The demand for video surveillance cameras is expected to jump over the next few years, according to new data released by IDC on Tuesday. Based on the latest forecast, this market is likely to grow to $44 billion by 2025, up from $23.6 billion in 2019, capturing a five-year compound annual growth rate of almost 13%.
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Differing somewhat from traditional security and closed-circuit television (CCTV) cameras, video surveillance cameras typically work in conjunction with security systems and are often internet-connected so people can monitor the feed from anywhere. These types of cameras are used by consumers and businesses alike to keep an eye on sensitive or vulnerable areas.
The video surveillance camera sector has been hurt by a couple of factors, including the coronavirus pandemic and the exclusion of the two market leaders from contention for US government contracts. But the industry will benefit from the increased need for smart camera systems and analytical software, both of which can help these types of cameras play a few different roles beyond that of simple surveillance.
“Although the video surveillance camera market will experience a decline in revenue for the first half of 2020, IDC expects that latent demand and the need to increase the safety and security of public spaces will ensure that 2020 overall will be a positive year for the video surveillance camera market,” Mike Jude, research director for IDC’s Video Surveillance and Vision Applications practice, said in a press release.
Why the increase in cameras?
Consumer video surveillance cameras now account for 32% of the global market, due largely to the use of home security systems and mobile cameras such as those in cars. North America remains the top consumer for video surveillance cameras, followed closely by China. Several Chinese camera manufacturers have been blacklisted, a factor that will not slow growth but will actually open the market to smaller camera makers, according to IDC.
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“Video surveillance camera growth is being driven by the adoption of smart camera systems and the adoption of the video analytics applications that enable them,” Jude added. “Although the market has seen a short-term decline driven by COVID-19 impacts, the longer-term prospects will be driven by the increasing use of video surveillance in law enforcement and physical security.”
There is one factor that could hamper growth in the sector, IDC said. The use of advanced analytics and artificial intelligence for applications like facial recognition has become a sensitive area that may lead to greater regulation, thus impacting the industry.