Global video surveillance market revenues are set to hit $24.2 billion by the end of 2021, according to Omdia’s latest Video Surveillance and Analytics Intelligence Database.
The research firm says this marks a quick recovery for the video surveillance market, as demand that was suppressed in 2020 will return and revenues will be bolstered by projects that were postponed in 2020 due to COVID-19. Omdia forecasts that total video surveillance market revenues will grow to $31.9 billion by 2025 with a total CAGR of 7.1% between 2020-2025.
The firm says the size of the thermal body temperature solutions market has rapidly grown to $1.3 billion globally in 2020. Driven by COVID-19 precautions, this technology has been adopted by several regions, particularly in China, East Asia, India, and the Middle East. However, Omdia says that without the growth in thermal body temperature solutions, the global video surveillance equipment market declined 3.8% globally in 2020.
Despite being a driving growth factor in 2020, Omdia forecasts the thermal body temperature solutions market will decline rapidly in 2021 to just $137 million, an 89.8% decline, ultimately limiting the overall video surveillance market growth.
Omdia expects average selling prices of video surveillance equipment to increase in the short term as U.S.-China geopolitical tension and supply chain constraints from the COVID-19 pandemic increase pressure on vendor margins.
In recent years, U.S.-China geopolitical tensions within the video surveillance industry have escalated, and Omdia says the initial NDAA and blacklisting of Hikvision, Dahua, and Huawei within the U.S. is being augmented by new FCC regulations.
Oliver Philippou, Research Manager of Physical Security at Omdia, comments, “The semiconductor shortfall driven by geopolitics and the COVID impact has affected all industries, and video surveillance is no expectation. This disparity between supply and demand is expected to last until mid-2022. “
Longer term, Omdia expects that there will be a greater adoption of the network camera products using AI deep learning acceleration and inference at the endpoint. This will result in higher average prices of network cameras.