Infotech Lead India: The video surveillance as a service (VSaaS) market is expected to touch $2.39 billion by 2017 from $474 million in 2011.
The growth at a CAGR of 31.5 percent from 2012 to 2017 will be primarily driven by Japan, China, and India.
This is primarily due to the growth of technology, increasing awareness about video surveillance and the increasing need for the cloud services as an option for efficient data and application management.
At present, North America and Europe are the major contributors in the VSaaS application market, but a paradigm shift is expected in the next five years when countries such as Japan, China, and India will have a major chunk in the market share of the Video Surveillance as a Service market.
Video surveillance and storage on the cloud has many advantages as it reduces the amount of technical resources required to maintain a system while streamlining the security operations in a centralized IT data center.
With the maturity of the VSaaS market in the years to come, the market is likely to witness adoption of three models governing the whole business mode, according to a MarketsandMarkets report.
The first model caters to the physical security customers who would prefer storage and retrieval of the video through cloud which would require no capital investment in the equipment.
The second model would let the usage of cloud services in the form of a private network infrastructure which doesn’t necessitate the need for transferring the whole video into the cloud.
The third model postulates the usage of remote monitoring having servers and storage on the back end, the entire video system infrastructure in-between, along with the appliances and cameras on the front end.
The factors driving the VSaaS market include IT cost containment by major corporates, emergence of data centers, need for centralized data and application management, new features and technologies like IOT (Internet of Things) and field of view (FOV).
On the other side, bandwidth and corporate protocols, network security and high infrastructure cost restrain the market growth of the Video Surveillance as a Service (VSaaS) market. In terms of revenue generation, as of 2011, North America held the highest share, i.e. 37.5 percent, followed by Europe with 34.82 percent.
Currently, Video Surveillance as a Service is used in commercial, institutional, infrastructural, industrial and residential applications. Storage on EDGE, intelligent business services and mobile device access are a few opportunities expected to open new horizons for the development of the VSaaS market.
Amongst the various end-user applications under the Video Surveillance as a Service market, the classification was done on the basis of various commercial, infrastructural, industrial, institutional and residential applications.
Amongst the commercial applications, the office segment is observed to hold the highest share, i.e. 41.10 percent, growing at a CAGR of 42 percent. In the infrastructure market (encapsulating highways, streets and bridges, transportation, communications and stadiums), highways, streets and bridges is expected to increase with the highest CAGR of 12.9 percent followed by communications segment growing with a CAGR of 12.1 percent.