Video Management System Market Size (2024 – 2030)

The Global Video Management System Market size was exhibited at USD 14.08 billion in 2023 and is projected to hit around USD 51.34 billion by 2030, growing at a CAGR of 20.3% during the forecast period from 2024 to 2030.

A video management system encompasses a video management server housing a security camera system designed to capture videos from cameras. Its significance lies in its ability to monitor and provide a rapid overview of every system, alerting security to potential dangers, threats, events, or planned activities. The system comprises cameras, servers for video processing and storage, as well as encoders for analog cameras. Users can leverage the video management system to oversee events from diverse surveillance sources such as CCTV cameras, alarms, and sensors.

The primary components of a video management system include solutions and services. As a solution, it addresses the need for a surveillance system and the storage of surveillance footage. Noteworthy technologies encompass analogue-based VMS and IP-based VMS, catering to various organization sizes such as large enterprises and SMEs. Deployment options include on-premises and cloud, with applications spanning mobile applications, intelligent streaming, security, and surveillance, storage management, data integration, case management, and navigation management, among others.

Key Market Insights:

The substantial growth of the market is driven by the swift deployment of video management systems (VMS) for traffic management and surveillance. These solutions play a critical role in enhancing traffic safety and preventing road accidents by monitoring numerous closed-circuit television (CCTV) video feeds in a central network operations center. The increasing adoption of VMS in many countries aims to reduce road traffic injuries and accidents, as highlighted by the World Bank, which reports approximately 1.3 million annual deaths due to road traffic accidents. Video management systems contribute significantly by encoding and managing multiple CCTV and surveillance video streams, promptly detecting incidents, and gathering real-time traffic data, ultimately reducing congestion and improving highway safety.

Industry players are actively engaged in designing and developing artificial intelligence (AI) and machine learning (ML) algorithms to automate video security. This technological evolution benefits both business-to-consumer (B2C) and business-to-business (B2B) users, enabling the detection and flagging of unusual movements while significantly reducing the time required for reviewing recorded video footage. Additionally, there is a growing trend of increased government interest in investing in cloud-based video surveillance solutions worldwide, with this heightened government involvement expected to drive significant revenue growth in the market over the forecast period.

Global Video Management System Market Drivers:

The growth of the global video management system market is being propelled by the increased utilization of IP video and the ease of deployment.

Robust expansion is observed in the global video management system (VMS) market, driven by factors such as the rising prevalence of IP video and convenient deployment options. The industry's shift from analog to IP-based video surveillance has brought about a transformative impact, providing heightened flexibility, scalability, and advanced functionalities. The capability of IP video to deliver high-quality footage and support advanced analytics stands as a pivotal driver for businesses and organizations seeking comprehensive security solutions. Moreover, the straightforward deployment processes have accelerated the adoption of VMS, facilitating swift implementation and reducing installation costs. As global security concerns continue to escalate, the demand for efficient video management systems is anticipated to witness a significant surge, further contributing to the market's expansion.

Increasing Emphasis on Security Surveillance Fueling Market Growth.

Organizations responsible for security continue to exercise caution in divulging the extent of their monitoring operations for public scrutiny. While empowering law enforcement with increased surveillance capabilities aids in preventing certain crimes, there is also a potential for misuse and risks to individuals' rights. Several significant terrorist incidents over the past two decades have sparked debates about the utilization of various surveillance technologies. Despite exploration and criticism of the use of emerging technology for proactive security and monitoring in academic circles, few studies have focused on the general public.

Rising Demand for Live and Recorded Videos Propelling Market Growth.

In the realm of retail settings, video management software utilizes analytical data from cameras to inform decisions regarding item placement within a store. It can also be integrated with facial recognition technology powered by artificial intelligence (AI) to identify known offenders. Additionally, it finds application in access-controlled events to bolster admission procedures or alert attendees to potential incidents. Large enterprises and academic institutions frequently leverage it for diverse tasks such as corporate training, event streaming, executive communication, and knowledge management.

Global Video Management System Market Restraints and Challenges:

The growth of the global video management system market may face obstacles due to privacy-related issues.

The increasing sophistication of surveillance technology, coupled with the widespread deployment of cameras, raises concerns about personal privacy and data protection. Striking a careful balance between ensuring security and respecting individual privacy becomes particularly vital, especially in regions with stringent privacy regulations. Apprehensions regarding unauthorized access, potential data breaches, and the potential misuse of surveillance footage may instill reluctance among businesses and consumers to embrace VMS solutions. To sustain market growth, it is crucial to navigate the ethical and legal complexities surrounding video surveillance. VMS providers must adhere to robust privacy protocols and transparent practices to address these concerns, thereby fostering trust and ensuring the long-term viability of the market.

Global Video Management System Market Opportunities:

Abundant opportunities unfold in the global video management system (VMS) market, driven by technological advancements and evolving security needs. The surge in demand for intelligent video analytics, coupled with the integration of artificial intelligence, provides avenues for elevating video surveillance capabilities. Verticals such as retail, healthcare, and transportation are positioned for increased adoption of VMS to enhance both security and operational efficiency. The proliferation of IoT devices and the expansion of smart cities further amplify market prospects, creating a demand for sophisticated VMS solutions. Cloud-based deployments and edge computing contribute to scalability and flexibility, addressing diverse industry requirements. Moreover, the market gains from the growing emphasis on cybersecurity, prompting investments in secure VMS solutions. In essence, the dynamic landscape of security challenges propels the global VMS market into a realm of continuous innovation and substantial growth opportunities.

VIDEO MANAGEMENT SYSTEM MARKET REPORT COVERAGE:

Global Video Management System Market Segmentation: By Component

• Software

• Services

• Professional Services

• Managed Services

In 2023, the solution segment emerged as the market leader, securing the largest revenue share of over 68.0%. Organizations exhibit a preference for video management solutions that seamlessly integrate with other security systems, IoT devices, and analytics platforms, providing a unified security ecosystem. These solutions play a crucial role across various sectors, offering diverse applications. For example, within the retail sector, they leverage analytical data from in-store cameras to make informed decisions about product placement, optimizing the shopping experience. Furthermore, video management solutions and software are commonly employed by large enterprises and academic institutions for various objectives, such as corporate training, executive communication, live event streaming, and knowledge management.

The services segment is anticipated to experience significant growth during the forecast period. This segment comprises professional and managed services. Professional services encompass a spectrum of offerings, including education, training, certification, consulting, planning, implementation, management, and support/maintenance. As many end-users lack the technical expertise to effectively store and handle video data, professional service providers are sought to address this challenge. On the other hand, managed services, provided by third-party vendors, assist enterprises in managing operational complexities related to VMS, helping organizations overcome operational hurdles.

Global Video Management System Market Segmentation: By Technology

• Analog-based VMS

• IP-based VMS

In 2023, the IP-based VMS segment took the lead in the market, capturing the largest revenue share of over 69.0%. IP-based video management systems (VMS) empower numerous organizations to establish video systems using standard computer hardware and cost-effective video formats. The ongoing development in video processing architecture, including dynamic range high-efficiency video coding (HEVC) transcoding and real-time communication capabilities, propels substantial demand for IP-based VMS. Real-time communication capabilities further enhance the appeal of IP-based VMS, enabling seamless and instantaneous data transmission for quick decision-making and response across various applications, from security and surveillance to industrial monitoring.

The analog-based video management systems (VMS) segment is expected to witness significant growth in the forecast period. Analog-based VMS can generate dynamic range high-efficiency video coding (HEVC) content tailored for enterprise users. Additionally, these systems simplify and expedite prototyping, deployment, and operation tasks. A key advantage of analog-based VMS is its ability to support various cameras, encompassing both the latest IP and older analog cameras. This versatility allows organizations to leverage their existing camera infrastructure while integrating newer, more advanced IP cameras as needed, proving valuable for businesses transitioning from analog to digital systems.

Global Video Management System Market Segmentation: By Deployment

• Cloud

• On-premises

In 2023, the on-premises segment dominated the market, securing the largest revenue share of over 58.0%. On-premise solutions are gaining prominence across various industry verticals, such as traffic management, building, and infrastructure management, due to their advantages of flexibility, cost-effectiveness, and scalability. Organizations actively adopt VMS to enhance streaming experiences by deploying these systems within their internal IT infrastructure, often utilizing real-time messaging protocol (RTMP) encoders. Hosting these systems internally allows organizations to customize the software according to their specific needs while maintaining higher security and data control.

The cloud segment is poised to achieve the fastest Compound Annual Growth Rate (CAGR) of 26.9% over the forecast period. Many organizations are opting for cloud-based video management systems to deliver proactive and tailored experiences, prompting distributors and vendors to enhance their VMS technology and licensing agreements. Cloud-based deployment models offer scalable and cost-effective solutions for encoding various video formats, depending on the codecs used. These systems empower organizations to deliver personalized and responsive experiences to users or customers. The flexibility to scale resources based on demand makes cloud-based video management systems a cost-efficient choice.

Global Video Management System Market Segmentation: By Enterprise Size

• Small & Medium Size Enterprise

• Large Enterprise

The large enterprise segment secured the largest revenue share of over 68.0% in 2023. Large enterprises, with their extensive and complex video surveillance needs, often require advanced features and functionalities in their VMS solutions, such as analytics, integration with other security systems, and cloud-based storage. Security remains a top priority for large enterprises, and VMS systems are recognized for their robust security features, including encryption and authentication protocols, crucial for safeguarding sensitive video data. These factors significantly contribute to the revenue growth of this segment.

The small & medium-sized enterprise segment is expected to register the fastest CAGR of 22.7% over the forecast period. Technological advancements, particularly in video intelligence driven by artificial intelligence (AI) and deep learning algorithms, have significantly improved accuracy and performance. AI has a substantial impact on various industries, including small and medium-sized enterprises (SMEs). SMEs, faced with the challenge of sifting through numerous recorded videos, can benefit from AI-driven solutions that provide real-time alerts with remarkable precision, reducing unnecessary distractions.

Global Video Management System Market Segmentation: By Application

• Security & Surveillance

• Intelligent Streaming

• Advanced Video Management

• Data Integration

• Navigation Management

• Storage Management

• Others

In 2023, the security & surveillance segment claimed the largest revenue share, surpassing 27.0%. The primary catalyst for VMS adoption in security and surveillance is the escalating need for robust security measures. Organizations and governments continually seek innovative solutions to bolster security and safeguard their assets, contributing to a rising demand for advanced surveillance capabilities. Growing security concerns across public and private sectors have spurred increased adoption of video surveillance solutions, addressing needs such as protecting physical assets, monitoring public spaces, enhancing safety, and preventing unauthorized access. The video surveillance industry has witnessed ongoing innovation, incorporating technologies like high-definition (HD) and ultra-high-definition (UHD) cameras, smart analytics, and artificial intelligence (AI) integration, enhancing the efficacy and efficiency of security systems.

The data integration segment is anticipated to experience substantial growth in the forecast period. Data integration plays a pivotal role in the modernization of security and surveillance environments with VMS. By integrating data from VMS systems with other sources and applications, surveillance operations gain enhanced functionality and effectiveness. This integration allows VMS systems to incorporate data from sensors, access control systems, and IoT devices, providing security personnel with a comprehensive data view, and ultimately improving situational awareness and responsiveness to security incidents.

Global Video Management System Market Segmentation: By End-user

• BFSI

• Government

• IT & Telecommunication

• Healthcare and Life Sciences

• Manufacturing

• Transportation and Logistics

• Others

In terms of end-users, the government segment led the market in 2023, securing a revenue share of over 28.0%. Governments bear a crucial responsibility for ensuring public safety and security, making VMS indispensable for surveillance, critical infrastructure monitoring, and managing security in public spaces, contributing significantly to market share. Police and law enforcement agencies utilize VMS for crime prevention, investigation, and public safety, driving demand for sophisticated systems that enhance these capabilities.

The transportation and logistics segment is projected to register the fastest Compound Annual Growth Rate (CAGR) of 24.4% over the forecast period. VMS plays a vital role in traffic monitoring, management, and ensuring road safety. As urbanization and population growth lead to increased traffic, there is a growing demand for intelligent video solutions for traffic optimization and safety. The transportation industry, encompassing airports, seaports, and railways, is increasingly in need of robust security measures, and VMS plays a crucial role in monitoring and securing transportation infrastructure.

Global Video Management System Market Segmentation: By Region

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa

In 2023, North America dominated the market with a revenue share exceeding 34%. The rapid adoption of VMS for traffic management and highway safety has been a pivotal driver of market growth in this region. These systems play a vital role in monitoring traffic conditions and enhancing highway safety by utilizing video analytics to monitor vehicle speed, provide real-time alarm monitoring, and facilitate clear communication between the system and security personnel. Additionally, there is a substantial demand for cost-effective cloud-based video surveillance and VMS across sectors like healthcare and infrastructure, with this demand expected to remain high throughout the forecast period.

Asia Pacific is expected to register the fastest CAGR of 24.3% over the forecast period, driven by the adoption of VMS in smart city projects and urban development. VMS applications are integral to smart cities in various locations such as Beijing, Singapore, Tokyo, Shenzhen, Thailand, and Melbourne, aiding governments and municipalities in making cities safer, and more efficient, and enhancing the overall quality of living.

COVID-19 Impact on the Global Video Management System Market:

The implementation of diverse government regulations aimed at curbing the virus's spread has prompted companies to embrace a work-from-home culture and make substantial investments in digitalizing their operations. Beyond mere security concerns, there is a growing trend of implementing comprehensive solutions using video management software. Manufacturers are increasingly exploring ways to integrate their VMS with features like temperature screening, mask detection, and people counting, responding to the challenges posed by the pandemic. In a post-COVID environment, these features will empower organizations to reinforce their health and safety initiatives. The collaboration between access control and video management software creates a unified solution, enhancing effective safety risk management.

Recent Trends and Innovations in the Global Video Management System Market:

In December 2022, Eagle Eye Networks, Inc., based in Texas, entered into a partnership with Integrated Products to distribute various cloud video surveillance products and provide high-quality technical support to systems integrators and businesses in Australia. This collaboration aims to open new sales opportunities in Australia and explore the potential for advancing cloud video surveillance.

In October 2022, Milestone Systems A/S, a Denmark-based video management system company, launched the secure and scalable VMS cloud solution XProtect tailored for small to medium-sized businesses. The newly introduced Video Surveillance as a Service (VSaaS) complements XProtect and is designed to integrate on-premises, hybrid-cloud, and cloud-native components. Additionally, X-protect seamlessly integrates with Amazon Web Services (AWS) cloud offerings to provide data-driven video technology solutions.

Key Players:

1. Robert Bosch GmbH

2. Honeywell International Inc.

3. Schneider Electric SE

4. Axis Communications AB

5. Johnson Controls

6. Hangzhou Hikvision Digital Technology Co., Ltd.

7. NetApp, Inc.

8. Zhejiang Dahua Technology Co., Ltd.

9. Verint Systems Inc.

10. LTIMindtree Limited