8 · d e t e k t o r i n t e r n a t i o n a l
Security Technology
Market
A report from Novaira Insights reveals that the global
market for video surveillance hardware and software
experienced 3.4% growth in 2023, reaching around
USD 24.9 billion.
The report, "The World Market
for Video Surveillance Hardware
and Software," also reveals that this
growth was characterised by a 2.7%
decline in the Chinese market,
while the rest of the world (exclud-
ing China) saw 8.2% growth--a
slower rate compared to the 13.2%
growth achieved in 2022.
"In 2023, China's government
spending on video surveillance
remained significantly lower
than pre-pandemic levels, despite
expectations of a rebound. Outside
of China, most markets continued
to grow. Yet, many vendors in
2023 experienced a decrease in
unit shipments due to a greater lag
between the channel and end-user
demand. This lag was created by
distributors overordering stock in
2022 in response to supply chain
disruptions," said lead analyst and
founder of Novaira Insights, Josh
Woodhouse.
"These supply chain issues were
largely resolved in 2023, but dis-
tributors first utilised their existing
stock of equipment. 2023 also saw
some softening of demand due to
persisting economic uncertainties
in several sectors and countries."
China the largest market
China is estimated to have
remained the world's largest
regional market for video surveil-
lance equipment, accounting
for 41% of the global market
in 2023. However, this marks a
proportional decrease compared
to two years earlier, when China
accounted for 52%. In 2023, there
were still hundreds of suppliers of
video surveillance equipment in
the country.
Four suppliers account
for 50% of the market
Additionally, the rise of video
surveillance cloud solutions has
led to the emergence of many
newer suppliers. However, de-
spite this proliferation, four sup-
pliers (Hikvision, Dahua, Axis
Communications, and Motorola
Solutions) continued to account
for nearly half of global video
surveillance equipment revenues.
Cloud-connected cameras
on the rise
Demand for video surveillance
cloud solutions continues to
grow rapidly, with high growth
projected to persist. The United
States is leading the way in
adopting cloud technology for
video surveillance. In 2023, the
U.S. saw an increase of over 1
million cloud-connected cameras
compared to 2022. Despite this
growth, the overall percentage
of cameras with an active cloud
connection remains low, still in
the single digits as a percentage
of the installed base.
8.4% growth in 2024
China to see minimal growth
while the rest of the world ac-
celerates.
In 2024, the Chinese market
is forecast to grow, although it
will remain well below its peak
in 2021.
Outside of China, market
growth is expected to accelerate,
driven by robust expansion in
emerging markets such as India,
Latin America, and the Middle
East. Additionally, increased
demand for cloud solutions in
established markets like North
America and Western Europe
will contribute to this growth.
As a result, the global market for
video surveillance equipment is
projected to grow by 8.4% in
2024, reaching a value of over
USD 27 billion.
Global surveillance market returns to growth
Josh Woodhouse of Novaira Insights.
Newport Pagnell, Buckinghamshire (UK)
Northbrook, Il (USA)
The global video surveillance storage market is ex-
pected to grow from USD 9.5 billion in 2024 to USD
12.6 billion by 2029, with a CAGR of 5.7%, according to
MarketsandMarkets.
Key trends driving this growth
include AI, cloud computing,
and edge storage, as well as the
shift towards hybrid on-premises
and cloud solutions. AI analytics
now enable real-time data pro-
cessing, reducing storage needs,
while advancements in com-
pression and hyper-converged
infrastructure (HCI) are also
contributing.
Environmental focus
Leading players like Seagate and
Western Digital are focusing on
energy-efficient technologies and
cloud solutions, reducing power
consumption and carbon foot-
prints. Companies are also using
recycled materials and designing
products with longer lifespans.
Market segments
The market is divided into hard-
ware, software, and services. Soft-
ware is expected to see the highest
growth due to its role in managing
video storage and analytics. No-
table software includes Milestone
Systems' Xprotect, which offers
advanced data management and
monitoring features.
Storage capacity trends
The 1 Tb storage capacity segment
will dominate the market, catering
to small businesses with fewer
cameras and limited recording
needs.
Regional insights
The Asia Pacific region will lead
the market, followed by North
America. The growing use of
IP cameras and real-time video
analytics in sectors like law en-
forcement and healthcare drives
demand in these regions.
Key players
Prominent vendors include
Western Digital, Seagate, Dell
Technologies, Milestone Systems,
Honeywell, and Hikvision.
Video surveillance storage market
projected to reach $9.5 billion in 2024