Capturing data from video is a growing application within the Internet of Things (IoT). Video asset management and big data analytics software are enhancing the inherent benefits of high-quality IP cameras. As a result, the video surveillance market is experiencing a significant transformation.
ABI Research forecasts global value-added services market revenues will reach $10 billion by 2021. Data and analytics services, as well as device and application platform services, show the strongest revenue growth within the non-consumer video surveillance market.
"With hardware revenue margins destined to decline, many industry players are adopting a more service-oriented approach to find new revenue opportunities," said Eugenio Pasqua, research analyst at ABI Research. "The intersection of video surveillance and IoT opens the doors to a whole new set of players."
Big Data Analytics and Cognitive Demand
Enterprises can derive valuable insights from the data generated by video surveillance systems, which the organizations can then use to drive their operational, marketing, and merchandising decisions forward. ABI Research anticipates that savvy vendors will offer solutions that integrate operation data from a variety of sources -- including cameras and control systems.
Three trends in the video surveillance market depict the convergence of IoT and video surveillance: Video Surveillance as a Service (VSaaS), the integration and unified management of video surveillance within other systems, and the use of video analytics as a business intelligence tool.
VSaaS, specifically, is an emerging business model that enables access to the system and its services from virtually anywhere, while relieving user organizations and enterprises from service management.
While large-scale adoption of a fully cloud-based VSaaS model is a nascent use case, many vendors are already incorporating VSaaS functionalities into their traditional video management solutions. They're then integrating and connecting them with other security systems -- such as access control, fire detection, and building management.
Harvesting Actionable Insights from Data
"The increasing demand of IT and physical security convergence and video integration will provide a fertile ground for players with a good IP understanding," concludes Pasqua. "This will ultimately push many firms to closely collaborate and reduce the complexity in delivering a viable end-to-end solution."
As for video analytics, Pasqua believes that its use as a business intelligence tool will be a major driver for growth in the sector. Moreover, the growing desire to achieve a higher ROI from video surveillance systems will push more commercial users to implement intelligent solutions, such as those enabled by cognitive analysis.
And while the majority of surveillance cameras currently installed in the enterprise environment still use fixed line analog connections, this will not handicap market development. ABI Research believes that both wired and wireless IP connections will continue to grow at a double-digit CAGR for at least the next five years.