Global VSaaS Market Size, Share & Industry Trends Analysis Report By Vertical (Commercial, Infrastructure, Residential, Military & Defense, Public Facilities, and Industrial), By Type, By Regional Outlook and Forecast, 2022 – 2028
The Global VSaaS Market size is expected to reach $8.6 billion by 2028, rising at a market growth of 18.2% CAGR during the forecast period.
VSaaS is a cloud-based surveillance service which allows users to operate video surveillance devices remotely for a more inventive and scalable security solution. Secure remote monitoring features, real-time updates, a substantially reduced footprint, and full control of surveillance data on a unified platform are all advantages of VSaaS over conventional on-premise Video Management Systems (VMSs).
Businesses can reimagine their surveillance systems using VSaaS without having to worry about unexpected maintenance costs or pricey system changes. The analytics and machine-learning algorithms in VSaaS are powered by the newly updated artificial intelligence technologies, providing important insights and actionable feedback for the organization. Furthermore, VSaaS is a far more cheap solution than conventional on-premise VMSs because to fewer hardware and software needs, lower energy consumption, and complete system scalability.
Numerous commercially hosted Video Management Systems employ an on-site appliance that enables users to connect and record a variety of current third-party cameras. Such open VSaaS providers provide customers the freedom to choose from a variety of hardware vendors or just use current surveillance hardware to create a security solution that meets corporate needs and budget. Although, some VSaaS providers only provide closed video access through proprietary gear, necessitating the replacement of any current video surveillance hardware in order to switch to this service model.
To mitigate the cost of financing a completely different system, these VSaaS providers would frequently provide to rebuild the entire system at a lesser cost. While the low initial cost of such plans may appear tempting, they might be overly restrictive and provide little to no flexibility in terms of hardware selections that best meet business needs. In many circumstances, whatever money saved initially on these services is wasted tenfold over time.
COVID-19 Impact
This is owing to supply chain interruptions and cross-border trade restrictions, which have caused delays in the delivery of hardware components, primarily cameras, especially from China. Due to the limited operations of companies or facilities, COVID-19 spread to a variety of industries, including automotive, electronics, and hospitality. In addition, many governments postponed new infrastructure projects, which had a negative impact on the security equipment and software (including VSaaS) market in 2020. The market has begun to recover, and demand for select products from sectors like healthcare, smart cities, retail, and public facilities has recovered, as video surveillance systems are critical in combating COVID-19.
Market Growing Factors
Rising demand for real-time surveillance data
One of the primary drivers of VSaaS market growth is the growing demand for actual surveillance data throughout commercial and infrastructure sectors. End customers such as retail establishments, manufacturing sites, corporations, warehouses, and banks need real-time remote monitoring on every device at any time to notice unexpected events on their premises due to security concerns and technological improvements. Users with different business locations also require real-time and remote access to surveillance data in order to keep an eye on the location from afar.
Growing utilization of smart gadgets along with increasing investments in IT infrastructure
The growing prevalence of do-it-yourself (DIY) video surveillance for home security, along with the increasing use of smart devices, is providing attractive potential for VSaaS service providers in the market. Smartphone prevalence has increased in recent years in China, the United States, the United Kingdom, India, and Japan, owing to lower prices, technological breakthroughs, and enhanced usefulness. The growing use of smart devices has opened up new prospects for VSaaS providers. By providing VSaaS compatible with various devices, service providers can expand their market share. Over the years, global infrastructure investments have increased.
Market Restraining Factors
Strict government rules about privacy and data security
The Federal Information Security Management Act (FISMA) in the United States and the General Data Protection Regulation (GDPR) in Europe have been enacted in response to growing privacy and security concerns. These rules are being imposed on VSaaS providers in order to prevent the misuse of a user's personal data, particularly in the area of face recognition technology. Furthermore, as IT companies become more aware of the dangers of personal data bridges, they are becoming more cautious when picking a VSaaS solution. Along with that, governments are widely investing in strengthening the security systems across the world due to the rising incidents like terrorist attacks.
Vertical Outlook
Based on Vertical, the market is segmented into Commercial, Infrastructure, Residential, Military & Defense, Public Facilities, and Industrial. Infrastructure segment recorded a substantial revenue share in the VSaaS market in 2021. The market is predicted to develop due to rising demand for VSaaS solutions in the public spaces, transportation, and municipal surveillance segments. New prospects for VSaaS providers will arise as a result of favourable government initiatives to establish smart city projects. Several countries, including China, India, and South Korea, are heavily investing in the development of smart cities.
Type Outlook
Based on Type, the market is segmented into Hosted, Managed, and Hybrid. Hosted VSaaS segment acquired the largest revenue share in the VSaaS market in 2021. The significant market share can be attributed to rising VSaaS use in the residential, SMB, and retail sectors, as well as increased smart city penetration in various regions. Furthermore, as fast internet speed is one of the essential criteria of service providers and customers, growing smartphone penetration, commercialization of 5G services, and affordability of high Internet are assisting the market for hosted VSaaS to expand.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America emerged as a leading region in the VSaaS market with the maximum revenue share in 2021. The governments of North America, particularly the United States, have made a number of steps to establish sophisticated surveillance systems in public spaces and official buildings. The government is also putting a lot of effort into increasing the adoption of VSaaS solutions in the defense and infrastructure sectors.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Johnson Controls International PLC, Honeywell International, Inc., Robert Bosch GmbH, Axis Communications AB (Canon, Inc.), Comcast Corporation, Arlo Technologies, Inc., Vivint Smart Home, Inc., ADT, Inc. (Apollo Global Management, Inc.), Genetec, Inc., and Pacific Controls Systems.
Strategies deployed in VSaaS Market
Partnerships, Collaborations and Agreement:
Jan-2022: Axis Communications came into a partnership with Wasabi Technologies, the hot cloud storage company. This partnership aimed to provide cloud storage for AXIS Camera Station (ACS) VMS. This advanced solution would integrate the strength of Axis’ top video technology and Wasabi’s unlimited scalability and disruptively low, low cost to assist companies to optimize their advanced video surveillance implementations and more efficiently operate in developing high-definition environments and longer retention periods.
Oct-2021: Genetec teamed up with TELUS, a Canadian national telecommunications company. This collaboration aimed to streamline video surveillance for small and medium-sized businesses in Canada via the flexibility and cost-efficiency of the cloud.
Product Launches and Product Expansions:
Nov-2022: Bosch launched INTEOX, a new camera platform. This platform of its kind, INTEOX provides customers, system integrators, and application developers unprecedented freedom for innovation and personalization. This platform would pave the way for future solutions due to an open platform that integrates built-in Intelligent Video Analytics from Bosch. In addition, the INTEOX platform would empower a comprehensive line-up of MIC, FLEXIDOME, AUTODOME, and DINION fixed and moving cameras that would support by an open IoT infrastructure.
May-2022: Bosch expanded the Inteox open camera portfolio by launching two fixed cameras: The Flexidome and Dinion inteox 7100i IR cameras. The cameras provide a menu of video analytics, built-in infrared illumination, 4K resolution, and durable housing to execute in rugged environments to fulfill different customer needs around the clock.
Mar-2022: Comcast Technology Solutions introduced a new service, Video Artificial Intelligence (VideoAI), for customers around the world. VideoAI is a software-as-a-service (SaaS), which would assist enterprises to understand and evaluate video (live and on-demand), audio, and closed captions to develop actionable metadata across content assets, generate and maintain new content, enhance advertising effectiveness, and simplify operations.
Nov-2021: Johnson Controls launched six new additions to the Cloudvue camera portfolio. Through this launch, Johnson Controls would provide customers with one of the most robust portfolios of cloud-enabled cameras, which are in high demand.
Apr-2021: Axis Communications launched all-in-one access control and video management, AXIS Camera Station Secure Entry. This latest capability would make sure trouble-free management of a site by offering video-verified access control. Along with access control management and live video monitoring, the latest & improved software provide secure access to door control logs and connects them to video recordings for simpler and more efficient incident investigation.
Nov-2020: Axis Communications unveiled AXIS Q6100-E, a high-resolution multidirectional camera. This camera is developed for operation with any AXIS Q61 PTZ Network Camera. In addition, this camera would enable total situational awareness in huge open spaces or narrow streets and zoomed-in details with the PTZ camera. Providing 360° overviews in 20 MP resolution, this camera is developed for use with any PTZ camera in AXIS Q61 Series to deliver one-click PTZ control for all the details.
Acquisitions and Mergers:
Apr-2022: Johnson Controls completed the acquisition of Security Enhancement Systems (SES), a provider of mobile-based, keyless access control solutions. Under this acquisition, SES's technology would enable to own the overall experience of secure and comprehensive access to remote sites and important infrastructure by service providers.
Apr-2018: Johnson Controls took over Smartvue, a leading IoT and video provider. This acquisition aimed to improve Johnson Controls’ portfolio of an end-to-end, smart cloud-based solution, which would offer superior business data and intelligence to customers and add value to partners.
Scope of the Study
Market Segments covered in the Report:
By Vertical
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