Impact of COVID-19 on current video surveillance market size and forecast

[276 Pages Report] According to MarketsandMarkets, the video surveillance market is projected to grow from USD 42.9 billion in 2021 to USD 69.1 billion by 2026; it is expected to grow at a CAGR of 10.0% from 2021 to 2026.

 Video surveillance systems use video cameras to monitor people, facilities, or places from a distance. Video surveillance is an extremely useful and economical method to ensure the security of people, buildings, and valuables. The video surveillance market has been segmented based on system, offering, vertical, and geography. These market segments are further analyzed on the basis of market trends across the four regions considered in this study.

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Impact of COVID-19 on current video surveillance market size and forecast

The emergence of the COVID-19 pandemic, a deadly respiratory disease that originated in China, is now become a worldwide issue and has also affected the video surveillance market. Many end-use verticals deploying video surveillance systems have been affected by this crisis. As such, the market in 2020 experienced a 4% decline from 2019. Market players have witnessed supply chain disruptions for video surveillance equipment across both demand and supply sides. Several industry experts are of the opinion that the COVID-19 pandemic would start to subside by FY2021. Considering the inputs from various industry experts belonging to the various stages of the value chain, such as OEMs, suppliers, integrators, end-users, and distributors, and the financial release of various companies in the video surveillance ecosystem, it is estimated that the market will witness a marginal decline during 2019–2020. For instance, companies like Hikvision (China) and Teledyne FLIR (US) witnessed good growth in 2020. On the other hand, companies like Dahua Technology (China), Uniview (China), and Axis Communications (Sweden) remained relatively stagnant, whereas Hanwha Techwin (South Korea) witnessed a decline in revenue. The growth rate, however, will recover from 2021, and thereafter, is expected to keep rising during the forecast period.

Video Surveillance Market Dynamics

Driver : Increased hardware capabilities of video cameras

Modern video cameras are now being offered with 4K resolution capabilities. 4K IP video cameras offer 27 times the resolution of conventional analog cameras, nine times that of standard HD camera (1,280 × 720), and four times that of Full HD camera (1,920 × 1,080). These higher resolution cameras ensure that minor and finer details of images remain clear even when magnifying part of a still image. 4K enabled video cameras offer a more detailed image that allows for better detail retrieval. Modern cameras also offer variable zoom lenses to offer a closer field of view. Many cameras are now offered with a built-in microphone to stream and record audio during video recording. Manufacturers have also adopted various hardware technologies to improve the low-light performance of video cameras. Some cameras also feature internal heating for deployment in extremely cold environments, while others feature motion sensors to capture a target within its field-of-view. Some companies, for instance, Hanwha Techwin (South Korea) have designed their own system on chip (SoC) known as Wisenet7, which has been designed with the strongest cybersecurity features, including a secure booting function and signed firmware for both software and hardware. Hence, a number of factors, including increased camera capabilities, maturing technology, features, and customized systems, are making it easier for integrators to meet the demand from end users willing to upgrade legacy surveillance systems to meet their security and operational needs.

Restraint : Privacy and security concerns regarding video data

While video surveillance systems facilitate theft control and overall security, video surveillance is often viewed as a violation of privacy. People expect that their personal information is used only for legitimate and specific purposes only, and there have been concerns about how video recordings might be used or misused, especially in the area of facial recognition technology. More countries and regions are enforcing stricter privacy laws that control the use of video surveillance technology, prompting businesses to take greater responsibility with captured data. This poses a greater concern in the case of remote or cloud-based video storage, recordings can be viewed or misused by unauthorized personnel, leaked, or stolen. Around the world, privacy protection laws are being introduced, such as the General Data Protection Regulation (GDPR) in Europe, and the Federal Information Security Management Act (FISMA) in the US. Organizations are becoming increasingly aware of the dangers of private data breaches and also becoming more discerning when choosing security products and solutions. These factors are expected to limit the growth of the market.

Opportunity : Growing adoption of thermal cameras in response to COVID-19

The COVID-19 outbreak has increased the demand for contactless solutions like face recognition systems, thermal camera body temperature screening, and mask detection algorithm. Being widely deployed in public hotspots like airports, thermal cameras could become more popular and gain significance in the near future. Schools are expected to deploy thermal cameras once they slowly start to reopen. The healthcare industry is also expected to foresee strong growth of thermal cameras due to the long-lasting nature of the pandemic. Apart from these sectors, government agencies, police stations, warehouses, distribution centers, and private businesses are also witnessing high demand. For instance, Teledyne FLIR (US), registered a high increase in demand for its thermal cameras. However, this development is expected to be temporary, with high growth in thermal cameras expected to last only till the duration of the pandemic.

Challenge : Requirement for high-capacity storage systems and higher bandwidth

The total bandwidth used by a video surveillance system depends on the number of cameras, frame rate, image resolution, and compression ratio. The more the number of cameras, the more is the bandwidth used for a network. The constant streaming of video data from network cameras results in bandwidth issues, especially with the introduction of high resolution, high frame rate cameras. One frame needs 30 Kbytes to 160 Kbytes for high-resolution images. At several frames per second, every camera could require up to 10 Mbps. The requirement for bandwidth as well as storage increases with the growing number of cameras. The significant use of IP cameras has also led to the growth of network video recorders (NVRs). NVRs are connected to the network and require high bandwidth for storing high-resolution videos. High bandwidth results in high costs, due to strong network connection being expensive. This requirement poses challenges for implementing IP-based storage systems in small enterprises and developing a robust network infrastructure in emerging economies. Owing to the rise of cloud computing, networks are getting vulnerable, and bandwidth issues have come to the forefront.