Novaira report: global video surveillance market grows 3.4% in 2023

A new report from Novaira Insights reveals that the global video surveillance hardware and software market experienced a 3.4% growth in 2023.

However, the report, “The World Market for Video Surveillance Hardware and Software”, also reveals this growth was characterised by a decline of 2.7% in the Chinese market. The rest of the world (excluding China) saw an 8.2% growth. A slower rate than the 13.2% growth achieved in 2022.

Supply chain distribution

According to lead analyst and founder of Novaira Insights, Josh Woodhouse, “In 2023, China’s government spending on video surveillance remained significantly lower than pre-pandemic levels, despite expectations of a rebound. Outside of China, most markets continued to grow. Yet, in 2023 many vendors experienced a decrease in unit shipments due to a greater lag between the channel and end-user demand."

"This lag was created by distributors overordering stock in 2022 in response to supply chain disruption. These supply chain issues were largely resolved in 2023 but distributors first utilised their existing stock of equipment. 2023 also saw some softening of demand due to persisting economic uncertainties in several sectors and countries.”

The Chinese market for video surveillance

The trend of video surveillance cloud solutions has led to the emergence of many newer suppliers

China is estimated to have remained the world’s largest regional market for video surveillance equipment, accounting for 41% of the world market in 2023. However, this is a proportional decrease compared with two years prior when it accounted for 52%.

In 2023, there were still hundreds of suppliers of video surveillance equipment. Additionally, the trend of video surveillance cloud solutions has led to the emergence of many newer suppliers. However, despite this proliferation, four suppliers (Hikvision, Dahua, Axis Communications, and Motorola Solutions) continued to account for almost half of global video surveillance equipment revenues.

Cloud technology

The demand for video surveillance cloud solutions continues to grow rapidly, with high growth projected to persist. The United States is pioneering the way in adopting cloud technology for video surveillance.

In 2023, the U.S. saw an increase of over 1 million cloud-connected cameras compared to 2022. Despite this growth, the overall percentage of cameras with an active cloud connection remains low, still a single-digit percentage of the installed base.

Market expansion outside China

In 2024, the Chinese market is forecast to grow, although it will remain well below its peak in 2021. Outside of China, market growth is expected to accelerate, driven by robust expansion in emerging markets such as India, Latin America, and the Middle East.

Additionally, increased demand for cloud solutions in established markets like North America and Western Europe will contribute to this growth. As a result, the global market for video surveillance equipment is projected to grow by 8.4% in 2024, reaching a value of over $27 billion.