Video Analytics Market

[312 Pages Report] The video analytics market size is expected to grow from USD 8.3 billion in 2023 to USD 22.6 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 22.3% during the forecast period. Video analytics is gaining massive popularity, leading to the increasing adoption of video analytics software and services among governments and enterprises. The evolution of intelligent cameras and the rise of advanced technologies such as deep learning further add to the adoption of this software. Video analytics automates video analysis and alerts authorities in case of emergencies, thus eliminating the need for employee interactions. The edge-based architecture of video analytics coupled with intelligent cameras is expected to witness increased adoption due to its decreased latency. Several niche applications, such as aggression detection, are also developed in addition to regular video analytics applications, such as crowd counting or intrusion detection. The ability to offer multiple features such as intrusion detection, perimeter defense, camera tampering, loitering detection, tripwire counting, human traffic flow, people counting, crowd density, audience profiling, and face indexing have provided significant traction to the video analytics market. Various verticals such as critical infrastructure, government & defense, and transportation & logistics have opted for video analytics applications to increase security. High government investments in infrastructure modernization projects, such as smart city projects, are also expected to be critical adopters of video analytics software and services in the future.

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Recession Impact on the Video Analytics Market

Various macroeconomic factors profoundly influence the global video analytics market, including recessions, rising interest rates, geopolitical tensions such as the Russia-Ukraine war, and inflation. During economic recessions, businesses across industries often face budget constraints, leading to a technological investment slowdown, including video analytics solutions. Rising interest rates can further exacerbate this situation by increasing the cost of capital for businesses, making them more cautious about adopting new technologies. The Russia-Ukraine war introduces geopolitical uncertainty, disrupting global supply chains and impacting the business environment. This uncertainty may lead to delayed decision-making and reduced investments in video analytics technologies as organizations prioritize stability. Moreover, inflationary pressures can increase business operational costs, potentially limiting their capacity to invest in advanced video analytics solutions. In such a challenging economic landscape, the video analytics market may experience a slowdown in growth as businesses navigate financial uncertainties and prioritize essential expenditures over technology upgrades.

Video Analytics Market Dynamics

Driver:  Demand for enhanced video surveillance

With the increasing security concerns in various sectors, such as critical infrastructure, transportation, retail, and residential areas, a growing demand exists for more sophisticated and intelligent video surveillance solutions. These advanced video surveillance systems offer features like high-definition cameras, night vision capabilities, wide-angle lenses, and remote monitoring to provide a higher level of situational awareness and detailed event capturing. The need for enhanced security, reduced risk, and deterrence of criminal activities has made video analytics a crucial factor in the growth of the video analytics market. Furthermore, the rise of smart cities and the proliferation of IoT (Internet of Things) devices have fueled the demand for enhanced video surveillance to manage urban growth and improve overall safety. In urban environments, video analytics solutions offer real-time monitoring, crowd management, and traffic control. The ability to analyze video feeds to detect anomalies, identify potential threats, and provide data-driven insights has become indispensable. As a result, the video analytics market is rapidly evolving to meet this heightened demand by offering more sophisticated, integrated, and cost-effective surveillance solutions.

Restraint: Government regulations related to CCTV surveillance

Many countries and regions have introduced strict regulations to govern the use of surveillance cameras. These regulations aim to protect individuals' privacy rights and establish guidelines for the responsible use of video surveillance technology. Compliance with these regulations can be complex and costly, requiring organizations to invest in additional technology and personnel to ensure adherence to legal requirements. Failure to comply can result in legal consequences, fines, and reputational damage.

The need to navigate a complex web of regulations and maintain a transparent and ethical approach to video surveillance can deter potential users and limit the scope of applications for these technologies, particularly in sectors where privacy concerns are significant, such as healthcare and education. As the regulatory landscape continues to evolve, players in the video analytics market must remain vigilant and adaptable, which can be a challenge for vendors and users seeking to leverage the full potential of this technology.

Opportunity: Emergence of edge technologies and devices to increase the use of video analytics

Edge computing devices with powerful processors and AI capabilities are becoming more common and cost-effective; this allows video analytics to be performed directly on these edge devices without relying on centralized data centers and cloud computing. As a result, there is lower latency, faster real-time analysis, and reduced data transfer and storage costs, making video analytics more accessible and efficient for a wide range of applications. Moreover, edge-based video analytics is beneficial when immediate decision-making is crucial, such as in safety and security applications. Smart cameras and IoT sensors integrated into edge devices can analyze video feeds on-site, enabling quicker responses to events like intrusions, accidents, or anomalies. This improved responsiveness and efficiency enhance the overall utility of video analytics across various sectors, from smart cities and industrial automation to retail and healthcare. As the adoption of edge technologies continues to grow, the market for video analytics is poised to expand significantly, capitalizing on the advantages of real-time, localized processing.

Challenge: Interoperability complexities

Video analytics solutions often require integration with various hardware, software, and platforms, such as security cameras, access control systems, and data storage solutions. However, ensuring seamless communication and compatibility among these disparate components can be complex and time-consuming. The industry's lack of standardized protocols and interfaces further complicates interoperability, making it challenging for organizations to build cohesive, interconnected video analytics ecosystems.

Interoperability challenges can hinder the full realization of the potential benefits of video analytics. Inefficiencies, data silos, and compatibility issues can result in suboptimal system performance, increased maintenance costs, and difficulties in scaling the deployment. Moreover, these complexities can create barriers to innovation and customization, limiting the ability of organizations to adapt and evolve their video analytics solutions as their needs change.

Video Analytics Market Ecosystem

Based on application, the facial recognition segment will grow at a higher CAGR during the forecast period.

Facial recognition technology enables easy identification of individuals by comparing live images with digital images stored in a database. It is a vital aspect of video analytics software used for various purposes, such as access control and identifying wanted individuals. This technology is commonly used in physical stores to provide personalized solutions based on customers' previous interactions with the company. Loyal customers are identified using facial recognition and given special treatment during their next visit, resulting in improved customer satisfaction. Additionally, facial recognition can help place and monitor criminals inside stores, leading to improved operational performance and monitoring without increasing staff. In offices and government buildings, biometric facial recognition helps maintain secure access control. This technology reduces the risk of lost or misuse of stolen ID cards. Facial recognition is widely used worldwide in airports, crime investigation bodies, and law enforcement agencies.

Based on  Vertical, the transportation & logistics segment is expected to grow at the highest CAGR during the forecast period.

The transportation and logistics industry covers all modes of travel, including airports, maritime, subways, railways, and other public transport. This industry faces various issues, such as accidents and crimes, and it is vital to have reliable insights during such emergencies. Video surveillance has become an essential part of the transportation and logistics industry. The various benefits of video analytics for this industry are the elimination of overcrowding, behavior analysis, enhanced safety measures, incident recording, and detection of blind spots. Video analytics can improve this industry for commuters while providing better safety benefits. The various features offered by video analytics, such as facial recognition, object tracking, unidentified object detection, cargo and train carriage recognition, and intelligent traffic monitoring, can help transportation and logistics companies prevent disasters and detect emerging threats that may lead to infrastructure destruction or vehicle crashes, resulting in the loss of life.

Based on Region, North America holds the largest market share during the forecast period.

The use of video analytics software in North America has increased due to significant investments in Information and Communication Technology (ICT), a higher focus on IT security, and investments in advanced security camera technologies. Many industry organizations use video analytics to improve safety, operational efficiency, and decision-making processes. North America has witnessed a surge in funding for advanced technologies like artificial intelligence and machine learning, which are vital in advancing video analytics capabilities. Companies are realizing the importance of integrating video analytics into their overall ICT strategies to gain actionable insights from visual data. Investments in security cameras, especially those with advanced features compatible with video analytics, have seen substantial growth in North America. Implementing the National Defense Authorization Act (NDAA)--compliant systems significantly influences organizations investing in security cameras that meet regulatory standards. For example, Honeywell's launch of the Pro-Watch Integrated Security Suite at Global Security Exchange (GSX) 2022, featuring Pro-Watch 6.0, Pro-Watch Video Management System (VMS) R750, and the 35 Series cameras, demonstrates the industry's commitment to providing comprehensive, compliant solutions. A convergence of technological advancements, sector-specific applications, and a growing awareness of the benefits of intelligent video analysis fuels adoption in North America.

Key Market Players

The video analytics market is dominated by a few globally established players such as Avigilion (Canada), Axis Communications (Sweden), Cisco (US), Honeywell International Inc. (US), and IBM (US), among others, are the key vendors that secured video processing platform contracts in last few years. These vendors can bring global processes and execution expertise; the local players only have local expertise. Driven by increased disposable incomes, easy access to knowledge, and fast adoption of technological products, buyers are more willing to experiment/test new things in the video analytics market.

Scope of Report

This research report categorizes the video analytics market to forecast revenue and analyze trends in each of the following submarkets:

By Offering:

• Software
• Services

By Application:

• Incident Detection
• Intrusion Management
• People/Crowd Counting
• Traffic Monitoring
• Automatic Number Plate Recognition
• Facial Recognition
• Other Applications

By Deployment Model:

• Cloud
• On-premises

By Type:

• Server-based
• Edge-based

By Vertical:

• Banking, financial services, and insurance (BFSI)
• Critical Infrastructure
• Education
• Hospitality & Entertainment
• Manufacturing
• Government & Defense
• Retail
• Transportation & Logistics
• Other Verticals

By Region:

• North America
  • United States
  • Canada
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • Australia and New Zealand
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
    • Saudi Arabia
    • UAE
    • Qatar
    • Rest of the GCC Countries
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In March 2023, Motorola Solutions unveiled the Avigilon physical security suite, offering organizations worldwide secure, scalable, and flexible video security and access control solutions. The suite combines technologies from three strategic acquisitions: Avigilon, Openpath, and Ava Security, creating a comprehensive physical security platform under the modernized Avigilon brand. Powered by advanced analytics, the cloud-native Avigilon Alta and on-premises Avigilon Unity solutions aim to deliver an effortless user experience for enhanced security and control.
• In October 2022, IBM Intelligent Video Analytics version 2.5 introduced fresh cognitive video analysis features, enabling users to swiftly examine, categorize, and organize video content captured in real-time or from archived sources, including stationary and mobile cameras; this updated rapid and precise video analysis serves various industries, enabling organizations to unearth valuable insights, identify anomalies, and recognize patterns.
• In March 2022, Cisco Meraki unveiled an extended range of IoT and LAN solutions, incorporating innovative technologies to bolster the needs of global hybrid workforces, ensuring more intelligent and secure workplace settings. In today's fast-evolving business landscape, characterized by a shift toward digital-centric operations, ensuring exceptional user, employee, and customer experiences remains paramount. By expanding its technology offerings, Cisco Meraki makes it straightforward to provide these enhanced experiences by seamlessly integrating top-notch networking, security, and IoT capabilities.
• In April 2021, Axis Communications announced selling its subsidiary Citilog (France) to TagMaster (Sweden), an application-driven technology company with business areas including traffic and rail solutions.

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