Video Surveillance market to hit $24.2bn in 2021
According to Omdia’s latest Video Surveillance and Analytics Intelligence Database report, the global video surveillance market revenues are set to reach $24 bn by the end of this year.
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 COVID getting the greenlight in 2021. Omdia forecasts that total video surveillance market revenues will grow to $31.9bn by 2025 with a total CAGR of 7.1% between 2020-2025.
The size of thermal body temperature solutions market has rapidly grown to $1.3 bn globally in 2020. Driven by COVID 19 precautions, this technology has been adopted by several regions, in particular China, East Asia, India and the Middle East. However, without the growth in thermal body temperature solutions, the global video surveillance equipment market declined 3.8% globally in 2020
Despite being a driving growth factor in 2020, Omdia forecasts the thermal body temperature solutions market will decline rapidly in 2021 to just $137 million, an 89.8% 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 COVID-19 pandemic increases pressure of vendor margins.
In recent years US-China geopolitical tensions within the video surveillance industry have escalated. The initial NDAA and blacklisting of Hikvision, Dahua and Huawei within the US is being augmented by new FCC regulations.
Oliver Philippou, Research Manager – Physical Security at Omdia commented “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 acceleration and inference at the endpoint. This will result in higher average prices of network cameras.