VSaaS Market with COVID-19 Impact -Global Forecast to 2025

Posted by Steve Stark on December 2nd, 2020

The VSaaS market is expected to grow from USD 2.2 billion in 2020 and is projected to reach USD 4.7 billion by 2025; it is expected to grow at a CAGR of 16.0% from 2020 to 2025.

Some of the key driving factors of the VSaaS market are Low cost of investment, rise in demand for real-time surveillance data, and flexible scalability offered by VSaaS.

Driver: Low cost of investment

In VSaaS, video data is managed by service providers at a significantly low cost. The data is stored on the cloud. Thus, physical data storage devices and personnel are not required, which reduces a substantial amount of IT staffing cost, including salaries, benefits, and other associated costs. Service providers manage all surveillance-related activities, including recording, monitoring, and maintenance, which helps reduce the expenses associated with the staff required to monitor the system. Since minimal hardware is used, it helps companies to leverage the solution’s cost efficiency, achieve better results, and gain a better return on investment (RoI). By removing the expense of purchasing servers, hard drives, and camera licenses, end users can save hundreds of dollars on equipment and invest that money into additional cameras or other aspects of their business. Therefore, VSaaS reduces upfront capital costs.

Restraint: Privacy and security concerns regarding data usage

VSaaS offers the storage of data in the cloud. The cloud is a multi-tenant environment where resources are shared. It is also an outside party with the potential to access a customer’s data. There have been concerns among the users about who watches the video and as to how the video might be used or misused, as people expect their personal information to be used only for legitimate and specific purposes. Moreover, cloud services are designed to encourage users to back up their data in real-time, which can be viewed or misused by unauthorized personnel, leaked, or stolen. This may limit the growth of the VSaaS market.

Opportunity: Integration of VSaaS with access control and alarm systems

A VSaaS system is primarily used to monitor the security in a user’s premises. A VSaaS system can be more effective if it is used with access control and alarm systems. The integration of VSaaS with access control systems is likely to enhance the safety of end users since only authorized personnel will be allowed to enter the premises. With the help of VSaaS and access control systems, any unusual event, such as break-ins and unauthorized entry, can be identified, recorded, and notified to the concerned personnel. A VSaaS system can be integrated with the alarm system to alert an unusual event in the manufacturing factory, misconduct by the staff, criminal activity, and so on.

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Challenge: Lack of awareness about benefits of VSaaS

Although the market for VSaaS is growing significantly in many countries, there are still some pain points, e.g., less adoption of VSaaS in developing or underdeveloped countries. The lack of awareness about the benefits of VSaaS and making people aware of the benefits are the key challenges for VSaaS providers. The lack of knowledge of advantages of VSaaS among end users may result in less penetration of VSaaS in various applications areas. Hence, it is necessary to increase awareness about VSaaS among end users, as sometimes people are not ready to switch to VSaaS over their traditional approach of surveillance.

Hosted VSaaS to dominate the VSaaS market during the forecast period

Hosted VSaaS is expected to lead the market during the forecast period. The growing concern among users toward enhancing security, surging number of government initiatives for increasing public security, and continuous developments in infrastructure, including transportation hubs, are driving the market for VSaaS. Additionally, the increasing number of smart cities and the growing importance of VSaaS for retail, SMBs, and residential applications are also propelling the growth of the VSaaS market. The increasing penetration of smartphones in countries such as South Korea, China, Germany, the UK, France, and the US; technological advancements in telecom networks such as the availability of LTE and emerging trend of 5G; and availability of high-speed Internet are helping the market for hosted VSaaS to grow further, as high Internet speed is one of the basic requirements of service providers and customers.