International. The physical security business points out that all kinds of organizations around the world are investigating how they can leverage the cloud to host security systems, so states the Memoori's World Market report 2020-2025.
Commercial video surveillance and access control providers have been developing VSaaS and ACaaS services for the past decade and, more recently, major software companies such as Amazon, Microsoft, and Google have invested heavily in cloud services. They now provide artificial intelligence/machine learning analytics services that are typically valuable to the physical security business.
The supply side has also won over system integrators to adopt cloud services and this has provided a significant boost to growth. Now the supply structure is well established and COVID-19 has not inhibited growth because buyers can hire the service with a monthly fee without having to make a significant investment upfront. This is a much more attractive proposition in difficult economic times. Current video surveillance owners who need to upgrade their systems will increasingly investigate the VSaaS option.
A financial institution that specializes in investing in the physical security industry, Capital One, was very optimistic about the business opportunities vsaaS had since 2016. They conducted a survey of security systems professionals that showed that 85% of respondents expect better financial performance through video monitoring and VSaaS.
The global market size for VSaaS in 2019 is estimated to be approximately $1.2 billion. Most forecasts now predict that it will grow at a CAGR of 20% over the next 5 years, which is believed to be overly optimistic; more about 15% reaching $2.4 billion in 2024, but growth accelerates as it reaches 2024.
The market should grow over the next decade as prices drop and more end users turn to security as a service because it should offer the most economical solution in many applications. Costs will fall as new platforms realize all the benefits of IoT demand. We've already noticed that all of the world's major IT companies are rapidly expanding their cloud services, including Amazon, Google, and Microsoft, driven by anticipated demand from a number of sources, including VSaaS.
New technological features are helping the service deliver major improvements. These include the availability of upstream bandwidth and the relative cost of centralized storage, while bandwidth prices have fallen and top speeds have increased, making VSaaS potentially more viable in a wider range of applications. Smart CODECs and the broader introduction of H.265 can reduce the amount of bandwidth cameras consume, helping to reduce bandwidth costs and data limit barriers.
One of the main value propositions for customers is that VSaaS continuously monitors the system 24/7. Paying a monthly service charge ensures that failures are resolved promptly to improve reliability. This should ensure that the quality of the video is satisfactory for forensic purposes and that all aspects of usability (such as how I retrieve the video and share it) are taken care of.
Source: Memoori.
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