The global video analytics market was valued at USD 2.37 billion in 2020 and is expected to grow at a CAGR of 18.9% during the forecast period. Globally, the adoption of video analytics is growing rapidly due to its ability to identify specific real-time actions or behavior, providing alerts and insights to users.
As the businesses are getting high exposure and measurable returns after implementing video analytics, its market is also supposed to suffice the growing demands of the users. The evolved video analytics assists companies in developing comprehensive security, intelligence, and investigative capabilities by using the captured footage.
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It has advanced search and face recognition analytics to find related images and useful information through multiple footages from different cameras. Automation of staff monitoring and improvement in camera return on investment can be speedily made by extracting information from the captured video to discover patterns and get insights.
Additionally, increasing demand for IP-based security systems and infrastructure and growing concern over safety and security to life and assets are also expected to fuel the analytics market growth during the forecast period.
Furthermore, growing concerns of personal integrity and privacy violations have made way for regulations and laws in the video surveillance field. These and many such factors are driving the growth of the market. However, the high cost of initial installment and a growing number of false alarms in poor lighting or bad weather conditions are expected to hinder the market growth during the forecast period.
The recent technological developments in the market allow a user to observe where security cameras are installed on a smartphone or a similar handheld device by means of an installed application specially provided by the solution provider. This gives a user a look at the place under surveillance anytime, irrespective of the location.
The hardware component suppliers provide necessary electronic and hardware components such as sensors, processors, SSDs, and cameras. These components are essential for real-time monitoring, detection, and reporting of the activities happening within the surveillance area.
For instance, sensors help detect intrusions, or any other movements, while SSDs can be utilized to access local storage or database and facilitate face and license plate recognition, among other such applications.
Technology providers such as Cisco Systems, Inc., IBM Corporation, Honeywell International, and I2V Systems Private Ltd., among others, offer video analytics solutions. They provide software products for cloud-based SaaS and on-premises installations.
Furthermore, they can offer real-time video analysis, alerts, video search, and business intelligence. Moreover, these vendors are observed integrating their systems with a large variety of third-party systems. Thus, allowing the end-users to choose and implement the best-fit video analytics solutions within their systems.
The market is primarily segmented on the basis of type, deployment model, application, end-use, and region.
By Deployment Model
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Based on type, the analytics market is segmented into software and services. The software segment is expected to dominate the global market in 2020. However, the services segment is projected to grow at the highest CAGR during the forecast period.
The market growth of this analytics segment can be attributed to the increasing installation of these solutions and rising demand for support services to maintain the working of these solutions, which is presumed to propel the demand for related professional and managed services.
Many companies offer a comprehensive range of detection filters that provide the means to discriminate the object behavior appropriately to each surveillance scene, meaning that classification is always accurate.
In January 2019, Sony launched its Artificial Intelligence (AI) based Edge Analytics solution. This software allows users to create video content in real-time without the need for specialized training, additional staff, or equipment.
The growth of the services segment can be attributed to the increasing installation of this solution, which is presumed to propel the demand for related professional and managed services. The growing implementation of video analytics services drives the demand for maintenance and support services.
On the basis of the deployment model, the global video analytics market is segmented into on-premise and cloud-based models. The cloud-based model is expected to dominate the global market in 2020 and is expected to grow at the highest CAGR during the forecast period. The segment is expected to keep dominating the market, owing to the benefits offered by cloud deployment.
Cloud deployment helps customers manage their costs efficiently by adopting a subscription model such as pay per subscription. Cloud-based analytics system provides its customers a convenient and easy way to do the security of their premises with IP cameras.
Due to the internet cloud, there is no need for any machines other than IP cameras to run, view, and record the videos. Users can view the live view of cameras or any recorded video of the past on their PC or mobile from anywhere. The only thing they need to have is an internet connection.
On the basis of application, the global market is segmented into crowd management, facial recognition, intrusion detection, license plate recognition, motion detection, and others. The crowd management analytics segment is expected to dominate the global market over the forecast period.
However, the facial recognition segment is expected to grow at the highest CAGR during the forecast period. The market growth of this analytics segment can be attributed to the increasing application of facial recognition solutions across industries for recognizing, identifying, or verifying anyone.
Facial recognition software is capable of matching images captured from a real-time video with a database comprising previously stored images. Hence, a large number of companies are launching advanced products. For instance, In September 2019, Kairos, a face-recognition AI company with an ethical approach to identity, announced the Kairos Video Analytics Camera launch.
North America is expected to dominate the market due to increasing investments, rising adoption of video surveillance systems for enhanced security and safety purposes. The concentration of key vendors in this region encourages the development and adoption of video analytics to ensure more safety.
Huge investment coupled with government initiatives to increase security is expected to propel analytics market growth. As per the commitments made by the newly elected president of the U.S., the country is presumed to foresee the increasing implementation of security systems at public places and critical infrastructures.
However, the Asia Pacific analytics market is expected to witness the fastest growth due to the increasing introduction of smart cities projects and megacities in several parts of the region. The market is highly unorganized in the Asia Pacific, owing to the presence of a large number of dominating local/regional manufacturers.
Governments are showing strong support in promoting advanced technologies such as IoT for improving their infrastructure for public safety. Moreover, the region is seen making significant investments in the video analytics market, owing to the lucrativeness and economies of scale offered. The rapidly growing demand for high-quality video platforms and related services in the smart city environment of China offers immense business potential and application for intelligent video analytics.
Companies are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen their presence in the market. The companies in the video analytics industry are also introducing new innovative products in the analytics market to cater to the growing consumer demands.
The key leading players in the market for video analytics include International Business Machines Corporation, Cisco Systems Inc., Axis Communications, Genetec Inc., Agent Video Intelligence Ltd, Honeywell International Inc., Aventura Technologies Inc., Qognify, Avigilon Corporation, Puretech Systems Inc., Intuvision, Inc., and Allgovision Technologies Pvt. Ltd., among others.