Growth in the global video surveillance market has been tempered in recent years due to the impacts of the pandemic, geopolitical tensions and supply shortages.

Total global revenues reached an estimated $30.4 billion in 2022, representing 4.5% growth but significantly lower than the 11.7% growth seen during the 2021 post-pandemic period, according to our research. However, confidence remains high in the video surveillance market as innovation drives new opportunities around the world.

Global Dynamics in the Video Surveillance Market

China holds a 34.2% share of the $30.4 billion global video surveillance market, with domestic revenues of $10.4 billion. However, future expansion is projected to moderate to 5.3% annually through 2028 as China's economy slows, reaching a market size of $14.2 billion by 2028.

China's GDP growth rate has slowed to just 3% in 2023 amid pandemic impacts and major real estate woes. After years of heavy investment, the video surveillance market is showing signs of saturation, while ongoing geopolitical tensions and trade barriers also limit growth.

Despite the slowdown in China, it is still a hugely influential video surveillance market with strong and stable growth driven, in large part, by ongoing surveillance initiatives by the Chinese government.

China's video surveillance market also benefits from rising consumer class and has shown a 26% growth in B2C e-commerce sales, which underpin strong commercial video surveillance demand. The sheer scale of the Chinese video surveillance market necessitates significant investment in video analytics and supporting infrastructure.

North America holds the second-largest share of the global video surveillance market at 28%. A high per capita usage rate highlights the maturity of the North American market, with an average spend of $21.6 per person compared to just $7.3 in Europe. The European region lies third, with an 18% market share, the study showed.

While the Latin America and Middle East & Africa regions remain relatively small at 2.5% and 2.6% respectively, but both are projected to grow significantly faster than the global average as they seize the vast low-hanging opportunities.

Growth in Key Video Surveillance Market Segments

The economic slowdown in China and other major markets, in addition to geopolitics tensions and supply chain woes, means we are unlikely to see double-digit growth in any specific segment of the video surveillance market again in the short to medium-term future.

The global market for video surveillance cameras, specifically, is estimated at $15.8 billion and promises a Compound Annual Growth Rate (CAGR) of 5.7% from 2022 to 2028, with total sales anticipated to reach $23.1 billion by 2028. After a race to the bottom for pricing in the 2010s, recent market conditions, such as COVID and supply chain delays, have altered this course. Our comprehensive report also delves into the niche markets for body-worn and thermal cameras, each with their own drivers, barriers, and opportunities.

The fastest growth in video surveillance comes, unsurprisingly, from video management software (VMS) and video analytics, which reached $4.7 billion in 2022 and is forecast to grow at a CAGR of 8.4%, reaching $7.6 billion by 2028. Video management software and analytics is becoming the most innovative part of the video surveillance systems market, with a wide range of diversified solutions. Like storage, on-premises VMS still accounts for the lion's share of the market but cloud-based VMS is poised for much faster growth, our latest forecasts project.

“Key factors driving growth include the transition to IP cameras globally, rising demand for intelligent video analytics, increased adoption of cloud and VSaaS delivery models, and a boost from the pandemic era,” explains our in-depth market report. “Software and analytics vendors are focused on developing open platforms that can integrate with hardware from any OEM and  competition is heating up in AI-enabled video analytics, with companies competing on accuracy, behavior analysis and other intelligent features.”

Overall, our forecasts point to resilience for the video surveillance market compared to other industries, but we expect revenue growth to moderate over the next 5 years versus the rebound of 2021, reflecting macroeconomic headwinds.

Continued technology innovation and rising security risks should underpin investment, while growth is underpinned by continued technology advancements, increasing enterprise IT and OT convergence, surging adoption of cloud and AI, and rising security threats balancing economic uncertainties.