SecurityWorldMarket

15/11/2020

VSaaS market to more than double by 2025

Northbrook, Il (USA)

The latest report on the VSaaS market with COVID-19 Impact to 2025, from Marketsandmarkets suggests that the sector is expected to grow from USD 2.2 billion in 2020 to USD 4.7 billion by 2025 at a CAGR of 16.0% over the forecast period.  Low cost of investment, rise in demand for real-time surveillance data, and flexible scalability are the major factors found to be the driving the growth in this market.

The integration of VSaaS with access control and alarm systems has increased the penetration of smart devices. And the researchers found that the rise in demand for VSaaS across retail and commercial verticals owing to COVID-19 is projected to create lucrative opportunities for the players operating in the VSaaS market during the forecast period.

The VSaaS market includes players like ADT (US), Johnson Controls (Ireland), Axis Communications AB (Sweden), Avigilon, a Motorola Solutions Company (Canada), and Stanley Black & Decker, Inc. (US). These players have a strong market presence for video surveillance solutions across various countries in Asia Pacific, Europe, North America, and RoW.

Low cost of investment

In VSaaS, video data is managed by service providers at a significantly low cost. The data is stored on the cloud. Thus, physical data storage devices and personnel are not required, which reduces a substantial amount of IT staffing cost, including salaries, benefits, and other associated costs. Additoinally, the research shows that an increased adoption of consumer surveillance cameras, which are mainly wireless and can be installed by end users easily, is being observed. Many players have emerged in this space in recent years, such as Google Nest, Ring, and Arlo. Some of the players offer camera and cloud surveillance as a combined solution, with different subscription plans for different needs of different businesses. By removing the expense of purchasing servers, hard drives, and, end users can save hundreds of dollars on equipment and invest that money into additional cameras or other aspects of their business. Therefore, VSaaS reduces up front capital costs.

Hosted VSaaS will take the lead 

The VSaaS market for hosted solutions is expected to acquire the largest market share over the study period. The growing concern among users toward enhancing security, surging number of government initiatives for increasing public security, and continuous developments in infrastructure, including transportation hubs, are driving the VSaaS market. Additionally, the increasing penetration of smartphones in countries such as South Korea, China, Germany, the UK, France, and the US; technological advancements in telecom networks such as availability of LTE & emerging trends of 5G; and availability of high-speed Internet are helping the market for hosted VSaaS to grow further, as high internet speed is one of the basic requirements of service providers and customers. It also eases the video monitoring from multiple locations. Moreover, decreasing cloud storage costs have lowered the subscription cost, which has resulted in increasing the users across verticals for hosted video services.

Commercial vertical to see growth

The commercial vertical of the VSaaS market is expected to hold the largest share during 2020 and 2025. The demand for VSaaS in the commercial vertical is increasing to enhance security, reduce robbery, and minimize inventory loss. The adoption of VSaaS in financial institutions and banks to monitor customers and staff activities has been increasing over the last few years due to the advantages offered by VSaaS, such as less initial investments, flexibility in adding devices, and remote access to surveillance data. The increasing adoption of VSaaS in the hospitality industry to detect potential threats also drives the VSaaS market in the commercial vertical. The increasing number of retail stores and small business offices creates opportunities for VSaaS providers. Amidst the COVID-19 pandemic, retail stores, malls, and hospitality centres are providing opportunities for VSaaS in applications such as people counting, crowd and occupancy management, temperature monitoring, facial and mask recognition, and supply chain management.

APAC strongest region

The increasing urbanisation in APAC leads to the development of new cities, manufacturing industries, and retail industries, among other application areas, which increases the growth of the VSaaS market. Increasing terrorist activities compel the governments to improve security measures, including video surveillance systems in government buildings. The retail industry is another application area in which VSaaS systems are used due to their capability of real-time remote access. China and India are highly populated countries in the world, and providing a secure environment to the citizens and traffic monitoring are among the key challenges in these countries. In these instances VSaaS is helpful in the live monitoring of residential and commercial premises and traffic across the roads.

ADT, Johnson Controls, Axis Communications, Avigilon, Stanley, Alarm.com, Arcules, Comcast, Duranc, Eagle Eye Networks, Genetec, Honeywell, Arlo, Pacific Controls, Mobotix, Vivint, Ironyun, Morphean and Qumulex have been identified by the researchers as some of the key players in the VSaaS market at this time.


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