AI in Video Surveillance Market Size and Share Forecast Outlook (2025 to 2035)
The AI in Video Surveillance Market is estimated to be valued at USD 7.0 billion in 2025 and is projected to reach USD 58.6 billion by 2035, registering a compound annual growth rate (CAGR) of 23.1% over the forecast period.
Quick Stats for AI in Video Surveillance Market
- AI in Video Surveillance Market Industry Value (2025): USD 7.0 billion
- AI in Video Surveillance Market Forecast Value (2035): USD 58.6 billion
- AI in Video Surveillance Market Forecast CAGR: 23.1%
- Leading Segment in AI in Video Surveillance Market in 2025: Hardware (39.7%)
- Key Growth Region in AI in Video Surveillance Market: North America, Asia-Pacific, Europe
- Top Key Players in AI in Video Surveillance Market: Hangzhou Hikvision Digital Technology Co., Ltd, Dahua Technology Co., Ltd., Avigilon Corporation, Milestone Systems A/S, YITU Tech, SenseTime, Agent Video Intelligence Ltd.
| Metric |
Value |
| AI in Video Surveillance Market Estimated Value in (2025 E) |
USD 7.0 billion |
| AI in Video Surveillance Market Forecast Value in (2035 F) |
USD 58.6 billion |
| Forecast CAGR (2025 to 2035) |
23.1% |
Rationale for Segmental Growth in the AI in Video Surveillance Market
Market Overview:
The AI in video surveillance market is expanding significantly, driven by the rising demand for intelligent monitoring solutions across urban security, critical infrastructure, and enterprise environments. AI integration enhances surveillance capabilities by enabling real-time analytics, anomaly detection, and predictive insights, thereby reducing manual intervention. The market’s current trajectory is supported by government investments in smart city initiatives, increasing concerns over public safety, and the adoption of AI-powered analytics in private sector applications.
Cloud connectivity, edge computing, and advancements in deep learning algorithms are improving the scalability and accuracy of video surveillance systems. Cost efficiencies in storage and data management are also influencing adoption trends.
Looking forward, the market is expected to benefit from wider integration with IoT ecosystems, regulatory mandates for safety compliance, and continuous innovation in hardware and software. These factors collectively establish AI-enabled video surveillance as a cornerstone technology for next-generation security infrastructure.
Segmental Analysis
Insights into the Hardware Segment
The hardware segment accounts for approximately 39.70% of the AI in video surveillance market, reflecting its critical role in enabling system performance and functionality. Cameras, sensors, and processing units form the backbone of AI surveillance, ensuring seamless integration of advanced analytics.
Demand is being driven by increasing deployment of high-resolution IP cameras capable of real-time video processing, supported by powerful GPUs and edge devices. The segment’s growth is reinforced by the need for reliable infrastructure capable of handling vast volumes of video data.
With ongoing improvements in imaging quality, storage efficiency, and hardware miniaturization, adoption rates are expected to increase further. Hardware investments also remain essential in large-scale deployments across smart cities, transportation hubs, and industrial facilities, ensuring the segment’s continued relevance.
Insights into the Cloud-Based Segment
The cloud-based segment leads the deployment mode category with approximately 60.20% share, owing to its scalability, cost-effectiveness, and ability to enable centralized surveillance management. Cloud deployment supports real-time analytics, remote access, and flexible storage options, making it highly attractive for both enterprises and government agencies.
The adoption of subscription-based models and integration with AI-driven video analytics platforms further strengthens its position. Enhanced cybersecurity protocols and growing confidence in data privacy frameworks have also facilitated wider adoption.
Cloud-based systems are increasingly preferred for multi-site operations, where centralized monitoring improves efficiency. With expanding IoT integration and 5G connectivity, cloud deployment is expected to remain dominant, enabling broader accessibility and reduced infrastructure costs.
Insights into the Intrusion Detection and Perimeter Protection Segment
The intrusion detection and perimeter protection segment holds approximately 28.40% share of the use case category, underscoring its importance in security-critical environments. AI-powered video analytics enhance detection accuracy by minimizing false alarms and enabling proactive threat identification.
The segment benefits from increasing demand in sectors such as transportation, defense, energy, and commercial real estate, where perimeter security is paramount. AI integration enables real-time monitoring of restricted zones, anomaly detection, and automated alerts, improving response times.
Growing investment in smart city surveillance and infrastructure protection has further fueled adoption. With rising global security concerns and continuous refinement of AI algorithms, intrusion detection and perimeter protection are expected to sustain a leading role in the market.
Emerging Trends Transforming the AI in Video Surveillance Industry
- The trend for AI in video surveillance leads to higher sales and widespread adoption of AI technology in the surveillance industry.
- Businesses and organizations seek more sophisticated and efficient security solutions that offer real-time threat detection, enhanced video analytics, and scalable surveillance systems.
- AI-powered video surveillance is highly preferred because it can automate tasks, analyze complex patterns, and provide more accurate and timely information.
- Companies are investing in cutting-edge AI-powered video surveillance systems to bolster their security infrastructure, increasing sales of such solutions. These systems can provide traditional security measures and advanced features like behavioral analysis, anomaly detection, and integration with other technologies.
- The adoption of AI in Video Surveillance is widespread across various industries, including retail, transportation, banking, and smart cities.
- Businesses are integrating AI technologies into their surveillance systems to stay ahead in threat detection, monitor large-scale environments, and comply with evolving regulatory requirements.
- The versatility and scalability of AI technology, along with its ability to offer business intelligence insights and facilitate remote monitoring and management, have made it increasingly popular in the Video Surveillance market.
Key Restraints Impacting the AI in Video Surveillance Market
The market is experiencing growth, though several restraining factors can adversely affect its development and expansion.
- The significant expenses in implementing AI-powered video surveillance systems, including hardware, software, and training, may deter budget-constrained businesses from adopting this technology.
- Growing concerns regarding the security and privacy of video data raise regulatory challenges, limiting the widespread adoption of AI in video surveillance due to fears of unauthorized access, data breaches, and potential misuse.
- The need for more professionals with expertise in AI and video surveillance technologies may hinder the effective deployment and maintenance of AI systems, slowing down market growth.
- Integrating AI technologies with existing video surveillance infrastructure can be complex and require substantial modifications, posing challenges for organizations seeking a seamless transition to AI-enhanced systems.
- Resistance to adopting new technologies and a preference for traditional surveillance methods can hinder the widespread acceptance of AI in video surveillance among certain industries or regions.
- Perceptions of AI system unreliability or false positives/negatives in threat detection may deter some organizations from fully trusting and embracing AI-powered video surveillance solutions.
AI in Video Surveillance Industry Analysis by Top Investment Segments
Increasing Importance of Edge Computing in Surveillance Applications
| Attributes |
Details |
| Offerings |
Hardware |
| CAGR (2025 to 2035) |
23.4% |
The hardware segment dominates the AI in the video surveillance market, growing at a CAGR of 23.4% through 2035. This rising popularity is attributed to:
- AI algorithms, particularly deep learning models used for image and video analysis, have demanding computational requirements.
- Dedicated hardware accelerators, such as GPUs and TPUs, enhance these algorithms' efficiency and processing speed, enabling faster real-time analysis and response.
- The demand for edge computing in video surveillance has increased, leading to specialized hardware at the edge that processes data locally without relying heavily on centralized cloud resources.
- Edge devices with AI-dedicated hardware allow quicker decision-making and reduced latency, improving bandwidth efficiency.
On-premises Provides Better Control and Security over Sensitive Video Data
| Attributes |
Details |
| Deployment Mode |
On-premises |
| CAGR (2025 to 2035) |
23.1% |
Based on the deployment mode, On-premises dominates the global AI in video surveillance market with an annual growth of 23.1% CAGR. This rising popularity is attributed to:
- On-premises deployment mode also ensures compliance with data protection standards, which is crucial for sectors with strict regulatory compliance requirements.
- On-premises deployment offers lower latency and faster processing speeds for real-time video analysis, essential for proactive threat detection and effective security measures.
- Organizations can achieve faster decision-making without relying on external cloud services by processing AI algorithms locally on on-premises servers or edge devices.
Analysis of Top Countries Deploying and Advancing AI in Video Surveillance Systems
The section analyzes the AI in video surveillance market by country, including the United States, the United Kingdom, China, Japan, and South Korea. The table presents the CAGRs for each country through 2035.
Korean Combination of Technological Prowess and Government Support
South Korea is the leading Asian country in the market. The Korean AI in video surveillance market is expected to register an annual growth rate of 24.8% until 2035.
- Korean companies are at the forefront of developing AI-based video analytics and surveillance solutions.
- The government's initiatives to create safer cities and enhance public security have led to increased investments in AI-powered video surveillance.
- South Korea's focus on smart city development and advancements in facial recognition technology contribute to the growing adoption of AI in video surveillance for both public and private applications.
Dedication to Technological Innovation and Security Enhancement in Japan
Japan is another Asian country leading in the AI in video surveillance market. The Japanese market is anticipated to register a CAGR of 25.0% through 2035.
- Japanese companies are actively developing AI algorithms and video analytics solutions for public safety, transportation, and critical infrastructure monitoring applications.
- The Japanese government's focus on leveraging AI for disaster management and response further fuels the adoption of advanced video surveillance technologies.
- With a strong emphasis on research and development, Japan plays a significant role in shaping the future of AI-powered video surveillance in the Asia-Pacific region.
Chinese Government's Support For Smart City Projects And Public Security Initiatives
China is another Asian country in the global AI in video surveillance market, which is anticipated to register a CAGR of 24.4% through 2035.
- Chinese companies lead in developing AI algorithms and surveillance hardware, focusing on facial recognition and behavior analysis.
- The Chinese government's support for smart city projects and public security initiatives has resulted in the deployment of AI in video surveillance on a massive scale.
- China's integration of AI technologies into public spaces, transportation, and law enforcement reflects its commitment to using AI for comprehensive surveillance solutions.
The United Kingdom’s Cutting-edge Technologies to Address Security Challenges
The United Kingdom is a European country leading the AI in video surveillance market. Its market is predicted to register an annual growth rate of 24.1%.
- The UK's government and private sectors invest in AI solutions to improve public safety, monitor critical infrastructure, and enhance overall security measures.
- The country's focus on smart city initiatives further drives the adoption of AI in video surveillance for urban planning and law enforcement.
- With a well-established surveillance infrastructure and a commitment to technological advancements, the UK plays a significant role in shaping Europe's AI-driven video surveillance market.
Growing Emphasis on National Security in the United States Driving Market Growth
The United States dominates the AI in video surveillance market in the North American region. It is expected to exhibit an annual growth rate of 23.8% until 2035.
- Leading tech companies in the United States are at the forefront of developing advanced AI algorithms and hardware solutions for video analytics.
- Government agencies, law enforcement, and private enterprises are all increasingly adopting AI-powered video surveillance for enhanced threat detection and public safety.
- Additionally, favorable regulatory environments and a proactive approach to integrating AI technologies into security infrastructure contribute to the market's expansion.
Competitive Landscape of the AI in Video Surveillance Market
The global AI in video surveillance market is highly fragmented, with key players such as Hangzhou Hikvision Digital Technology Co., Ltd. (China), Dahua Technology Co., Ltd. (China), Avigilon Corporation (Canada), Milestone Systems A/S (Denmark), YITU Tech (China), SenseTime (China), Agent Video Intelligence Ltd. (United States), etc.
Hikvision, a Chinese company, has become a global video surveillance and AI technologies leader. Its expertise lies in developing AI-powered cameras, video analytics software, and integrated solutions that offer real-time threat detection, facial recognition, and behavior analysis.
NVIDIA Corporation, a leading American technology company, has contributed to the market's growth through its graphics processing units (GPUs) and AI hardware solutions. The company's platforms, such as NVIDIA Metropolis, provide a foundation for building AI-powered video analytics applications that enable efficient processing and analysis of vast amounts of video data.
Recent Developments
- On January 22, 2025, Atul Rai, CEO of Staqu Technologies, revealed that their AI-powered JARVIS platform had been installed in cameras surrounding Ayodhya Ram Mandir, enhancing security through innovative surveillance.
- On November 21, 2025, I-PRO unveiled the X Series technology, elevating video surveillance with advanced analytics. The AI-enabled cameras offered a cost-effective solution, revolutionizing deployments for enhanced capabilities.
- On June 2, 2025, ABI Research reported that recent AI and edge computing advancements energized the commercial video surveillance market. These technologies propelled the global installed base of video surveillance cameras to 58.6 billion by 2035.
Leading Companies in the AI in Video Surveillance Industry
- Hangzhou Hikvision Digital Technology Co., Ltd. (China)
- Dahua Technology Co., Ltd. (China)
- Avigilon Corporation (Canada)
- Milestone Systems A/S (Denmark)
- YITU Tech (China)
- SenseTime (China)
- Agent Video Intelligence Ltd. (United States)
