AI Video Analytics Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 5.04 Billion |
| Market Size (2030) | USD 17.20 Billion |
| Growth Rate (2025 - 2030) | 23.35% CAGR |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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AI Video Analytics Market Analysis by Mordor Intelligence
The AI video analytics market size stands at USD 5.04 billion in 2025 and is projected to reach USD 17.20 billion by 2030, reflecting a 23.35% CAGR over the forecast period. Elevated urban-security risks, rapid smart-city rollouts, and sharply lower edge-AI chipset prices continue to expand the technology’s addressable base. Municipal programs now treat AI-enabled cameras as multi-utility sensors, unlocking uses from traffic orchestration to predictive maintenance.[1]Huawei Technologies, “Shenzhen: A Success Story of Urban Governance with AI,” Huawei Enterprise, e.huawei.com Retailers deploy in-store behavior analytics to merge physical and digital customer journeys, while enterprises increasingly favor cloud workflows that keep models updated without large capital outlays.[2]Traces.ai, “How Does AI Help With False Alarm Filtering?” traces.ai These shifts open room for outcome-based service models and vertical-specific offerings that promise faster ROI.
Key Takeaways
- By component, software led with 64.65% revenue share in 2024, whereas services are forecast to expand at a 24.43% CAGR through 2030.
- By deployment mode, on-premises held 54.21% of the AI video analytics market share in 2024, while cloud posting the highest projected CAGR at 24.21% to 2030.
- By analytics type, video content analytics commanded 43.31% share of the AI video analytics market size in 2024, and facial recognition is advancing at a 23.87% CAGR through 2030.
- By application, security and surveillance represented 45.73% of revenue in 2024 in the AI video analytics market; retail customer insight is projected to grow at 23.94% CAGR over 2025-2030.
- By end-user, government and public safety captured 32.87% share in 2024 in the AI video analytics market, whereas retail and e-commerce is moving fastest with a 23.67% CAGR to 2030.
- By geography, North America led at 38.76% in 2024 in the AI video analytics market, though Asia Pacific is poised for a 23.73% CAGR to 2030.
Global AI Video Analytics Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Integration of AI-equipped CCTV in smart-city projects | +6.2% | Global, with concentration in APAC and Middle East | Medium term (2-4 years) |
| Rising retail and e-commerce demand for in-store behavior analytics | +5.8% | North America and EU, expanding to APAC | Short term (≤ 2 years) |
| Proactive threat detection amid escalating security risks | +4.9% | Global, heightened in urban centers | Short term (≤ 2 years) |
| Declining cost of edge-AI chipsets | +4.1% | Global, accelerated adoption in price-sensitive markets | Medium term (2-4 years) |
| Legislation on visual process-transparency in industry | +1.8% | EU and North America, spreading globally | Long term (≥ 4 years) |
| Privacy-preserving federated learning models | +1.5% | Global, led by privacy-conscious regions | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Integration of AI-equipped CCTV in Smart-City Projects
Municipal programs have evolved basic surveillance grids into real-time urban operating systems. Shenzhen’s Futian District reduced incident response from 4 minutes to 50 seconds after rolling out an AI-driven event-routing platform that now guides traffic teams, utilities, and emergency services. Hangzhou’s City Brain analyzes camera feeds from more than 100 intersections, detects accidents in seconds, and reshapes signal timing to trim average commutes by 4.6 minutes. These outcomes justify repeat municipal budgets and encourage neighboring cities to replicate blueprints, widening the AI video analytics market.
Rising Retail and E-commerce Demand for In-Store Behavior Analytics
Retail chains integrate vision data with loyalty and e-commerce platforms to reveal true customer journeys. Queue tracking, shelf-stock heatmaps, and demographic dashboards lift conversion and cut wait times, with some deployments reporting triple-digit ROI. Video-captured dwell patterns now feed recommendation engines to tailor online promotions. Quick-service restaurants apply the same feeds to enforce food-safety checklists and optimize staffing. As physical stores become data-rich touchpoints, investment in cloud-native analytics accelerates.
Proactive Threat Detection Amid Escalating Security Risks
Organizations now expect systems that flag anomalies before incidents unfold. Multistream AI engines parse motion signatures, object types, and policy breaches, cutting false alarms by up to 95% in live deployments. Manufacturing sites monitor PPE compliance and hazardous-zone intrusions, while campuses integrate vision alerts with access-control panels to trigger automated lockdowns. Predictive safeguards help meet newer workplace-safety mandates and insurance criteria, sustaining demand across heavy industry and education.
Declining Cost of Edge-AI Chipsets
Sub-USD 100 inference modules now bring server-class capability to individual cameras. One municipality using reconfigurable data-flow chips realized signficiant performance at one-third traditional cost, enabling blanket coverage of intersections previously priced out of AI adoption. Edge deployment shrinks backhaul bandwidth, addresses data-sovereignty rules, and unlocks millisecond-level latency for applications such as autonomous shuttles and robotic warehouses.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Data-privacy regulation barriers to facial recognition | -3.8% | EU, North America, spreading to APAC | Short term (≤ 2 years) |
| High integration cost with legacy CCTV | -2.9% | Global, particularly in mature markets | Medium term (2-4 years) |
| Model bias and false-positive risk | -1.7% | Global, heightened scrutiny in regulated industries | Medium term (2-4 years) |
| GPU supply-chain volatility | -1.4% | Global, acute in high-performance computing segments | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Data-Privacy Regulation Barriers to Facial Recognition
GDPR and similar statutes now require explicit consent and data-minimization, forcing vendors to mask or hash biometric information. Providers increasingly market metadata-only solutions that strip personal identifiers while preserving occupancy counts and flow maps.[3]Isarsoft, “Empowering Business with AI Video Analytics,” isarsoft.com Compliance revamps add cost and delay rollouts, yet they also catalyze advances in federated learning and differential privacy that may future-proof offerings.
High Integration Cost with Legacy CCTV
Enterprises holding thousands of analog cameras face upgrade bills that can eclipse software licenses. Closed-protocol hardware often needs replacement or costly gateway converters, while older networks lack power-over-Ethernet or backhaul capacity. Regulated plants must recertify safety systems after modification, stretching timelines. Vendors now pilot hybrid bridges that deliver lower-resolution analytics on existing feeds, allowing phased migration and preserving immediate ROI.
Segment Analysis
By Component: Software Dominance Drives Platform Innovation
Software retained 64.63% revenue share in 2024, underscoring how algorithm accuracy rather than hardware dictates purchase decisions. Services revenue is growing at a 24.43% CAGR as customers favor managed outcomes over perpetual licenses, often bundling model training and performance tuning in multiyear contracts. Continuous neural-network upgrades, including vision-language transformer models introduced in 2024, have kept replacement cycles brisk.
Intelligent search functions driven by generative AI let operators retrieve events using plain-language prompts instead of frame-by-frame review. Simultaneously, the hardware stack is shifting to chiplets optimized for sparsity and quantization, cutting power draw for passive installations. Software-centric subscription pricing gives vendors stable ARR while permitting users to activate specialized modules only when needed.
Note: Segment shares of all individual segments available upon report purchase
By Deployment Mode: Cloud Acceleration Challenges On-Premises Dominance
On-premises hosting accounted for 54.21% of revenue in 2024 thanks to government and critical-infrastructure clients that must retain footage locally. Yet the cloud segment is expanding at 24.21% CAGR as enterprises appreciate elastic GPU pools for frequent model retraining. Three-year TCO studies show cloud deployments lowering spend by 55% compared with edge appliances when video retention exceeds 90 days.
Hybrid patterns have emerged: inference runs at the camera, metadata streams to a regional hub, and intensive re-training tasks occur in a sovereign cloud to meet residency laws. Vendors position MLOps pipelines as differentiators, automating data labeling, drift detection, and rollback. As compliance clarity improves, many on-premises users pilot parallel cloud sandboxes to benchmark performance, nudging future migration.
By Analytics Type: Facial Recognition Growth Despite Privacy Headwinds
General video content analytics delivered 43.31% revenue share in 2024, covering object detection, counting, and scene understanding. Facial recognition is on track for the fastest 23.87% CAGR to 2030, propelled by high-security facilities that weigh identity assurance over privacy objections. Multimodal AI now fuses gait, voice, and apparel cues to raise identification confidence, reducing mis-tag rates during low-light conditions.
Crowd-behavior modules flag congestion or unrest in stadiums, while automatic number-plate recognition supports curb-side commerce and congestion charging. Transformer-based vision-language architectures blend contextual cues, enabling a single engine to detect brand logos, read license plates, and classify gestures, thereby trimming model sprawl. Modular licensing lets hospitals activate only fall-detection or PPE-compliance features, reinforcing cross-vertical appeal.
Note: Segment shares of all individual segments available upon report purchase
By Application: Retail Analytics Accelerates Beyond Traditional Security
Security and surveillance still delivered 45.73% of 2024 spending; however, demand growth now tilts toward retail analytics, whose 23.94% CAGR through 2030 tops all other use cases. Brick-and-mortar chains study dwell time, path heatmaps, and age-gender breakdowns to optimize assortment and labor schedules. Combined online and in-store identifiers feed recommendation engines, shrinking return rates and lifting average order value.
Industrial quality-inspection deployments classify defects in real time, saving downstream rework costs, while healthcare facilities monitor patient mobility to avert falls. In transportation, city buses employ onboard cameras to count ridership and enforce seat-belt usage. As each vertical codifies key metrics, solution providers craft pre-trained models that shorten pilots from months to weeks.
By End-User: Government Leadership Shifts Toward Commercial Adoption
Public-sector projects contributed 32.87% of 2024 revenue, but retail and e-commerce is pacing faster growth at 23.67% CAGR as big-box and quick-service chains roll out omnichannel analytics. Manufacturing, BFSI, and healthcare segments collectively form a growing commercial core, each demanding specialized compliance and uptime. Government contracts still catalyze ecosystem scale, establishing reference architectures that suppliers later adapt for private clients.
In factory settings, cameras integrate with MES dashboards to halt lines when anomaly thresholds trip, protecting brand equity. Banks layer video identity checks on ATM and branch transactions, squeezing fraud windows. Hospitals combine occupancy analytics with asset-tracking tags, freeing staff from manual head-counts and cutting equipment loss.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
North America retained a 38.76% revenue share in 2024, grounded in deep R&D, integrator ecosystems, and enterprise IT budgets. Federal grants for critical-infrastructure protection continue to refresh camera fleets, while big-box retail chains scale analytics to thousands of stores. Yet Asia Pacific is accelerating at a 23.73% CAGR to 2030 on the back of large-scale smart-city rollouts and expanding e-commerce platforms.
China’s provincial projects, such as Hangzhou’s 100-intersection City Brain, demonstrate how city-wide AI can cut emergency response times nearly in half. India’s AI sector is forecast to hit USD 8 billion by 2025, with retail, manufacturing, and healthcare pilots already budgeting camera analytics. Japan channels automation spending toward elder-care robots and factory vision systems, offsetting workforce shortages.[4]U.S. Department of Commerce, “Japan Generative AI,” trade.gov Europe enforces privacy-by-design mandates, leading vendors to export compliant templates worldwide, while Gulf states fund AI academies to cultivate 10,000 skilled practitioners
Competitive Landscape
Incumbent camera makers such as Hikvision and Dahua wield manufacturing scale and global channels, yet pure-play software vendors compete by offering hardware-agnostic platforms that overlay existing infrastructure. Strategic differentiation now rests on AI accuracy, model-update cadence, and ease of integration rather than megapixel counts. Axis Communications, for example, sells edge cameras with encrypted analytics pipelines to satisfy GDPR and CCPA mandates.
Emerging specialists address white-space applications: Traces.ai focuses on false-alarm filtering for critical infrastructure, Wobot.ai optimizes QSR drive-thrus, and Kunyun Technology targets cost-sensitive municipalities with reconfigurable data-flow chips. Platform vendors embed MLOps suites for drift detection, ensuring field accuracy after firmware or lighting changes.
Partnership activity is robust, GPU makers align with cloud platforms, while integrators sign outcome-based contracts that bundle hardware, software, and managed analytics. Moderate concentration persists: the top five vendors control under 60% of sector revenue, leaving space for vertical specialists and regional champions to seize share through tailored offerings and flexible pricing.
AI Video Analytics Industry Leaders
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IndigoVision
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AxxonSoft
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Axis Communications AB
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Panasonic Holdings Corporation
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Bosch Security Systems
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: Dubai launched the Dubai AI Academy, aiming to upskill 10,000 leaders and double AI’s GDP impact, a move expected to expand demand for advanced video analytics across public projects.
- March 2025: Hesai Technology partnered with Baidu Apollo Go to deploy over 1,000 Level-4 autonomous vehicles in Dubai, integrating vision-based analytics for navigation and safety.
- January 2025: Huawei Enterprise released end-to-end smart-city video analytics documentation highlighting cross-department incident orchestration.
- November 2024: China Mobile published its AI+ Smart-City Security Solutions whitepaper outlining governance frameworks for city-scale analytics.
Global AI Video Analytics Market Report Scope
Artificial intelligence for video analytics and surveillance leverages AI and ML algorithms that analyze the audio and images from video surveillance cameras to recognize humans, vehicles, objects, attributes, and events. This represents a sub-set of Video Analytics where AI-based capabilities are leveraged for implementing edge & centralized use cases.
The AI Video Analytics Market is segmented by end users (retail, government, and defense (including public safety), critical infrastructure, transportation, healthcare, and consumers), and geography (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Software |
| Hardware |
| Services |
| On-premises |
| Cloud |
| Hybrid / Edge |
| Video Content Analytics |
| Facial Recognition |
| Crowd and Behavior Detection |
| Automatic Number-Plate Recognition |
| Gesture / Action Recognition |
| Security and Surveillance |
| Traffic and Transportation Management |
| Retail Customer Insight |
| Industrial Quality Inspection |
| Healthcare Monitoring |
| Others |
| Government and Public Safety |
| Retail and E-commerce |
| Transportation and Logistics |
| Manufacturing |
| BFSI |
| Healthcare |
| Others |
| North America | United States | |
| Canada | ||
| Mexico | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Russia | ||
| Rest of Europe | ||
| Asia Pacific | China | |
| Japan | ||
| South Korea | ||
| India | ||
| Australia | ||
| Rest of Asia Pacific | ||
| Middle East and Africa | Middle East | Saudi Arabia |
| UAE | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Rest of Africa | ||
| By Component | Software | ||
| Hardware | |||
| Services | |||
| By Deployment Mode | On-premises | ||
| Cloud | |||
| Hybrid / Edge | |||
| By Analytics Type | Video Content Analytics | ||
| Facial Recognition | |||
| Crowd and Behavior Detection | |||
| Automatic Number-Plate Recognition | |||
| Gesture / Action Recognition | |||
| By Application | Security and Surveillance | ||
| Traffic and Transportation Management | |||
| Retail Customer Insight | |||
| Industrial Quality Inspection | |||
| Healthcare Monitoring | |||
| Others | |||
| By End-User (Value) | Government and Public Safety | ||
| Retail and E-commerce | |||
| Transportation and Logistics | |||
| Manufacturing | |||
| BFSI | |||
| Healthcare | |||
| Others | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Italy | |||
| Russia | |||
| Rest of Europe | |||
| Asia Pacific | China | ||
| Japan | |||
| South Korea | |||
| India | |||
| Australia | |||
| Rest of Asia Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| UAE | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the projected value of the AI video analytics market by 2030?
The market is forecast to reach USD 17.20 billion by 2030.
Which region is expected to grow fastest in AI video analytics through 2030?
Asia Pacific is set for the fastest 23.73% CAGR due to expansive smart-city and retail initiatives.
Which analytics type shows the highest forecast CAGR?
Facial recognition leads with a 23.87% CAGR, especially in high-security and access-control environments.
How are retailers using AI video analytics?
Retailers track dwell time, queue length, and demographic profiles to optimize store layouts and tailor marketing, driving strong ROI.
Why are edge-AI chipsets important for video analytics?
Affordable edge chipsets cut bandwidth needs, ensure data residency, and enable real-time analytics directly at camera sites.
What major barrier could slow facial-recognition deployment?
Strict privacy laws such as GDPR require consent and data minimization, increasing integration complexity and compliance costs.
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