Network Video Recorder (NVR) Market

Network Video Recorder (NVR) Market Outlook (2024 to 2034)

The global network video recorder (NVR) market size has been calculated at US$ 4.16 billion for 2024 and is projected to expand at a CAGR of 13.3% to reach US$ 14.57 billion by the end of 2034. The enterprise channel segment accounted for 48.3% of the market share in 2023.

The network video recorder market exhibited robust growth in 2023, driven by escalating demand for surveillance solutions across the world. Notably, market growth was driven by a surge in the adoption of IP camera systems. The installation of over 1 billion cameras in 2023 indicates substantial market expansion and an increased focus on security globally. China has established dominance in the surveillance market, hosting the top 10 cities with the deployment of 55% of cameras in video surveillance systems.

Report Attributes	Details
Network Video Recorder Market Size (2023A)	US$ 3.69 Billion
Estimated Market Value (2024E)	US$ 4.16 Billion
Forecasted Market Value (2034F)	US$ 14.57 Billion
Global Market Growth Rate (2024 to 2034)	13.3% CAGR
East Asia Market Share (2023A)	25.1%
North America Market Growth Rate (2024 to 2034)	13.3% CAGR
China Market Growth Rate (2024 to 2034)	15.6% CAGR
Market Share of Top Five Companies (2023)	25%
Key Companies Profiled	Avigilon Corporation Axis Communications AB D-Link Corporation Ganz Security Hanwha Techwin Co., Ltd. Hikvision Honeywell International Inc. Indigo Vision Johnson Controls Lorex Technology lnc. Panasonic Corporation Synology Vicon Industries, Inc. VIVOTEK Inc. Zhejiang Dahua Technology Co Ltd

Sales Analysis of Network Video Recorders (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The market for security camera recorders is projected to exhibit substantial growth from 2024 to 2034, driven by technological advancements in video analytics and cloud integration. Increasing demand for IP cameras and global expansion opportunities shape market dynamics. Integration of emerging technologies, prioritizing sustainability, and meeting evolving customer preferences are critical imperatives for network video recorder manufacturers during this period.

Population growth generates demand for traffic surveillance and control systems. The utilization of video services is projected to aid in traffic management and reduce road mishaps globally.

• Short Term (2024 to 2027): The market is positioned for robust growth in the short term (2024 to 2027). Key drivers encompass the ongoing integration of advanced technologies, notably AI-driven analytics; a surge in demand for IP cameras; and strategic regional expansions. These factors underscore the industry's commitment to innovation, technological sophistication, and strategic market presence for the imminent period.

• Medium Term (2027 to 2030): Foreseen catalysts include the maturation of AI-driven analytics, persistently high demand for IP cameras, and a strategic focus on regional market penetrations. During this phase, industry players are projected to refine technologies, optimize operational efficiency, and cultivate strong partnerships to fortify their positions within the evolving market landscape.

• Long Term (2030 to 2034): Advancements in AI-driven analytics are projected to persist, fostering a mature market for IP cameras. Global expansion through strategic alliances is forecast to remain integral for industry stakeholders, ensuring lasting innovation and customer-centric solutions.

From 2019 to 2023, the market expanded at a CAGR of 8.4%. Fact.MR, a market research and competitive intelligence provider, reveals that network video recorder sales are projected to increase at a 13.3% CAGR from 2024 to 2034.

What is Driving High Demand for Network Video Recorders across the World?

“Longer Lifespan and Higher Image Quality Offered by NVRs Compared to Surveillance DVRs”

The emergence of network video recorders as a replacement for conventional DVRs for surveillance is projected to provide long-term benefits to manufacturers across the globe. The conventional DVR system has a low lifespan of 3 to 4 years compared to network video recorder systems. Moreover, a DVR system is associated with wireline technology, and the quality of the footage is not always adequate.

Deployment of a network video recorder addresses these issues, as they have a higher lifespan of 8 to 10 years and better image quality. In addition to this, the utilization of network video recorders in large projects such as the retail sector and smart cities is forecast to generate a plethora of opportunities for manufacturers across all the prominent regions.

“Increasing Need for Efficient Traffic Surveillance and Control Systems”

A key demand driver for traffic surveillance and control systems is global population growth, projected to exceed 9.8 billion by 2050. With an escalating number of vehicles, advanced surveillance becomes crucial for effective traffic management and reducing road accidents globally.

• The World Health Organization highlights that 90% of road deaths occur in low and middle-income countries due to a lack of advanced surveillance. Without intervention, an alarming estimate of 13 million deaths and 500 million injuries is projected in the next decade.

In response to this critical need, the demand for network video recorders is projected to surge, particularly in data centers striving for technological advancements.

What Issues Should Network Video Recorder Manufacturers Be Mindful Of?

“High Installation Cost of NVRs Affecting Product Uptake”

Network video recorders control all the functions related to surveillance activities in residential, commercial, industrial, and defense applications. Network video recorder systems have been widely deployed due to advantages such as clear footage, high capacity, and efficiency. However, accommodating these advantages comes at a cost.

The high initial cost of network video recorder systems can reduce product penetration for residential applications and affect the production volume within manufacturing units. In addition to this, the high cost is projected to lead to opportunities for the utilization of alternative products such as DVRs and other systems during the forecast period.

“Surging Cybercrimes Leading to Loss of Confidential Data through NVR Systems”

Due to the development of advanced network video recorder systems, manufacturers have witnessed remarkable growth opportunities over the past few years. However, surging cybercrimes are projected to hinder demand for these systems during the forecast period.

The application of network video recorders in military, defense, and government agencies has played a very crucial role in the market’s growth in the historical years. Data captured in these applications is not just vital for day-to-day operations but may also have consequences related to national security and other emergencies. Manufacturers have rolled up their sleeves to tackle this issue, but in the short term, this is likely to remain a key restraint for the NVR market.

Country-wise Insights

Why Does China Account for Significant Demand for NVRs?

“Rapid Urbanization and Industrialization Necessitating Utilization of NVRs”

China stands out as a leading country driving demand for network video recorder systems in East Asia due to several key factors. As a leading manufacturer and a substantial domestic consumer, China held a leading 55% market share of the global CCTV surveillance market in 2023. The country's rapid urbanization and industrialization have significantly increased demand for network video recorder systems from consumers.

Taiyuan, a city in China, boasted the highest number of installed cameras in 2023, with over 120 public CCTV cameras per 1,000 people. This substantial increase in demand is evident in the growth forecasts for the China network video operator market, projected to reach US$ 3.16 billion by 2034. Additionally, China is projected to continue its regional dominance, capturing more than 69.2% of the East Asia network video recorder market share by 2034.

A combination of manufacturing prowess, domestic consumption, and a burgeoning market fueled by urbanization are key network video recorder market trends and position China as a key player shaping the East Asian market.

Why is India a Lucrative Market for Network Video Recorder Manufacturers?

“Growing Emphasis on Integration of AI and IoT in Surveillance”

Y-o-Y network video recorder market growth in India was 14.4% in 2023, driven by a surge in the demand for surveillance technologies. India's rapid urbanization heightened security concerns, and government initiatives foster the deployment of CCTV cameras. The India NVR market is projected to expand at a 15.2% CAGR through 2034, fueled by technological advancements and the integration of IoT and AI in surveillance.

The market in India is projected to generate an absolute dollar opportunity of US$ 716.5 million from 2024 to 2034, solidifying India's role in shaping the future of surveillance technologies in the Asia Pacific.

Category-wise Insights

Why are Wired Cameras Favored over Wireless Cameras?

“Cost Advantages and Signal Reliability of Wired Cameras”

Demand for wired cameras is projected to increase 3.5X through 2034. In the realm of NVR market growth, wired cameras outshine their wireless counterparts for compelling reasons. While wireless cameras offer the convenience of long-distance footage spanning 500 feet or more, their economic feasibility is compromised. Installation constraints, including the necessity to operate within Wi-Fi range, make wireless cameras less favorable for home use.

Wired cameras, on the other hand, boast cost advantages, providing not only a more reliable signal but also negating the need for monthly cloud storage fees. The cost-effectiveness of wired cameras positions them as the preferred choice for households and small shops.

Why Does the Enterprise Segment Account for High Revenue Generation?

“Extensive Use of Advanced Surveillance Systems Involving NVRs in Government Organizations”

The enterprise segment is estimated to hold 48.5% share of the market in 2024. The role of the enterprise segment in driving market growth can be attributed to the multifaceted advantages offered by network video recorders. Notably, network video recorders enhance vision quality, incur low maintenance costs, and efficiently cover expansive areas, fostering heightened demand.

In the governmental sphere, particularly within defense and military organizations, the proliferation of advanced surveillance systems is fueling network video recorder production. This strategic implementation aims to fortify national security during emergencies while concurrently reducing the necessity for additional security personnel, thereby minimizing operational costs. Moreover, NVRs ensure continuous functionality in the absence of on-site employees, preserving document privacy and organizational security.

Competitive Landscape

Key players in the network video recorder industry are Avigilon Corporation, Axis Communications AB, D-Link Corporation, Ganz Security, Hanwha Techwin Co., Ltd., Hikvision, Honeywell International Inc., Indigo Vision, Inc., Johnson Controls., Lorex Technology lnc., Panasonic Corporation, Synology, Vicon Industries, Inc., VIVOTEK Inc., and Zhejiang Dahua Technology Co. Ltd.

To increase penetration of network video recorders, the aforementioned manufacturers have taken various initiatives to provide advanced security features in the cameras to increase sales of the product. Furthermore, key players are focusing on organic and inorganic approaches to promote their businesses across regions.

• In 2022, Synology Inc. launched Synology® DVA1622, a new NVR solution. This compact device integrates intelligent video analytics for advanced surveillance. Equipped with two built-in Deep Learning Acceleration (DLA) processors, the DVA1622 offers efficient video analysis and supports up to 32 camera feeds, providing robust security solutions for various environments.

Fact.MR has provided detailed information about the price points of key manufacturers of network video recorders positioned across regions, sales growth, production capacity, and speculative technological expansion in its recently published report.

Segmentation of Network Video Recorder Market Research

• By Channel Type :

  • Low-Mid Range (Under 16 Channels)
  • High (17 to 32 Channels)
  • Enterprise (>32 Channels)

• By Hard Drive :

  • 1 TB
  • 2 TB
  • 3 TB
  • 2*4 TB

• By Technology :

  • HD-IP
  • Analog HD

• By Camera Compatibility :

  • Wired
  • Wireless

• By End-use Vertical :

  • Military & Defense
  • Government
  • Healthcare
  • Manufacturing/Industrial
  • Transportation
  • Commercial
  • Utilities

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa