Video surveillance-as-a-service (VSaaS) and its rising market

The video surveillance-as-a-service market has witnessed significant growth. The VSaaS market, based on cloud, is expected to surge from $45.5 billion in 2020 to $74.6 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 10.4 percent, contributing to growth-driven changes in verticals such as infrastructure, transportation, city surveillance, enterprises and data centers and much more.
SaaS Article - Video surveillance-as-a-service (VSaaS) and its rising market (source: SaaS Industry)

The rise of SaaS-driven video-as-a service has been significant. Akin to the VaaS model, Video surveillance-as-a-service has also been growing in adoption. Like SaaS delivery models, which host data associated with it in a cloud computing environment, VSaaS takes its monitoring to the cloud. These offerings play a significant role in controlling multiple sources of video subsystems in organizations or facilities, aiding in collecting, managing and presenting videos clearly and concisely. Additionally, they offer services that typically include video recording, storage, remote viewing, management alerts, cybersecurity and much more.

Growing popularity and a cloud factor

A markets and markets research on the global video surveillance market size estimates the growing trend of the video surveillance industry across various geographies. According to the report, its market size would grow from $45.5 billion in 2020 to $74.6 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 10.4 percent. The report cites the increasing concerns about public safety, growing adoption of IP cameras and the rising demand for wireless and spy cameras to be the catalytic factors that drive the surge of this market.

Alongside the aforementioned reasons, other factors and ongoing technological advancements in Big Data, IoT, and cloud-based services contribute to the rise of VSaaS in the forecast period (2020-2025). It is also reported that the increasing relevance of AI and deep learning in the VSaaS market would boost opportunities for the video surveillance software market. Increasing software adoption in various applications such as law enforcement, retail management, real-time alert for security threats and traffic management would further drive growth.

An interesting need also stems from the increasing government interests in developing smart cities that require constant surveillance solutions. The study states that the Asia Pacific would outstand others based on region-wise segregation, in terms of the CAGR. A major reason behind this is the advancement of smart cities and the rising number of security threats and concerns.

With respect to smart cities, China, for instance, the market would gross $59.9 billion by 2023 from $30.4 billion in 2018. In India, many cities are in various phases of their smart city projects, with assistance from their governments.

The Asia Pacific region also drives the growth of the VSaaS market. The growing penetration of new technologies such as automatic number plate recognition, facial recognition, people counting, retail management, and remote asset management also provides opportunities for the market. Availability of low-cost cameras is one of the important factors for the widespread adoption of surveillance systems in the APAC region.

One major advantage of VSaaS is its tie-up with the cloud. A report from Eagle Eye Networks (EEN), a provider of cloud-based video surveillance networks, suggested the benefits of having a video surveillance system on the cloud. They include a competitive advantage regarding factors like installation, support, the total cost of ownership (TCO), storage retention flexibility, managing cameras, and much more.

For instance, it is reported that the advanced cloud systems of today could support a broad array of analog & IP camera choices. Post the completion of initial camera wiring, they can be configured automatically with dashboards updating their status in real-time, with instant alerts for other issues. In traditional digital video recorder (DVR) or network video recorder (NVR) systems, it is stated that after the initial camera wiring is completed, users must manually connect and configure new cameras.

Technological prowess is another added advantage.Traditional systems used for video surveillance can go obsolete quicker. The aforementioned EEN report discerns between the traditional and cloud-based deployments and states that though traditional ones might start with robust features, there is only limited scope for technological updates. Existing updates entail manual work and consume time. However, in a VSaaS model, the vendor could provide an automatic technology update through the internet to the on-site appliance, akin to the existing SaaS models that allow easy updates.

Additionally, cloud-based VSaaS systems favor remote access. Furthermore, advanced systems even allow smooth video access and streaming, and provide encryption at rest and transit. Lastly, these VSaaS models are relatively less susceptible to cybersecurity vulnerabilities seen in traditional systems. VSaaS vendors also provide dedicated cybersecurity teams to monitor new vulnerabilities.

As per the aforementioned markets study, some major companies dominating the space include – Hikvision (China), Dahua Technology (China), Axis Communications (Sweden), Bosch Security and Safety Systems (Germany), Hanwha Techwin (South Korea), Avigilon, a Motorola Solutions Company (Canada), FLIR Systems (US), Honeywell Commercial Security (US) and many others.

It would be noteworthy to observe how the trend plays out in various verticals.

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