AI video analytics to catapult surveillance into the future

Stockholm, Sweden

Memoori’s 2019 world report on the physical security industry shows that video surveillance product sales reached $19.15Bn in 2019 and could reach $35.82Bn by 2024. 

This growth is the highest that Memoori has ever forecast and, the researchers say that it is driven by a number of factors particularly the sales of AI video analytics software now entering the commercial market. Analsyts found that the VSaaS market is now growing at around 15% per annum and the impact of the IoT has yet to be fully realised. IP video cameras could become one of the most powerful sensors in commercial and industrial buildings.

AI video analytics provides the boost

The Memoori forecast suggests that the AI video analytics contribution will boost video surveillance sales, on its own contributing some $3.5Bn to 2024. The company predicts that AI video will be the main game changer over the next 10 years, and expects that China will take more than 50% of the world market for AI video analytics software by 2024, but privacy issues in Western markets could hold back the rate of growth. The traditional video surveillance companies naturally see AI video analytics as a feature to run off their existing products offering a way to differentiate themselves.

Cameras with embedded video analytics, such as motion, face, and object detection, analyse image data at the point of capture and can effectively eliminate the need to transmit video and data to a central server. This enables very efficient use of both transmission and recording bandwidth.

Cloud services gain credibility

According to the report, there is much evidence in 2019 that in the physical security business, that cloud services, specifically VSaaS, has broken off its niche market shackles and its capability and performance value are no longer doubted. Demand has grown significantly this year and Memoori forecasts that over the next 5 years it will deliver a CAGR of no less than 12%.

In the next few years as the Building Internet of Things (BIoT) becomes a reality, IP cameras will be directly connected with these systems and that will present a myriad of opportunities for them to contribute to solving other problems not necessarily associated with security.

Integration within physical security is now a common requirement and IT convergence is almost a given in the enterprise market. The BIoT will connect services in the building, minimizing duplication, reducing hardware and software costs and IP cameras will become an important factor acting as sensors in buildings. This, say the researchers, will change the routes to market and introduce new players into the business.

More innovative products

The research found that background economics and trading conditions have remained fairly static in the last year but more innovative products that have delivered better performing systems have more than compensated for this and quality brands have increased their share of the business as a result. Memoori had expected for the last 2 years that merger & acquisition by non-Chinese companies would have delivered some help in building up scale but found nothing of any great consequence has happened through acquisition.

Geographical changes

Over the last 8 years there has been a major change in the geographic distribution of video surveillance product sales. Asia has delivered the highest rate of growth, increasing its market share every year and there is still a massive latent demand waiting to be exploited. The main driver of this growth is China where the penetration is still less than a half of that in North America and well before this latent business has been mined, the Chinese market will be more than twice the size of North America.

To order the report  "Physical Security Business 2019 to 2024"  –  click here. 


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