A report from Novaira Insights forecasts the global market for CCTV will grow at 14.3 per cent in 2021 to around $US24.5 billion on the back of software solutions.

“High growth in sectors like healthcare and critical infrastructure somewhat compensated for big declines elsewhere. Also, in early 2020, a market for body temperature monitoring solutions emerged, often sold by video surveillance vendors utilizing their expertise in video,” Novaira said. “These products provided a short-term boost to revenues.”

Tariffs and trade restrictions impacted some vendors in 2020, while in many markets the pandemic has acted as catalyst for end users making greater use of cloud and managed services in their video surveillance systems. Other drivers for growth included the need for remote situational awareness driven by video analytics and the ongoing centralisation of management solutions.

According to Jon Cropley, principal analyst at Novaira Insights, revenues for software and managed services continued to grow in the U.S. in 2020 while revenues for hardware declined.

“In the past decade there have been many acquisitions of video surveillance software vendors,” Cropley said. “A comprehensive software and managed service offering can provide a path to transforming business models to higher recurring revenues. The transition to recurring revenues is a major industry trend.”