The world is awash in video data, from CCTV cameras in urban centers to dashcams in vehicles and smart sensors in industrial facilities. This vast sea of ​​visual information, however, remains largely untapped without the power of video analytics. This technology is transforming raw video footage into actionable intelligence, driving a market that is experiencing explosive growth. The video analytics market size is projected to reach US$ 28.71 billion by 2031 from US$ 5.64 billion in 2023. The market is expected to register a CAGR of 22.6% during 2023–2031. This surge highlights video analytics' pivotal role in enhancing security, optimizing operations, and fueling the smart city revolution.

A primary catalyst for this phenomenal growth is the escalating global demand for enhanced security and surveillance. With rising crime rates and the need for proactive threat detection, organizations across various sectors are investing heavily in intelligent video solutions. For instance, the government sector held the largest market share in 2024, driven by the imperative to improve public safety, prevent and investigate crimes, and manage crowds. This includes applications in smart cities for traffic control, law enforcement, and emergency response.

The integration of Artificial Intelligence (AI) and deep learning technologies is the most significant game-changer in this market. AI-powered video analytics can automate tasks like object detection, facial recognition, behavior analysis, and anomaly detection with unprecedented accuracy and speed. This not only reduces the need for manual monitoring but also enables real-time insights that were previously impossible. For example, in March 2025, iMOVE Australia utilized drone video analysis with AI to study driver behavior at over 50 Perth roundabouts for improved safety, showcasing the tangible impact of these advancements.

Beyond traditional security, video analytics is finding diverse applications. In retail, it's used for understanding customer behavior, optimizing store layouts, and preventing loss. The transportation and logistics sector leverages it for monitoring, license plate recognition, and enhancing fleet safety. Even in healthcare, video analytics is being explored for patient monitoring and fall detection. The software segment currently dominates the market, providing the intelligence behind these diverse applications, with a projected CAGR of 23.9% for the software component.

While North America leads the market with the largest share (around 33.2% in 2024), propelled by advanced technological adoption and security concerns, the Asia Pacific region is set to be the fastest-growing market. This is largely due to increasing investments in smart city initiatives, rapid urbanization, and a growing emphasis on public safety in countries like China and India.

As the volume of video data continues to grow and AI capabilities advance, the video analytics market will continue its upward trajectory. The future promises even more sophisticated solutions, capable of extracting deeper insights and driving smarter decisions across every facet of our increasingly visual world.

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Author's Bio:

Nilesh Shinde

Senior Market Research expert at The Insight Partners