Allied Market Research (AMR) has released a new report that suggests that the video analytics market will skyrocket in the next few years. The market is expected to jump from $4.10 billion in 2019 to $24.34 billion by 2027, which corresponds to a CAGR of 25.1 percent for the forecast period.
According to AMR, much of that growth can be attributed to the rising interest in large-scale surveillance technology at the government level, and to public and private security concerns more generally. The sheer volume of video footage generated with digital technologies has also created a need for solutions that can turn that unstructured data into something more usable.
COVID-19 is another major factor driving the market. On that front, video analytics tech can be used to conduct contact tracing and to enforce safety requirements like social distancing and mask detection.
On the flip side, the market could cool if the tech generates a high number of false alarms, while the high cost of good video infrastructure could slow the adoption rate. However, that creates a business opportunity for developers, since there will be a demand for video solutions that can overcome those limitations.
The software segment represented two-thirds of the video analytics market in 2019, and is expected to maintain its position for the foreseeable future. The same is true of the on-premises deployment segment, due to its popularity as a security tool in industries like financial services and healthcare.
The services and cloud segments will display the most growth, with CAGRs of 28 and 27.8 percent, respectively. In both cases, AMR credited the trend to low costs and ease of use. North America will be the largest market, though Asia Pacific will exhibit the most growth, thanks in large part to the investment in surveillance and smart city infrastructure in India and China.
AMR identified Aventura, Cisco, IBM, Intellivision, and Verint as some of the key purveyors of video analytics technology. The firm’s prediction is more aggressive than that of Adroit, which has indicated that the video analytics market will reach $11 billion by 2025 with a CAGR of only 18 percent. AMR has separately predicted that the emotion recognition market will hit $33.9 billion by 2023.
January 27, 2021 – by Eric Weiss