ALBANY, N.Y. — The video surveillance market, which includes VSaaS, is expected to reach $42.81 billion by 2019, growing at a compound annual growth rate (CAGR) of 19.1% from 2013 to 2019, according to a new report from Transparency Market Research.
The study titled “Video Surveillance and VSaaS Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019” names increased security and safety concerns and the need to monitor activities to detect intrusion, theft and traffic surveillance as some reasons for the growth.
By system, the IP-based video surveillance market is expected to grow rapidly at a CAGR of 24.2% during the forecast period from 2013 to 2019. Growing installations of IP cameras and need for surveillance cameras with better video quality is driving the demand for IP based video surveillance systems, globally.
Meanwhile, the hardware market, comprised of cameras, recorders, storage, encoders and monitors, was valued at $9.49 billion in 22 and is expected to grow at a CAGR of 17.3% during the forecast period from 2013 to 2019.
In 2012, the recorders and storage segment held the largest share of the total hardware market at 37%. Videos surveillance followed at 32%; however, the segment is expected to lose share in the coming years due to growing preference of cloud-based storage (VSaaS), according to the report.
Additionally, researchers expect surveillance cameras to increase around 46% by 2019. Researchers attribute the anticipated growth to the rising popularity of IP-based video surveillance cameras that offer better video quality and come with in-built recorders.
The transportation market, which encompasses city surveillance, public transits and highways, is the largest segment among end user application areas. Researchers expect the segment, which accounted for around 15% share of the total market in 2012, to grow at a CAGR of 21.2% during the forecast period from 2013 to 2019.
Other important application areas for video surveillance and VSaaS include residential, retail, hospitality, stadiums, and healthcare among others.
The report also states that North America was the largest market in terms of revenue generation in 2012 and accounted for around 35% share of this market. Asia Pacific followed with roughly 31% share. The region is expected to be the fastest growing market during the forecast period, growing at a CAGR of 23.4% and registering a market size of $17.12 billion in 2019. Growth in the Asia Pacific market is mainly spurred by demand from China.
In terms of manufacturers, Hikvision Digital Technology Ltd. dominated the global video surveillance and VSaaS market with a share of 9.4% in 2012 followed by Axis Communications with 5.2% share. Other important players include Honeywell, Dahua Technology, Canon Inc, Bosch Security, Pelco, Panasonic, and others.