Global video surveillance market revenues are set to reach $24 billion by the end of 2021 according to a research firm’s latest Video Surveillance and Analytics Intelligence Database.
This marks a quick recovery for the video surveillance market as demand that was suppressed in 2020 will return and revenues will be bolstered by projects that were postponed in 2020 due to the covid pandemic getting the green light in 2021, says Omdia. It forecasts total video surveillance market revenues will grow to $31.9bn by 2025 with a total CAGR of 7.1pc between 2020 and 2025.
The thermal body temperature market has rapidly grown to $1.3 billion globally in 2020. Driven by covid-19 precautions, this technology has been adopted in particular in China, East Asia, India and the Middle East. However, without that growth, the global video surveillance equipment market declined 3.8pc globally in 2020. Omdia forecasts the thermal body temperature solutions market will decline rapidly in 2021 to just $137 million, an 89.8pc decline, ultimately limiting the overall video market surveillance market growth.
Omdia expects average selling prices of video surveillance equipment to increase in the short term as US-China geopolitical tension and supply chain constraints from the pandemic increases pressure of vendor margins. US-China geopolitical tensions within the video surveillance industry have escalated. The initial NDAA and blacklisting of Hikvision, Dahua and Huawei within the United States is being augmented by new FCC regulations.
Oliver Philippou, Research Manager – Physical Security at Omdia said: “The semiconductor shortfall driven by geopolitics and COVID impact has affect all industries, and video surveillance is no expectation. This disparity between supply and demand is expected to last until mid-2022.”
Longer term Omdia expects that there will be a greater adoption of the network camera products using AI deep learning. This will result in higher average prices of network cameras.
The Chinese video surveillance market is estimated to have grown 6.4pc in 2020 compared to the global average of 2.2pc. This growth is mainly due to the thermal body temperature products. The market otherwise is estimated to have declined by 0.8pc. China now accounts for half of the global market revenues. However, covid and the completion of Xue Liang has resulted in declining government investment in video surveillance in China. Even so, the government investment will continue grow, albeit at a slower rate.
Tommy Zhu, Senior Analyst – Physical Security at Omdia said: “One of the major factor that drove the China’s market growth in the past few years was government investment. Although the year of 2020 marks the completion of Xue Liang programme, the government will continue to enhance the construction of Safe China during its 14th Five-Year plan. In addition, as China is rolling out its trillions of dollars investment in new infrastructure construction, the demand for video surveillance equipment is expected to continue to grow. Besides, China’s ambitious to accelerate the transformation to a digital economy will boost the investment in both public and private sectors.”
