As the video surveillance industry continues its transition toward IP-camera systems with edge and on-device analytics capabilities, solution providers continue to offer connected products and services with vastly stronger value propositions than traditional, legacy analog systems. As a result, ABI Research forecasts that enterprise video surveillance camera connections will top 348 million by 2023 and that these systems will generate value-added services revenues of US$12 billion.
“Success within IoT is largely dependent on the ability of providers to create highly specialised, value-added solutions based upon clearly defined use cases supported by market demand,” said Ryan Harbison, Research Analyst at ABI Research. “More than in most other industries, video-surveillance providers understand the value that this digital transformation can have on end-user experience and have largely focused on crafting end-to-end surveillance solutions that include everything from device components to analytics and professional services including creation of Video-Surveillance-as-a-Service (VSaaS) business models.”
The VSaaS model was largely borne out of the need for providers to find new revenue opportunities as competition from Chinese camera manufacturers were driving down hardware margins. Additionally, providers realised there was substantial value in integrating video-surveillance systems with other systems such as access control and intruder alarms. Solution providers now offer extensive professional services in the form of systems integration, device installation, and customised end-user solutions.
These services are critical across all deployments and, as a result, video-surveillance professional services will generate worldwide revenues of $10 billion in 2023.