Research: Global Video Surveillance Market Remains Resilient Despite COVID-19

Research: Global Video Surveillance Market Remains Resilient Despite COVID-19

It is sometimes said that the video surveillance market is recession proof. That when economic conditions deteriorate, there continues to be spending on security hardware and software. However, market conditions in 2020 were unprecedented. Restrictions in response to the COVID-19 pandemic meant that many organizations were closed for large parts of the year. Many of them were in sectors which normally invest heavily in video surveillance equipment (e.g. education facilities, banks, airports, retailers, sports stadia, casinos, hotels, fitness centres). It is therefore not surprising that the market for video surveillance hardware and software declined in 2020. However, what is surprising is that the rate of this decline was so modest. A new report from Novaira Insights reveals that the video surveillance market declined 2.6% in 2020. What is more, the report, “The world market for video surveillance hardware and software” forecasts a rapid recovery and high growth over the next 5 years.

According to lead analyst and founder of Novaira Insights, Josh Woodhouse, “High growth in sectors like healthcare and critical infrastructure somewhat compensated for big declines elsewhere. Also, in early 2020, a market for body temperature monitoring solutions emerged, often sold by video surveillance vendors utilizing their expertise in video. These products provided a short-term boost to their revenues”.

The COVID-19 pandemic was not the only challenge faced by the video surveillance equipment market in 2020 though. Tariffs and trade restrictions also impacted vendors. Woodhouse continued, “Chinese vendors were particularly affected. They faced both U.S. Government tariffs on their products and the NDAA ban. However, they and many other vendors were also affected by disruption in the semiconductor market such as HiSilicon being effectively unable to supply semiconductors. This caused big changes in the component supply chain.” The global video surveillance market is forecast to grow at 14.3% in 2021 and will be worth an estimated $24.5 billion.

In some markets such as the U.S., the pandemic acted as catalyst for end-users making greater use of cloud and managed services in their video surveillance systems. According to Jon Cropley, principal analyst at Novaira Insights, “Revenues for software and managed services continued to grow in the U.S. in 2020 while revenues for hardware declined.” Cropley added “In the past decade there have been many acquisitions of video surveillance software vendors. A comprehensive software and managed service offering can provide a path to transforming business models to higher recurring revenues. The transition to recurring revenues is a major industry trend”. See the entire report here from Novaira Insights.

Featured

  • Meeting Modern Demands

    Door hardware and access control continue to be at the forefront of innovation within the security industry, continuously evolving to meet the dynamic needs of commercial spaces. Read Now

  • Leveraging IoT and Open Platform VMS for a Connected Future

    The evolution of urban environments is being reshaped by the convergence of Internet of Things (IoT) technology and open platform VMS. As cities worldwide grapple with growing populations and increasing operational complexities, these integrated technologies are emerging as powerful tools for creating more livable, efficient, and secure urban spaces. Read Now

  • Securing the Future

    Two security experts sit down with Security Today’s editor in chief Ralph C. Jensen to discuss what they see emerging and changing over the next several years along with how security stakeholders can harness these innovations into opportunities. Read Now

  • Collaboration Made Easy Using a Work Management Platform

    Effective collaboration between security operators, teams and other departments is critical to the smooth functioning of organizations. Yet, as organizations grow in complexity, it becomes more difficult for teams to coordinate with each other. This is compounded by staffing shortages, turnover and ineffective collaboration tools. Read Now

  • Creating a Safer World

    Managing and supporting locks and door hardware within a facility is a big responsibility. A building’s security needs to change over time as occupancy and use demands evolve, which can make it even more challenging. Read Now

New Products

  • Hanwha QNO-7012R

    Hanwha QNO-7012R

    The Q Series cameras are equipped with an Open Platform chipset for easy and seamless integration with third-party systems and solutions, and analog video output (CVBS) support for easy camera positioning during installation. A suite of on-board intelligent video analytics covers tampering, directional/virtual line detection, defocus detection, enter/exit, and motion detection.

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.