Global video surveillance market rebounds in 2025 as AI-driven component shortages are expected to trigger significant price increases through 2026 and 2027.
Global Video Surveillance Market Rebounds In 2025
Novaira Insights has released the 2026 edition of “The World Market for Video Surveillance Hardware and Software,” revealing stronger global market growth in 2025, an improving outlook for China, and significant price increases expected in 2026 as AI demand strains the global supply of critical components.
According to the report, the global video surveillance equipment market grew 3.0% in 2025, improving from the near-flat performance recorded in 2024. Growth outside China reached 7.4%, while the combined markets in the United States and Canada expanded 9.8%, driven by demand for higher-value network cameras, video management software, and cloud-connected surveillance solutions.
North America Leads Market Expansion
The Americas delivered some of the strongest growth during 2025, supported by continued investment in enterprise video surveillance, AI-enabled security systems, and cloud-based infrastructure.
Western Europe and Eastern Europe also outperformed expectations despite broader economic challenges, contributing to stronger global performance outside China.
China Market Shows Signs Of Recovery
China’s professional video surveillance market declined for the fourth consecutive year in 2025, falling 4.0% as government-funded surveillance projects remained below historical levels.
However, Novaira Insights believes the decline was less severe than previously anticipated and expects China to return to revenue growth in 2026 as funding priorities shift and higher product prices improve market performance.
Although China continues to account for approximately 36% of global video surveillance revenues, the market is increasingly transitioning from large-scale new deployments to upgrade and replacement projects, limiting the return of previous double-digit growth rates.
AI Demand Creates Component Supply Challenges
The report identifies AI infrastructure investments as the primary factor driving significant supply chain disruptions across the surveillance industry.
According to Novaira Insights Lead Analyst Josh Woodhouse:
“Surging demand for AI data centers and the required high-bandwidth memory has triggered global shortages and price increases. By late 2025, video surveillance manufacturers started to feel the impact. This has set the stage for an unusual 2026, where price rather than volume may be the larger driver of revenue growth in some markets.”
Growing demand for DRAM, NAND flash memory, and enterprise-grade hard disk drives (HDDs) has extended component lead times from the typical four to six weeks to as much as 12 to 52 weeks.
The report notes that hyperscale AI deployments are competing for the same high-capacity storage devices widely used in network video recorders (NVRs) and surveillance storage systems, forcing manufacturers to raise prices across multiple product lines.
Higher Prices Expected Throughout 2026
Novaira Insights forecasts that 2026 market growth will be driven primarily by higher product prices rather than increased shipment volumes.
Although rising prices may boost industry revenues, they are also expected to reduce demand in cost-sensitive markets and emerging economies.
Despite these challenges, the global video surveillance market is projected to grow 8.2% in 2026, reaching an estimated value of $28 billion.
What Integrators And End Users Should Expect
Novaira Insights identifies several important trends for security professionals:
- Longer lead times for NVRs, AI appliances, and high-capacity surveillance storage.
- Higher equipment pricing as manufacturers pass increased component costs to customers.
- Greater focus on total cost of ownership, with organizations comparing cloud and on-premises surveillance architectures while evaluating lower-cost camera options to maximize deployment budgets.
The report also provides detailed market forecasts, vendor market share estimates, and analysis of the major trends shaping the future of the global video surveillance industry.
Novaira Insights is a market research and intelligence firm specializing in the global video surveillance industry, providing market forecasts, competitive analysis, and industry insights for manufacturers, distributors, investors, and security professionals.
Internal Links URLs
https://security.world/category/video-surveillance/
External Links URLs
https://www.novairainsights.com
Frequently Asked Questions (FAQs)
1. What Is The Novaira Insights 2026 Video Surveillance Report?
It is an annual market research report analyzing global video surveillance hardware and software markets, including growth forecasts, market share, pricing trends, and industry developments.
2. How Much Did The Global Video Surveillance Market Grow In 2025?
According to Novaira Insights, the global video surveillance equipment market grew 3.0% in 2025, while markets outside China expanded 7.4%.
3. Why Are Video Surveillance Prices Expected To Rise In 2026?
Rising demand for AI infrastructure has created shortages of critical components such as DRAM, NAND flash memory, and enterprise HDDs, increasing manufacturing costs and product prices.
4. How Is AI Affecting The Video Surveillance Industry?
AI is increasing demand for memory and storage components, leading to longer lead times, higher hardware costs, and increased pricing for surveillance equipment worldwide.
5. What Is The Market Outlook For 2026?
Novaira Insights forecasts the global video surveillance market will grow 8.2% in 2026, reaching approximately $28 billion, with revenue growth largely driven by higher equipment prices.