The global video surveillance market experienced a small growth in 2023, with China registering a decline that offset a larger growth seen in the rest of the world, a report by Novaira Insights noted.
The global video surveillance market experienced a small growth in 2023, with China registering a decline that offset a larger growth seen in the rest of the world, a report by Novaira Insights noted.
According to the report, released earlier this month, the global market for video surveillance hardware and software registered a 2023 growth of 3.4 percent, which was the combined effect of a decline of 2.7 percent in the Chinese market and an 8.2 percent growth for the rest of the world.
China is estimated to have remained the world’s largest regional market for video surveillance equipment, accounting for 41 percent of the world market in 2023, the report said. However, it notes that this is a proportional decrease compared with two years prior when it accounted for 52 percent.
Chinese market sluggishness
The sluggishness in the Chinese security/video surveillance market began in 2022, when the country’s GDP growth registered at 5.1 percent, down from 9 percent for 2021, on several factors including COVID-induced lockdowns, a tumbling of the country’s real estate market and geopolitical tensions. The market for security and video surveillance took a beating as well. In fact, asmag.com’s 2023
Security 50 ranking found that of the 17 companies that registered 2022-2021 revenue declines, 12 were Chinese companies. Given how well Chinese companies had always performed on Security 50, this was unprecedented.
As for 2023, a recovery trend in China’s economy was noticeable, with demands from various sectors picking up. Yet challenges remained in the country’s security/video surveillance market due to various factors including a reduction in government expenditures, the slow progress of some projects and a decline of the real estate market. Indeed, with large-scale municipal projects such as the Xueliang Project being completed, the government's investment in public security has slowed down.
Yet it’s also clear that Chinese video surveillance solutions providers are still on a path to continued technological excellence and innovation. Hikvision and Dahua for example have launched advanced solutions such as bi-spectral,
multi-sensor and lowlight color cameras to meet users’ specific demands. Other Chinese companies also continue to roll out innovative video surveillance solutions for users in unique, niche applications such as
smart transportation and
smart factory. This bodes well for China’s video surveillance market which we believe will be on a growth trajectory again.
Outside China, Novaira Insights noted growth in 2023 yet cited a decrease in unit shipments due to a lag between the channel and end-user demand. “This lag was created by distributors overordering stock in 2022 in response to supply chain disruption. These supply chain issues were largely resolved in 2023 but distributors first utilized their existing stock of equipment. 2023 also saw some softening of demand due to persisting economic uncertainties in several sectors and countries,” said Josh Woodhouse, Lead Analyst and Founder of Novaira Insights.
VSaaS market growing
An area where the report saw growth was VSaaS, with the United States leading the way in adopting cloud technology for video surveillance. According to the report, in 2023 the U.S. saw an increase of over 1 million cloud-connected cameras compared to 2022, even though the overall percentage of cameras with an active cloud connection remains low.
The data is somewhat in line with asmag.com’s own survey, “Edge Storage in Cloud-Based Video Security Applications,” conducted in conjunction with Micron. When asked whether respondents are currently offering cloud-based video security solutions, a majority of them, 62 percent, said yes. Of the 38 percent who aren’t, 47 percent of them said they will offer cloud video security in the next 12 months.
As for the video surveillance market this year, Novaira Insights gave a more positive assessment. “The Chinese market is forecast to grow, although it will remain well below its peak in 2021. Outside of China, market growth is expected to accelerate, driven by robust expansion in emerging markets such as India, Latin America, and the Middle East. Additionally, increased demand for cloud solutions in established markets like North America and Western Europe will contribute to this growth. As a result, the global market for video surveillance equipment is projected to grow by 8.4 percent in 2024, reaching a value of over US$27 billion,” the report said.
Each year, asmag.com also publishes its own Security 50 ranking as we give a yearly review and preview of the global security market. Stay tuned for this year’s ranking which will come out in November.