Report: Global Video Surveillance Market to Exceed 22% CAGR By 2020
During 2015, North America outpaced the global video surveillance market with a market share of around 40%.
ALBANY, N.Y. – Market research firm Technavio is forecasting the global video surveillance market will grow at a compound annual growth rate (CAGR) of more than 22% by 2020.
The increasing demand for wireless network infrastructure is a key growth driver for the market. Video surveillance solutions incur high network deployment cost and maintenance cost. As such, enterprises are opting for wireless network infrastructure to avoid these additional charges incurred due to a wired network. Wireless video surveillance provides security to critical infrastructures such as airports and cities without the additional installation and maintenance cost, according to the Technavio report.
The shift from analog to IP cameras is expected to boost the market growth during the forecast period, 2016-2020. The demand for IP cameras is growing as the total cost of operation of IP cameras is much lower than analog cameras.
The report segments and analyzes the following product categories: analog cameras, IP cameras, DVRs, video encoders, surveillance software and NVRs. Analog cameras accounted for the largest global market share during 2015. However, Technavio predicts its global market share to decrease over the next few years due to the continued adoption of IP cameras.
Segmentation by deployment type and analysis includes on-premise, hybrid and cloud-based systems. The on-premise segment dominated the market, accounting for more than a 36% share during 2015. However, the total implementation cost of on-premises video surveillance solutions is high, preventing enterprises from adopting them, according to the report. As a result, this segment is expected to witness a decline in shares during the forecast period.
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During 2015, North America led the global video surveillance market with a market share of around 40%. The presence of a highly developed network infrastructure that ensures seamless connectivity between video surveillance components is the key growth driver for the market in North America. However, the report anticipates the region to witness a decline in market share by the end of the forecast period due to market saturation.
The intense competition and the declining profit margins constitute significant risk factors for vendors in the video surveillance market. Consolidation is increasing with the trend of small entities being acquired by or merged with major players. The rapidly changing technological environment is also a major challenge for global vendors, along with a rising influx of private labels in the market. Hence, it is imperative for vendors to distinguish their product and service offerings through precise and unique selling propositions.
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