Market for cloud-based video surveillance reached $500m in 2011
WELLINGBOROUGH, U.K.—The global market for cloud-based video surveillance was worth more than $500 million in 2011, a 25 percent increase from its size in 2010, according to a new study by IMS Research. Though the global research firm, based here, said the market's future growth will depend on vendors overcoming a few barriers.
The growth of cloud-based video surveillance, or video surveillance as a service (VSaaS), was driven by increased demand from end users, including small-to-medium businesses and governments, and increased market presence and competitive environment as a result of new entrants to the marketplace, according to Sam Grinter, a market analyst with IMS Research. "All of which means that VSaaS is set to grow significantly faster for 2012 onwards,” he said in a press release.
However, the "key inhibitor" of the VSaaS market is price. IMS estimates that monthly camera subscriptions cost between $5 and $30 depending on the level of service and the inclusion of hardware. "While this sounds inexpensive compared to the initial capital expenditure for a DVR, over time this will generate a considerable cost for the end user," according to the press release. "Furthermore, some video surveillance equipment vendors offer free remote monitoring through DVRs, NVRs and video management software. This service may prompt an end-user to upgrade existing hardware or software rather than opt for a VSaaS solution."
For VSaaS to become more widely adopted, the market needs to resolve a number of barriers, Grinter said. "For consumers and commercial users, the price per camera needs to drop significantly and installation must be simpler," he said. "Additional requirements for commercial users include new features and technologies, such as business intelligence functions, that increase the return on investment of using a VSaaS solution.”
If VSaaS providers are successful in overcoming these barriers, IMS Research predicts that the world market could exceed $1 billion by 2014.