The competition in the global video surveillance and VSaaS market is forecast to remain intense in the coming years. Besides the presence of several established and local enterprises, the market exhibits considerable opportunities for emerging players, finds Transparency Market Research (TMR) in a new study. This will however result in fiercer competitive rivalry among companies operating in the global video surveillance and VSaaS market. Thus to remain ahead of the curve, players are inclined towards partnerships and strategic collaborations. These could help them gain advanced technologies, besides offering distribution channel advantages.
Hangzhou Hikvision Digital Technology Co. Ltd., Dahua Technology, and Axis Communications AB are among the leading companies in the global video surveillance and VSaaS market. These companies are mostly capitalizing on product launches to have a stronger foothold. In addition, the market players are taking efforts toward extending their merger and acquisition activities across emerging nations. Considering the positive influence of various strategies adopted by market players, coupled with other drivers, the global vide3o surveillance and VSaaS market will continue exhibiting steep growth.
According to TMR, the global video surveillance and VSaaS market is likely to reach US$101.70 bn by the end of 2025, from its earlier valuation of US$25.11 bn in 2016. If these figures hold true, the global video surveillance and VSaaS market will rise at a promising 16.6% CAGR between 2017 and 2025. By type, the global video surveillance and VSaaS market is bifurcated into analog and IP-based video surveillance and VSaaS segments. Of these, the IP-based video surveillance and VSaaS segment is expected to exhibit exponential rise at a CAGR of 20.8% between 2017 and 2025. Regionally Asia Pacific emerged as the leading market and is predicted to showcase a CAGR of above 20% during the aforementioned forecast period.
Demand for Counter-terrorism Strategies Emerges as Chief Growth Driver
The global market for video surveillance and VSaaS will continue demonstrating strong growth, on account of increasing security concerns globally. Video surveillance technologies have proven extremely crucial especially for monitoring terrorist activities and likelihood for illegal infiltrations. Governments around the world are therefore investing in advanced video surveillance devices and sophisticated surveillance networks to give impetus to their counter-terrorism operations. Bringing critical infrastructure under video surveillance has thus become a worldwide drive, creating lucrative prospects for the market’s expansion.
“Considering the spread of terrorism and crime activities worldwide, coordinate efforts are required to reinforce and maintain secure and resilient infrastructure include assets, systems, and networks,” said a lead TMR analyst. Furthermore, upcoming sports events and other major dates, focus on video surveillance and VSaaS is more than ever. Following the surging demand, manufacturers are leaving no stone unturned to offer advancements in high definition (HD) and megapixel cameras. The cumulative effects of these factors will be realized by the video surveillance and VSaaS market as lucrative growth opportunities. In addition, the advent of do it yourself (DIY) video surveillance accelerated pace of gains is on cards for the market.
Corporate Protocols and High Bandwidth Requirements Emerge as Major Challenges
On the downside, bandwidth requirements in the corporate sector are very high due to the considerable number of users and applications. This has created a burden on the corporate sector as the use of IT applications is rising at an exponential rate. Furthermore, the bandwidth challenges have become more demanding as industries are transitioning from physical security to IP-based video surveillance and VSaaS solutions. It has therefore become extremely difficult for advanced security systems to effectively operate in growing networks and accommodate more users and applications.
Nevertheless, with recent technological advancements such as inclusion of artificial intelligence the market will witness greater opportunities for growth in the future. Furthermore, integration of video analytics will help improving physical security and optimize utilization of surveillance. These developments will guarantee growth to the global video surveillance and VSaaS market in the coming years.