Report: VSaaS Market Set to Surpass $1B by 2014
AUSTIN, Texas — Cloud-based video surveillance, or video surveillance as a service (VSaaS), could exceed $1 billion by 2014, according to a new report by IMS Research. The research firm reported that the technology was worth more than $500 million in 2011, an increase of 25% compared to 2010.
Growth in the VSaaS market can be attributed to a rise in demand from consumer, small- to medium-sized businesses and government end users, according to IMS Research Market Analyst Sam Grinter.
“Also, an increasing number of entrants to the market has accelerated growth of service development and marketing presence,” he says. “It’s also creating a more competitive environment. All of which means that VSaaS is set to grow significantly faster for 2012 onwards.”
VSaaS solutions can include self-monitoring, real time alerts, integrated analytics and off-site storage. An example of a VSaaS deployment includes integrated security systems incorporating on-site and off-site storage and remote video monitoring by a central station.
However, despite its developments, a key hindrance of the VSaaS market is pricing, Grinter says.
“For VSaaS to become more widely adopted, the market needs to resolve a number of barriers,” he says. “For consumers and commercial users, the price per camera needs to drop significantly and installation must be simpler. Additional requirements for commercial users include new features and technologies, such as business intelligence functions, that increase the return on investment of using a VSaaS solution.”
The research firm notes that the cost to provide a cloud-based solution is rather costly. As it stands, monthly camera subscriptions cost between $5 and $30 depending on the level of service and the inclusion of hardware. While it seems inexpensive compared to the initial spending for a DVR, it will cost the end user considerably over time, according to Grinter.
Additionally, some video surveillance equipment vendors offer free remote monitoring through DVRs, NVRs and video management software (VMS). The service may prompt end users to upgrade existing hardware or software rather than opt for a VSaaS solution.
IMS Research’s initial findings show that the VSaaS market has even stronger growth prospects than originally predicted. However, a key factor that will determine the success of the market will be the VSaaS providers’ ability to overcome the previously stated product barriers.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.
A FREE subscription to the top resource for security and integration industry will prove to be invaluable.