Video Management System Market Size, Share | Industry Forecast by 2030 (2024)

Video Management System Industry Overview

The global Video Management System (VMS) market size was USD 8.82 Billion in 2021 and is expected to register a revenue CAGR of 20.4% during the forecast period. Rapid deployment of video management systems for traffic management and surveillance is a major factor driving market revenue growth. Video management solutions are widely incorporated for enhancing traffic safety and preventing road accidents through monitoring multiple Closed-Circuit Television (CCTV) video streams in a central network operations center.

Many developing as well as low- and middle-income countries are increasingly deploying video management systems to reduce road traffic injuries and accidents. According to the World Bank, approximately 1.3 million people die every year as a result of road traffic crashes. Video management systems are deployed to encode multiple CCTV and surveillance video streams of live traffic cameras on roads. The system detects incidents immediately and continuously collects real-time traffic data in order to reduce traffic as well as enhance highway safety. These factors are driving revenue growth of the market.

Video Management System Market Drivers

Technological advancement in new product development is further driving demand for video management systems. Several market players are designing and developing Artificial Intelligence (AI) and Machine Learning (ML) algorithms to establish enhanced automation in video security. This technological innovation will help Business-to-Consumer (B2C) and Business-to-Business (B2B) users to detect and flag unusual motions, and also reduce hours of work reviewing recorded video to minutes.

Moreover, increasing government interest in investment in cloud video surveillance in various regions is expected to drive revenue growth of the market over the forecast period. For instance, one of the major market players in the video management system market, Eagle Eye Networks’ cloud video surveillance technology is eligible for a 20% tax deduction by the Australian Government (Australian Taxation Office) as a new technology investment. These benefits are generating various opportunities for small and medium enterprises to develop new products or solutions in cloud video monitoring.

Video Management System Market Restraints

The Concerns regarding data security and protection could restrain revenue growth of the market. Video management systems data can be accessed through cloud-based and on premise data servers. System data can be compromised with increasing incidences of cyber-attacks such as malware attacks, phishing attacks, Distributed Denial-of-Service (DDoS) attacks, Structured Query Language (SQL) injection attacks. According to the Federal Bureau of Investigation (FBI), around 847,376 cyber-attack cases were reported with a loss of USD 18.7 billion in 2021. Data security and protection is a significant challenge from loss of users and revenue. Also, some hackers are using Virtual Private Networks (VPNs) to access unauthorized content and these pirated files are freely available for download or on open-source platforms. These factors could hamper revenue growth of the market.

Video Management System Market Segment Insights:

Video Management System Technology Insights:

On the basis of technology, the global video management system market is segmented into Internet Protocol (IP)-based VMS, analog-based VMS, and others. The IP-based VMS segment accounted for largest revenue share in 2021. IP-based VMS supports a large number of organizations to develop video systems using standard computer hardware and cost-efficient video format. Rapid innovation in video processing architecture such as dynamic range High-Efficiency Video Coding (HEVC) transcoding and processing, using real-time communication are creating high demand for IP-based VMS.

The analog-based VMS accounted for fastest revenue CAGR in 2021. Analog-based VMS produces dynamic range HEVC content for enterprise users. Also, analog video system management helps in prototyping, deploying, and operating tasks easier and faster. Latest generation IP cameras and older analog cameras can be monitored using VMS, which also intelligently integrates sensors and other servers.

Video Management System Deployment model Insights:

On the basis of deployment model, the global video management system market is segmented into cloud-based, on premise, and hybrid. The cloud-based segment accounted for largest market revenue share in 2021. Many organizations are adopting cloud-based video management systems to deliver proactively and customized experiences, which helps to encourage vendors and distributors to improve on licensing agreements and VMS technology. Cloud-based deployment models are cheap and scalable in terms of encoding several video formats and bitrates depending on codecs.

The on premise segment accounted for a steady revenue share in 2021. On-premise solutions are increasingly incorporated among industry verticals such as traffic management and control, building and infrastructure owing to flexibility, cost effectiveness, and scalability of software. Many organizations are significantly adopting video management systems to improve streaming experience, by deploying within the internal Information Technology (IT) infrastructure of an organization using Real-Time Messaging Protocol (RTMP) encoders.

Video Management System Industry Vertical Insights:

On the basis of industry vertical, the global video management system market is segmented into traffic management and control, building and infrastructure, banking and financial services, government organization, transportation and warehousing, energy and utilities, media and entertainment, and others. The traffic management and control segment accounted for largest revenue share in 2021. VMS is highly deployed in traffic management and control to record traffic patterns, collect statistics, ensure worker and equipment safety at highway construction projects, or help prevent and investigate traffic offenses. Video management built-in analytics systems or tools are designed to detect traffic build-up and send email alerts. Also, various players in this market are developing AI and ML algorithms to predict accidents or unusual activities, which are significantly driving revenue growth of the segment.

The building and infrastructure segment accounted for a steady revenue share in 2021. Video management systems are significantly adopted in building and infrastructure for monitoring and managing assets. Video management systems for building and infrastructure are rapidly used for direct on-site communication. Moreover, increasing deployment of video management systems for CCTV operations in buildings is driving revenue growth of the segment.

Video Management System Regional Insights:

Video Management System North America Market

The market in North America accounted for largest revenue share in 2021. Rapid adoption of video management systems for traffic management and highway safety is driving revenue growth of the market in this region.

Video management systems help to monitor traffic and detect high speed via video analytics, also traffic cameras provide alarm monitoring and clear communication between the system and tracking security. According to the National Highway Traffic Safety Administration (NHTSA), an estimate of around 42,915 people died in motor vehicle traffic crashes in 2021. Traffic fatalities increased by 10.5% from 38,824 fatalities in 2020. These factors are driving deployment of high adoption of video management system in this region.

Moreover, significant requirements for cost-effective cloud-based video surveillance and VMS in healthcare and infrastructure are expected to create high demand for video management systems over the forecast period. For instance in June 2022, Eagle Eye Networks, Inc., which is a Texas-based cloud video surveillance and AI company, upgraded its conventional on-premises video surveillance system Eagle Eye cloud video surveillance system achieving operational efficiencies, cost savings, and improved security.

Video Management System Asia Pacific market

The market in Asia Pacific accounted for a steady revenue share in 2021. Increasing use of video management systems for smart city projects and urban development is divining revenue growth of the market in this region.

Video management systems applications are significantly used in smart cities such as Singapore, Beijing, Shenzhen, Tokyo, Melbourne, Thailand, and other smart cities. According to United Nations (UN), 68% of the world’s population is projected to live in urban areas by 2050. Video management system is an essential component of a smart city, it helps governments as well as municipalities to make cities safer, more effective, and improve living quality. In addition, video management systems are increasingly deployed for metro rail to carry out automatic train operations without using a driver. For instance, Hitachi Limited, which is a multinational technology conglomerate, signed a contract of USD 196.7 million with Chennai Metro Rail Limited in India for design, manufacture, supply, installation, testing, and commissioning of the video management system and train control.

Video Management System Europe Market

The market in Europe accounted for a moderate revenue share in 2021. Rising deployment of cloud-based video management systems for video surveillance and analysis is creating high demand for video management systems in this region.

Video management systems are widely implemented in countries such as Denmark, Sweden, Norway, the Netherlands, and Belgium owing to very high bandwidths. According to the World Bank, in 2020, around 85% of the European population have access to the Internet. Revenue growth of the video management system market is driven by increased functional and cost-effective smart connected devices. In addition, increasing deployment of smart video surveillance management systems for railway networks is contributing to revenue growth of the market in this region. For instance, in December 2020, South-eastern Rail Network in the U.K., partnered with Bosch Security Systems Ltd. for the deployment of a smart video security solution to protect 12 train terminals, including five unmanned locations.

Video Management System Top Companies and Competitive Landscape

The global video management system market is fragmented, with many players accounting for a majority of market revenue. Major companies are deploying various strategies, entering into mergers and acquisitions, strategic agreements, and contracts, developing, investment, and others.

Some major players included in the global Video Management System market report are:

• Honeywell International Inc.
• Johnson Controls International PLC
• Bosch Security Systems Ltd.
• Hitachi, Ltd.
• Siemens AG
• Senstar Corporation
• Hangzhou Hikvision Digital Technology Co., Ltd.
• Milestone Systems A/S
• Genetec Inc.
• Avigilon Corporation
• Eagle Eye Networks, Inc.
• Dahua Technology USA Inc.
• Hanwha Techwin Co., Ltd.
• StorMagic Inc.

Video Management System Latest Industry News

• In December 2022, Texas-based Eagle Eye Networks, Inc. partnered with Integrated Products for distribution of various cloud video surveillance products, and high-quality technical support to systems integrators and businesses in Australia. This partnership aims to establish new sales prospects in Australia and develop new potentials for cloud video surveillance.
• In October 2022, Milestone Systems A/S, which is a Denmark-based video management system company launched the secure, scalable VMS cloud solution XProtect for small to medium-sized businesses. The newly launched Video Surveillance as a Service (VSaaS) complements XProtect is designed for on-premises, hybrid-cloud, and cloud-native components. Also, X-protect integrates Amazon Web Services (AWS) cloud offerings for data-driven video technology solutions.

Video Management System Report Summary

Video Management System Market Segment Analysis

For the purpose of this report, Emergen Research has segmented the global video management system market on the basis of technology, deployment model, organization size, application industry vertical, and region:

• Technology Outlook (Revenue, USD Billion; 2019-2030)

  • IP-based VMS
  • Analog-based VMS
  • Others

• Deployment Model Outlook (Revenue, USD Billion; 2019-2030)

  • On premise
  • Cloud
  • Hybrid

• Organization Size Outlook (Revenue, USD Billion; 2019-2030)

  • Large Enterprises
  • Small and Medium Enterprises

• Application Outlook (Revenue, USD Billion; 2019-2030)

  • Mobile Application
  • Intelligent Streaming
  • Security and Surveillance
  • Storage Management
  • Navigation Management
  • Others

• Industry Vertical Outlook (Revenue, USD Billion; 2019-2030)

  • Traffic Management and Control
  • Building and Infrastructure
  • Banking and Financial Services
  • Government Organization
  • Transportation and Warehousing
  • Energy and Utilities
  • Media and Entertainment
  • Others

• Regional Outlook (Revenue, USD Billion; 2019-2030)

  • North America
    1. U.S.
    2. Canada
    3. Mexico
  • Europe
    1. Germany
    2. France
    3. U.K.
    4. Italy
    5. Spain
    6. Benelux
    7. Rest of Europe
  • Asia Pacific
    1. China
    2. India
    3. Japan
    4. South Korea
    5. Rest of APAC
  • Latin America
    1. Brazil
    2. Rest of LATAM
  • Middle East & Africa
    1. Saudi Arabia
    2. U.A.E.
    3. South Africa
    4. Turkey
    5. Rest of MEA