The Global Market for Video Surveillance as a Service (VSaaS) is Projected to Reach US$1.7 Billion by 2020

Demand for Affordable & Commoditized Video Surveillance Services Drives the Global VSaaS Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Video Surveillance as a Service (VSaaS) market. The global market for Video Surveillance as a Service (VSaaS) is projected to reach US$1.7 billion by 2020, driven by the growing demand for affordable video surveillance services.  

Given that in-house video management and monitoring is becoming unsustainable, both from an operational and financial point of view, there is growing interest surrounding the ballooning concept of ‘Video Surveillance as a Service’ (VSaaS). VSaaS is a service provisioning business model where hardware, storage, management and monitoring services are offered under the software-as-a-service (SaaS) model. For service providers, the recurring revenue stream provided by this business model is major benefit, as it offers a steady cash flow into the business. For customers, the subscription billing based service delivery model offers unrivalled cost benefits and affordability. Increasing preference for low cost commoditized IT hardware and software is a major factor driving the popularity, importance and proliferation of recurring revenue-based business models. Other major benefits driving the widespread popularity of VSaaS include ability to mix and match video storage either in the in-house datacenter or in a cloud; remote management and monitoring of surveillance videos; eliminates the need for dedicated on-premise storage and other computing resources; significantly lowers CAPEX and OPEX; anytime, anywhere access to video footage on any device; and easy pay as-you-go payment model.      

While security remains the major application area for video surveillance, spurring market opportunities are non-security applications in logistics, traffic management, patient monitoring, industrial process monitoring & control, and live video streaming/broadcasting, among others. Also driving investments in video surveillance is the growing interest in smart cities by governments worldwide. A key element of smart cities includes surveillance and security. Unlike the current sporadic implementation of video surveillance systems, smart cities require widespread deployment of networked video surveillance, as the concept of smart cities revolves around information collection, storage and distribution. Crime prevention is a major area of concern as these cities are the hub of economic activities and are therefore rich targets for criminal offences and terrorist disruptions. Poised to benefit under this scenario is cloud hosted VSaaS, given the numerous benefits offered such as reliability, scalability, cost effectiveness, lowest total cost of ownership, reduced workloads and low maintenance.  

Other major factors driving growth in the market include increase in new video surveillance deployments as a result of the rise in crime & security issues, increased adoption of cloud enabled VSaaS, stringent legislation of government safety mandates, and growing focus on critical infrastructure protection. As stated by the new market research report on Video Surveillance as a Service (VSaaS), Asia-Pacific represents the largest market worldwide, led by China. A key factor supporting Asia’s dominance is the trend towards hardware inclusive billing, which involves the addition of hardware into the monthly service fee. Accounting for a major portion of the revenues generated in the global VSaaS market, China is a massive consumer of subsidized video surveillance hardware offered under the recurring revenue model. Mass surveillance is a widespread practice in China, given the government’s top focus on crime prevention and social security. By 2020, the government plans to have all key public spaces covered under camera surveillance. Public security monitoring, intelligent traffic management and social management are prime reasons spurring the national level focus on video surveillance in the country. The United States ranks as the fastest growing market with a CAGR of 19.3% over the analysis period.

Major players in the market include ADT Security Services, Inc., Axis Communications AB, Brivo Inc., Camcloud Inc., Cameramanager, CameraFTP Service, Cloudastructure Inc., ControlByNet, Duranc Inc., Eagle Eye Networks, Inc, Envysion, Inc., Eyecast Inc., Genetec, Inc., Honeywell Security Group, IVideon Inc., March Networks, NeoVSP™, Next Level Security Systems, Panasonic System Networks Co., Ltd., Sensr.net, Inc., Smartvue Corporation, and Vector Security Inc. among others.

The research report titled “Video Surveillance as a Service (VSaaS): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America)  and Rest of World. The report analyzes the market by solutions - Managed and Hosted & Hybrid.

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