AI in Video Surveillance Market by Hardware (AI Cameras, Monitors, Storage Devices, Servers), Software (AI Video Management Software, AI-Driven Video Analytics), Service (VSaaS), Deployment (On-premises, Cloud-based), Vertical - Global Forecast to 2028
[272 Pages Report] The global AI in video surveillance market is expected to be valued at USD 5.6 billion in 2023 and is projected to reach USD 16.3 billion by 2028; it is expected to grow at a CAGR of 23.7% from 2023 to 2028. In 2023, an increasing number of manufacturers are anticipated to include AI-based analytics as a standard feature in cameras and video management systems (VMS). As security cameras are now prevalent in nearly every environment, the task of manually monitoring them all has become exceedingly challenging for human operators. By incorporating AI-based analytics, security professionals gain valuable tools to effectively process and manage the vast amount of images and data they encounter.
AI in Video Surveillance Market Forecast to 2028
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AI in video surveillance market dynamics
Driver: Advancements in deep learning and computer vision
Advancements in deep learning and computer vision are driving the adoption of AI in the video surveillance market. Deep learning, a subfield of machine learning, has revolutionized computer vision by enabling the development of highly accurate and efficient algorithms for analyzing visual data. In the context of video surveillance, deep learning algorithms can analyze video streams in real-time, allowing for rapid and accurate detection of objects, events, and anomalies. For example, they can identify specific objects like vehicles, people, or weapons, track their movements, and classify their actions. The advancements in deep learning have also improved the accuracy and reliability of facial recognition systems, enabling more robust identification and authentication capabilities in video surveillance applications.
Restraint: Privacy concerns and ethical considerations
Privacy concerns and ethical considerations are important restraints that impact the adoption of AI in the video surveillance market. The widespread use of AI-powered video surveillance systems raises questions about the invasion of privacy, the potential misuse of collected data, and the ethical implications of constant monitoring. One primary concern is the collection and storage of personal data. AI-based video surveillance systems capture and analyze vast amounts of video footage, often including images of individuals. This raises concerns about the potential for unauthorized access, data breaches, or misuse of personal information. Striking a balance between maintaining security and protecting individuals’ privacy rights is a critical challenge.
Opportunity: Growth in smart city initiatives
The growth in smart city initiatives presents a significant opportunity for the adoption of AI in video surveillance. Smart cities leverage advanced technologies to enhance the quality of life, improve urban infrastructure, and optimize resource management. AI-powered video surveillance systems play a crucial role in achieving these goals and addressing various challenges faced by urban environments. One key opportunity in smart city initiatives is the enhancement of public safety. AI-based video surveillance can enable real-time monitoring of public spaces, transportation systems, and critical infrastructure. AI video surveillance contributes to crime prevention, emergency response, and overall public safety by automatically detecting and alerting suspicious activities, crowd management, or traffic incidents.
Challenge: System reliability and false positives
System reliability and false positives are significant challenges in AI-based video surveillance systems. While AI algorithms can offer advanced capabilities for threat detection and behavior analysis, ensuring system reliability and minimizing false positive alerts are crucial for maintaining the effectiveness and efficiency of these systems. One challenge is the need for high accuracy and reliability in threat detection. AI video surveillance systems must be capable of detecting and identifying security threats accurately and in real time. False negatives, where a threat goes undetected, can have severe consequences. In contrast, false positives, where a benign event is flagged as a threat, can lead to alert fatigue and wasted resources. Reducing false positives is particularly critical. An excessive number of false alarms can overwhelm security personnel and reduce their ability to respond effectively to genuine threats. It can also lead to complacency or disregarding alerts, diminishing the trust and reliability of the system.
Ai In Video Surveillance Market Ecosystem
The AI in video surveillance market is dominated by established and financially sound manufacturers with extensive experience in the industry. These companies have diversified product portfolios, cutting-edge technologies, and strong global sales and marketing networks. Leading players in the market include 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. (US) and others.
AI in video surveillance for hardware is expected to hold the highest market share during the forecast period
The market of the hardware segment is attributed to the fact that hardware makes for more than 60% of the total cost of an AI-based video surveillance system. There is also an increasing use of cameras deployed worldwide due to rising security concerns across multiple verticals. The industry shift toward IP cameras has led to many hardware-based innovations that provide better low-light performance, object tracking, and in-built security. Technological advancements have resulted in highly specialized surveillance cameras that can be programmed to zoom in and scan items, such as harmful equipment. These factors are driving the market for AI in video surveillance hardware market.
Based on deployment mode, the cloud-based market for AI in video surveillance to hold the highest CAGR during the forecast period
Cloud-based AI in video surveillance is poised to become increasingly popular in the future due to its numerous advantages and potential benefits. One key reason is scalability. With the exponential growth of video data generated by surveillance cameras, cloud-based AI provides a scalable solution that can handle large volumes of video footage efficiently. By leveraging the power of cloud computing, AI algorithms can analyze and process vast amounts of data in real-time, enabling quick detection of anomalies, threats, or suspicious activities. Moreover, cloud-based AI allows for centralized management and storage of video data, eliminating the need for on-site hardware and infrastructure, reducing costs, and simplifying maintenance. This accessibility and flexibility make cloud-based AI in video surveillance an attractive option for businesses and organizations of all sizes.
Infrastructure vertical for AI in video surveillance market to grow at the highest CAGR
The infrastructure vertical for AI in video surveillance is expected to gain significant popularity in the future, driven by several factors and supported by notable investments and advancements in technology. One key driver is the increasing emphasis on public safety and security in transportation systems, cities, and public places. Governments and organizations worldwide are recognizing the crucial role that video surveillance plays in ensuring the safety of citizens and infrastructure. Recent news reports highlight the rising investments in smart city initiatives and transportation infrastructure, with a specific focus on deploying advanced video surveillance systems integrated with AI capabilities. These systems can proactively detect and respond to potential threats, such as unauthorized access, traffic violations, or suspicious activities, thereby enhancing situational awareness and enabling timely intervention.
AI in video surveillance market in Asia Pacific to hold the highest market share during the forecast period
China is one of the largest consumers of video surveillance devices and systems globally. According to data from the National Development and Reform Commission, the country is determined to implement video surveillance cameras equipped with facial recognition technology in crucial public areas to enhance security and maintain social stability. Notably, a growing market for video surveillance systems exists in small businesses and residential segments. China’s extensive infrastructure projects, including railways, airports, stadiums, and highways, drive the demand for high-definition surveillance systems capable of capturing clear images even in low-light conditions. The Chinese government’s focus on city surveillance and smart city initiatives further propels the nationwide adoption of AI-based video surveillance systems.
AI in Video Surveillance Market by Region
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Key Market Players
The AI in video surveillance companies is dominated by 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. (US), and others.
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Report Metric |
Details |
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Estimated Market Size |
USD 5.6 Billion |
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Projected Market Size |
USD 16.3 Billion |
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Growth Rate |
23.7% |
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Market size available for years |
2019-2028 |
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Base year considered |
2022 |
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Forecast period |
2023-2028 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
By Offering, Deployment Mode, Use Cases, and By Application |
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Geographies covered |
North America, Europe, Asia Pacific, and RoW |
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Companies covered |
The major market players include 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. (US), NEC Corporation (Japan), Megvii (China), Genetec Inc. (Canada), CloudWalk Technology Co. Ltd. (China), BriefCam (US), Intellivix Co., Ltd. (South Korea), Corsight AI (Israel), Ipsotek Ltd. (UK), and Sensen.ai (Australia) (Total of 29 players are profiled) |
AI in Video Surveillance Market Highlights
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Segment |
Subsegment |
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By Offering |
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By Deployment Mode |
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By Use Cases |
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By Vertical |
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By Region |
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Recent Developments
- In June 2023, Milestone Systems announced its latest product update, XProtect 2023 R2, a software upgrade designed to meet the evolving demands of Video Management Software (VMS) users.
- In May 2023, Dahua Technology, a world-leading video-centric AIoT solution and service provider, officially released the latest AcuPick video search technology to help users locate target videos more accurately and conveniently.
- In May 2023, Motorola Solutions launched its next-generation V700 body camera with mobile broadband capabilities to give public safety agencies another critical source of real-time field intelligence and collaboration. The V700 seamlessly integrates with Aware - a cloud-based platform that provides a standard operating view and the M500 in-car video system, APX radios, and Holster Aware sensors.
- In September 2022, Hikvision announced the latest additions to its Pro series PTZ cameras, including integrating ColorVu technology for the first time in this range. With ColorVu, Hikvision's new Pro series cameras can provide consistent image brightness and full-color imaging as the camera zooms in and out. This ensures crystal-clear details and vivid color for distant objects at all times and in all conditions.
Frequently Asked Questions (FAQ):
What are the major driving factors and opportunities in the AI in video surveillance market?
The video surveillance market has witnessed a significant transformation with the integration of artificial intelligence (AI) technologies. Several major driving factors have fueled the adoption of AI in video surveillance systems. Firstly, AI-powered video analytics algorithms offer advanced capabilities such as real-time object detection, facial recognition, and behavioral analysis, enhancing the accuracy and efficiency of surveillance systems. Secondly, the increasing need for intelligent video analytics to process the massive amount of data generated by surveillance cameras is driving the demand for AI technologies. Furthermore, the growing adoption of cloud-based video surveillance solutions provides opportunities for AI integration, as cloud platforms offer the scalability and computing power required for AI processing.
Which region is expected to hold the highest market share?
The market in Asia Pacific will dominate the market share in 2023, showcasing strong demand for AI in video surveillance in the region. Strong research and development, the presence of a leading AI in video surveillance and consumer electronics manufacturers, and investments and funding are key factors driving AI's growth in the region’s video surveillance market.
Who are the leading players in the global AI in video surveillance market?
Companies 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), and Agent Video Intelligence Ltd. (US) are the leading players in the market. Moreover, these companies rely on strategies that include new product launches and developments, partnerships and collaborations, and acquisitions. Such advantages give these companies an edge over other companies in the market.
What are some of the technological advancements in the market?
The video surveillance market has witnessed significant technological advancements that have revolutionized the application of artificial intelligence (AI) in this domain. One of the major advancements is the development of advanced video analytics algorithms. These algorithms leverage machine learning and deep learning techniques to enable precise object detection, tracking, and recognition. They can accurately identify and classify objects like vehicles, people, and specific behaviors, enabling more intelligent and effective surveillance systems. Another technological advancement is the integration of edge computing capabilities in video surveillance systems. Real-time video processing and analysis can be achieved by deploying AI algorithms at the edge, closer to the cameras, reducing latency and bandwidth requirements.
What is the impact of the global recession on the market?
The ongoing recession is likely to have a mixed impact on the AI in video surveillance market. On the one hand, the recession will likely lead to a decrease in investment in new video surveillance projects, which could slow the adoption of AI-powered video surveillance solutions. On the other hand, the recession could also lead to an increased focus on cost-effective security solutions, which could make AI-powered video surveillance more attractive to businesses and organizations.
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The study involved four major activities in estimating the current size of the AI in video surveillance market. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study included corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers; certified publications; articles by recognized authors; directories; and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of major secondary sources
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Source |
Web Link |
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International Security Industry Organization (ISIO) |
https://www.intsi.org/ |
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Security Industry Association (SIA) |
https://www.securityindustry.org/ |
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Video Analytics Standards Association (VESA) |
https://vesa.org/ |
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The Open Security & Safety Alliance (OSSA) |
https://www.opensecurityandsafetyalliance.org/ |
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American Association of Artificial Intelligence (AAAI) |
https://aaai.org/ |
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International Association of Public Transport (UITP) |
https://www.uitp.org/ |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the AI in video surveillance market through secondary research. Several primary interviews were conducted with experts from both the demand and supply sides across four major regions—North America, Europe, Asia Pacific, and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the AI in video surveillance market and its various dependent submarkets. The key players in the market were identified through secondary research, and their market share in the respective regions was determined through primary and secondary research. This entire procedure involved the study of annual and financial reports of top players and extensive interviews with industry leaders such as chief executive officers (CEOs), vice presidents (VPs), directors, and marketing executives. All percentage shares and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data was consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report.
Bottom-Up Approach
The bottom-up approach was used to arrive at the overall size of the AI in video surveillance market from the revenues of the key players and their shares in the market. The overall market size was calculated based on the revenues of the key players identified in the market.
- Identifying the entities in the AI in video surveillance market influencing the entire market, along with the related component players
- Analyzing major manufacturers of AI in video surveillance systems, studying their portfolios, and understanding different types of products based on their features and functions
- Analyzing trends pertaining to the usage of AI in video surveillance offerings, such as hardware, software, and services
- Tracking the ongoing and upcoming developments in the market, such as investments made, R&D activities, product launches, collaborations, and partnerships, and forecasting the market size based on these developments and other critical parameters
- Carrying out multiple discussions with key opinion leaders to understand the different types of AI-based video surveillance systems; and deployment mode, vertical, and recent trends in the market, thereby analyzing the breakup of the scope of work carried out by major manufacturing companies
- Arriving at the market estimates by analyzing segment revenues of these companies generated by AI in video surveillance offerings and then combining the same to get the market estimate by different segments
- Verifying and cross-checking the estimate at every level by discussing with key opinion leaders, such as Chief Experience Officers (CXOs), directors, and operations managers, and finally with the domain experts at MarketsandMarkets
- Studying various paid and unpaid sources of information, such as annual reports, press releases, white papers, Factiva, and databases
Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of the individual markets (mentioned in the market segmentation) through percentage splits from secondary and primary research.
To calculate the market size of specific segments, the most appropriate immediate parent market size has been used to implement the top-down approach. The top-down approach was implemented for the data extracted from the secondary research to validate the market size obtained.
Each company’s market share was estimated to verify the revenue shares used earlier in the top-down approach. The overall parent market size and individual market sizes were determined and confirmed in this study by the data triangulation method and the validation of data through primaries.
- Focusing on top-line investments and expenditures being made in the ecosystems of various verticals. Additionally, listing key developments, analyzing updated technology in the marketplace, as well as evaluating the market by further splitting it into various technology
- Building and developing the information related to the market revenue generated by key AI in video surveillance manufacturers
- Conducting multiple on-field discussions with the key opinion leaders involved in the development of AI in video surveillance products in various verticals
- Estimating geographic splits using secondary sources based on various factors, such as the number of players in a specific country and region, the offerings of AI in video surveillance, and the level of solutions offered in different applications
- The impact of the recession on the steps mentioned above has also been considered.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the overall market has been split into several segments and subsegments. The data triangulation procedure has been employed wherever applicable to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size has been validated using top-down and bottom-up approaches.
Market Definition
The scope of AI in video surveillance encompasses a wide range of applications and capabilities that revolutionize traditional security systems. AI-powered video surveillance leverages advanced algorithms and machine learning techniques to analyze vast amounts of visual data in real time. It enables intelligent video analytics, such as object detection, tracking, and recognition, allowing for automated identification of suspicious activities, persons of interest, or potential threats. AI algorithms can also enhance video quality, optimize camera placements, and facilitate intelligent search and retrieval of relevant footage. Additionally, AI-based video surveillance systems can integrate with other technologies like facial recognition, biometrics, and data analytics, enabling comprehensive security solutions for various domains, including public spaces, transportation, retail, and critical infrastructure. The scope of AI in video surveillance holds promise for enhancing public safety, crime prevention, and operational efficiency while also raising concerns related to privacy, ethical considerations, and the responsible use of such technologies.
Key Stakeholders
- Raw material vendors
- Component (image sensor, lens, and module) providers
- Software providers
- AI in video surveillance camera and other hardware manufacturers
- Original equipment manufacturers (OEMs)
- AI in video surveillance system integrators
- Service providers
- Technology standards organizations, forums, alliances, and associations
- Governments, financial institutions, and investment communities
- Research organizations
- Analysts and strategic business planners
- Venture capitalists, private equity firms, and start-up companies
- Distributors
- End users from verticals, such as infrastructure, commercial, institutional, industrial, and residential
Report Objectives
- To describe and forecast the AI in video surveillance market, in terms of value, based on offering, deployment mode, and vertical
- To describe and forecast the AI in video surveillance market, in terms of volume, based on hardware
- To describe and forecast the market size, in terms of value, with regard to four main regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW)
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To provide a detailed overview of the supply chain of the AI in video surveillance ecosystem
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To analyze opportunities in the market for various stakeholders by identifying high-growth segments of the market
- To benchmark players within the market using the proprietary “Competitive Leadership Mapping” framework, which analyzes market players on various parameters within the broad categories of business strategy excellence and strength of product portfolio
- To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies2, along with detailing the competitive landscape of the market
- To analyze competitive developments, such as acquisitions, product launches and developments, expansions, partnerships, and acquisitions, in the market
- To analyze the impact of the recession on the AI in video surveillance market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the AI in video surveillance market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the AI in video surveillance market.
Growth opportunities and latent adjacency in AI in Video Surveillance Market