Video As A Sensor Market Driven by Smart City Applications

The global video as a sensor (VaaS) market was valued at USD 71.50 billion in 2024 and is projected to reach USD 114,664.7 million by 2030, expanding at a CAGR of 8.4% from 2025 to 2030. Market growth is primarily driven by rapid technological advancements that have transformed conventional video systems and recording tools into intelligent, data-driven decision-making platforms. The integration of advanced analytics, artificial intelligence (AI), and machine learning (ML) has significantly enhanced the ability of video systems to deliver real-time, actionable insights across multiple industries.

Market Size and CAGR

• 2024 Market Size: USD 71.50 Billion
• 2030 Projected Market Size: USD 114,664.7 Million
• CAGR (2025–2030): 8.4%
• Largest Regional Market (2024): North America

Key Market Trends & Insights

• North America dominated the market and accounted for a 35.5% share in 2024.
• The video as a sensor market in the U.S. is growing, as is the demand in the region.
• By offering, the hardware segment accounted for the highest revenue share of 55.3% in 2024.
• By product, the video surveillance accounted for the largest market revenue share in 2024.
• By application, security & surveillance segment accounted for the largest market revenue share in 2024.

North America dominated the global video as a sensor market in 2024, accounting for a 35.5% revenue share, supported by early adoption of advanced surveillance technologies and strong demand across commercial and public infrastructure sectors. The U.S. continues to witness robust growth due to increasing investments in smart security solutions and AI-enabled monitoring systems.

From an offering perspective, the hardware segment held the largest market share of 55.3% in 2024, driven by rising demand for high-performance cameras and edge devices. By product, video surveillance systems accounted for the highest revenue share, reflecting their widespread adoption in security-critical applications. Additionally, the security and surveillance application segment led the market in 2024, supported by growing concerns around public safety, asset protection, and threat prevention.

Video as a sensor combines video cameras with AI-driven analytics to capture, process, and interpret visual data across diverse use cases. These systems are capable of recognizing patterns, detecting motion, tracking objects, and generating insights in real time. The evolution of VaaS is largely attributed to large-scale automated video analysis enabled by AI and ML technologies. For instance, in January 2025, SundaySky launched an enhanced enterprise video platform featuring AI avatars, integrated screen recording, and advanced AI-powered media creation capabilities.

The primary driver of VaaS adoption is its ability to deliver real-time insights such as facial recognition, anomaly detection, and behavior prediction. These features are particularly critical in modern security and surveillance environments, where early threat identification is essential. Beyond security, video sensors are increasingly being deployed in smart city initiatives, where they support public safety, traffic optimization, energy efficiency, and waste management.

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Competitive Landscape and Company Insights

Leading players in the video as a sensor market are focusing on product innovation, strategic partnerships, expansions, mergers and acquisitions, and collaborative agreements to strengthen their market presence. These strategies are aimed at improving technological capabilities, expanding geographic reach, and increasing customer adoption.

• Axis Communications specializes in network video surveillance and intelligent security solutions, offering a comprehensive portfolio that includes cameras, video management software, analytics, and access control systems. The company emphasizes innovation, sustainability, and ecosystem partnerships to enable smarter and safer environments.
• Hikvision operates as a provider of video-centric IoT solutions, leveraging advanced AI, deep learning, and high-performance analytics to deliver real-time surveillance and environmental sensing. Its solutions are widely deployed across smart cities, transportation networks, and commercial facilities worldwide.

Key Video as a Sensor Companies

• Axis Communications AB
• Hangzhou Hikvision Digital Technology Co., Ltd.
• Bosch Sicherheitssysteme GmbH
• Dahua Technology Co., Ltd.
• Sony Corporation
• Honeywell International Inc.
• Sportradar AG
• i-PRO
• Johnson Controls
• OMNIVISION

Conclusion

The global video as a sensor market is experiencing strong and sustained growth, driven by advancements in AI-enabled video analytics and increasing demand for real-time intelligence across security, smart cities, healthcare, and defense applications. With North America leading adoption and continued innovation from major industry players, VaaS is evolving into a critical component of intelligent infrastructure. As organizations increasingly rely on data-driven insights for safety, efficiency, and operational optimization, the video as a sensor market is expected to maintain robust momentum through 2030.

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