH, Alarm.com, Johnson Controls International Plc., Arcules Inc., Genetec Inc., and Eagle Eye Networks Inc. are the top players in the global market.
North America is expected to hold the highest market share.
Asia Pacific is expected to exhibit the highest growth rate during the forecast period.
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