Video Analytics Market Report Scope & Overview:

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The Video Analytics Market size was valued at USD 8.12 billion in 2023 and is expected to reach USD 50.31 billion by 2032, growing at a CAGR of 22.51% over the forecast period of 2024-2032.

The growing significance of the video analytics market is due to the augmenting demand for advanced security and operational efficiency in the industrial verticals. Largely because 64% of businesses believe in a general productivity increase, there has been a surge of confidence in AI as an emerging paradigm-shift change agent for business. The trend is especially strong in sectors such as retail, transportation, and government, where video analytics can automate monitoring and disburse analytics. Currently, around 56% of the world population lives in urban areas (2023), which only accentuates the demand for modern surveillance solutions for public safety and efficient resource optimizations.

With the evolution of industries, there is a rising need for sophisticated video analytics particularly by sectors looking to streamline their operation and improve customer experiences. In video marketing, for example, 63% of marketers track ROI based solely on views. 28 percent of marketers use engagement graphs & heatmaps to measure how effective their videos are, while 27 percent use video analytics dashboards. This reflects a behavioral change where the demand for predictive analytics coupled with automated surveillance tools can help in assessing consumer behavior and augmenting the delivery of services.

The incorporation of AI technologies significantly impacts the video analytics market, with innovation leading to traditional tamper-proofing into intelligent behavior recognition and anomaly detection in real-time using the latest machine learning and deep learning algorithms. With organizations increasingly opting for these technologies, video analytics' effectiveness will only improve. To this end, 12% of marketers do compare videos against each other to better hone their approach a direct sign that more advanced analytics are beginning to take root. In the coming years, however, it is expected that all video analytics fall under AI to deliver even more value insights for effective business and security improvements.

MARKET DYNAMICS

DRIVERS

• Rising Demand for Advanced Security and Surveillance Solutions

The demand for video surveillance systems enhanced with advanced analytics has been substantially driven by the upsurging incidences of security threats, coupled with escalating crime rates. This optimism is echoed by integrators, who are key players in the security ecosystem, 82% reported favorable market conditions. Valuations of security cameras in the U.S. are projected to hit USD 21 billion, showing large investments into these technologies. Other cities, such as Delhi, India, illustrate the trend, with more than 1,800 surveillance cameras per square mile: a clear move towards ensuring the public safety and security that so many have come to expect. Consequently, integrating video analytics within holistic and integrated security strategies is inevitable across sectors.

• Growth of Smart Cities Driving Demand for Video Analytics

Urbanization and implementation of the latest technologies for public safety and operational efficiency are contributing to the rapid development of smart cities. Video analytics is critical for these initiatives, enabling traffic management, crowd monitoring, and public safety features. Coincidentally, the Government of India National Smart Cities Mission seeks to build smart cities across the country with the financial backing of USD 1.7 billion allocated in the 2023 Union budget and additional funding of USD 1.9 billion under execution projects. In the past decades, most of the cities have already adopted various smart technologies, As an integral component to tackle many urban challenges efficiently, video analytics comes into play.

RESTRAINTS

• Increasing Data Privacy Concerns Hindering Growth in the Video Analytics Market

The heightened concerns around data privacy and surveillance practices pose serious restraints on the video analytics market. For example, GDPR and CCPA have introduced a web of regulations that organizations march directly into ensuring the protection of consumer data. Careful consideration of privacy laws and regulations may create reluctance to adopt video analytics solutions due to compliance concerns. Moreover, the concerns about surveillance in public can prevent organizations from taking up advanced analytics technologies which will hinder now making it slower and easier for them to deploy on the market. With 2,365 cyberattacks impacting more than 343 million victims just in 2023, organizations must take security and privacy risks into account when evaluating video analytics solutions. Transparency and ethical data use continue to be a crucial issue in the development of video analytics.

SEGMENTATION ANALYSIS

BY TYPE

In 2023, Edge-based video analytics dominated the market and accounted for approximately 59% of revenue share. This is primarily because edge computing brings local processing of data, reducing the latency and bandwidth needed. Edge solutions are becoming more popular as organizations seek real-time insights for applications such as security and traffic management. In addition, enhancements of edge computing technology continue to promote the efficiency and scale of edge computing.

However, server-based Based Video Analytics is projected to witness the fastest CAGR of nearly 23.28% during 2024-2032. Server systems provide powerful data processing and storage capabilities, which contribute to this growth. Server-based solutions are proving enticing for comprehensive analysis of large datasets, particularly with the maturation of cloud technologies. Moreover, the combination of AI and machine learning in server frameworks enhances analytic capacity and further drives acceptance for video analytics deployed as a service on base servers.

BY OFFERING

In 2023, software constituted over 59% share in terms of revenue with the video analytics market. The increase in demand for advanced analytics tools, that enhance security and operational efficiency in multiple sectors, has led to this position as a leader. Software solutions that integrate artificial intelligence and machine learning can analyze data in real time, improving the ability to detect threats and make decisions. In addition, the ability to integrate smoothly with existing systems also adds to their attractiveness in the market.

In contrast, the services segment of the video analytics market is anticipated to grow with the highest CAGR of 23.11% during the forecast period 2024-2032. Demand for implementation and support services is propelling this growth as organizations look to maximize the value of their analytics solutions. However, due to the complexity of video analytics technology, deployment, and maintenance need a specialist skill set. Furthermore, residual interest in analytics capabilities is extended when dedicated service offerings allow businesses to take advantage of constant updates and improvements.

BY DEPLOYMENT MODEL

The on-premise video analytics segment held a revenue share of approximately 53% in the market in 2023. Companies prioritize security and control of the data in more sensitive sectors, such as finance and healthcare, which ultimately explains this dominance. To meet stringent data privacy regulations, many businesses prefer on-premise solutions that ensure sensitive information stays within the four walls of their organization. Moreover, it enables faster processing and data analysis when applied on-premise system is critical in case of any real-time applications.

On the other hand, cloud-based video analytics is anticipated to register the highest CAGR of around 22.90% during the forecast period, 2024-2032. The expected increase will be driven by a growing need for scalable and flexible solutions that cloud technology offers. It could be that organizations are lured into cloud services purely for being much more cost-effective whilst seamless to existing systems. In addition, improved cloud infrastructure boosts storage resources and makes it easier to analyze data through AI so that various types of enterprises can turn to the cloud for insights they need from video.

BY END USE

Facial recognition was the leading application segment in the video analytics market in 2023, capturing around 27% of revenue share. This is due to its extensive use in Security and surveillance where it bolsters identity verification and access control. From public places like airports and train stations to private enterprises, the number of organizations installing facial recognition systems to strengthen their security efforts is growing by leaps and bounds. Additionally, the accuracy and reliability of facial recognition have been improved due to the advancement in AI algorithms thus it has become a very popular option among various sectors.

On the contrary, crowd management is expected to register the fastest growth rate, and it is predicted to have a CAGR of approximately 23.05% from 2024 to 2032. Such growth is triggered due to the growing demand for effective monitoring in populated areas including events, transportation hubs, and public gatherings. More and more people are living in large cities today, and public kick-off events are also being held almost every month. So organizations can no longer afford to be content with having analytics of a safety event; they now want advanced analytics that helps flea-flow through crowds.

REGIONAL ANALYSIS

In 2023, North America accounted for the largest share of 40% in the video analytics market due to the presence of a sophisticated technological environment and greater need for advanced security solutions. The rapid amount of focus on innovations in surveillance and analytics throughout the region, backed by heavy public sector and private funding support, has fueled over-the-market productivity. Further adoption of AI and ML technologies in video analytics increases the operational efficiency and effectiveness through various industries.

On the other hand, Asia Pacific is expected to remain an opportunistic revenue pocket with the highest growth rate of about 23.75%, during the forecast period of 2024-2032. Drivers of this growth include the increasing degree and level of urbanization along with the emergence of smart cities, which largely depend on intelligent monitoring systems. As the regional countries realize the growing importance of video analytics to improve public safety and traffic management. In addition, rising government initiatives to enhance infrastructure and security capabilities is estimated to increase the demand for video analytics solutions in Asia Pacific thus making it an emerging area of growth for this market segment.

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LATEST NEWS

• Robotic Assistance Devices (RAD), a division of Artificial Intelligence Technology Solutions, Inc., released major improvements in May 2024 to its AI-powered gunshot detection analytics. These improvements will be available for RAD's portfolio of security devices — including ROSA™ and RIO™ models, extending their operational capabilities.
• Meanwhile, NEXCOM, an industrial IoT solution provider known between other things for its network solutions has also announced AI and storage performance results on the NSA 7160R Edge server. The server features dual Intel® Xeon® Scalable processors and other advanced components, proving its efficiency for peripheral video server workloads by high marks in the performance analysis below.

KEY PLAYERS

• Avigilon Corporation (Canada) (Avigilon Control Center, Avigilon Cloud Services)
• Axis Communications AB (Sweden) (Axis Camera Station, AXIS Object Analytics)
• Cisco Systems, Inc. (U.S.) (Cisco Video Analytics, Cisco Meraki MV)
• International Business Machines Corporation (IBM) (IBM Watson Video Analytics, IBM Security QRadar)
• Aventura Technologies Inc. (Aventura Video Analytics, Aventura Cloud)
• Qognify (Qognify VisionHub, Qognify Situator)
• Puretech Systems Inc. (Puretech VMS, Puretech Video Analytics)
• AllGoVision Technologies Pvt. Ltd. (AllGoVision Video Analytics Platform, AllGoVision Smart City Solutions)
• Honeywell International Inc. (U.S.) (Honeywell Video Analytics, Honeywell Connected Enterprise)
• Agent Video Intelligence Ltd. (U.S.) (Agent Vi’s Savvy, Agent Vi’s InnoVi)
• Earth Water Limited (U.S.) (EWL Video Analytics, EWL Surveillance Solutions)
• Genetec Inc. (Canada) (Genetec Security Center, Genetec AutoVu)
• Intellivision (U.S.) (Intellivision AI Video Analytics, Intellivision Edge Analytics)
• Intuvision Inc. (U.S.) (IntuVision Video Analytics, IntuVision Smart Video Management)

• Dahua Technology (Dahua Video Management Software, Dahua Smart H.265+ Technology)
• Hikvision (HikCentral, Hikvision DeepinMind NVR)
• Milestone Systems (Milestone XProtect, Milestone Interconnect)
• NEC Corporation (NEC NeoFace, NEC Intelligent Video Analytics)
• BriefCam (BriefCam Syndex, BriefCam VMS)
• Verkada (Verkada Cameras, Verkada Command)
• FLIR Systems (FLIR Analytics, FLIR Video Management Software)
• SeeQuestor (SeeQuestor Video Analytics, SeeQuestor Evidence Management)
• Scallop Imaging (Scallop Video Analytics, Scallop Real-Time Analytics)