Insight to Impact: Realizing Video Analytics ROI Across Industries

In today’s rapidly evolving technological landscape, video analytics has emerged as a powerful tool that extends far beyond its traditional role in security. By building advanced capabilities upon its base in artificial intelligence (AI) and machine learning, video analytics is not only enhancing physical security measures but also transforming business operations, delivering measurable returns on investment (ROI) across various industries.

The Rapid Growth of Video Analytics

The increasing relevance of video analytics ROI cannot be overstated as businesses are increasingly leveraging these technologies to achieve measurable returns.

The global market for video analytics is experiencing significant growth, with a projected compound annual growth rate (CAGR) of nearly 14% from 2023 to 2028. This surge is driven by the increasing sophistication of AI-powered algorithms that make capabilities like facial recognition, object detection, and behavioral analysis more reliable and effective. Importantly, businesses are leveraging these innovations to gain business intelligence insights that extend beyond security with features like customer heatmaps and queue monitoring to inventory management.

Achieving Video Analytics ROI Across Industries

Achieving ROI has become a pivotal benchmark for industries aiming to optimize both security and operational efficiency.

The question of ROI has historically been a challenge for security-related investments often perceived as cost centers rather than profit generators. However, the video analytics is changing this narrative. According to a recent survey of 140 end users across North America and Europe, over 85% reported achieving ROI within one year of implementing video analytics solutions.

Industry-specific data further underscores the value of these technologies:

Banking and Finance: 95% of users reported achieving ROI within a year, reflecting the industry’s ability to harness video analytics for fraud prevention and operational efficiency.

Manufacturing: 90% of respondents achieved similar results, leveraging the technology for safety compliance and predictive maintenance.

Utilities and Energy: Although ROI timelines were longer for 30% of respondents, video analytics proved instrumental in enhancing site security and operational oversight.

Redefining Business Operations

One of the most compelling aspects of video analytics ROI is its impact on operational efficiency. Survey respondents highlighted significant time and resource savings in areas such as loss prevention, frontline security tasks, and operational reporting. For example, 46% of users estimated savings exceeding double digits in time, resources, or money when using video analytics for theft reduction and loss prevention.

Operational use cases further illustrate this potential:

Reporting and Compliance: Video analytics automates incident tracking and reporting, saving significant operator time and reducing manual workloads.

Predictive Maintenance: By identifying patterns and anomalies, businesses can proactively address equipment issues, minimizing downtime and maximizing productivity.

Employee Monitoring: Enhanced visibility into workforce activities ensures better adherence to safety and performance standards.

Overcoming Adoption Challenges

Despite its clear advantages, the adoption of video analytics is not without challenges. Measuring ROI in non-security applications, such as marketing insights or supply chain optimization, remains difficult. For instance, more than half of respondents noted less than 5% savings in improving supply chain efficiency. However, these challenges often stem from limited deployment of video analytics in these areas and a lack of awareness about its broader applications.

Education and training are critical to bridging this gap. End users and system integrators need to fully understand the capabilities of video analytics to help customers maximize potential. For example, while algorithms for perimeter tracking and facial recognition are highly valued, applications like forensic investigation management and crowd counting analytics require further market education to drive adoption.

Future Opportunities: AI and Cybersecurity

Looking ahead, the future of video analytics lies in its continued integration with other AI technologies and its ability to address emerging cybersecurity threats. In fact, 45% of surveyed users expressed a desire for more AI-driven capabilities in their video analytics solutions. These include advanced applications such as real-time behavioral analysis, automated anomaly detection, and adaptive learning systems that improve over time.

Cybersecurity also remains a top priority. As threats from bad actors continue to rise, end users are increasingly seeking solutions that incorporate robust physical security measures to compliment cyber safety strategies. Vendors that provide comprehensive product hardening guides, strong ecosystems, and proven experience in the video analytics market are well-positioned to meet these demands.

Scalability and Ease of Use: Keys to Success

For video analytics to deliver maximum value, solutions must be scalable, reliable, and easy to use. This is particularly critical as businesses continue to expand their operations and adopt new technologies. Survey respondents emphasized the importance of user-friendly interfaces, effective training programs, and reliable system performance as key considerations when selecting video analytics solutions.

Large organizations, in particular, benefit significantly from these attributes. For example, companies with more than 1,000 employees reported greater ROI in reducing frontline security costs and streamlining reporting processes compared to smaller firms. However, smaller businesses saw higher impacts in areas like supply chain optimization, reflecting the adaptability of video analytics across different operational scales.

The Transformative Power of Video Analytics

The evolution of video analytics is redefining the concept of video analytics ROI, offering unprecedented opportunities for businesses to achieve strategic and financial gains by reshaping the way businesses approach both security and operations. By delivering tangible ROI through cost savings, enhanced efficiency, and better decision-making, these solutions are becoming indispensable tools for industries ranging from finance and manufacturing to retail and energy.

For organizations looking to stay competitive in today’s fast-paced environment, investing in video analytics is not just a smart decision—it’s a necessary step toward future-proofing their operations.

Interested in digging into the data? Download this exclusive Omdia report on the ROI of Video Analytics.