Omdia Insights – Trends in the video surveillance market

At IFSEC 2023, Omdia’s Oliver Philippou explained how technological developments such as camera edge AI and software-as-a-service are revolutionising the video surveillance market. Chris Price reports.

According to research organisation Omdia, the UK is the largest security equipment market in the EMEA region.

Speaking at The Security Tech Talks Theatre during the recent IFSEC show, Oliver Philippou – Omdia’s Research and Analysis Manager, Physical Security Technologies – told the audience that the UK now accounts for around quarter of the revenue generated in the Western European market and 16% across the entire EMEA region.

Philippou said that over $1 billion revenue was generated in the UK from sales of security equipment in 2021-2022, but that ‘according to our data the video surveillance market accounts for 50% of all equipment sold to the security industry in the UK.’

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“One camera for every six people”

And while it is difficult to quantify the precise number of professionally installed fixed cameras, using modelling from data generated over 20 years, Omdia estimates there are about 12 million cameras currently installed.

Or, put another way, around one camera installed for every six people.

That’s less than the US where it is about one camera for every four people and China where it is about one camera for every 2.5 people. However, it’s comparable to Japan and is higher than the penetration rate in any other western European country.

What’s more, the number of networked video surveillance cameras now exceeds the number of analogue cameras, according to Omdia.

What’s next for video surveillance?

Looking at the trends in the video surveillance market, Philippou identified three key areas of growth.

1. The development of SOCs (System on Chip), enabling camera edge AI
2. Multi-use video so that footage can be used for more than just security applications
3. The growth of VSaaS (video software as a service) business models

According to Philippou, the deployment of deep learning analytics ‘has taken the industry by storm’ with companies such as Ambarella able to build very powerful multi-camera analytics on the cameras themselves through a single SOC.

“The growth will accelerate so much that revenues associated with AI processes will double between 2022 and 2026,” he told the IFSEC audience.

Whereas 30% of network cameras deployed today have an advanced SOC processor built in, by 2026 this will be closer to 70%, predicts Omdia. By processing AI at the edge, it’s possible to alleviate workload on bandwidth, distribute the architecture to enable multi-camera and multi-spatial analytics as well as remove hardware within an installation to manage costs.

Importantly, the inclusion of these advanced AI-driven processors also enables new applications beyond video surveillance.

“Whereas historically video surveillance was introduced for loss prevention and then network security, what we’re now seeing is a further transition to integrate operations, marketing and other business units – translating security from a cost centre to a revenue generator,” said Philippou.

Finally, Omdia predicts the transition to cloud and VSaaS solutions will have an impact on both the video surveillance and access control markets.

And, while these solutions are quite small outside of the US, they are set to grow in Europe with several providers now offering everything from simple hosting to full-service management including storage and analytics.

According to Omdia there are two main advantages of a VSaaS solution: “One is receiving continuous updates and constant security, the second is viewing the industry for CapEx versus OpEx business models.”

In summary, Philippou concluded that video surveillance is rapidly becoming the core technology in 21^st century physical security. This is a result of several developments, including rapid advances in SOC, new business applications and the adoption of VSaaS.

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