International. According to analyst Novaira Insights: Genetec, Milestone and Motorola have grown to become the "Big 3" providers of video surveillance software, video analytics and managed services, increasing their combined share of the world by 33% during 2020.
According to a new report developed by the analyst, the global video surveillance software and managed services market cost $2.2 billion in 2020, with about 69% of it outside of China. However, the supply base outside China is very different from that of the Chinese domestic market.
The world, excluding China, is served, not only by the big 3, but also by a multitude of other international suppliers, each with a small market share of less than 3%. By comparison, China has domestic suppliers like Hikvision, Dahua, and "AI unicorns" like SenseTime and Megvii.
The report, "The Global Video Surveillance Hardware and Software Market," shows that outside of China, the video surveillance managed software and services market continued to grow slightly in 2020, despite the coronavirus pandemic. Growth in the Americas was higher. Here, revenue from video surveillance software and managed services grew by 8.8% in 2020. Many end users took advantage of facility closures to update their software.
This focus on software updating led end users to reevaluate all of their back-end architectures. This resulted in increased use of the cloud in architectures and higher spending on software-managed services. These factors contributed to an acceleration in the share of recurring expense revenue. The report forecasts high average annual growth of 12.1% in the global market, excluding the market, from 2020 to 2025.
According to Jon Cropley, principal analyst at Novaira Insights, "Genetec, Milestone and Motorola increased their combined share of the world, excluding the Chinese market for video surveillance software and managed services, to 33% in 2020. The software continues to be a key differentiator in video surveillance system functionality and will continue to offer these and other vendors great revenue growth opportunities in the coming years. In addition, the boundaries of what is classified as video surveillance software continue to expand with additional and sometimes specialized functionality thanks to the integration of video analytics and other sensors."
Source: Novaira Insights.
