AI-powered Video Analytics Market Expected to Reach $42.2 Billion by 2034

According to a new report published by Allied Market Research, titled, “AI-powered Video Analytics Market," The ai-powered video analytics market was valued at $7.8 billion in 2024, and is estimated to reach $42.2 billion by 2034, growing at a CAGR of 18.3% from 2025 to 2034.

The global AI-powered video analytics market refers to the industry focused on technologies that use artificial intelligence to analyze video footage in real time or from recorded sources. These systems automatically detect, track, and interpret objects, people, behaviors, and events without human involvement. They are widely used for security, surveillance, traffic monitoring, retail insights, and operational efficiency across sectors like government, transportation, retail, healthcare, and smart homes. AI video analytics enhances traditional video systems by adding features such as facial recognition, motion detection, crowd analysis, and license plate recognition. With growing demand for smarter, faster, and more accurate monitoring, the market is expanding rapidly. Cloud-based platforms, edge computing, and integration with IoT and mobile apps are further driving adoption, offering scalable and cost-effective solutions for both public and private organizations.

The  global AI-powered video analytics market size is expanding rapidly, driven by the growing need for smart-city solutions and efficient traffic monitoring. Cities worldwide are investing in intelligent infrastructure to improve urban safety, reduce congestion, and manage transportation systems more effectively. AI video analytics helps monitor traffic flow, detect violations, and identify accidents in real time, enabling quick responses and better planning. These systems also support automated surveillance in public spaces, enhancing security while reducing manual monitoring efforts. With governments and municipalities adopting AI-based tools for smart-city development, the demand for advanced video analytics is rising. This trend is expected to continue as urban populations grow, and cities seek smarter, more connected ways to manage safety and mobility.

Furthermore, the adoption of cloud platforms and scalable analytics is driving the growth of the AI-powered video analytics market. Cloud-based solutions offer flexibility, remote access, and the ability to handle vast amounts of video data without the need for extensive on-premises infrastructure. Organizations can easily increase or decrease computing resources based on demand, which helps control costs and improve operational efficiency. In addition, cloud platforms support real-time processing and easy integration with AI models, enabling faster insights, centralized monitoring, and seamless upgrades, making them a preferred choice for businesses across various sectors. This trend is a key highlight in the AI-powered video analytics market analysis, reflecting the shift toward smarter, more adaptive surveillance solutions.

On the basis of component, the software segment dominated the AI powered video analytics market in 2024 and is expected to maintain its dominance in the upcoming years, this is attributed to the to the increasing demand for advanced video processing algorithms, real-time analytics, and customizable features that enhance surveillance efficiency. Additionally, software solutions are easier to upgrade and integrate with existing systems, offering scalability and flexibility, which are essential for applications across smart cities, transportation, retail, and critical infrastructure sectors.

By region, North America dominated the market share in 2024 for the AI-powered video analytics market. This is attributed to widespread adoption of intelligent surveillance systems, high awareness of public safety initiatives, and the presence of major AI-powered video analytics providers in the region. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. This growth is driven by rising security concerns, increasing adoption of smart city projects, expanding infrastructure development, and growing awareness of the benefits of AI-powered video analytics among businesses and government agencies.

The report focuses on growth prospects, restraints, and trends of the load balancer market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the AI-powered video analytics market.

The AI-powered video analytics industry is undergoing significant transformation, driven by evolving security concerns, increasing adoption of smart surveillance systems, and rising demands for regulatory compliance. Advanced AI-powered video analytics solutions are becoming the industry standard, integrating data-driven threat detection, automated video monitoring, and secure management frameworks to address complex security requirements and protect organizations from unexpected risks and breaches. The rising demand for intelligent surveillance is contributing significantly to the expansion of the AI-Powered Video Analytics Market Size, as businesses invest in scalable and efficient security infrastructure.

The rise of cloud-based AI-powered video analytics platforms and Software-as-a-Service (SaaS) models is reshaping the market landscape, enabling organizations to manage and optimize their surveillance operations from anywhere, supporting both centralized and decentralized environments. In addition, the integration of secure identity verification and role-based access controls is gaining traction, ensuring compliance with data protection regulations and minimizing the risk of misuse through least-privilege access models. As surveillance systems evolve and regulatory oversight increases, the AI-Powered Video Analytics Market Forecast indicates a strong growth trajectory, driven by the adoption of more intelligent and adaptive technologies to ensure real-time situational awareness, data security, and performance across diverse organizational environments and industries.

Key Findings of The Study

• By enterprise size, the large enterprises segment held the largest share in the AI powered video analytics market for 2024.
• By component, the software segment held the largest share in the AI powered video analytics market for 2024.
• By deployment model, the cloud segment held the largest share in the AI powered video analytics market for 2024.
• By application, the retail segment held the largest share in the AI-powered video analytics industry for 2024.
• Region-wise, North America held the largest AI-powered video analytics market size in 2024. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.

The market players operating in the tax preparation software market are Axis Communications AB, Briefcam ltd., Genetec Inc., Motorola Solutions Inc., Identiv, Inc., Hangzhou Hikvision Digital Technology Co., Ltd., NEC Corporation, Google LLC, Infosys Limited., AxxonSoft LLC, iOmniscient, Shyam Spectra Pvt. Ltd., Irisity AB, VCA Technology Ltd, IntelliVision, Hanwha Vision America IncGorilla Technology Group, Beijing Kuangshi Technology Co.,Ltd., SenseTime Group Inc. and Videonetics Technology Pvt. Ltd. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the AI-powered video analytics market share globally.