Market Trends of Canada Video Surveillance Industry
IP-based Surveillance Cameras Growing at a Significant Rate
- In Canada, IP-based surveillance cameras transmit video data over the internet and are outpacing traditional analog systems. Their ascent is fueled by advanced features, high resolutions, and adaptability, resonating with a security-focused market amid technological progress and growing sectoral acceptance. These cameras boast HD and UHD video quality, delivering crisper, more intricate images than analog models. Equipped with remote access, digital zoom, and seamless integration with security setups, IP cameras stand out for their efficiency and user-friendliness. Moreover, their impressive scalability allows system expansions without requiring major infrastructure alterations.
- The surge in smart home technology and the Internet of Things (IoT) has set the stage for robust growth in Canada's IP camera sector. These cameras, which operate via the Internet Protocol (IP), are gaining consumer traction owing to their seamless integration with home security and automation systems. Although they may come with a higher upfront cost, IP cameras promise substantial long-term savings. This is attributed to their simplified installation, decreased cabling demands, and minimal maintenance needs.
- Given the growing importance of analytics, the introduction of 4K resolution cameras is enabling providers to incorporate advanced features directly into their management software. For instance, AI is revolutionizing industries, bolstering functions ranging from facial recognition to behavior analysis. Businesses, especially those prioritizing future readiness, are increasingly embracing AI-driven surveillance systems. In 2023, Canada, spotlighted by the Global AI Ecosystem, boasted over 1,800 AI enterprises. Such trends create a favorable ecosystem for market growth in the country.
- Law enforcement is turning to facial recognition technology to combat crime. These systems, a subset of biometric tech, utilize AI to compare images or videos of individuals' faces—often from security cameras—with their database records. In May 2024, the York and Peel Police in Ontario announced the initiation of facial recognition technology from the multinational French firm Idemia. Despite concerns over privacy laws and potential government misuse, there is a rising inclination toward deploying these advanced cameras for heightened security.
- The trend toward cloud storage and management, which facilitates scalable and accessible video storage and analysis, is further propelling the IP camera market. Some VSaaS providers are sweetening the deal, offering multiyear subscriptions with price protection, a move that's resonating with customers, especially as higher-resolution cameras become more affordable. Companies such as Verkada, Arcules, and OpenEye are offering these services. For example, OpenEye offers services such as AI video analytics, cloud cameras, operational analytics, and integration services within the region.
Understand The Key Trends Shaping This Market
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Commercial Segment to Remain a Key Demand Driver
- The demand for video surveillance solutions is anticipated to remain high in the Canadian commercial sector. Major factors supporting this trend are the growing acceptance of advanced technologies and the availability of supporting infrastructure such as IoT networks, 5G, etc., among others. Furthermore, the expanding footprint of commercial establishments such as retail outlets in the country also favors the demand for video surveillance solutions in the country as retailers are increasingly turning to video surveillance to tackle issues like shoplifting, employee theft, and fraud. Cutting-edge systems equipped with AI can now swiftly flag suspicious activities and promptly alert security teams.
- These criminal activities not only dent retailers' profits but also jeopardize the safety of both their employees and patrons. In response, many retailers are adopting surveillance cameras, leveraging them not only as a deterrent but also as vital aids in evidence gathering and legal proceedings. The Retail Council of Canada has highlighted the gravity of the situation, estimating annual losses in the billions due to shoplifting.
- Crimes such as Break and Enter, Auto Theft and Robbery is on the rise and overall crime rates have been increasing. For instance, according to data published by Toronto Police Service, overall crime rates have been increasing since 2020, with Break and Enter instances reaching 7,643 in 2023 from 6,101 in 2022 and overall crime instances reaching 52,608 in 2023 from 44,835 in 2022.
- Notably, shoplifting is on the rise, spanning various sectors from food to apparel and footwear. Compounding this issue, a troubling pattern emerges: a surge in repeat offenders, instances of violence, and the emergence of organized retail crime syndicates. Retailers, as per the Retail Council of Canada (RCC), have witnessed a staggering 300% uptick in retail thefts involving violence over the last four years.
- Banks are increasingly turning to video surveillance to combat fraud and ensure safety. They're utilizing high-resolution cameras and facial recognition to spot known offenders and suspicious activities. With AI and machine learning, these systems can delve into customer behavior, from foot traffic to purchase patterns. Retailers then leverage this data to fine-tune store layouts and marketing.
