The global video surveillance market is poised for sustained growth. According to a recent analysis by market research firm Memoori, global revenues from video surveillance equipment and software reached approximately €31.1 billion in 2024. Analysts project €32.7 billion for 2025, with the market expected to expand to nearly €44.1 billion by 2030. This represents a compound annual growth rate (CAGR) of just under 6 percent, reflecting a significant transformation of the industry from traditional, reactive security systems to intelligent, data-driven infrastructures.
From Reactive to Strategic Security Infrastructure
The evolution of the video surveillance industry shows a clear trend: what was once primarily a tool for retrospective incident review is increasingly becoming a strategic instrument for operational intelligence.
Modern systems now play an integral role in security, traffic, and urban management solutions. Video surveillance is no longer used solely for documentation; it provides actionable insights for behavioural analysis, risk assessment, and decision support.
This transformation is largely software-driven. Analytics, cloud-based solutions, and AI capabilities are currently growing at more than twice the rate of traditional hardware sales, highlighting a profound shift in the value proposition of video surveillance technology.
Software and Analytics as Key Growth Drivers
The market is segmented into four core areas:
- Video camera hardware,
- Software and analytics,
- Video storage solutions, and
- Supporting infrastructure components.
While physical camera sales continue to rise, the focus is increasingly shifting toward software, AI, and cloud services. These segments offer higher margins and foster recurring revenue models through subscription-based services, creating sustainable business opportunities.
For many providers, this shift represents a strategic realignment: moving away from pure hardware deliveries toward integrated platform solutions featuring regular updates, data-driven services, and long-term customer engagement.
Artificial Intelligence Reshaping the Market
The segment of AI-enabled cameras with edge processing is experiencing particularly rapid growth. Forecasts indicate that by 2025, these systems will account for a significant portion of global camera shipments.
By moving computation to the network edge, cameras can process data locally and perform real-time analytics – including object detection, license plate recognition, motion analysis, and privacy-compliant pixelation of individuals.
This evolution transforms video surveillance from a passive recording tool into an active, intelligence-driven system, enabling security teams to make timely, data-informed decisions.
Drones as a New Dimension of Surveillance
Drones are emerging as a transformative expansion vector for video surveillance. They extend coverage beyond the reach of fixed cameras, offer rapid deployment capabilities during incidents, and enable continuous monitoring of expansive or hard-to-access areas.
When integrated with ground-based systems and centralized control centers, drones create networked, mobile sensor networks that are revolutionizing security management. Their adoption is becoming increasingly standard in areas such as border protection, industrial sites, and large-scale events.
Geopolitical Factors Reshaping Market Structures
The report highlights ongoing geopolitical tensions between China and Western countries, which continue to reshape market access and competitive dynamics.
U.S. import and procurement restrictions, along with FCC approval bans for certain Chinese suppliers, have effectively divided the market. These developments have created opportunities for manufacturers offering NDAA-compliant, cyber-resilient alternatives.
Companies emphasizing data transparency, regulatory compliance, and security certifications are particularly well-positioned to benefit from this evolving geopolitical landscape.
Investments, Mergers, and Acquisitions
Between September 2023 and August 2025, Memoori recorded 24 M&A transactions in the global video surveillance market. Total investment volume reached approximately €3.5 billion across 38 financing rounds.
Platform consolidation, which integrates hardware, software, and cloud components into unified system solutions, is particularly active. Private equity firms are playing a central role by restructuring market access and facilitating strategic alliances.
Additionally, acquisitions in AI and computer vision startups are accelerating the integration of machine learning and privacy-preserving technologies, positioning providers as end-to-end solution providers across the entire surveillance ecosystem.
Outlook: From Camera to Cognitive Security Network
The global video surveillance industry is at a pivotal point. Future growth will be driven less by hardware sales and more by data-centric services, artificial intelligence, and cloud-based analytics.
The classic surveillance model—camera, recording, evaluation—is giving way to a networked ecosystem of intelligent sensors that acts proactively, anticipates risks, and supports real-time decision-making.
With a projected market volume of nearly €44 billion by 2030, video surveillance is becoming a central component of modern, data-driven security and smart city infrastructure.
The industry exemplifies the transition from reactive security to proactive intelligence, marking the next evolutionary step in digital security systems worldwide.
