A new research report from the analysts at Memoori offers an in-depth study providing a detailed market analysis of video surveillance, with a specific focus on revenues generated by cameras, video storage, software & analytics. The report finds that total global revenues for video surveillance equipment and software at factory gate prices reached $33.8 billion in 2024, with projections of $35.5 billion in 2025 and growth to $47.9 billion by 2030.
These figures represent a compound annual growth rate of nearly 6%, reflecting the sector’s transition from reactive security deployments to strategic, intelligence-driven infrastructure investments.
A shift towards software is driving growth
According to the report, the video surveillance industry is undergoing a significant transformation. What was once primarily a reactive security tool, cameras recording footage for post-incident review, is evolving into a proactive intelligence infrastructure. This latest research shows a market that is increasingly defined by software capabilities, with analytics and cloud services growing at more than twice the rate of traditional equipment sales.
The market analysis encompasses 4 core segments: video camera hardware, software and analytics, video storage, and supporting hardware infrastructure. This breakdown reveals an industry increasingly defined by software capabilities and recurring revenue models, with analytics and cloud services growing at more than twice the rate of traditional equipment sales.
Transformation from passive to active
AI-enabled cameras capable of edge processing are projected to account for a significant percentage of global camera shipments in 2025. These systems deliver capabilities ranging from object detection and license plate recognition to behaviour analysis and privacy-preserving redaction, fundamentally transforming video surveillance from passive recording to active operational intelligence.
Drones represent a fundamental expansion
Drones are emerging as a significant expansion vector for video surveillance capabilities. Drones extend surveillance coverage to areas impractical for fixed cameras, provide rapid-deploy capability for incident response, and enable persistent wide-area monitoring for critical infrastructure, large campuses, and border security applications. The integration of drones with ground-based systems and real-time crime centres represents a fundamental expansion of surveillance architecture from static observation points to dynamic, mobile sensor networks.
Geopolitical tensions continue to reshape market access and competitive dynamics
Geopolitical tensions between China and the West have bifurcated the market,according to Memoori’s research, with Chinese vendors facing US procurement bans, FCC equipment authorisation restrictions, and expanding export controls. These restrictions have created sustained opportunities for NDAA-compliant alternatives that position regulatory alignment and cyber security transparency as core brand values.
Summary of trends
Between September 2023 and August 2025, 24 M&A transactions were observed. Investment activity totaled $3.8 billion across 38 deals during the same time period. Key trends include platform consolidation integrating hardware, software, and cloud services; private equity actively reshaping market structure; strategic focus shifting from hardware toward software and recurring revenue; and AI integration driving acquisitions of computer vision and privacy-preserving startup firms.
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