A resilient video surveillance market despite Covid-19

Issue 3 2021 Editor's Choice

It is sometimes said that the video surveillance market is recession proof. That when economic conditions deteriorate, there continues to be spending on security hardware and software. However, market conditions in 2020 were unprecedented.

Restrictions in response to the Covid-19 pandemic meant that many organisations were closed for large parts of the year. Many of them were in sectors which normally invest heavily in video surveillance equipment (e.g., education facilities, banks, airports, retailers, sports stadia, casinos, hotels, fitness centres). It is therefore not surprising that the market for video surveillance hardware and software declined in 2020. However, what is surprising is that the rate of this decline was so modest.

The World Market for Video Surveillance Hardware and Software – 2021 from Novaira Insights reveals that the market declined 2,6% in 2020, while it also forecasts a rapid recovery and high growth over the next five years.


Josh Woodhouse.

According to lead analyst and founder of Novaira Insights, Josh Woodhouse, “High growth in sectors like healthcare and critical infrastructure somewhat compensated for big declines elsewhere. Also, in early 2020, a market for body temperature monitoring solutions emerged, often sold by video surveillance vendors utilising their expertise in video. These products provided a short-term boost to their revenues”.


Jon Cropley.

The Covid-19 pandemic was not the only challenge faced by the video surveillance equipment market in 2020 though. Tariffs and trade restrictions also impacted vendors. Woodhouse continued, “Chinese vendors were particularly affected. They faced both U.S. Government tariffs on their products and the NDAA ban. However, they and many other vendors were also affected by disruption in the semiconductor market such as HiSilicon being effectively unable to supply semiconductors. This caused big changes in the component supply chain.”

The global market is forecast to grow at 14,3% in 2021 and will be worth an estimated $24,5 billion. In some markets such as the U.S., the pandemic acted as catalyst for end-users making greater use of cloud and managed services in their video surveillance systems. According to Jon Cropley, principal analyst at Novaira Insights, “Revenues for software and managed services continued to grow in the US in 2020 while revenues for hardware declined.

“In the past decade, there have been many acquisitions of video surveillance software vendors. A comprehensive software and managed service offering can provide a path to transforming business models to higher recurring revenues. The transition to recurring revenues is a major industry trend”.

For further information about Novaira Insights and its report, visit www.novairainsights.com/video-surveillance-market-report/




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

SMART Estate Security returns to KZN
Nemtek Electric Fencing Products Technews Publishing Axis Communications SA OneSpace Editor's Choice News & Events Integrated Solutions IoT & Automation
The second SMART Estate Security Conference of 2024 was held in May in KwaZulu-Natal at the Mount Edgecombe Estate Conference Centre, which is located on the Estate’s pristine golf course.

Read more...
Creating employment through entrepreneurship
Technews Publishing Marathon Consulting Editor's Choice Integrated Solutions Residential Estate (Industry)
Eduardo Takacs’s journey is a testament to bona fide entrepreneurial resilience, making him stand out in a country desperate for resilient businesses in the small and medium enterprise space that can create employment opportunities.

Read more...
2024 Southern Africa OSPAs winners announced
Editor's Choice
The 2024 Southern Africa Outstanding Security Performance Awards (OSPAs) winners were revealed on Tuesday, June 11th, at the Securex South Africa Seminar Theatre hosted by SMART Security Solutions.

Read more...
Resident management app shows significant growth
Editor's Choice
My Estate Life is a mobile app for residents and managers in housing estates and buildings. Its core aim is to be an easy gateway for residents to manage visitors and staff, and to communicate and administer general property in a simple interface.

Read more...
Local manufacturing is still on the rise
Hissco Editor's Choice News & Events Security Services & Risk Management
HISSCO International, Africa's largest manufacturer of security X-ray products, has recently secured a multi-continental contract to supply over 55 baggage X-ray screening systems in 10 countries.

Read more...
NEC XON shares lessons learned from ransomware attacks
NEC XON Editor's Choice Information Security
NEC XON has handled many ransomware attacks. We've distilled key insights and listed them in this article to better equip companies and individuals for scenarios like this, which many will say are an inevitable reality in today’s environment.

Read more...
The future of digital identity in South Africa
Editor's Choice Access Control & Identity Management
When it comes to accessing essential services, such as national medical care, grants and the ability to vote in elections to shape national policy, a valid identity document is critical.

Read more...
Do you need a virtual CIO?
Editor's Choice News & Events Infrastructure
If you have a CIO, rest assured that your competitors have noticed and will come knocking on their door sooner or later. A Virtual CIO service is a compelling solution for businesses navigating tough economic conditions.

Read more...
AI-enabled tools reducing time to value and enhancing application security
Editor's Choice
Next-generation AI tools are adding new layers of intelligent testing, audit, security, and assurance to the application development lifecycle, reducing risk, and improving time to value while augmenting the overall security posture.

Read more...
Perspectives on personal care monitoring and smart surveillance
Leaderware Editor's Choice Surveillance Smart Home Automation IoT & Automation
Dr Craig Donald believes smart surveillance offers a range of options for monitoring loved ones, but making the right choice is not always as simple as selecting the latest technology.

Read more...