Video Surveillance-as-a-Service (VSaaS) Market Size & Forecast Report - 2025 to 2030

The global video surveillance-as-a-service market size was valued at around USD 5 billion in 2024 and expected to register a higher CAGR of over 17% during the forecast period from 2025 to 2030. The market is experiencing robust growth, driven by the rising demand for cost-effective, scalable, and remotely accessible surveillance solutions. VSaaS delivers video surveillance capabilities through cloud-based platforms, eliminating the need for extensive on-premise hardware and offering flexible subscription models. Key benefits such as real-time remote monitoring, easy scalability, reduced upfront costs, and automatic software updates are attracting adoption across industries including retail, banking, transportation, and government. The increasing integration of advanced technologies such as artificial intelligence (AI), video analytics, and IoT-enabled devices is enhancing system capabilities—enabling proactive threat detection, facial recognition, and behavioral analysis. Moreover, the global rise in security concerns, urbanization, and smart city initiatives is further fueling the market’s expansion.

Regionally, North America holds a significant share of the VSaaS market due to its strong technological infrastructure, early adoption of cloud-based services, and heightened emphasis on public safety. However, the Asia-Pacific region is anticipated to witness the fastest growth, supported by rapid urban development, increasing government investments in surveillance infrastructure, and expanding small- and medium-sized enterprise (SME) adoption. The market is also seeing a shift toward hybrid models that combine cloud and on-premise capabilities to address bandwidth, storage, and regulatory challenges. With rising cybersecurity concerns, vendors are focusing on enhancing data protection, encryption, and compliance with international privacy laws, ensuring VSaaS solutions remain both secure and reliable for diverse applications.

Key Video Surveillance-as-a-Service Market Drivers:

Core Technological and Operational Drivers

VSaaS continues to gain momentum as organizations pivot from traditional, on-premise infrastructure to cloud-enabled, subscription-based models. This shift is propelled by the flexibility of OpEx financing, rapid scalability, and lower initial investment—beneficial for both enterprises and smaller businesses. Technological advances, including AI-powered analytics and edge computing, enhance system responsiveness and reduce bandwidth costs. Meanwhile, hybrid VSaaS deployments—combining local storage and cloud services—are gaining traction, especially among sectors with stringent data localization or regulatory requirements.

Market Catalysts and Innovation Spotlight

Rapid deployment across sectors like commercial, industrial, and smart infrastructure—driven by rising security concerns, compliance demands, and smart city development—is fueling adoption. A recent innovation from Synology underscores this trend: in May 2025, Synology unveiled C2 Surveillance, a cloud-based, serverless VSaaS solution tailored for multi-site operations. It simplifies deployment and centralizes monitoring—all without device license fees—making surveillance expansion more cost-efficient and seamless.

Market Snapshot:

Market Trends shaping the Video Surveillance-as-a-Service Market:

AI-Powered Video Analytics

Artificial intelligence (AI) is transforming VSaaS from a reactive monitoring system into a proactive, decision-making tool. AI-powered analytics enable features such as facial recognition, license plate identification, behavior detection, and crowd density analysis. These capabilities allow security teams to respond to potential threats in real-time rather than just reviewing footage after an incident occurs. AI also helps in reducing false alarms by distinguishing between normal activity and suspicious behavior, which improves operational efficiency and lowers monitoring costs.

Edge Computing Adoption

Edge computing is emerging as a vital part of VSaaS architecture. By processing video data at the edge—within the camera or a nearby device—systems can analyze footage locally and transmit only relevant alerts or metadata to the cloud. This approach significantly reduces bandwidth consumption and latency, enabling faster responses to incidents. It also makes it possible to deploy high-resolution cameras in areas with limited internet connectivity while still ensuring efficient performance.

Hybrid Cloud Models

Data privacy regulations and high-bandwidth costs are pushing many organizations toward hybrid VSaaS deployments. In this model, sensitive video data is stored locally to comply with legal requirements, while less sensitive data or live monitoring capabilities are hosted in the cloud for remote accessibility and scalability. This setup offers the best of both worlds: the security of on-premises storage and the flexibility of cloud-based access.

5G-Enabled Surveillance

The global rollout of 5G networks is enabling next-generation video surveillance with ultra-low latency and higher bandwidth. With 5G, it becomes feasible to stream 4K or even 8K resolution video in real-time from mobile or remote locations, such as moving vehicles, drones, or temporary event sites. This technology is especially valuable for law enforcement, emergency services, and smart city projects where quick and reliable access to video feeds is essential.

Cybersecurity Enhancements

As VSaaS solutions operate in the cloud, cybersecurity is a critical concern. Providers are now implementing advanced security measures, including end-to-end encryption, multi-factor authentication (MFA), and zero-trust network architectures. These safeguards are designed to prevent unauthorized access, protect against data breaches, and ensure compliance with global data protection laws such as GDPR and CCPA. Vendors are also adding regular security patching and vulnerability testing to maintain trust with customers.

Global Video Surveillance-as-a-Service Market Opportunities:

Strategic Business Expansion Opportunities

The VSaaS market presents vast opportunities as it transitions from traditional surveillance to proactive, intelligence-driven services. AI and business intelligence remain central growth levers, enabling applications such as predictive loss prevention, point-of-sale integrations, and operational analytics across retail and industrial sectors. As one industry leader noted:

“We are using AI… predictive indexes that help judge when someone is going to steal. It helped cut out employee theft overnight.”
— Tim Hobbs, Director of Video Sales Engineering, Owl Services.

Furthermore, the rapid expansion of hybrid and cloud-native VSaaS architectures offers new avenues for revenue, from managed service offerings to modular deployment models that serve enterprises of all sizes. These hybrid environments enable scalability, compliance with data sovereignty, and seamless multi-site management—key value propositions to organizations of all tiers.

Innovation Spotlight and Market Momentum

Governments and enterprises are driving VSaaS adoption through technology refreshes and operational mandates. A standout development is London’s recent investment in AI-enabled surveillance, where local councils increased CCTV spending by nearly 25%—pushing AI-powered systems capable of detecting behavior such as loitering, aggressive speech, and suspect identification. This strategic deployment points directly to new market segments and demand for smart, event-driven surveillance solutions.

Market Insights:

By Deployment Mode: the hosted segment holds the largest market share of Video Surveillance-as-a-Service (VSaaS) Market

The global video surveillance-as-a-service market is bifurcated into deployment mode, AI feature, organization size, end-use, and geography. On the basis of deployment mode, the hosted VSaaS segment currently dominates in terms of market share. This dominance is driven by its cost-effectiveness, ease of deployment, and minimal infrastructure requirements—making it especially attractive to small and medium-sized enterprises (SMEs), retail chains, and residential users. Hosted VSaaS eliminates the need for costly on-site servers and IT teams by storing and managing all video data in the cloud, with access available through secure web or mobile platforms. The subscription-based model also allows users to scale up or down based on their needs, which has proven particularly valuable for businesses with fluctuating security demands or multiple branches. The simplicity and low upfront investment of hosted solutions have positioned them as the go-to choice for organizations seeking quick and affordable surveillance deployment.

Furthermore, rapid internet penetration, the global shift toward cloud-based solutions, and the integration of AI-powered analytics into hosted platforms are reinforcing this segment’s leadership. Hosted VSaaS also benefits from advancements in cloud security, making it a viable option even for industries that were once hesitant to store surveillance data off-site. The ongoing trend toward remote work and the need for off-site monitoring—particularly post-pandemic—has amplified demand for cloud-based hosted surveillance. While hybrid and managed VSaaS models are growing at notable rates, the hosted segment’s strong combination of affordability, scalability, and accessibility ensures it remains the most widely adopted deployment type in the current market landscape.

By End-Use: the commercial category dominated the Video Surveillance-as-a-Service (VSaaS) Market

On the basis of end-use, the global video surveillance-as-a-service market is further segmented into commercial, industrial, residential, public facilities, defense, and others. As of 2024, the commercial segment clearly leads in market share. This is driven by widespread adoption among retail chains, financial institutions, hospitality venues, and office complexes, all of which require robust yet cost-effective surveillance solutions. The commercial sector values VSaaS for its centralized, cloud-based monitoring capabilities, which enable efficient multi-site oversight without requiring significant investments in on-site infrastructure. Furthermore, embedded AI analytics—such as facial recognition, heat mapping, and behavior tracking—provide commercial operators with both enhanced security and valuable operational insights, transforming surveillance systems into strategic business tools.

A recent innovation underscores the commercial segment’s appeal: in May 2025, Hanwha Vision launched OnCloud, its new direct-to-cloud Video Management Software-as-a-Service (VSaaS) platform. Fully hardware-agnostic, this platform supports edge-based recording and AI analytics, offering seamless remote access, collaboration, and scalable deployment across multiple commercial sites. OnCloud’s flexibility and integration ease—allowing use with any existing camera infrastructure without vendor lock-in—directly addresses key commercial needs for affordability, responsiveness, and streamlined operations. This showcases how innovation continues to reinforce the commercial segment’s dominant role in the VSaaS landscape.

The global video surveillance-as-a-service (VSaaS) market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Market Segmentation:

By Deployment Mode:

• Hosted
• Managed
• Hybrid

By AI Feature:

• Standard Non-AI VSaaS
• AI-Enabled VSaaS

By Organization Size:

• SMEs
• Large Enterprises

By End-Use:

• Commercial
• Industrial
• Residential
• Public Facilities
• Defense
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis: North America Leads the Video Surveillance-as-a-Service (VSaaS) Market

Geographically, the North America dominated the global video surveillance-as-a-service market in the benchmark year 2024, supported by its advanced technological infrastructure, high adoption of cloud-based solutions, and strong focus on public safety and crime prevention. The region benefits from widespread availability of high-speed internet, robust 5G rollouts, and a mature base of enterprises that are early adopters of AI-driven and analytics-enhanced surveillance. Industries such as retail, banking, transportation, and government in the U.S. and Canada have embraced VSaaS to enhance both security and operational efficiency. Additionally, stringent regulatory frameworks for security monitoring in sectors like finance, healthcare, and critical infrastructure further accelerate the adoption of reliable, compliant VSaaS solutions.

Another factor reinforcing North America’s leadership is the region’s vibrant innovation ecosystem, with market players like Motorola Solutions, Verkada, and Eagle Eye Networks continuously introducing advanced cloud-native platforms and AI-powered analytics. For instance, in April 2025, Eagle Eye Networks announced new AI-based search capabilities in its VSaaS platform, enabling businesses to instantly locate and review specific events across thousands of hours of footage—a feature particularly valuable for large commercial and municipal deployments. This continuous cycle of innovation, combined with high security awareness and government-backed smart city initiatives, ensures North America maintains its position as the dominant region in the global VSaaS market.

Competitive Landscape:

Some of the prominent market players operating in the global Video Surveillance-as-a-Service (VSaaS) market are Axis Communications AB, Johnson Controls, Motorola Solutions, Inc., ADT, and Honeywell International Inc. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Axis Communications AB
• Johnson Controls
• Motorola Solutions, Inc.
• ADT
• Honeywell International Inc.
• Eagle Eye Networks, Inc.
• Hanwha Vision Co., Ltd.
• com
• Hangzhou Hikvision Digital Technology Co., Ltd.
• Securitas AB
• Genetec Inc.

Key Questions Answered by Video Surveillance-as-a-Service (VSaaS) Market Report

• Global Video Surveillance-as-a-Service (VSaaS) market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Video Surveillance-as-a-Service (VSaaS) submarket forecasts from 2025-2030 covering the market by deployment mode, AI feature, organization size, end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level Video Surveillance-as-a-Service (VSaaS) markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market