Video Management System Market Size, Share, and Trends 2024 to 2034

Video Management System Market Size and Forecast 2024 to 2034

The global video management system market size is worth around USD 17.12 billion in 2024 and is predicted to reach around USD 108.77 billion by 2034, with a CAGR of 20.31% from 2024 to 2034.

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Video Management System Market Key Takeaways

• North America dominated the video management system market with the largest market share of 35% in 2023.
• Asia Pacific is expected to grow at a notable CAGR of 24.32% during the forecast period.
• By component, the solution segment accounted for the largest market share of 69% in 2023.
• By component, the services segment is projected to grow at a double digit CAGR over the forecast period.
• By technology, the IP-based segment contributed the biggest market share of 70% in 2023.
• By technology, the analog-based segment will witness considerable growth over the forecast period.
• By mode of deployment, the on-premises segment captured the highest market share of 59% in 2023. 
• By mode of deployment, the cloud segment is expected to grow at a notable rate in the market during the studied years.
• By end-user industry, the retail segment held the largest share of the market in 2023. 
• By end-user industry, the transportation & logistics segment is expected to grow significantly in the market during the forecast period. 

U.S. Video Management System Market Size and Growth 2024 to 2034

The U.S. video management system market size is exhibited at USD 11.98 billion in 2024 and is projected to be worth around USD 76.68 billion by 2034, expanding at a double-digit CAGR of 20.38% from 2024 to 2034.

North America dominated the video management system market in 2023. The region's market is anticipated to expand continuously over the next decade, propelled by the presence of major VMS companies, rising deployment of VMS for traffic management and highway safety, and rising concern to safeguard critical infrastructure and national borders with the use of VMS. Additionally, the region’s rapid growth is driven by the increasing adoption of IP-based surveillance systems and monitoring systems facilitated by aging infrastructure. Furthermore, there is a significant rise in demand for affordable cloud-based video surveillance and VMS in a wide range of end-user industries.

• In April 2024, Lumana announced the launch of its next-generation video security platform that uses artificial intelligence (AI) and distributed hybrid cloud architecture. The company stated that its technology empowers organizations to enhance security and safety measures, boost operational efficiency, and streamline incident response. The platform can analyze millions of hours of video in real-time across disparate locations, and Lumana optimizes its proprietary AI models based on captured video.
• In December 2023, D.C. police announced the launch of a state-of-the-art real-time crime center at Metropolitan Police Department headquarters to monitor surveillance cameras. Federal law enforcement and police from around the D.C. area will monitor the District’s vast system of surveillance cameras.

Asia Pacific is anticipated to grow at a notable rate in the video management system market during the forecast period. Regional growth is attributed to the rise in small and medium-sized businesses and the increase in investments in smart cities and infrastructure development. China, India, and Japan are expected to be leading countries witnessing strong demand for video management systems (VMS) during the forecast period, owing to the rising usage of video surveillance networks for public safety purposes. 

Rapid urbanization and industrialization in the region are driving the demand for VMS solutions, which is expected to boost the growth of the market in Asia Pacific. Furthermore, the government's supportive initiative is expected to witness positive infrastructural developments in the region. Asia Pacific is experiencing an exponential increase in population, particularly in countries like China and India, which is creating lucrative opportunities for the video management system market. VMS solutions assist in monitoring and managing populated areas to ensure public safety. 

• The government of India on May 23 stated that more than 90% of the funds allocated under the Smart Cities Mission have been utilized till now, while 73% of the projects have been completed. As of May 1, a total of INR 38,400 crore was released under the Smart Cities Mission, of which INR 35,261 crore has been utilized for various projects, according to the Union Urban Affairs Minister.
• In July 2023, Infinova, a pioneer in the surveillance industry, achieved a significant milestone through its partnership with L&T to deploy industrial-grade surveillance cameras at Bangalore Metro Rail Corporation Limited (BMRCL). This project is expected to cover a total of about 28 Metro Stations and 3 Depots for BMRCL. As of date, 23 railway stations are completely operational, thus revolutionizing the safety infrastructure of Bangalore's rail network.
• In May 2023, Japanese security integration company Secom Co. Ltd. announced that it had invested USD 192 million into two cloud-based security solutions providers: Eagle Eye Networks Inc. and Brivo Inc. Eagle Eye pitches itself as a global leader in cloud video surveillance with a product offering that delivers cyber-secure, cloud-based video equipped with artificial intelligence and analytics.

Market Overview

A video management system (VMS) is a software-based platform that manages and controls video surveillance cameras, recording devices, and various other security components. VMS systems can also allow for video recording from multiple cameras, and the recorded videos are stored on a server or network storage device. A video management system assists users in monitoring events through surveillance cameras and provides alerts for any potential risks, threats, events, or scheduled tasks.

VMS systems permit security personnel to view live video feeds from surveillance cameras in real-time, either remotely or on-site. It is interoperable with other systems, which is likely to enhance overall security. VMS are generally used by businesses, governments, individuals, and other organizations that require large-scale surveillance and prioritize security monitoring. This system provides the option to search and retrieve any recorded video.

Video Management System Market Growth Factors

• The substantial investment in smart city initiatives is expected to accelerate the growth of the acupuncture market during the forecast period. The video management system plays an indispensable role in a smart city, and it assists governments in making cities safer and enhancing the living quality of people.
• The increasing concern over security measures drives the global adoption of video management systems. 
• The rise in the number of small and medium sized businesses globally is anticipated to contribute to the expansion of the market.
• The rising demand for enhanced security solutions across various sectors, including commercial, industrial, and residential, is projected to boost the growth of the video management system market.
• The growing trend toward cloud-based technology is anticipated to accelerate the growth of the market in the coming years.
• The rising deployment of video management systems for traffic management and surveillance is expected to fuel the growth of the video management system market.

Market Scope

Market Dynamics

Driver

Increasing concern for public security and safety

The rise in security surveillance is expected to boost the expansion of the video management system market in the coming years. The market has witnessed robust growth in security measures to ensure public safety. Video management system generally manages data streamed from several surveillance devices, including security cameras. It allows the user to access real-time videos and recorded videos and derive critical insights from the surveillance site. Several government entities are focusing on developing and deploying sophisticated surveillance cameras in densely populated areas. 

Organizations or businesses with multiple locations are adopting video management system market services to integrate all areas and get centralized monitoring. It allows for real-time tracking. Additionally, the rising use of security cameras in public and private places such as roads, hospitals, airports, railways, banks, metro stations, small and medium-sized businesses, residential buildings, and others has been observed in recent years.

Restraint

High implementation cost

The high implementation cost associated with VMS is anticipated to hamper the video management system market growth. High initial costs, including hardware, software, and integration costs, are required for the implementation of VMS. Due to budget constraints, small and medium-sized enterprises are often discouraged from adopting these technologies.

Opportunity

Rapid technological advancement in VMS

The technological advancement in VMS is projected to offer a lucrative opportunity for the growth of the video management system market during the forecast period. Several companies are engaged in introducing new and advanced technologies to sustain their position and gain a competitive edge in the market. Customers are increasingly being shifted from conventional video cameras to IP video camera (IP) systems. With rapid technological advancement and cloud-based technology, the VMS is gaining significant popularity in the market. 

Video management systems offer various advanced functionalities such as video analytics, remote or on-site access, and real-time monitoring, which makes them crucial for modern surveillance systems. The integration of advanced technologies, including AI and the Internet of Things (IoT), enhances the capabilities of VMS, which enables safety features like automated potential threat detection. 

Component Insights

The solution segment accounted for the largest share of the video management system market in 2023. Organizations adopt video management solutions that offer interoperability with other systems to enhance overall security. Video management solutions play an integral role in several sectors, offering numerous applications. Moreover, large enterprises and academic institutions use VMS for many purposes, such as corporate training, live event streaming, executive communication, and others.

The services segment is expected to grow at a rapid CAGR in the video management system market over the forecast period. It encompasses a wide range of offerings, including education, certification, consulting, training, planning, implementation, and others. These services are considered important as several end-users often lack the technical expertise to store and handle video data effectively.

Technology Insights

The IP-based segment accounted for the dominating share of the video management system market in 2023 and is projected to continue its dominance over the forecast period. In recent years, the market has witnessed the increasing use of IP cameras owing to the rising demand for high-resolution images and perimeter monitoring. IP-based cameras provide several advanced features that have been important in addressing various critical issues in several industries. Real-time communication capabilities increase the need for IP-based VMS.  It facilitates smooth and instantaneous data transmission, enabling quick decision-making and response in a wide range of applications.

The analog-based segment will witness considerable growth in the video management system market over the forecast period. The analog-based VMS is capable of supporting several cameras, including the latest IP and older analog cameras. Analog-based VMS can generate a dynamic range of high-efficiency video coding (HEVC) content according to the needs of the users. 

Mode of Deployment Insights

The on-premises segment held the dominating share of the video management system market in 2023. The segment’s growth is driven by the benefits offered by the VMS flexibility, cost-effectiveness, and scalability. On-premise solutions are increasingly becoming popular across various industry verticals, such as traffic management building and infrastructure management. Organizations or businesses are adopting VMS to improve their streaming experiences by using these systems within their internal IT infrastructure as well as leveraging real-time messaging protocol (RTMP) encoders.

The cloud segment is expected to grow at a notable rate in the video management system market during the studied years. In recent years, cloud-based video management systems have provided excellent and tailored experiences for organizations or businesses. Cloud-based technology delivers scalable and cost-effective solutions for encoding various video formats. These systems enable organizations to provide more personalized and responsive experiences to their users. 

End-user Industry Insights

The retail segment held the largest share of the video management system market in 2023. The video management system market plays a crucial role in the retail industry. The retail vertical includes small retail stores, shopping malls, and others.  Customers are mostly always present in shopping centers, which increases the risk of theft and scams. Video surveillance software provides a secure environment for both customers and employees. IP-based cameras are widely utilized in the retail sector. There are several reports of employees engaging in fraudulent financial transactions. The IP video surveillance system assists in addressing this issue by electronically connecting all transactions and video recordings of the events. This data gets stored in a centralized database, allowing retailers to view all the transactions and search on various parameters if required. Advanced digital IP-based video cameras and recorders are deployed in retail stores to prevent fraud, theft, and unsubstantiated claims. It also offers remote access, allowing executives to monitor the performance of their stores from their comfort places with access to the internet. 

The transportation & logistics segment is expected to grow significantly in the video management system market during the forecast period. The video management system is crucial for effective traffic monitoring and management to ensure road safety. The rise in urbanization and population growth results in increasing traffic, which increases the demand for advanced video solutions for traffic safety. Rising investment in the logistics industry and transportation, including roadways, railways, airports, and seaports, are observed.

Video Management System Market Companies

• Bosch
• Hanwha Techwin
• Honeywell
• Schneider Electric
• Avigilon Corporation
• Backstreet Surveillance
• Axis Communications
• Johnson Controls
• Hikvision Digital
• Axis Communications AB 
• Johnson Controls 
• Dahua Technology USA Inc
• Verint Systems Inc.
• Mindtree Ltd. 
• Hangzhou Hikvision Digital Technology Co., Ltd. 
• Schneider Electric 
• NetApp 
• KEDACOM 

Recent Developments

• In April 2022, Qognify announced the launch of its new video management software, Qognify VMS. Qognify VMS is designed to meet the specific physical security needs of organizations around the globe. It is based on the proven technology of Qognify’s successful video management software, Cayuga, which is used by many customers in thousands of security projects worldwide. 
• In October 2023, the Karnataka Forest Department, along with the Wildlife Trust of India, launched the Hostile Activity Watch Kernel (HAWK) system, a specialized software platform to monitor all aspects of forest and wildlife crime. The system would help the department manage and monitor data regarding forest and wildlife crime across Karnataka in real-time.
• In June 2023, Cameroon launched video surveillance with live facial recognition in the largest city. An Annex facility of the National Command and Control Centre for Video Surveillance has gone operational in Douala in a move that seeks to counter the spiraling wave of urban insecurity in Cameroon’s largest city, in part through live facial recognition.

Segments Covered in the Report

By Component

• Solution
• Services

By Technology

• Analog-Based
• IP-Based

By Mode of Deployment

• On-Premise
• Cloud

By End-user Industry

• Retail
• Airports
• Education
• Banking
• Healthcare
• Transportation & Logistics
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa