State of the Market 2025

Video Surveillance Is On the Rise

pacom state of the market

AI, Cloud, and Optimism Drive Growth Despite Lingering Challenges

The video surveillance industry is entering 2025 with strong momentum, driven by advancements in artificial intelligence, cloud computing, and edge technologies. According to SDM’s 2025 Industry Forecast, 94% of security professionals rate the market as “very good” or “excellent,” signaling widespread confidence in the sector’s trajectory.

2024: A Year of Resilience and Recovery

While 2024 wasn’t without its hurdles—namely election-related uncertainty and economic pressures like inflation and interest rates—the industry still saw solid performance. Many integrators and manufacturers reported steady growth, with AI and analytics leading the charge in customer interest and system upgrades.

Supply chain issues that plagued previous years have largely dissipated, allowing companies to return to normal operations and focus on innovation and delivery.

AI and Analytics Fuel Upgrades

A major trend in 2024 was the continued migration from analog to IP systems, with AI-powered analytics enhancing the value of video solutions. Brad McMullen of 3xLOGIC noted that video capabilities are improving year over year, and customers are increasingly motivated to upgrade.

Election Clarity Spurs Investment

The resolution of the U.S. election brought a wave of renewed business activity. Many companies that had paused capital investments are now moving forward with projects. Josh Dice of Security Alarm Corp. reported a 5% growth in video-related business, attributing much of it to AI and post-election confidence.

2025 Outlook: Stronger Than Ever

Industry leaders are optimistic about 2025. Tom Cook of Hanwha Vision expects it to be a standout year, citing favorable economic conditions and upcoming product launches. The SDM forecast supports this, with 73% of respondents identifying AI/video analytics as the top revenue driver, followed closely by video surveillance systems at 70%.

Mark Barbaric of Prosegur adds that rising crime rates, deferred projects, and more affordable AI solutions are all contributing to a bullish outlook for the year ahead.

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