AI in Video Surveillance Market in the US – Size, Forecast, and Competitive Landscape: Explore Cloudastructure’s UK Potential

Market Outlook: AI in Video Surveillance Market in the US 2025-2029

The AI in video surveillance market in the US is rapidly growing, driven by advancements in machine learning, facial recognition, and real-time analytics, which are enhancing security and operational efficiency across various sectors such as retail, transportation, and public safety. The market is expected to grow by USD 2-5 billion at a CAGR of 13%-15% between 2025 and 2029. Exact values for this market can be accessed upon purchasing the report. Key companies in this market include:

• Allegion
• Avigilon
• Bosch Security Systems
• Genetec
• Axis Communications
• Others

The AI in video surveillance market in the US is experiencing rapid growth, driven by advancements in AI video surveillance technology. With the increasing demand for more effective security solutions, video surveillance AI solutions are revolutionizing the way security systems operate. AI-powered security cameras, integrated with surveillance video analytics, provide enhanced capabilities for monitoring and identifying potential threats in real time. Leading AI surveillance system providers are offering cutting-edge solutions that incorporate AI facial recognition surveillance, ensuring more accurate identification of individuals in various environments. The rise of cloud-based AI surveillance allows for scalable, remote monitoring, offering businesses greater flexibility and efficiency. As AI video security applications continue to evolve, smart surveillance equipment is becoming more sophisticated, enabling automated alerts and advanced detection features that improve overall security and operational performance.

IPO Company Overview: Cloudastructure in the US AI in video surveillance market

Cloudastructure recently launched its IPO on the Nasdaq Capital Market in January 2025 under the ticker symbol CSAI, creating a new opportunity for investors. Cloudastructure Inc. is a leading provider of cloud-based video surveillance solutions that leverage artificial intelligence (AI) and machine learning to enhance security and operational efficiency for businesses across various industries. Offering advanced features such as real-time video analytics, facial recognition, and remote access, Cloudastructure’s innovative platform delivers scalable, cost-effective security solutions tailored to meet the needs of modern enterprises.

Market Segmentation: How is the US AI in video surveillance market segmented?

End-User

• Commercial
• Government and Law Enforcement
• Residential
• Transportation

Commercial is the leading subsegment, driven by the increasing demand for enhanced security in retail stores, shopping malls, and office buildings, where AI-powered surveillance solutions help with real-time monitoring, theft prevention, and operational insights.

Technology Segments

• Facial Recognition
• Motion Detection and Object Tracking
• Video Analytics and Behavior Analysis
• Cloud-based Surveillance

Cloud-based surveillance is the dominant subsegment, as businesses and institutions increasingly adopt cloud infrastructure for cost-effective, scalable, and secure video storage, coupled with real-time AI analytics and remote access to improve security management and reduce maintenance costs.

Investment Opportunities: Why explore the US AI in video surveillance market with Technavio?

Recent developments in the AI in video surveillance market in the US reflect growing advancements in artificial intelligence, machine learning, and cloud computing, which are significantly enhancing the capabilities of security systems. AI-powered solutions are increasingly being integrated into surveillance systems to provide real-time analytics, facial recognition, behavior detection, and object tracking, offering a higher level of security and operational efficiency across various industries. With the rise of smart cities, the demand for AI-driven surveillance is growing rapidly, particularly in sectors like retail, transportation, and government. The ability to remotely monitor and analyze data through cloud-based platforms is revolutionizing the industry, making advanced security features more accessible and cost-effective for businesses of all sizes.

Another key development is the growing adoption of facial recognition and behavioral analytics in response to rising security concerns and the increasing need for automation in surveillance. These AI-powered systems are being deployed not only to prevent crime but also to enhance customer experience, improve business operations, and enable more efficient law enforcement practices. As privacy concerns and regulatory challenges related to AI surveillance persist, companies are focusing on ensuring that their solutions comply with local laws while offering transparent and ethical use of AI. Moreover, with the continued evolution of 5G infrastructure and edge computing, AI in video surveillance is expected to become even more advanced, providing faster, more accurate analysis and real-time responses in increasingly complex environments.

Market Dynamics: What factors are influencing the AI in video surveillance market in the US?

Drivers:

The growth of the AI in video surveillance market in the US is primarily driven by the increasing demand for enhanced security across sectors such as retail, government, transportation, and healthcare. AI-powered surveillance systems offer real-time analytics, facial recognition, and advanced object tracking, making them highly effective at improving security and reducing the need for manual monitoring. Additionally, the growing adoption of cloud-based solutions allows for more scalable, cost-effective, and accessible systems, while the increasing prevalence of smart cities and the need for efficient surveillance solutions further accelerate the market's expansion.

Trends:

One of the key trends in the AI video surveillance market is the widespread adoption of cloud-based video surveillance systems, which enable businesses to store and manage vast amounts of data remotely while reducing the costs and complexities of traditional on-premises systems. Another emerging trend is the integration of facial recognition and behavior analysis technologies into video surveillance systems, allowing for more precise identification of individuals and detection of suspicious activities. As privacy concerns and data protection laws become more prominent, there is also a growing trend toward developing AI solutions that prioritize compliance with regulatory standards while ensuring ethical usage of surveillance data.

Opportunities:

The AI in video surveillance market in the US offers significant opportunities in the expansion of smart city projects, where surveillance systems are integrated into urban infrastructure to enhance public safety and traffic management. Additionally, the increasing demand for automation in sectors like retail and transportation presents opportunities for businesses to use AI-driven surveillance to improve operations, reduce theft, and monitor customer behavior for enhanced service. With advancements in edge computing and 5G technology, real-time analytics and faster processing capabilities offer opportunities to further enhance the efficiency and effectiveness of AI-based video surveillance solutions.

Challenges:

Despite its growth, the AI in video surveillance market faces several challenges, primarily revolving around privacy concerns and data security. The use of facial recognition and surveillance technologies has raised ethical debates over individual privacy and data protection, leading to increasing scrutiny from lawmakers and regulators. Additionally, AI algorithms may face difficulties in accurately identifying certain individuals or behaviors, leading to potential false positives or negatives that could affect reliability. Other challenges include high upfront costs for deployment, system integration complexities, and the need for skilled personnel to manage and analyze vast amounts of surveillance data, which can limit the adoption of AI-based solutions, especially among smaller businesses.

Investment Questions: Topics to consider when investing in the AI in video surveillance market in the US

What is the growth potential of the AI in video surveillance market?
Investors should assess the projected growth of the market, including factors like the demand for smarter security systems, the adoption rate of AI technologies, and the expansion of smart cities.

How are companies in this market addressing privacy and regulatory concerns?
With growing concerns over privacy and the use of AI for facial recognition and surveillance, investors should evaluate how companies are ensuring compliance with regulations, such as GDPR and local data protection laws.

How scalable are AI video surveillance solutions?
Evaluating the scalability of a company's solutions, particularly in cloud-based surveillance, is important for understanding future market penetration and growth potential.

What are the potential risks associated with AI inaccuracies or malfunctions?
AI-powered surveillance systems are not without risks, such as the potential for false positives or misidentifications. Understanding how companies address these risks is vital for assessing long-term reliability and market acceptance.

What are the expected customer adoption rates for AI-powered surveillance systems?
Understanding the rate at which businesses, municipalities, and other organizations are adopting AI surveillance solutions is essential to project future revenue growth and market trends.

For a detailed analysis of the AI in video surveillance market in the US, buy the full report

Technavio Report Insights: How Can Technavio Reports Help Investors Make Better Business Decisions?

Key Features of a Technavio Report: 

• Comprehensive Market Analysis: Provides a detailed overview of the AI in video surveillance market in the US, including market size, growth rate, segmentation, and regional analysis. 

• In-Depth Competitive Landscape: Offers insights into the competitive dynamics, market share and positioning, and product offerings of key players. 

• Future Market Trends: Identifies emerging trends and opportunities that can shape the future of the market. 

• Detailed Segmentation: Breaks down the market into various segments to help investors identify specific niches and target markets. 

• Expert Analysis: Provides expert insights and forecasts from industry analysts

FAQ

What are the key drivers of growth in the AI video surveillance market?
Key drivers include the increasing demand for smarter, more efficient security systems, the rise of smart cities, advancements in AI and machine learning, and the growing need for real-time analytics, facial recognition, and behavior detection in sectors like retail, transportation, and public safety.

How does AI improve video surveillance?
AI enhances video surveillance by automating the analysis of video footage, enabling real-time identification of potential security threats, such as unauthorized access, suspicious behavior, or abnormal activities. It can also improve accuracy and reduce human error in monitoring.

What industries are adopting AI in video surveillance?
Key industries adopting AI-driven video surveillance include retail, government and law enforcement, transportation (airports, train stations), healthcare, and residential sectors, where security and operational efficiency are critical.

What are the trends shaping the future of AI video surveillance?
Trends include the growing adoption of cloud and edge computing for real-time processing, integration of advanced AI technologies like behavioral analytics and object tracking, increased use of facial recognition in public spaces, and efforts to address privacy concerns with more transparent and compliant systems.

Table of Contents

1 Executive Summary

• 1.1 Market overview
  • Executive Summary - Chart on Market Overview
  • Executive Summary - Data Table on Market Overview
  • Executive Summary - Chart on Global Market Characteristics
  • Executive Summary - Chart on Market by Geography
  • Executive Summary - Chart on Market Segmentation
  • Executive Summary - Chart on Incremental Growth
  • Executive Summary - Data Table on Incremental Growth
  • Executive Summary - Chart on Company Market Positioning

2 Technavio Analysis

• 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

• 2.2 Criticality of inputs and factors of differentiation
  • Overview on criticality of inputs and factors of differentiation

• 2.3 Factors of disruption
  • Overview on factors of disruption

• 2.4 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

3 Market Landscape

• 3.1 Market ecosystem
  • Parent Market
  • Data Table on - Parent Market

• 3.2 Market characteristics
  • Market characteristics analysis

• 3.3 Value chain analysis
  • Value chain analysis

4 Market Sizing

• 4.1 Market definition
  • Offerings of companies included in the market definition

• 4.2 Market segment analysis
  • Market segments

• 4.3 Market size 2024

• 4.4 Market outlook: Forecast for 2024-2029
  • Chart on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Data Table on Global Market - Market size and forecast 2024-2029 ($ billion)
  • Chart on Global Market: Year-over-year growth 2024-2029 (%)
  • Data Table on Global Market: Year-over-year growth 2024-2029 (%)

5 Historic Market Size

• 5.1 Global Market 2019 - 2023
  • Historic Market Size - Data Table on Global Market 2019 - 2023 ($ billion)

• 5.2 Segment Analysis 2019 - 2023
  • Historic Market Size – Segment Analysis 2019 - 2023 ($ billion)

• 5.4 Geography segment analysis 2019 - 2023
  • Historic Market Size - Geography Segment 2019 - 2023 ($ billion)

6 Qualitative Analysis

• 6.1 Impact of AI on the Global Market

7 Five Forces Analysis

• 7.1 Five forces summary
  • Five forces analysis - Comparison between 2024 and 2029

• 7.2 Bargaining power of buyers
  • Bargaining power of buyers - Impact of key factors 2024 and 2029

• 7.3 Bargaining power of suppliers
  • Bargaining power of suppliers - Impact of key factors in 2024 and 2029

• 7.4 Threat of new entrants
  • Threat of new entrants - Impact of key factors in 2024 and 2029

• 7.5 Threat of substitutes
  • Threat of substitutes - Impact of key factors in 2024 and 2029

• 7.6 Threat of rivalry
  • Threat of rivalry - Impact of key factors in 2024 and 2029

• 7.7 Market condition
  • Chart on market condition - Five forces 2024 and 2029

8 Market Segmentation

• 8.1 Market segments
  • Chart on Segmentation - Market share 2024-2029 (%)
  • Data Table on Segmentation - Market share 2024-2029 (%)

• 8.2 Segment Comparison
  • Chart on Comparison
  • Data Table on Comparison

• 8.3 Segment Market Opportunity
  • Market opportunity ($ billion)
  • Data Table on Market Opportunity ($ billion)

9 Customer Landscape

• 9.1 Customer landscape overview
  • Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Geographic Landscape

• 10.1 Geographic segmentation
  • Chart on market share by geography 2024-2029 (%)
  • Data Table on market share by geography 2024-2029 (%)

• 10.2 Geographic comparison
  • Chart on Geographic comparison
  • Data Table on Geographic comparison

• 10.3 Market opportunity by geography
  • Market opportunity by geography ($ billion)
  • Data Tables on Market opportunity by geography ($ billion)

11 Drivers, Challenges, and Opportunity/Restraints

• 11.1 Market drivers

• 11.2 Market challenges

• 11.3 Impact of drivers and challenges
  • Impact of drivers and challenges in 2024 and 2029

• 11.4 Market opportunities/restraints

12 Competitive Landscape

• 12.1 Overview

• 12.2 Competitive Landscape
  • Overview on criticality of inputs and factors of differentiation

• 12.3 Landscape disruption
  • Overview on factors of disruption

• 12.4 Industry risks
  • Impact of key risks on business

13 Competitive Analysis

• 13.1 Companies profiled
  • Companies covered

• 13.2 Company ranking index
  • Company ranking index

• 13.3 Market positioning of companies
  • Matrix on companies position and classification

14 Appendix

• 14.1 Scope of the report

• 14.2 Inclusions and exclusions checklist
  • Inclusions checklist
  • Exclusions checklist

• 14.3 Currency conversion rates for US$
  • Currency conversion rates for US$

• 14.4 Research methodology
  • Research methodology

• 14.5 Data procurement
  • Information sources

• 14.6 Data validation
  • Data validation

• 14.7 Validation techniques employed for market sizing
  • Validation techniques employed for market sizing

• 14.8 Data synthesis
  • Data synthesis

• 14.9 360 degree market analysis
  • 360 degree market analysis

• 14.10 List of abbreviations
  • List of abbreviations