VSaaS Market Size, Share & Industry Growth Analysis by Type (Hosted, Managed, Hybrid), Feature (AI-enabled VSaaS, Non-AI VSaaS), AI Visual Analysis (Object Detection & Recognition, Intrusion Detection, Facial Recognition, Anomaly Detection), Vertical & Region - Global Forecast to 2029
Updated on : Oct 10, 2024
VSaaS Market Size & Trends
The global VSaaS market size is expected to be valued at USD 5.0 billion in 2024 and is projected to reach USD 10.7 billion by 2029; growing at a CAGR of 16.1% from 2024 to 2029.
The integration of advanced features such as AI-powered analytics, real-time alerts, and video analytics further enhances the value proposition of VSaaS, making it an indispensable tool for enhancing security, improving operational efficiency, and gaining valuable insights from video data. As businesses recognize the benefits of VSaaS in addressing their evolving security and surveillance needs, the market continues to grow steadily.
VSaaS Market Forecast to 2029
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VSaaS Market Trends
Drivers: Increasing adoption of IoT remote monitoring technologies
The VSaaS market is proliferating due to the increasing demand for remote monitoring across various industries. With the advancement of technology and the adoption of cloud-based solutions, businesses recognize the benefits of leveraging VSaaS for efficient surveillance and security management.
This is particularly true for the retail sector, where multiple store locations must be monitored simultaneously. The rise of remote work and the Internet of Things (IoT) has fueled the demand for VSaaS across various sectors, including healthcare. Hospitals and clinics are implementing this technology to monitor patient safety, track equipment, and ensure compliance with regulations.
Restraint: Concerns regarding data privacy and security
The VSaaS market faces significant challenges due to data privacy and security concerns. As more businesses and organizations turn to cloud-based surveillance solutions to monitor their premises and assets, there is a growing fear of potential risks associated with storing sensitive video data off-site and allowing third-party providers access to surveillance footage.
Data breaches, unauthorized access, and privacy violations are among the primary concerns that can deter organizations from adopting VSaaS solutions, particularly in industries dealing with confidential information or stringent regulatory requirements.
Opportunity: Rapid advancements in artificial intelligence technology
Integration with the Internet of Things (IoT) and artificial intelligence (AI) technologies provides a significant opportunity for the VSaaS market to enhance its capabilities and offer more sophisticated solutions. By integrating with IoT devices, such as sensors, smart cameras, and connected devices,
VSaaS platforms can collect rich contextual data from the physical environment, augmenting traditional video surveillance with additional sources of information. This integration enables VSaaS systems to offer advanced functionalities, such as environmental monitoring, asset tracking, and predictive maintenance, providing users with comprehensive insights into their operations and surroundings.
Challenge: Requirement for high-capacity storage and bandwidth
The VSaaS market faces significant challenges due to the need for high-capacity storage and bandwidth. This is especially true in environments with large-scale surveillance deployments or high-resolution cameras. To meet the storage requirements of VSaaS solutions, significant investments must be made in cloud infrastructure, data centers, and storage systems to handle the ever-increasing volumes of video footage.
Additionally, the cost of storing large amounts of video data in the cloud can quickly become prohibitively expensive, particularly for organizations with extensive surveillance networks or regulatory requirements for long-term data retention.
Vsaas Market Ecosystem
The VSaaS market is dominated by established and financially sound manufacturers with extensive experience in the industry. These companies have diversified product portfolios, cutting-edge technologies, and strong global sales and marketing networks. Leading players in the market include ADT from the US, Johnson Controls from Ireland, Axis Communication AB from Sweden, Motorola Solutions, Inc. from the US, and Securitas AB from Sweden.
Based on the type, Hosted in VSaaS market to hold the highest market share during the forecast period.
The VSaaS market for hosted services is growing due to several key factors. Firstly, hosted VSaaS solutions offer businesses a convenient and cost-effective alternative to traditional on-premises surveillance systems. With hosted services, companies can leverage cloud infrastructure for storage, processing, and management, eliminating the need for upfront investments in hardware and infrastructure.
Additionally, hosted VSaaS solutions provide scalability, allowing businesses to quickly expand their surveillance systems without physical hardware limitations. Moreover, hosted services offer flexibility, enabling enterprises to access video feeds and analytics from anywhere with an internet connection, facilitating remote monitoring and management.
Based on the feature, the VSaaS market for Non-AI VSaaS to hold the highest market share during the forecast period.
The VSaaS market for non-AI solutions is growing for several reasons. Firstly, Non-AI VSaaS solutions offer reliability and simplicity, making them accessible to businesses that may not require or be ready for the advanced capabilities of AI-powered analytics.
These solutions provide essential video surveillance functionalities, such as remote monitoring, recording, and playback, without the complexities associated with AI algorithms. Additionally, Non-AI VSaaS solutions are often more affordable and more accessible to deploy than AI-enabled counterparts, making them attractive to small and medium-sized businesses with budget constraints or limited technical expertise.
Based on AI visual analysis, the VSaaS market for object detection & recognition to hold the highest market share during the forecast period.
The VSaaS market for object detection and recognition is experiencing significant growth due to its ability to enhance security, operational efficiency, and customer experience across various industries. Object detection and recognition technologies leverage advanced algorithms, such as deep learning and computer vision, to accurately identify and classify objects in real-time video streams.
This enables businesses to detect and respond to security threats more effectively, whether it's identifying unauthorized individuals, detecting intrusions, or recognizing suspicious behavior. Additionally, object detection and recognition can be applied to optimize operations in retail, manufacturing, transportation, and other sectors by tracking inventory, monitoring production processes, and analyzing customer behavior.
Based on vertical, the VSaaS for commercial holds the highest market share during the forecast period.
The VSaaS market for commercial verticals is experiencing notable growth due to several key factors. Firstly, businesses across various industries increasingly prioritize security and surveillance to safeguard assets, protect employees, and mitigate risks such as theft, vandalism, and liability claims.
VSaaS solutions offer commercial entities the flexibility to deploy and manage surveillance systems efficiently, regardless of their size or complexity, while also providing remote access and monitoring capabilities. Additionally, the scalability of VSaaS allows businesses to quickly expand their surveillance infrastructure as needed, accommodating growth and evolving security requirements.
VSaaS Industry Regional Analysis
VSaaS market in Asia Pacific to hold the highest market share during the forecast period
The VSaaS market in the Asia Pacific region is experiencing notable growth due to several key factors. Firstly, rapid urbanization and economic development in countries across the region drive the demand for security and surveillance solutions to address safety concerns and protect valuable assets.
Additionally, cloud technology and internet infrastructure advancements have made VSaaS more accessible and affordable for businesses of all sizes, particularly in emerging markets. Moreover, the increasing adoption of digital technologies and smart city initiatives further fuel the demand for advanced surveillance solutions in the region.
VSaaS Market by Region
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Top VSaaS Companies - Key Market Players
The VSaaS companies is dominated by players such as
- ADT (US),
- Johnson Controls (Ireland),
- Axis Communication AB (Sweden),
- Motorola Solutions, Inc. (US),
- Securitas AB (Sweden), and others.
VSaaS Market Report Scope
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Report Metric |
Details |
| Estimated Market Size | USD 5.0 billion in 2024 |
| Projected Market Size | USD 10.7 billion by 2029 |
| VSaaS Market Growth Rate | CAGR of 16.1% |
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Market size available for years |
2020-2029 |
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Base year considered |
2023 |
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Forecast period |
2024-2029 |
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Forecast units |
Value (USD Billion) |
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Segments Covered |
By Type, By Feature, By AI Visual Analysis and By Vertical |
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Geographies covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
The major market players include ADT (US), Johnson Controls (Ireland), Axis Communication AB (Sweden), Motorola Solutions, Inc. (US), Securitas AB (Sweden), Honeywell International Inc (US), Robert Bosch GmbH (Germany), Alarm.com (US), Hangzhou Hikvision Digital Technology Co., Ltd. (China), Arcules Inc (US). (Total 25 players are profiled) |
VSaaS Market Highlights
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Segment |
Subsegment |
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VSaaS Market, By Type |
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VSaaS Market, By Feature |
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VSaaS Market, By AI Visual Analysis |
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VSaaS Market, By Vertical |
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VSaaS Market, By Region |
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Recent Developments in VSaaS Industry
- In November 2023, Johnson Controls announced a digital assessment tool for K-12 school districts to evaluate the physical security of their campuses, identify vulnerabilities and threats, and take appropriate action. With simplified access to data-driven insights, administrators can make more informed decisions to protect students and teachers from various threats.
- In September 2023, Johnson Controls announced its new OpenBlue Service: Ensuring Security Device Performance offering, designed to help customers enhance building safety, manage risk, and maximize the value of investments made in security technology. The offering combines the Johnson Controls OpenBlue suite of connected solutions, the ability to monitor and manage security devices across vendors with remote support services, meaningful insights from skilled engineers, and simplified integrated zero-trust cybersecurity protection.
- In March 2023, Johnson Controls announced the new IQ Pro Hybrid Security Panel, built for intrusion protection in commercial buildings, extensive residential facilities, campuses, and K-12 markets. The IQ Pro supports PowerG’s advanced sensor technology with an industry-leading wireless range and extensive life safety and security devices.
- In January 2023, ADT introduced new innovations in safety for home, mobile, and commercial applications with the ADT+ app. With it, customers can easily access and control their ADT devices, including motion sensors, door & window sensors, smart bulbs, smart locks, smoke/carbon monoxide detectors, and compatible Google Nest Cams, through an intuitive app experience.
- In January 2022, Robert Bosch GmbH launched the VSaaS service, which enables users to record, replay, monitor, and manage cloud video security footage from any place. VSaaS by Bosch is an open platform where it can be deployed with Bosch and third-party intelligent IP cameras to detect specific situations and trigger alarms.
Frequently Asked Questions:
What are the major driving factors and opportunities in the VSaaS market?
Some of the major driving factors for the growth of this market include Increasing adoption of IoT remote monitoring technologies, Rising investment in hyperscale cloud computing infrastructure, Growing emphasis on installing intelligent security systems, and Increasing popularity of video analytics solutions. Moreover, Rapid advancement in artificial intelligence technology, Proliferation of smart city initiatives, and Increased demand for cloud-based surveillance systems in healthcare and retail sectors are critical opportunities for the VSaaS market.
Which region is expected to hold the highest market share?
The growth of the VSaaS market in the Asia Pacific region is particularly pronounced due to several key factors. Firstly, the region's rapid urbanization and economic development have led to increased investments in security and surveillance infrastructure across various industries. Additionally, the widespread adoption of digital technologies, coupled with advancements in cloud computing and internet connectivity, has made VSaaS more accessible and cost-effective for businesses of all sizes. Furthermore, rising concerns about safety, security, and regulatory compliance drive demand for modern surveillance solutions, including VSaaS, to address evolving security threats and operational challenges.
Who are the leading players in the global VSaaS market?
Companies such as ADT (US), Johnson Controls (Ireland), Axis Communication AB (Sweden), Motorola Solutions, Inc. (US), and Securitas AB (Sweden) are the leading players in the market.
What are some of the technological advancements in the market?
Technological advancements in the VSaaS market are rapidly transforming the video surveillance landscape, enhancing security capabilities and operational efficiency. One significant advancement is integrating artificial intelligence (AI) and machine learning algorithms into VSaaS solutions. AI-powered analytics enable real-time object detection, facial recognition, and behavior analysis, allowing businesses to automate threat detection, reduce false alarms, and extract valuable insights from video data. Additionally, advancements in camera technology, such as higher resolution sensors, improved low-light performance, and edge computing capabilities, further enhance the accuracy and effectiveness of VSaaS solutions.
What is the impact of the global recession on the market?
The VSaaS market is expected to be adversely impacted by the recession and rising inflation in 2024. The market growth primarily depends on adopting video surveillance services, which rely on camera and cloud storage, the primary components of VSaaS. With the increased inflation, interest rates, and unemployment, the demand for VSaaS solutions from consumers and enterprises is bound to be less, affecting product development and investments. Due to the recession, verticals, such as industrial, military & defense, and commercial use VSaaS, would have low CAPEX spending. The demand for VSaaS across verticals depends primarily on CAPEX by organizations for constructing, rebuilding, or upgrading their technology solutions. The recession affects the amount of CAPEX spending and the company’s sales and profitability. There can be no assurance that existing capital spending will continue or that spending will not decrease during the economic downturn. This will hamper the adoption of VSaaS in commercial and residential applications.
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The study involved four major activities in estimating the current size of the VSaaS market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study included corporate filings (such as annual reports, investor presentations, and financial statements), trade, business, and professional associations, white papers, certified publications, articles by recognized authors, directories, and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of major secondary sources
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SOURCE |
WEB LINK |
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Federal Communications Commission (FCC) |
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National Institute of Standards and Technology (NIST) |
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Ministry of Electronics and Information Technology (MeitY) |
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Ministry of Industry and Information Technology (MIIT) |
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Ministry of Internal Affairs and Communications (MIC) |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the VSaaS market through secondary research. Several primary interviews were conducted with experts from both demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the VSaaS market and its various dependent submarkets. The key players in the market were identified through secondary research, and their market share in the respective regions was determined through primary and secondary research. This entire procedure involved the study of annual and financial reports of top players and extensive interviews with industry leaders such as chief executive officers (CEOs), vice presidents (VPs), directors, and marketing executives. All percentage shares and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Bottom-Up Approach
The bottom-up approach was used to arrive at the overall size of the VSaaS market from the revenues of the key players and their shares in the market. The overall market size was calculated based on the revenues of the key players identified in the market.
- Identifying various verticals using or expected to implement VSaaS
- Analyzing each vertical, along with the major related companies and VSaaS providers
- Estimating the VSaaS market for verticals
- Understanding the demand generated by companies operating across different verticals
- Tracking the ongoing and upcoming implementation of projects based on VSaaS technology by vertical and forecasting the market based on these developments and other critical parameters
- Carrying out multiple discussions with key opinion leaders to understand the type of VSaaS products designed and developed vertically, helping analyze the breakdown of the scope of work carried out by each major company in the VSaaS market
- Arriving at the market estimates by analyzing VSaaS companies as per their countries and subsequently combining this information to arrive at the market estimates by region
- Verifying and cross-checking the estimates at every level through discussions with the key opinion leaders, including CXOs, directors, and operations managers, and finally with domain experts at MarketsandMarkets
- Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, and databases
Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage splits from secondary and primary research.
To calculate the market size of specific segments, the most appropriate immediate parent market size has been used to implement the top-down approach. The top-down approach was implemented for the data extracted from the secondary research to validate the market size obtained.
The market share of each company was estimated to verify the revenue shares used earlier in the top-down approach. The overall parent market size and individual market sizes were determined and confirmed in this study by the data triangulation method and the validation of data through primaries. The data triangulation method in this study is explained in the next section.
- Focusing on top-line investments and expenditures being made in the ecosystems of various verticals
- Building and developing the information related to the market revenue generated by key VSaaS manufacturers
- Conducting multiple on-field discussions with the key opinion leaders involved in the development of VSaaS products in various verticals
- Estimating geographic splits using secondary sources based on various factors, such as the number of players in a specific country and region, the offering of VSaaS, and the level of solutions offered in verticals
- Considering the impact of the recession on the steps mentioned above
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the market has been split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, the data triangulation procedure has been employed wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size has been validated using top-down and bottom-up approaches.
Market Definition
VSaaS encompasses a comprehensive set of measures, technologies, and practices designed to protect physical assets, facilities, and individuals from unauthorized access, theft, vandalism, and other potential threats. These solutions often include hardware and software components such as access control systems, surveillance cameras, perimeter barriers (e.g., fences, gates), alarm systems, biometric identification systems, and visitor management systems. The primary goal is to create a secure environment that deters intrusions, monitors activities, and responds promptly to security incidents. By deploying tailored physical VSaaS, organizations can safeguard their premises, assets, and personnel, mitigating risks, ensuring safety compliance, and maintaining operational continuity.
Key Stakeholders
- VSaaS providers
- Hardware manufacturers
- Cloud service providers
- End users
- System Integrators
- Resellers and distributors
- Regulatory bodies and compliance agencies
- Research institutions
- Industry associations and organizations
- Investors and financial institutions
Report Objectives
- To define, describe, and forecast the VSaaS market by type, feature, AI visual analysis, vertical, and region
- To forecast the size of the market segments for four major regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW)
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze micro markets concerning individual growth trends, prospects, and contributions to the total market
- To provide a detailed overview of the VSaaS market’s value chain, the ecosystem, technology trends, use cases, regulatory environment, and Porter’s five forces analysis for the market.
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
- To analyze the opportunities in the market for stakeholders and describe the competitive landscape of the market
- To analyze competitive developments, such as collaborations, partnerships, product developments, and research & development (R&D), in the market
- To analyze the impact of the recession on the VSaaS market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the VSaaS market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the VSaaS market
Generating Response ...
Growth opportunities and latent adjacency in VSaaS Market
I am a trade journalist and needed some key information for video surveillance security market, global and stateside for Security Sales & Integration Magazine. I can attribute quotes to your report. Will you work with me on this or other magazine articles?
IP cameras are gaining traction in the market as it offer greater flexibility in terms of remote surveillance applications, hence rapidly replacing analog cameras in market. Do you have IP camera shipments data in APAC regions?
I am particularly interested to see if this report covers wireless surveillance (i.e. data sent over mobile networks).
Trying to get more info about VSaaS Market. How can I access your report with low budget?
I will need a major discount in order to get my manager's approval for purchasing the report.
We will launch our security services this year in Zimbabwe. So want to understand the market in this country.
Interested in the relative growth between commercial, residential and industrial segments, as well as what other sub-segments in video surveillance market.
As a General Manager, I'm focus at quality services to provide fine products to costumers and the news technologies for security market. What are other applications that would impact our revenues? Who are the leading manufacturers for security market?
Hello, I have seen this report is dated from 2015. Have you done a recent update with data from 2017?
Focusing into new company and looking for market info on VSaaS - size for technology and service types.