VMS Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11.54 Billion |
| Market Size (2029) | USD 27.66 Billion |
| CAGR (2024 - 2029) | 19.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
VMS Market Analysis
The VMS Market size is estimated at USD 11.54 billion in 2024, and is expected to reach USD 27.66 billion by 2029, at a CAGR of 19.10% during the forecast period (2024-2029).
- Rising concerns over safety and security in public areas, commercial venues, and vital infrastructure are fueling the demand for video surveillance systems. video management software (VMS) facilitate centralised oversight of these video feeds, establishing their pivotal role in the security domain. Moreover, the shift of numerous video surveillance solutions to cloud platforms stands out as a primary catalyst. Cloud-based VMS offers scalability, remote monitoring, flexible storage, and convenient access, making them attractive across various industries.
- Integrating AI and machine learning analytics into VMS is becoming commonplace, providing features like real-time alerts, facial recognition, behavioural analysis, and object tracking. These advanced capabilities significantly enhance the value proposition, driving the demand for sophisticated VMS solutions.
- Governments and municipalities are pouring resources into the creation of smart cities. A case in point: India's Cabinet Committee on Economic Affairs (CCEA), under the Prime Minister's leadership, greenlit 12 new smart city initiatives as part of the National Industrial Corridor Development Programme (NICDP), backed by an investment of INR 286.02 billion (approximately USD3.41 billion). These initiatives are projected to draw in investments worth INR 1.52 trillion (around USD 18.12 billion) from major industries and MSMEs, resulting in the creation of 1 million direct jobs and 3 million indirect ones. As the number of smart cities rises, so does the adoption of surveillance systems. VMS, in tandem with these systems, plays a crucial role in overseeing public areas, managing traffic, and ensuring urban safety.
- VMS is now being seamlessly integrated with IoT devices, paving the way for more intelligent surveillance solutions. This integration allows video feeds to connect with other devices, such as motion detectors and alarms, leading to a more holistic and efficient surveillance approach.
- Heightened regulations surrounding data protection, privacy laws (like GDPR), and compliance necessities in sectors such as banking, healthcare, and retail have spurred the uptake of advanced VMS. These systems adeptly manage video data storage and handling, ensuring alignment with legal standards.
- However, as the volume of video surveillance data surges, so do concerns about data breaches, hacking, and unauthorised access to sensitive information. Upholding data privacy and adhering to protection regulations presents its own set of challenges.
- In times of economic downturns, organizations, including businesses and governments, frequently curtail their capital expenditures. Video surveillance systems, particularly those utilizing Video Management Software (VMS), represent substantial investments. These encompass both hardware components, like cameras and storage systems, and software elements. Consequently, this financial commitment can lead to a postponement or a decrease in the adoption of such systems.
VMS Market Trends
Cloud Deployment is Expected to Witness Remarkable Growth
- The video management software (VMS) market is poised for significant growth, driven by a shift towards cloud-based solutions. This trend is fueled by technological advancements, evolving customer demands, and the inherent benefits of cloud systems. Notably, cloud-based VMS solutions offer scalability, enabling organizations to expand their video surveillance infrastructure seamlessly. This means businesses can increase camera counts or storage capacity without hefty upfront hardware investments.
- Operating on a subscription model, cloud-based VMS typically demands minimal to no initial capital outlay. Organizations can forgo the hefty costs of servers, storage, and cameras, opting instead for a manageable monthly or annual subscription. In today's economic climate, where businesses are keen on trimming capital expenditures and operational costs, these cloud solutions emerge as a compelling choice. The pay-as-you-use model further amplifies cost savings on deployments.
- One of the standout features of Cloud VMS is its remote accessibility. Users can tap into their video feeds from any location with internet access. This proves invaluable for organizations spread across multiple sites or those needing to view footage on diverse devices, be it smartphones, tablets, or computers. Such remote access empowers security personnel and administrators to oversee systems in real-time, enhancing efficiency and response times, particularly for global enterprises or multi-site operations.
- Cloud VMS boasts near-unlimited storage capabilities, allowing businesses to archive extensive video data without the constraints of physical storage. Moreover, with automatic cloud backups, the risk of data loss diminishes significantly. This cloud storage not only safeguards surveillance data from hardware malfunctions but also ensures timely access, a crucial factor for industries bound by stringent data retention regulations.
Asia Pacific is Expected to Witness a High Market Growth Rate
- Asia Pacific is experiencing rapid urbanization, with millions of people moving to urban areas, leading to a higher demand for advanced security solutions in cities. Governments and businesses are increasingly investing in surveillance infrastructure to enhance public safety and security in metropolitan areas. The need to monitor and secure public spaces, critical infrastructure, and high-traffic areas in growing cities drives demand for scalable, reliable, and cost-effective VMS solutions.
- Rising security concerns, including terrorism, theft, and public safety issues, have heightened the need for robust surveillance systems. The APAC region has seen increasing incidents of security breaches, which are pushing both governments and businesses to invest in advanced video surveillance and management systems.
- Many governments in the APAC region are increasingly focusing on the development of smart cities, integrating IoT, AI, and cloud technologies into urban infrastructure. VMS plays a vital role in these initiatives by offering centralized video surveillance for traffic management, law enforcement, and disaster management.
- The growing economy in Asia Pacific is leading to the expansion of small and medium-sized enterprises (SMEs) that are increasingly adopting advanced surveillance systems, including VMS, to secure their properties, employees, and assets. The affordability of cloud-based VMS solutions has made it easier for SMEs to deploy these technologies.
- Asia Pacific is swiftly adopting digital transformation, channeling substantial investments into cloud computing, AI, and IoT technologies. These advancements bolster Video Management Systems (VMS) by providing superior analytics, facial recognition, and object detection capabilities, thereby enhancing security and operational efficiency. The region's robust growth rate in the VMS sector can be attributed to factors such as rapid urbanization, increasing security concerns, proactive government initiatives, the burgeoning of SMEs, and the embrace of advanced technologies like AI and cloud computing. Together, these elements foster a vibrant landscape for the proliferation and integration of video management systems throughout Asia Pacific.
VMS Industry Overview
The VMS market is highly fragmented, with global and local conglomerates and specialized players operating across various segments. While several large multinational companies dominate specific high-value segments, numerous regional and niche players contribute to the overall competition, making the market highly diverse. This fragmentation is driven by the demand for the VMS across a wide range of end-user verticals, allowing both large and small companies to coexist and thrive in the market.
Leading companies in the VMS market include Robert Bosch GmbH, Hanwha Techwin Co., Ltd., Honeywell International Inc., Schneider Electric, Axis Communications AB, Johnson Controls, Hangzhou Hikvision Digital Technology Co., Ltd., NetApp, Dahua Technology USA Inc., KEDACOM, and Verint Systems Inc. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
To maintain their competitive edge, VMS providers are consistently innovating, rolling out new features, and refining their solutions. They're incorporating advanced technologies, including Artificial Intelligence (AI), machine learning (ML), facial recognition, motion detection, and analytics, to craft smarter and more efficient video surveillance systems. Furthermore, VMS providers are now delivering bespoke solutions, finely tuned to meet the unique demands of sectors like retail, transportation, education, and healthcare.
VMS Market Leaders
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Robert Bosch GmbH
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Schneider Electric
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Honeywell International Inc.
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Johnson Controls
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Hangzhou Hikvision Digital Technology Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
VMS Market News
- June 2024: Milestone Systems has unveiled its inaugural Experience Center in India, situated in Bangalore. This cutting-edge facility highlights the company's pioneering video technologies spanning various sectors, such as manufacturing automation, data center security, and healthcare safety. Additionally, the inauguration coincided with the introduction of Milestone Kite, the company's latest cloud-based video management software, to the Indian market. Milestone Kite boasts high scalability, supports over 25,000 devices, and is accessible worldwide. Its straightforward installation and minimal infrastructure demands enable businesses to streamline security management, letting them concentrate on their primary operations.
- January 2024: AxxonSoft has unveiled version 2.0 of its advanced, unified video management system, Axxon One. This latest iteration integrates seamlessly with a range of physical security systems, solidifying Axxon One's status as a truly unified VMS. Additionally, the update boasts cutting-edge AI video analytics, enhanced intelligent search features, fortified cybersecurity measures, improved usability and performance, and broadened cloud functionalities.
VMS Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for Surveillance and Security Solutions
5.1.2 Advancements in Cloud Technology and Integration with Artificial Intelligence (AI) and Analytics
5.2 Market Restraints
5.2.1 Data Privacy and Security Concerns
6. MARKET SEGMENTATION
6.1 By Deployment Type
6.1.1 On Premise
6.1.2 Cloud-based
6.2 By Enterprise Size
6.2.1 Large Enterprises
6.2.2 Small and Medium-sized Enterprise
6.3 By Industry Vertical
6.3.1 IT and Telecom
6.3.2 BFSI
6.3.3 Media and Entertainment
6.3.4 Retail and E-commerce
6.3.5 Healthcare And Life Sciences
6.3.6 Manufacturing
6.3.7 Others
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Middle East and Africa
6.4.6 Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Robert Bosch GmbH
7.1.2 Hanwha Techwin Co., Ltd.
7.1.3 Honeywell International Inc.
7.1.4 Schneider Electric
7.1.5 Axis Communications AB
7.1.6 Johnson Controls
7.1.7 Hangzhou Hikvision Digital Technology Co., Ltd.
7.1.8 NetApp
7.1.9 Dahua Technology USA Inc.
7.1.10 KEDACOM
7.1.11 Verint Systems Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
VMS Industry Segmentation
- Video management software (VMS) serves as a centralized platform for users to manage, record, monitor, and analyze footage from multiple surveillance cameras and security devices. This software application streamlines the oversight of video surveillance systems, facilitating efficient management of recorded footage, real-time monitoring, and seamless integration with other security technologies.
- The study tracks the revenue accrued through the sale of the VMS by various players across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
- The VMS market is segmented by deployment type (on premise, and cloud-based), enterprise size (large enterprises, and small and medium-sized enterprises), industry vertical (IT and telecom, BFSI, media and entertainment, retail, healthcare and life sciences, manufacturing, and others), and geography (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The market sizes and forecasts regarding value (USD) for all the above segments are provided.
| By Deployment Type | |
| On Premise | |
| Cloud-based |
| By Enterprise Size | |
| Large Enterprises | |
| Small and Medium-sized Enterprise |
| By Industry Vertical | |
| IT and Telecom | |
| BFSI | |
| Media and Entertainment | |
| Retail and E-commerce | |
| Healthcare And Life Sciences | |
| Manufacturing | |
| Others |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Middle East and Africa | |
| Latin America |
VMS Market Research FAQs
How big is the VMS Market?
The VMS Market size is expected to reach USD 11.54 billion in 2024 and grow at a CAGR of 19.10% to reach USD 27.66 billion by 2029.
What is the current VMS Market size?
In 2024, the VMS Market size is expected to reach USD 11.54 billion.
Who are the key players in VMS Market?
Robert Bosch GmbH, Schneider Electric, Honeywell International Inc., Johnson Controls and Hangzhou Hikvision Digital Technology Co., Ltd. are the major companies operating in the VMS Market.
Which is the fastest growing region in VMS Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in VMS Market?
In 2024, the North America accounts for the largest market share in VMS Market.
What years does this VMS Market cover, and what was the market size in 2023?
In 2023, the VMS Market size was estimated at USD 9.34 billion. The report covers the VMS Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the VMS Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
VMS Industry Report
Statistics for the 2024 VMS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. VMS analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
