The video surveillance market is expected to reach $37.7 billion in 2015, says a report by Electronics.ca Publications, an electronics industry market research network located in Quebec, Canada.
The report—Global Video Surveillance Market, Applications and Management Services Forecasts—says the worldwide video surveillance market will grow at a “compound annual growth rate” (CAGR) of 20.4 percent from $11.5 billion in 2008 to $37.7 billion in 2015. CAGR is the year-over-year growth rate of an investment over a specified period of time.
The report analyzes the global video surveillance market by components and applications and studies the major market drivers, restraints, and opportunities for the video surveillance market in North America, Europe, Asia Pacific, and the rest of the world (ROW). The increasing need for security is driving the growth of the global video surveillance market, the report says.
The major components of the surveillance market are cameras, storage, servers, encoders, and software with cameras accounting for almost 47 percent of the total video surveillance market in 2008 and that percentage of the market is expected to grow at a CAGR of 21.1 percent from 2010 to 2015.
However, the video surveillance software market is expected to grow with a faster CAGR; that market’s CAGR is expected to be 21.7 percent from 2010 to 2015 owing to the introduction of video analytics which makes video surveillance systems intelligent, the report says.
The market for storage is expected to grow at a comparatively lower rate owing to the introduction of “video surveillance as a service” (VSaaS), the report says. Video surveillance stakeholders, as well as information technology industries have together introduced the concept of cloud computing in that market. Video surveillance is now offered as a service to the end users and is eliminating the need for storage at clients’ sites.
In addition, factors contributing to the growth of the video surveillance market are increased instances of crimes and the transition of video surveillance system to internet protocols (IP). Also, the major sectors where video surveillance systems are being –and will remain—deployed for security are government, retail, banking, education and transportation, the report says.