According to a new report from market research firm Novaira Insights, Genetec, Milestone Systems, and Motorola Solutions accounted for 33% of the global market, excluding China, for video surveillance software and managed services in 2020.
Additionally, Novaira estimates that this market was worth $2.2 billion last year with around 69% outside China. Beyond the “big 3," the research firm said that the multitude of other international VMS suppliers each has a market share of less than 3%. Within China, the market is served by domestic suppliers, such as Hikvision, Dahua, and so-called “AI unicorns” like SenseTime and Megvii.
The new Novaira report, “The world market for video surveillance hardware and software,” shows that, outside China, the market for of video surveillance software and managed services continued to grow slightly in 2020, despite the coronavirus pandemic. Growth In the Americas was highest where revenues from video surveillance software and managed services grew 8.8%.
Many end-users took advantage of facilities being closed to upgrade their software. Additionally, this focus on upgrading software led to end-users re-evaluating their entire back-end architectures. This resulted in greater use of cloud in architectures and increased spending on software managed services. These factors contributed to an acceleration in the proportion of revenues from recurring spending. The report forecasts high average annual growth of 12.1% in the world excluding China market from 2020 to 2025.
“Software continues to be a key differentiator in video surveillance system functionality and will continue to offer these and other suppliers high revenue growth opportunities in future years,” said Jon Cropley, principal analyst at Novaira Insights. “Furthermore, the bounds of what is classified as video surveillance software continues to expand with additional and sometimes specialist functionality brought about by integrations of video analytics and other sensors.”
For more information or to download a copy of the report, click here.
