Video Analytics Market Research Report and Outlook by 2028

In 2022, the video analytics market was valued at approximately US$ 6,624.9 million and is anticipated to grow to US$ 21,996.0 million by 2028, reflecting a compound annual growth rate (CAGR) of 22.1% during this period.

Key players in the video analytics sector are actively enhancing their product offerings to maintain competitiveness and meet the changing demands of their customers. This has led to the incorporation of advanced technologies such as artificial intelligence, deep learning, and machine learning into video analytics software. These innovative solutions enable autonomous, real-time monitoring and analysis of video footage, exemplified by Sprint's "Curiosity Smart Video Analytics," which integrated technologies from Hitachi Vantara and Ericsson in August 2019. By leveraging these technologies, video analytics solutions can greatly improve accuracy and minimize false alarms, a common issue in surveillance systems. Moreover, machine learning enhances the precise classification of images and objects, among other functionalities. Consequently, the integration of these sophisticated technologies is propelling new trends within the video analytics market.

The North American region, characterized by a multitude of security providers and a high frequency of security breaches, presents a lucrative market for video analytics. Furthermore, this region is recognized for its swift adoption of advanced technologies, which further accelerates market expansion. In recent years, North American governments have ramped up their security initiatives in response to growing concerns regarding the protection of critical infrastructure and national borders. The United States and Canada are particularly significant players in this market, with safeguarding essential infrastructure being a primary focus for both nations' governments. This heightened emphasis on security is a key driver of growth in the video analytics market across the region.

Additionally, the North American video analytics market is bolstered by the strong presence of major corporations that necessitate high-level security surveillance systems. The growth is further supported by the availability of technical expertise, an increasing demand for real-time actionable insights, and a rising need for advanced public safety infrastructure. The uptick in crime rates and accidents has led to a heightened demand for modern video surveillance systems. To address this demand, companies within the market are forming partnerships to deliver intelligent security solutions. Moreover, the market is expanding with the entry of new players like Retailnext and Capillary Technologies, which offer video analytics services through mobile device Wi-Fi identification and data from point-of-sale systems.

In Europe, the adoption of video surveillance systems has been accelerated by the recent expansion of communication networks, facilitating the implementation of IP surveillance technology. The necessity for advanced video surveillance systems has been underscored by incidents of terrorism, particularly in major urban areas. The growing demand for smart city initiatives and the generation of substantial amounts of unstructured video data are also contributing to the growth of the video analytics market in Europe. To cater to these needs, market participants are offering tailored and sophisticated video analytics solutions.

The Asia Pacific region has seen a notable increase in the deployment of video analytics solutions, driven by the rising internet penetration and the growing adoption of surveillance systems for security purposes. Additionally, the significant economic growth in developing countries has played a crucial role in the expansion of the video analytics market in this region. Infrastructure development in nations such as China and India has led to a heightened demand for video surveillance systems. Businesses in the region are increasingly recognizing the value of video analytics in optimizing their operations. Furthermore, the decreasing costs of CCTV security system packages, due to a drop in video camera prices, have stimulated demand for video analytics solutions in cost-sensitive markets like India, China, and South Korea.

The rise in criminal activities and terrorist threats is propelling the adoption of video surveillance systems in the South America (SAM) region. Brazil holds the largest share of video surveillance adoption in this area, experiencing a notable increase in sales of IP surveillance equipment. In light of this growth, Indigo Vision, a prominent video security company, is planning to supply video surveillance cameras to the Sao Paulo International Airport in Brazil.

The video analytics market is categorized into two main components: software and services. Video analytics solutions are available in two deployment models: on-premise and cloud-based. The applications of video analytics are divided into several categories, including facial recognition, motion detection, crowd management, license plate recognition, intrusion detection, and more. Furthermore, the market is segmented by verticals into various sectors such as defense and border security, manufacturing, hospitality and entertainment, retail, transportation and logistics, education, BFSI, and others. Geographically, the market is divided into several regions, including North America (covering Canada, Mexico, and the US), Europe (including France, Germany, Italy, Russia, the UK, and the Rest of Europe), APAC (comprising Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific), the MEA (including South Africa and the Rest of the Middle East & Africa), and SAM (covering Argentina, Brazil, and the Rest of South and Central America).

The global video analytics market size has been established through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach aimed to provide a comprehensive overview and forecast for the video analytics market across all segments. Additionally, numerous primary interviews were conducted with industry experts and stakeholders, including VPs, business development managers, market intelligence managers, and national sales managers. External consultants, such as valuation experts, research analysts, and key opinion leaders with specialized knowledge of the video analytics market, were also consulted during the research process. The objective of these interviews was to validate the data and obtain further analytical insights into the subject.