SecurityWorldMarket

14/12/2017

VSaaS market to exceed 1 billion dollars

London, UK

At the start of this decade, many observers expected the video surveillance industry would quickly move towards a recurring revenue model. Much like the cell phone industry, video surveillance equipment would be paid for via a monthly service fee. The reality has so far turned out to be somewhat different. Most video surveillance equipment is still paid for upfront in a one-off fee.

Despite this, the market for cloud-connected video surveillance equipment, which is paid for on a yearly, quarterly, or monthly basis has been steadily growing. Known as VSaaS (video surveillance as a service) the market is also forecast to exceed $1 billion for the first time in 2017. This is according to a recently published report from IHS Markit, “Video Surveillance as a Service (VSaaS) Report – 2017”.

China was the quickest to adopt this payment model. Over half of global revenues in 2017 are estimated to have come from China, mainly for large government projects.

The situation elsewhere has been somewhat different. The EMEA market has remained stubbornly small. The American market has grown to account for over 30% of global revenues in 2017. However, most revenues in the Americas come from the residential, small/medium business, and quick service restaurant sectors, rather than from large businesses or government. Despite this, a number of providers have announced plans to target large organisations with VSaaS solutions; this will be an important factor in future market growth.

In contrast to some expectations at the start of this decade, most video surveillance equipment will still be paid for upfront in a one-off fee at the end of this decade. Nevertheless, the market for VSaaS will continue to grow steadily to the end of this decade and beyond.


Tags

Product Suppliers
Back to top