Growth is on the Horizon

The security industry is undergoing an exciting transformation. It is moving towards technology-driven, service-based models that bring fresh opportunities for innovation, growth, and operational resilience. Not surprisingly, remote video monitoring is at the heart of this shift.

According to a market report from Raymond James, a leading banking and investment firm, remote video monitoring services have demonstrated strong momentum. From 2022 to 2027, these solutions are expected to grow at a compound annual rate of 23% in North America. Alper Cetingok, Senior Managing Director at Raymond James, noted that this growth offers a prime opportunity for security providers to capitalize on technology-driven video monitoring services and build a reliable stream of recurring monthly revenue (RMR). For end users, it's also a chance to stay ahead of potential risks and prevent crimes before any losses occur. The message is clear: the future of security is here, and it’s more intelligent, more proactive, and packed with potential.

The trajectory of RVM has grown, and its use expanded over time, just as the security market has evolved. Historically, the security sector was largely associated with traditional services such as alarm monitoring, guarding, or hardware-focused technology deployments. However, Cetingok observed a significant shift in the early 2000s.?

It was then that Cetingok and his team at Raymond James began evaluating this market segment, noting the initial focus on residential and business monitoring. Video surveillance was at that time heavily centered on hardware, with continuous improvements in camera quality being the primary goal. However, as the market evolved and hardware became commoditized, the industry began shifting its emphasis toward software, especially cloud and AI offerings. This transformed video systems into intelligent platforms capable of not just capturing video but also analyzing it to extract actionable insights.

Raymond James categorizes RVM into two main types: passive and active. Passive systems use analytics, often integrated with other on-site devices, to generate dashboards and audit reports for the company managing the system. Active systems, on the other hand, combine analytics with live monitoring to detect potential threats and coordinate responses through an alarm monitoring center. With active systems, trained security personnel monitor and verify events, taking immediate action if needed — such as engaging with two-way audio to de-escalate situations or alerting site personnel and law enforcement when further intervention is required.?

"Active systems provide a cost-effective alternative to traditional manned guarding, enabling operators to collect valuable evidence for law enforcement investigations, compliance, operational improvements, and liability management,” said Cetingok. “These systems also enhance the capabilities of on-site teams, making overall security efforts more effective and impactful.”

While RVM was already gaining traction in the market, the COVID-19 pandemic significantly accelerated its growth. With stay-at-home orders in place, organizations were unable to rely on traditional manned guarding and turned to technology to secure their facilities. The pandemic put a spotlight on the value of RVM, especially as social distancing made traditional security measures less viable. As a result, the RVM industry saw a sharp increase in growth rates, jumping from 10-15% pre-pandemic to more than 20-25%.?

"RVM has seen substantial growth as organizations increasingly seek intelligent security solutions, aim to cut manpower costs, and adopt a more proactive approach to safeguarding their assets,” Cetingok said. “Yet, despite the strong interest and rapid adoption, the market remains far from saturated. The current penetration is still relatively low, highlighting significant opportunities for continued expansion and innovation in the years ahead."

Initially, remote video monitoring was primarily used in retail, fast food, and hospitality sectors, focusing on loss prevention and operational efficiency. However, as the technology evolved, its applications expanded into more security-centric and perimeter-focused environments. The recent growth of remote video monitoring is driven not only by technological advancements but also by increasing demand for flexible, on-demand, and layered solutions from customers across various industries, including construction, banking, utilities, and automotive.?

As the market has evolved, both end users and systems integrators have had to adopt new perspectives on the capabilities of video surveillance. For end users, this shift has involved leveraging technologies like RVM and proactive video monitoring to enhance the effectiveness of their on-site security teams. For integrators, it has meant embracing and developing new business models to adapt to these advanced technologies.

Initially, integrators were hesitant to fully commit to RVM, as it marked a significant departure from the traditional project-based security approaches they were accustomed to. However, as demand for more advanced video services has grown, integrators like ESI, ArcEye, and Lifeline have shifted their strategies to capitalize on this expanding market. They have integrated intelligent video monitoring into the core of their service offerings, treating video monitoring as a valuable extension of their project-based businesses.?

“The move towards recurring monthly services has opened significant revenue opportunities for dealers, but it's the ones who recognized the potential of RVM and were willing to innovate and adapt who are reaping the greatest benefits now,”? Cetingok said. “However, there's still vast opportunity in the market, and those not yet engaged with RVM need to catch up quickly to capitalize on this growing sector."

Looking ahead, the global intelligent video monitoring market is projected to sustain an approximate 33% CAGR through 2027. As AI integration becomes more prevalent and the industry continues to embrace innovations, this segment is set to become an increasingly critical component of the broader physical security landscape.?

"The RVM industry's potential is enormous, with ample opportunities for innovation and expansion,” Cetingok said. “As AI advances, especially in video analysis for alarm response centers with real-time detection and tracking, the potential keeps expanding. The combination of technological innovations and the rising demand for smarter, proactive security solutions shows that the growth and evolution of RVM are just beginning."

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