Market Trends of Video Analytics Industry
This section covers the major market trends shaping the Video Analytics Market according to our research experts:
Retail Industry is expected to Hold a Major Share
- In retail stores, a lot of information is captured in videos for loss prevention, theft analysis, and post-analysis when a mishap occurs. Hence, real-time video analytics can unravel various insights from videos captured in stores and help improve store operations and the customer experience.
- Moreover, the global retail sector is also focusing on deploying innovative solutions to increase security and customer experience, for which a few are implementing facial recognition technology. From security to advertisements, many face recognition applications are being used in retail. From sending customized ads to identified shoppers to identifying gender, age, and customer count to capturing glance time on products, the applications are endless.
- As per Zenith, global ad spending is increasing steadily; last year, it stood at USD 722.84 million. Additionally, ad spending worldwide is expected to reach around USD 885 billion by the end of 2024. Hence, a significant share of the expenditure is on gaining consumer insights into target the consumer segment. This is where video analytics finds a prime opportunity, where video analytics can be used for heat mapping, customer services, and reducing retail shrinkage. The growth opportunities in this space are ample for the technology's growth.
- For instance, the prominent US retailer Walmart has affirmed that it utilizes image recognition cameras at registration to identify theft. Having used the innovation in more than 1,000 stores, the organization has also invested in ensuring safety for its customers and associates. Moreover, companies like Identiv Inc. have a dedicated product portfolio known as 3VR Retail Optimization Analytics that engages in demographics, queue line, people counting, and dwell time analytics.
- As per the India Brand Equity Foundation, by 2026, the total retail market in India is expected to surpass 1.7 trillion, representing an increase of over 80% compared to 2018. This significant rise in India's overall total retail market will significantly augment the market's growth throughout the forecast period.
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North America is expected to hold a major share
- North America is one of the most important markets for video analytics. The region, particularly the United States, is a major technology innovator and investor. Aside from that, widespread adoption among end-user industries and regional government involvement in video surveillance infrastructure development fuels the adoption of video analytics solutions in the North American region.
- The region has a high adoption rate of CCTV cameras in various surveillance settings, from street corners to university campuses and even private homes. Most sites have multiple cameras, generating a large volume of footage. In the United States alone, there are about 70 million surveillance cameras installed, which works out to 4.6 people per installed camera. Also, the country has a high penetration of surveillance cameras, with the adoption being most common among private-sector retail and commercial establishments, such as hotels, restaurants, and office complexes.
- Post 9/11, the massive advancement in IP cameras and their implementation across the region have also developed the space for the market's growth in the last decade. Most regional municipal law enforcement is leveraging video analytics for real-time response and post-event investigation, and cities are also using the data for urban planning and traffic optimization. Many American cities, including Detroit, have aggressively invested in surveillance infrastructure, including the recent installation of cameras to monitor public housing residents.
- Police in New York, Atlanta, and New Orleans now use video analytics-enabled cameras to improve investigations. The Baltimore Police Department has also conducted secret aerial surveillance of residents for several years. The regional market is also witnessing the integration of deep learning, AI, and neural networking into the product offering, increasing accuracy and lowering overall solution costs. As a result, the market's growth is accelerating exponentially.
- Also, the region is witnessing an increasing adoption of smart home security cameras, which may further expand the scope of the market studied. Hence, AI-based video analytics further enhance efficiencies, offering many non-security-related insights for businesses, especially in smart city applications. For instance, in the last quarter of this year, Roku Inc., an American company based in California, announced the launch of Roku Smart Home, a whole new lineup of devices, including security cameras, smart lights, video doorbells, and voice-enabled smart plugs. The company also introduced a Roku Smart Home mobile app and a security camera subscription service.
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