AI video surveillance market seen reaching $24.18B by 2035

The global AI in video surveillance market is projected to rise from $7.32 billion in 2026 to $24.18 billion by 2035, driven by smart city camera rollouts, edge AI hardware and faster video analytics. The market’s growth is also being shaped by privacy rules, generative AI and the shift from passive recording to real-time threat detection. Why it matters: - The market is moving from simple video recording to automated security intelligence, with implications for public safety, retail loss prevention, industrial monitoring and border security. - AI-powered analytics are cutting false alarms and improving threat detection, which can reduce operator overload and speed responses. - The shift matters beyond security because the same systems are being used for traffic flow, customer behavior and workplace safety analytics. What happened: - The global AI in video surveillance market reached an estimated $6.41 billion in 2025. - The market is forecast to grow from $7.32 billion in 2026 to $24.18 billion by 2035, a 15.22% compound annual growth rate. - The report points to two main growth drivers: wider IP-connected camera deployment and deeper use of AI video analytics. - Global installed camera deployments surpassed 1.2 billion units by the end of 2024. - The market is shifting from legacy CCTV and analog recording to cloud-native and AI-at-the-edge platforms. - A sample report is available here . - The full report is available here . The details: - AI-enabled platforms now include facial recognition, behavioral anomaly detection, crowd density analytics, license plate recognition and perimeter intrusion detection. - An IHS Markit analysis estimated AI video analytics reduced false alarm rates by 60% to 75% versus traditional motion detection systems. - The same analysis said actionable threat detection accuracy rose above 92% in controlled deployment environments. - Historical market growth rose from about $5.1 billion in 2021 to $6.41 billion in 2025. - Demand is rising across transportation hubs, financial institutions, healthcare campuses, manufacturing facilities and municipal governments. - The report segments the market by component, deployment model, application, end user and organization size. - By component, the market includes hardware, software and services. - Hardware includes AI cameras, NVRs and edge AI appliances. - Software includes video management software and AI analytics platforms. - Services include installation, managed security and cloud services. - By deployment model, the market includes on-premise, cloud-based and hybrid edge-cloud systems. - By application, the market includes facial recognition, behavioral analytics, LPR, perimeter intrusion detection, crowd management and operational analytics. - By end user, the market includes government and public safety, retail and commercial, transportation and logistics, healthcare, banking and finance, and industrial and critical infrastructure. - By organization size, the market includes SMEs, large enterprises and government. - Asia-Pacific holds about 43% of global revenue. - North America holds about 27% of global market share. - Europe holds about 19% of global market share. - The Middle East is projected to post the fastest regional CAGR at about 17.8% through 2035. - Latin America and Africa are emerging growth markets. - Edge inference can run in 15 to 30 milliseconds versus 150 to 400 milliseconds for round-trip cloud calls. - Buyers are being steered toward ONVIF Profile T/S compliance, NIST FRVT benchmarks, open APIs and certifications such as SOC 2 and IEC 62443. Between the lines: - The industry is no longer just a security category. It is becoming an infrastructure layer for operational intelligence. - Generative AI and large vision models are lowering the skill needed to search footage, summarize incidents and identify objects. - Privacy regulation is forcing vendors to design systems that avoid cloud biometric transmission and rely more on anonymization and on-device processing. - That regulatory pressure is also opening markets where facial recognition has faced restrictions. - Competition is intensifying as vendors race to add open integrations and pair video intelligence with access control, cybersecurity and operations platforms. - Leading vendors including Axis Communications, Milestone Systems and Genetec are integrating large vision-language model capabilities into their software. What’s next: - Edge AI cameras with neural processing units are projected to account for more than 65% of new AI surveillance camera shipments by 2028. - New product cycles will likely focus on natural-language video search, automated report generation and privacy-preserving analytics. - The market should keep expanding where smart city spending, critical infrastructure protection and regulatory acceptance of non-biometric analytics continue to rise. - The most aggressive regional growth is expected in the Middle East, led by UAE, Saudi Arabia and Qatar projects. The bottom line: - AI video surveillance is becoming a faster, smarter and more regulated market, with growth increasingly tied to edge computing, privacy compliance and broader operational use cases rather than cameras alone.