The global video surveillance market revenues hit $24 billion by the end of 2021 and China accounted for 50% of the global market revenues, according to market research firm Omdia.
This marks a quick recovery for the video surveillance market; The suppressed demands in 2020 returned and revenues were bolstered by projects that were postponed in 2020 due to COVID saw the greenlight in 2021. Omdia also 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 Chinese video surveillance market is estimated to have grown 6.4% in 2020 compared to the global average of 2.2%. This growth is mainly attributed to the thermal body temperature device market as a result of the pandemic control. The market excluding such market is estimated to have declined by 0.8%.
As such, China now accounts for 50% of the global market revenues. However, a combination of pandemic control and the completion of the Chinse official projects has resulted in reduced government investment in video surveillance in the country. Even so, the government investment will continue grow, all be it at a slower rate.
One industry expert at Omdia commented: “One of the major factors that drove the China’s market growth in the past few years was government investment. Although the year of 2020 marks the completion of Xue Liang program, the government will continue to upgrade the construction of Safe China during its 14th Five-Year plan. In addition, as China is rolling out its trillions of dollars investment in new infrastructure construction, the demand for video surveillance equipment is expected to continue to grow. Besides, China’s ambitious program to accelerate the transformation to a digital economy will boost the investment in both public and private sectors.”
Omdia expects average selling prices of video surveillance equipment to increase in the short term as US-China geopolitical tension and supply chain constraints from the pandemic increases pressure of vendor margins.
In recent years US-China geopolitical tensions within the video surveillance industry have escalated. The US initial National Defense Authorization Act(NDAA) and blacklisting of Chinese video surveillance players including Hikvision, Dahua and Huawei within the US have created more barriers for Chinese makers.
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.
