Technavio: Video analytics market to grow
The global intelligent video analytics market is poised to grow at a CAGR of 31.4 percent from 2012 to 2016, a rise fueled by operational advantages afforded by such products, as well as more competitively priced surveillance cameras, according to a market report conducted by analysts at Technavio, a London-based technology research and advisory company.
Increased adoption of video surveillance, a development driven by more affordably priced cameras, has substantially increased the amount of video footage that is created, Rituparna Roy, marketing manager for Technavio, told Security Systems News in an email. Legal requirements often require many organizations to store data for a certain amount of time, she added, and more stored data means more analysis of data.
“This is where video analytics come in and reduce this time considerably,” Roy told SSN. “In terms of money, the amount of time and resources which are required for any data analysis is reduced considerably thereby making the organization more productive and hence saving costs.”
The report forecasts that the year-over-year growth rate for the global intelligent video analytics market, which from 2011 to 2012 grew by 30.3 percent, will reach 31.2 percent in 2014, before climbing to 31.9 percent by 2016, when the global market could near $1 billion, according to Roy. The growth projection for the period 2012-2016 is a lot higher than that of previous years, owing to significant changes in market dynamics, including the proliferation of the cloud.
While the North American market is projected to continue to grow in that timeframe, it is unlikely to do so at a staggering rate due to the market’s relative maturity, Roy noted. The Asia-Pacific, or APAC region, which owns the smallest regional market share, is projected to see a substantially higher growth rate.
The North American market accounted for the highest share of growth in 2012. Roy explained that this is partly attributable to the fact that security in North America has been a major imperative since the 9/11 attacks. She added that the strength of the North American market is also a result of a private sector demand for security products, which are often prerequisites for insurance purposes.
A factor that could impede market growth, Roy explained, is the concern for privacy. “Numerous private organizations around the world still believe that the use of video surveillance across many segments and enterprises is a violation of an individual’s privacy,” Roy said in the email, adding that criticisms regarding privacy concerns tend to be leveled against video surveillance in general rather than video analytics in particular.
Another factor potentially inhibiting growth, according to the Technavio report, is the high cost of implementation, though that impediment is more pressing for regions where the video analytics market is still in its infancy.