According to the Market Statsville Group (MSG), the global VSaaS Market size is expected to grow from USD 4,806.1 million in 2022 to USD 17,071.8 million by 2033, at a CAGR of 17.6% from 2023 to 2033.
The growing number of global security issues and increased investment in sophisticated surveillance network expansion are the factors responsible for driving the market’s growth. Increased traffic monitoring and intrusion detection adoption are also expected to drive market growth over the next six years. Improved surveillance cameras and related devices have been developed due to technological advancement. The VSaaS market is expected to benefit from lower IT costs and centralized data management. The adoption of big data analytics tools is expected to provide viable growth opportunities for industry companies. Mobile video monitoring enables the display of data in real-time, providing opportunities for growth in the VSaaS industry.
Video surveillance as a service (VSaaS) refers to hosted video surveillance in the cloud. The service includes video recording, remote viewing, storage, management warnings, and cybersecurity. The VSaaS system can feature a straightforward on-site interface that acts as a communication channel between the cameras and the cloud, even while video processing and management are done off-site. Images and videos can be recorded by a video surveillance device and then compressed, preserved, or transferred through communication networks.
The COVID-19 outbreak and spread have impacted the VSaaS market in operations across various industries and regions. The negative consequences of the virus spread to other places where customers, service providers, resellers, camera manufacturers, or suppliers do business as businesses suffer limited supply or restricted demand.
This is due to supply chain disruptions combined with cross-border trade restrictions, resulting in delays in the completion of hardware components, primarily cameras, particularly from China. Because of the minimal operations of companies or facilities, the spread of COVID-19 affected a variety of industries, including automotive, electronics, and hospitality. In addition, many countries delayed new infrastructure projects, which harmed the security devices and software (including VSaaS) market in 2020.
As of May 2021, the market had begun to recover, with increased demand for some products from verticals such as retail, healthcare, and public facilities, as video surveillance systems play an important role in dealing with COVID-19. Because of COVID-19, some significant changes in terms of thermal cameras, facial recognition, and video analytics have been observed in this industry. Some advancements in advanced facial recognition have occurred; for instance, as end users shift toward contactless access control systems, facial recognition systems are becoming more important.
Furthermore, as wearing a face mask has become the norm in many countries, ecosystem players are offering facial recognition solutions that can accurately identify people even when wearing a mask. The VSaaS market will be less affected by COVID-19 than other sectors. It will have a minor impact. In the long run, this crisis will force several industries, including hospitality, transportation, banking and finance, and government, to invest in people counting, occupancy management, crowd management, temperature monitoring, facial recognition, and heat maps to ensure safety of their employees and customers.
One of the major drivers of VSaaS market growth is the increasing demand for real-time surveillance data across commercial and infrastructure sectors. End users such as retail stores, enterprises, manufacturing sites, warehouses, and banks require real-time remote monitoring on any device to detect unusual events on their premises due to security concerns and technological advancements. Furthermore, users with multiple business locations require real-time and remote access to surveillance data to monitor the site remotely. Furthermore, smart cities are leveraging networks of intelligent sensors to collect data, organize system responses to incidents as they occur, and improve processes such as traffic flow.
As a result of the rising demand for remote access to surveillance data at any time, the VSaaS market is expanding globally, as it provides real-time access to live footage on any device in any location.
Rising privacy and security concerns have resulted in stringent privacy protection laws such as the United States Federal Information Security Management Act (FISMA) and Europe's General Data Protection Regulation (GDPR). In order to avoid the misuse of a user's personal data, especially in facial recognition technology, these regulations are being applied to VSaaS providers. Furthermore, IT organizations are becoming more aware of the dangers of private data bridges and, as a result, are becoming more concerned when selecting a VSaaS solution. These factors are expected to limit market growth over the forecast period.
The growing popularity of do-it-yourself (DIY) video surveillance for home security, combined with the increasing use of smart devices, is creating lucrative opportunities for VSaaS service providers in the market. Smartphone penetration has increased in recent years in China, the United States, the United Kingdom, India, and Japan as a result of lower prices, technological advancements, and improved usability. The growing popularity of smart devices has created numerous opportunities for VSaaS providers. Service providers can increase their market presence by providing VSaaS compatible with these devices.
The study categorizes the VSaaS market based on type and verical the regional and global levels.
Based on type, the global VSaaS market is divided into hosted, managed, and hybrid. Hosted VSaaS contributed the largest market share of 44.9% in 2022, followed by managed VSaaS. The high market share is attributed to rising VSaaS adoption in the SMB, retail, and residential sectors and smart city penetration in North America, Europe, and Asia Pacific. Furthermore, rising smartphone penetration, the commercialization of 5G services, and the availability of high-speed Internet are assisting the market for hosted VSaaS to expand further penetration of high internet speed are the basic requirements of service providers and customers. Reduced cloud storage costs have resulted in lower subscription costs, increasing users of hosted video services across verticals.
Whereas, managed video surveillance as a service is an innovative new end-to-end approach from the market leaders in system outsourcing, smart storage, information security, and video surveillance. Managed VSaaS gives one dynamic surveillance approach across the security landscape. The Managed VSaaS provides the whole thing required for a best-in-class surveillance and security solution. It offers industry-leading cameras, analytics software, and high-performance big data servers and all delivered via a professional managed service. Therefore, managed VSaaS is expected to project the highest CAGR of 18.9% during the forecast period. The factors such as progressing attention regarding public security and protection, the growing enactment of internet protocol cameras, and rising requirement for radio and scout cameras are stimulating the growth of the managed video surveillance enterprise.
Based on application, the global VSaaS market is divided into commercial, infrastructure, residential, military & defense, public facilities, and others. Commercial application held the major market share of 33.8% in 2022. Video surveillance or CCTV is of huge advantage for protecting industrial and commercial objects. In addition to traditional protection tasks such as perimeter and external surveillance against damage, break-ins and espionage, video systems also help optimize processes and ensure health and safety at the workplace. There are instant commercial needs for smart video surveillance systems that can utilize the existing camera network for more intelligent security systems and to give in more applications rather than security applications. This work introduces a new classification for video surveillance as a service system depending on their commercial applications. VSaaS helps to identify potential criminals actually perpetrating the crime thanks to facial recognition. Video cameras provide an overview of the division and can also be directly integrated into systems to monitor processes where they happen.
During the forecast period, the Asia Pacific VSaaS market is expected to grow at the fastest CAGR of 19.1% during the forecast period. The increasing number of smart cities in China, South Korea, and India are driving the growth. According to a World Economic Forum press release from December 2020, China has built approximately 500 AI-powered smart cities across the country. The proliferation of smart cities will increase the region's adoption of VSaaS solutions and services. Furthermore, the Chinese government's supportive initiatives to improve city safety is expected to create significant opportunities for the region's VSaaS market.
The global VSaaS market is highly competitive, with key industry players adopting strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market companies focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
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