• In June 2024, Interface Systems teamed up with Wobot Intelligence to debut an AI-powered video analytics solution tailored for retail and QSR sectors, boosting real-time monitoring and operational insights.

• In September 2022, Dallmeier Electronic GmbH launched Sedor AI, an advanced maritime video analytics platform that reliably detects watercraft in open seas and adverse conditions, enhancing port and offshore surveillance.

In this report, the Video Analytics Market has been segmented by Components, Deployment Mode, Type, Application, Verticals, and Geography.

Video Analytics Market, Segmentation by Components

The Video Analytics Market has been segmented by Components into Services and Software.

Services

The services segment comprises consulting, deployment, and maintenance support required to implement video analytics solutions effectively. Contributing nearly 38% of the market, this segment is essential for ensuring system optimization and operational continuity. Increasing demand for managed services and custom analytics integration is boosting this segment's growth.

Software

Software holds the largest market share at approximately 62%, driven by advancements in AI-powered video analytics algorithms and real-time surveillance capabilities. The software enables functionalities like facial recognition, object detection, and motion analysis. As demand for automated threat detection rises, the software segment continues to see widespread adoption across industries.

Video Analytics Market, Segmentation by Deployment Mode

The Video Analytics Market has been segmented by Deployment Mode into On-Premises and Cloud.

On-Premises

The on-premises segment accounts for approximately 46% of the video analytics market, preferred by organizations prioritizing data control, low-latency processing, and custom security protocols. It is widely adopted in sectors such as government, banking, and critical infrastructure where local data storage and regulatory compliance are essential.

Cloud

The cloud segment leads the deployment market with a share of nearly 54%, driven by its scalability, cost-effectiveness, and remote accessibility. It supports real-time video processing and integration with AI/ML models, making it ideal for retail, smart cities, and commercial security. The rapid adoption of cloud-first strategies continues to boost this segment's growth.

Video Analytics Market, Segmentation by Type

The Video Analytics Market has been segmented by Type into Edged-Based and Server-Based.

Edge-Based

The edge-based segment holds approximately 44% of the video analytics market, driven by demand for low-latency processing and real-time decision-making at the source of data capture. It enables faster response times and reduces bandwidth dependency, making it ideal for applications in smart cities, transportation, and retail.

Server-Based

The server-based segment leads the market with around 56% share, offering high processing power and support for complex video analytics algorithms. It is favored in large-scale surveillance environments like airports, corporate campuses, and industrial facilities where centralized data processing is required. This model supports integration with advanced storage and analytics platforms.

Video Analytics Market, Segmentation by Application

The Video Analytics Market has been segmented by Application into Incident Detection, Intrusion Management, People/Crowd Counting, Traffic Monitoring, ANPR and Facial Recognition.

Incident Detection

Incident detection accounts for nearly 22% of the video analytics market, driven by the need for real-time surveillance alerts and emergency response coordination. It helps identify unusual activities, accidents, or security breaches across public and private infrastructure. This application is widely adopted in transport hubs and urban monitoring systems.

Intrusion Management

The intrusion management segment represents around 18% of the market and plays a critical role in enhancing perimeter security for critical facilities and commercial spaces. It uses automated alerts and video verification to reduce false positives and enable proactive threat prevention.

People/Crowd Counting

This application holds approximately 16% of the market, gaining popularity in retail, events, and public venues for tracking footfall and occupancy levels. It provides insights for space utilization, marketing strategies, and crowd control planning.

Traffic Monitoring

Traffic monitoring contributes about 14% to the market, enabling real-time analysis of vehicle flow, road congestion, and incident reporting. This application supports smart city planning and improves urban mobility infrastructure by integrating video feeds with analytics platforms.

ANPR (Automatic Number Plate Recognition)

ANPR holds nearly 15% market share, offering automated license plate detection for applications in law enforcement, toll collection, and parking management. It improves operational efficiency by supporting vehicle tracking and access control systems.

Facial Recognition

The facial recognition segment comprises around 15% of the market, with strong adoption in security, retail analytics, and workplace access control. By matching faces in real-time against databases, it enhances identity verification and enables personalized service delivery.

Video Analytics Market, Segmentation by Verticals

The Video Analytics Market has been segmented by Verticals into BFSI, City Surveillance, Critical Infrastructure, Education, Hospitality & Entertainment, Manufacturing, Defense & Border Security, Retail, Traffic Management & Transportation, and Logistics

BFSI

The BFSI sector accounts for nearly 10% of the video analytics market, using technologies like facial recognition and object tracking to enhance branch security, prevent fraudulent activities, and monitor ATM transactions. These tools help maintain compliance and improve customer safety.

City Surveillance

City surveillance holds the largest market share at approximately 24%, driven by smart city initiatives and the need for real-time threat detection. Government agencies deploy video analytics for crime prevention, crowd monitoring, and incident response across urban landscapes.

Critical Infrastructure

This segment contributes around 12% to the market, focusing on securing power plants, water treatment facilities, and transportation hubs. Video analytics enables perimeter monitoring, anomaly detection, and rapid response to unauthorized access.

Education

The education sector holds roughly 6% of the market, leveraging video analytics for campus surveillance, attendance monitoring, and emergency alerting. Institutions are increasingly adopting these solutions to ensure student safety and improve incident accountability.

Hospitality & Entertainment

This vertical makes up about 7% of the market, using video analytics for crowd management, VIP recognition, and queue monitoring. Hotels, casinos, and entertainment venues benefit from enhanced guest experiences and operational efficiency.

Manufacturing

Manufacturing contributes nearly 9%, driven by the use of video analytics for worker safety, production line monitoring, and quality control. These tools help detect equipment malfunctions and ensure compliance with safety standards.

Defense & Border Security

With around 8% market share, this segment applies video analytics for intrusion detection, automated surveillance, and facial identification at borders and military zones. These systems enhance threat recognition and response capabilities.

Retail

Retail holds about 10% of the market, utilizing video analytics for shopper behavior analysis, loss prevention, and queue management. These insights help enhance store performance and create personalized customer experiences.

Traffic Management & Transportation

This vertical comprises approximately 9% of the market and uses analytics for traffic flow optimization, vehicle tracking, and incident detection. It supports smart mobility efforts and enhances public transportation safety.

Logistics

Logistics represents nearly 5% of the video analytics market, focusing on warehouse surveillance, asset tracking, and delivery verification. These solutions improve operational transparency and reduce security risks across supply chains.

Video Analytics Market, Segmentation by Geography

In this report, the Video Analytics Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Video Analytics Market Share (%), by Geographical Region

North America

North America leads the video analytics market with a share of approximately 36%, driven by strong investments in smart surveillance systems and widespread deployment of AI-powered security solutions. The U.S. and Canada are at the forefront due to their early adoption of advanced analytics technologies across government, retail, and transportation sectors.

Europe

Europe holds around 26% of the global market, supported by stringent data protection regulations and growing implementation of smart city initiatives. Countries like the UK, Germany, and France are increasingly investing in video surveillance infrastructure integrated with real-time analytics capabilities.

Asia Pacific

Asia Pacific accounts for approximately 24% of the market and is the fastest-growing region, fueled by expanding urbanization and government-led investments in public safety and transport infrastructure. China, India, and Japan are aggressively adopting AI-enabled video monitoring systems.

Middle East and Africa

The Middle East and Africa region contributes nearly 8%, with countries like the UAE, Saudi Arabia, and South Africa leading efforts in deploying city surveillance networks and critical infrastructure protection. Growth is being driven by increasing demand for smart security solutions in public spaces.

Latin America

Latin America represents about 6% of the video analytics market, with Brazil and Mexico emerging as key adopters of cloud-based video surveillance. The need to improve urban security, combat organized crime, and enhance logistics visibility is fueling regional demand.

This report provides an in depth analysis of various factors that impact the dynamics of Video Analytics Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• IoT and connected device proliferation
• Increasing demand for security solutions
• Advancements in artificial intelligence technologies

• Growing need for real-time monitoring - The increasing demand for real-time monitoring is a major force driving the adoption of video analytics across a wide range of industries. As organizations seek to enhance security, optimize operations, and respond proactively to emerging situations, real-time video analysis provides a critical edge. With the ability to deliver instant alerts and automated threat detection, these systems help mitigate risks before incidents escalate, ensuring a faster and more effective response from human or automated systems.

  Industries with high-security requirements such as transportation hubs, critical infrastructure, and urban surveillance networks rely heavily on real-time video analytics to monitor live footage across multiple sites simultaneously. The integration of AI and machine learning algorithms enables these systems to identify unusual behavior, unauthorized access, or safety violations with minimal human intervention. This reduces response time, enhances situational awareness, and improves overall security outcomes.

  In commercial applications, the value of real-time monitoring extends beyond security. Businesses in retail, manufacturing, and logistics are leveraging live video analytics to monitor operations, detect process anomalies, and improve customer experiences. For instance, in retail settings, real-time data can be used to manage queues or assess store traffic, while in manufacturing, it helps detect quality issues during production. This proactive insight enables companies to make immediate decisions that increase efficiency and reduce operational costs.

  The emergence of edge computing and advanced IoT infrastructure further enhances the capabilities of real-time video analytics. With data processing occurring at the source, latency is reduced and bandwidth is conserved, allowing for quicker detection and response. As digital transformation initiatives expand across sectors, the need for instant visibility and automated action continues to rise, reinforcing the importance of real-time monitoring as a critical driver in the video analytics market.

Restraints

• Privacy concerns and regulations
• High initial investment costs
• Integration complexities with existing systems

• Limited awareness and skilled workforce - A significant restraint hindering the widespread adoption of video analytics is the limited awareness and shortage of skilled professionals. Despite the growing relevance of intelligent video technologies, many organizations, particularly small and medium enterprises, remain unaware of their full capabilities and benefits. This lack of understanding leads to underinvestment in advanced video analytics solutions and a preference for traditional surveillance systems, slowing the pace of market growth.

  Moreover, implementing video analytics requires specialized knowledge in areas such as AI modeling, computer vision, and data integration. The industry currently faces a shortage of qualified experts who can design, configure, and maintain these complex systems. Without adequate in-house capabilities or accessible external support, businesses may struggle with deployment challenges, inaccurate results, and poor system optimization, which in turn limits the perceived value of these technologies.

  Training and development efforts have not kept pace with technological advancement, especially in emerging markets where digital infrastructure is still evolving. This further exacerbates the skills gap and inhibits the creation of local ecosystems that support video analytics implementation. As a result, organizations may delay adoption or only use limited features, thereby missing out on the potential for real-time insights and automation.

  Addressing this restraint requires a combination of educational outreach, industry awareness campaigns, and workforce upskilling initiatives. By improving knowledge around video analytics and making training more accessible, the industry can expand its user base and reduce dependency on niche expertise. Until then, limited awareness and a lack of skilled talent will remain major obstacles to broader market penetration and sustained innovation.

Opportunities

• Adoption of cloud-based analytics solutions
• Rise in smart city initiatives
• Expansion in retail and healthcare sectors

• Emergence of edge analytics capabilities - The emergence of edge analytics capabilities is unlocking new growth opportunities in the video analytics market. Unlike traditional systems that rely heavily on cloud or central data centers, edge analytics enables data processing directly at the camera or local device level. This significantly reduces latency, minimizes bandwidth consumption, and allows for faster decision-making, especially in scenarios that demand immediate responses such as security breaches, industrial incidents, or retail monitoring.

  Edge-based video analytics enhances system efficiency by analyzing data in real time without needing to transmit large volumes of video to the cloud. This is especially valuable in remote or bandwidth-constrained environments where continuous connectivity cannot be guaranteed. Industries such as transportation, manufacturing, and public safety can benefit significantly from deploying edge-enabled cameras that autonomously detect anomalies and trigger alerts without human intervention.

  As AI models become more compact and optimized, it is now feasible to embed advanced analytics capabilities directly into edge devices. This includes functionalities such as facial recognition, license plate detection, object classification, and behavioral pattern analysis. These advancements reduce dependency on centralized infrastructure while enabling scalable and decentralized monitoring systems that are both cost-effective and resilient.

  With growing investments in edge computing infrastructure and increasing awareness of its benefits, more organizations are expected to adopt edge-based video analytics to improve real-time intelligence and operational agility. This technological shift represents a powerful opportunity for vendors to innovate and differentiate their offerings, while helping end-users achieve greater flexibility, data privacy, and response speed in mission-critical environments.

Key players in Video Analytics Market include:

• IBM Corporation
• Cisco Systems, Inc
• Honeywell International Inc
• Axis Communications AB
• Agent Video Intelligence Ltd
• Avigilon Corporation
• PureTech Systems Inc
• Verint Systems Inc
• AllGoVision Technologies Pvt. Ltd
• IntelliVision Technologies Corp

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis