Video Analytics Market Size Report By Type (Software, Hardware), By Deployment (Cloud, On-premise), By Application (Intrusion Detection, Crowd Management, Facial Recognition), By End Use, And Segment Forecasts, 2018 - 2025

Industry Insights

The global video analytics market size was valued at USD 1.6 billion in 2016. This growth can be primarily attributed to increasing concerns regarding the safety and security of the public. In addition, the growing application of video analytics for reducing crime rates through timely alerts about suspicious or unusual activities is a key factor driving the market.

Demand for intelligent video surveillance is further accelerated due to additional features such as improved accuracy, enhanced reliability, and cost-effectiveness, along with its growing significance in business intelligence. These solutions are extensively used to gain insights on patterns pertaining to consumer behavior, traffic movement, and frequency of footfall at a user-defined area.

Video surveillance plays a major role in carrying out safety-related operations. Public and private video surveillance systems assist in reducing crime rates and safeguarding private and public areas by identifying number plates and determining faces. Moreover, video recording has become an integral tool in law procedures as it can be used for gathering evidence. Most businesses are also implementing video analytics to re-design their plans based on derived insights and are updating their product offerings based on induced consumer behavior patterns.

Type Insights

Based on types, the market has been categorized into software and services segments. The market software and services offer an array of features and are entirely customizable (prior to installation) based on client’s requirements. In addition, the software helps in detecting a wide range of events encompassing people, vehicles, and static objects and analyzing videos from multiple sources.

Video analytics enables the detection of minute details even in low visibility and facilitates the central management of analytics in deployments, which are accessible irrespective of the location and time. Access can be granted using a standard web browser with real-time scene analysis and alarms that are based on customizable user-defined rules.

The companies providing this software generally offer supplementary services with their products. They provide a comprehensive package and focus on addressing the demands of customers by offering security applications such as access control, video surveillance, motion detection, intrusion detection, and other communications.

Deployment Insights

By deployment, the video analytics market has been divided into on-premise and cloud. The cloud segment comprises Software as a Solution (SaaS), which enables unified management of processes, and on-demand subscription model, which charges customers based on the number of subscriptions. On-premise business operations are carried out on the user company’s site with a dedicated server for itself without linking it to an outside server. In such cases, the software is fully owned by the company.  

In recent years, several organizations have been observed shifting from conventional on-premise installations to cloud deployments. Cloud-based solutions are highly scalable and support an unlimited number of cameras by providing real-time analyses of incidents. The cloud-based segment is expected to register the fastest growth with a CAGR of 24.5% over the forecast period.

Application Insights

Crowd management and monitoring are tedious tasks for governments and police departments at major events and festivals. In such cases, combining smart surveillance systems with video analytics enables critical situational alerts on a real-time basis.

Video analytics finds extensive application in crowd management, such as crowd size estimation, identification of dominant patterns and statistics of the crowd, and determining suspicious activities. As a result, the crowd management segment held the dominant share and was valued at USD 399.9 million in 2016.

Meanwhile, the facial recognition segment is expected to emerge as the fastest-growing segment, registering a CAGR of 25.9% over the forecast period. Applications such as assistance in fraud detection in passports and visas, identification of criminals, and attendance tracking and management are likely to drive this segment.

End-use Insights

The global demand for video analytics has seen a paradigm shift due to the changing demands of customers. The retail end-use segment dominated the market and was valued at USD 418.6 million in 2016. Due to the expanding application scope of video analytics in the retail sector, the segment is likely to retain its lead throughout the forecast period.

Other end-use segments include BFSI, government, education, transportation, city, and critical infrastructure. The focus of end users has shifted from basic security surveillance and monitoring to understanding crowd patterns at a particular place and decoding the behavior of individuals. This has, in turn, driven the adoption of video analytics in several applications such as retail, city, and government.

Technological proliferation in the BFSI and education (e-learning) industries has encouraged the implementation of video analytics solutions. The transportation industry is also witnessing increasing deployments for license-plate recognition, vehicle counting, speeding detection, and congestion detection, among others.

Regional Insights

North America was the leading regional market in 2016, valued at USD 736.6 million owing to the large presence of key industry players. The U.S. is currently the world’s largest consumer of video analytics. Rapid technological development in the country is supported by strong economic growth. Moreover, organizations have been refocusing operations on security and safety by incorporating analytics. A shift has been observed from conventional on-premise deployment of video analytics to cloud deployment owing to the changing requirements of customers.

In terms of revenue share, Asia Pacific emerged as the second-largest market and this can be attributed to strong economic growth in countries such as India, China, and Indonesia. These economies have been investing in intelligent security surveillance systems to ensure the safety of their citizens. Increasing the implementation of industry solutions, mainly in China, Japan, and India, coupled with increasing adoption of cloud-based technologies, is expected to drive the market.

Video Analytics Market Share Insights

The global market is highly competitive and fairly concentrated, with the top five companies accounting for maximum share in the global software solutions and services segments in 2016. Key industry participants include Axis Communications AB; Agent Video Intelligence Ltd.; Honeywell International Inc.; IBM Corporation; and Cisco Systems Inc.

Industry players have been undertaking various strategic initiatives to stay ahead in the game. These include collaborations, new product developments, investments related to expanding capabilities, partnerships and agreements, and research and development investments. Companies have also been focusing on application development and customized products in an attempt to gain a competitive edge in the market. They have also been engaging in frequent mergers and acquisitions in a bid to diversify product portfolio and gain market share.

Report Scope

Segments Covered in the Report

This report provides forecasts of revenue growth at global, regional, and country levels and analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global video analytics market report based on type, deployment, application, end use, and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Software

  • Services

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • Cloud

  • On-premise

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Crowd Management

  • Facial Recognition

  • Intrusion Detection

  • License Plate Recognition

  • Motion Detection

  • Others

• End-use Outlook (Revenue, USD Million, 2014 - 2025)

  • BFSI

  • City

  • Critical Infrastructure

  • Education

  • Government

  • Retail

  • Transportation

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

  • Middle East & Africa