AI in Video Surveillance Market

AI in Video Surveillance Market Size

The global AI in Video Surveillance market is anticipated to grow at a CAGR of 24.8% during the forecast period from 2024 to 2034. The market size was valued at US$ 4.6 billion in 2023 and is projected to reach US$ 53.3 billion by 2034.  

AI in video surveillance involves the integration of artificial intelligence and machine learning technologies into conventional surveillance systems to improve the monitoring, detection, and analytical functionalities. These systems employ advanced real-time algorithms to analyze video streams in real-time, facilitating automated threat identification, behavior assessment, and object recognition.

The technology can recognize particular individuals using facial recognition, notice suspicious behaviors, observe crowd dynamics, and follow vehicle movements. Surveillance systems powered by AI can examine patterns over time to anticipate possible security events and automate reactions to certain triggers. Proper integration of AI significantly minimizes human mistakes in surveillance tasks while enhancing the speed and precision of threat identification, rendering it especially beneficial for extensive security operations in multiple industries.     

Market Highlights: 

The global AI in Video Surveillance Market is is projected to attain a total valuation of US$ 53.3 billion, growing at a CAGR of 24.8% during the forecast period, fueled by heightened global security concerns, growing urbanization, and the demand for sophisticated monitoring solutions in smart cities. The capacity of the technology to analyze large volumes of video data instantly, minimizing the need for manual oversight, has become more appealing to corporations and governmental entities.

Increasing occurrences of theft, terrorism, and concerns about public safety have further propelled adoption. Furthermore, reducing the costs of AI technologies, enhancing computing power, and incorporating edge computing have rendered these systems more accessible and efficient. The COVID-19 pandemic has increased demand as organizations seek contactless monitoring options for managing occupancy and adhering to safety guidelines.

Source: Fatpos Global

Market Segmentation:       

Hardware dominates due to rising demand for AI-integrated cameras and sensors

The AI in Video Surveillance Market is bifurcated based on the Component into Hardware, Software, and Services. Hardware dominates the market, driven by the high demand for advanced AI-enabled cameras, sensors, and edge-computing devices. AI cameras with facial recognition and object detection capabilities are essential for implementing intelligent surveillance solutions.

Advanced processing units and storage systems, including NVMe SSDs, ensure the efficient handling of vast data generated by surveillance feeds. Increasing adoption of high-resolution cameras, such as 4K and 8K, amplifies hardware's significance. Hardware is also critical in smart cities, public infrastructure, and large-scale surveillance projects, bolstering its dominance.

Cloud-based AI video surveillance booms due to its scalable and cost-effective nature

Deployment classifies the AI in the Video Surveillance Market into On-Premise and Cloud-based options. Cloud-based deployment leads the market because of its scalability, adaptability, and affordability. Several Organizations are progressively opting for cloud solutions due to their capacity to store large quantities of video data without requiring any form of substantial investment in the physical infrastructure. Cloud-based solutions allow for remote access and real-time tracking, which is especially beneficial for operations distributed across different locations. Moreover, cloud solutions utilize AI analytics effectively, allowing for quicker and faster updates and seamless integrations with sophisticated tools. As the use of 5G and IoT technologies continues to rise, cloud-based implementations are anticipated to expand even more, especially in smart urban areas and public infrastructure initiatives.

Source: Fatpos Global

Market Dynamics:

Growth Drivers

Advancements in AI and Deep Learning to Drive Business and Market Growth

Cutting-edge AI and deep learning advancements are propelling the development of video surveillance systems. Advanced algorithms facilitate accurate real-time video assessment, enhancing object recognition and behavioral analysis. These systems are capable of forecasting possible security violations, which shortens response times and enhances operational effectiveness. The combination of AI with IoT and edge computing enhances functionalities, allowing for monitoring in distant locations with reduced latency. These developments guarantee the growing usability of AI surveillance in various sectors. 

Rising Security Concerns to Propel Demand for AI in Video Surveillance Systems

The rising incidence of global security events, such as terrorism, theft, and cyber-attacks, is driving the need for AI-powered surveillance technologies. These systems offer proactive surveillance, detecting threats before escalation. Governments and private companies invest significantly in AI technology to enhance security in populated areas like airports, shopping malls, and sports arenas. With increasing urbanization and higher population densities, AI in video surveillance is essential for ensuring public safety.

Restraints

Growing Data Privacy Concerns Impede Market Growth

The proactive implementation of AI in video monitoring systems presents major privacy concerns. Sophisticated facial recognition and behavioral analysis compromise personal privacy, sparking discussions on ethics and regulatory adherence. These technologies pose a risk of misuse, including unauthorized monitoring or profiling, heightening concerns. States and institutions grapple with the difficulty of reconciling security and civil rights. Establishing strong data protection regulations and clear usage policies is essential for overcoming these limitations without obstructing technological progress. 

Recent Developments

• Milestone Systems has made significant strides in enhancing video analytics capabilities. Notably, the company launched XProtect Rapid REVIEW 2023, which boasts advanced AI-powered video analytics. Furthermore, Milestone Systems introduced a cloud-native video management solution tailored for enterprise customers in the third quarter of 2023.
• Axis Communications has expanded its product portfolio with the release of AXIS Camera Station Secure Entry in 2023. This launch integrated access control capabilities, enhancing the overall security offering. In early 2024, the company introduced an AI-powered object analytics suite, further solidifying its position in the market.
• NEC Corporation has strengthened its facial recognition technology by incorporating mask-detection capabilities in 2023. In a significant development, the company collaborated with the Singapore government in 2024 to provide smart city surveillance solutions.
• Hikvision has introduced ColorVu 2.0 technology, significantly enhancing nighttime surveillance capabilities in 2023. Building on this momentum, the corporation launched AI-powered DeepinView cameras in 2024, boasting improved object detection features.
• Dahua Technology has launched the TiOC 3.0 full-color active deterrence solution, showcasing its commitment to innovation. Additionally, the company introduced the AI-powered WizMind series in 2024, featuring enhanced analytics capabilities.

Key Players:

• Milestone Systems
• Axis Communications
• NEC Corporation
• Hikvision
• Dahua Technology
• Genetec
• Bosch Security Systems
• Hanwha Techwin
• Avigilon
• FLIR Systems
• Honeywell
• Pelco
• IBM
• Microsoft
• Amazon Web Services (AWS)
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

The global Video Surveillance Market for AI is divided by regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa.

North America presently dominates the market, mainly owing of its sophisticated technological framework and elevated adoption levels across multiple industries. The region's leadership and stronghold are propelled by significant investments in security infrastructure, the existence of prominent tech firms, and robust governmental efforts that aid AI implementation.

The United States, significantly, excels in implementation throughout commercial, residential, and public domains, featuring notable advancements in smart cities, retail, and essential infrastructure. The region's strong regulatory structure for privacy and security, along with heightened awareness of AI abilities, fosters a conducive atmosphere for market expansion. The prompt adoption of cutting-edge surveillance technologies and substantial R&D funding further strengthens North America's position as a market leader. 

Although different regions exhibit different levels of market penetration, Asia Pacific is becoming a strong competitor, influenced by fast-paced urbanization and rising security investments in nations such as China and India.

Europe holds a considerable market share, yet its growth is tempered by stringent privacy laws and the requirements of GDPR compliance. The Middle East and Africa area exhibits encouraging growth prospects, especially in Gulf nations funding smart city projects. The market expansion in Latin America is slowly picking up speed, primarily focused on urban safety and retail applications.

Source: Fatpos Global

Impact of Covid-19 on The Market

The COVID-19 pandemic significantly expedited the integration of AI into video surveillance systems in multiple industries. Organizations quickly implemented these systems to oversee mask adherence, social distancing, and capacity management in public areas. The technology has been essential for contact tracing and crowd control during the pandemic, resulting in significant investment in AI-driven surveillance systems.

Healthcare institutions employed these systems for monitoring patients and conducting thermal screenings, whereas companies adopted them to ensure workplace safety compliance. The pandemic stimulated advancements in contactless security measures and remote monitoring technologies. Although initial disruptions in the supply chain impacted hardware rollout, the situation ultimately enhanced the market by emphasizing the adaptability and significance of AI-driven surveillance in addressing public health concerns.

Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Market Scope and Segments:

Frequently Asked Questions (FAQ):