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AI Drives Video Surveillance Applications Development

More CIOs and CTOs are exploring commercial applications for artificial intelligence (AI) use cases that enable the rapid analysis of vast amounts of video content, thereby creating demand for new digital video surveillance solutions.

As the video surveillance industry continues its transition toward IP camera systems with on-device analytics capabilities, savvy solution providers continue to offer connected products and services with vastly better value propositions than traditional, legacy analog video systems.

Video Surveillance Market Development

As a result, ABI Research now forecasts that enterprise video surveillance camera connections will top 348 million by 2023 and that these systems will generate value-added services revenues of $12 billion.

“Success within IoT is largely dependent on the ability of providers to create highly specialized, value-added solutions based upon clearly defined use cases supported by market demand,” said Ryan Harbison, research analyst at ABI Research.

Video surveillance vendors understand the value that this digital transformation can have on end-user experience and have largely focused on crafting end-to-end surveillance solutions that include everything from device components to analytics and professional services -- including the creation of Video Surveillance-as-a-Service (VSaaS) business models.

The VSaaS model was largely borne out of the need for providers to find new revenue opportunities as competition from Chinese camera manufacturers such as Hikvision and Dahua were driving down hardware profit margins.

Additionally, vendors realized there was substantial value in integrating video surveillance systems with other surveillance systems, such as access control and intruder alarms. Solution providers now offer extensive professional services, such as systems integration, device installation, and customized end-user solutions.

These services are critical across all deployments, and as a result, digital video surveillance professional services will generate worldwide revenues of $10 billion in 2023.

In the United States, there are additional opportunities for non-Chinese providers due to the U.S. government’s recent ban on video surveillance equipment from Chinese OEMs. American companies can utilize their extensive professional services offerings to help U.S. organizations transition from Chinese-banned equipment to compliant systems.

Outlook for Video Surveillance Apps

While a lot of attention in the video surveillance industry is on China’s camera equipment manufacturers, providers need to realize that for the most part, China buys Chinese products. In the short-term, solution providers should be focused on the U.S. market not only replacing Chinese OEM equipment but also identifying and selling new services.

"By focusing on the right solutions with the right value-added services to the right markets, video surveillance solution providers can maximize the opportunity in this competitive market,” Harbison concluded.

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