(MENAFN- EIN Presswire) EINPresswire/ -- According to a new report published by Allied Market Research AI-powered Video Analytics Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component (Software, Services), by Deployment Model (Cloud, On-Premises), by Enterprise Size (Large Enterprises, Small and medium sized enterprises), by Application (Transportation, Retail, Enterprise, Others): Global Opportunity Analysis and Industry Forecast, 2025-2034, The global ai-powered video analytics market size was valued at $7.8 billion in 2024, and is projected to reach $42.2 billion by 2034, growing at a CAGR of 18.3% from 2025 to 2034.

The AI-powered video analytics market is experiencing rapid expansion as organizations increasingly adopt intelligent monitoring systems to enhance security, optimize operations, and extract actionable insights from video data. With advancements in edge computing, machine learning, and high-resolution imaging, AI-based analytics have become essential in sectors such as retail, transportation, healthcare, manufacturing, and smart cities.

As video data volumes surge, traditional manual monitoring methods no longer suffice. AI-driven analytics enable automated detection, classification, and prediction, supporting proactive decision-making and reducing human error. The market continues to evolve with integration of deep learning models, real-time alert systems, and cloud-based architectures that improve scalability and accuracy.

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Market Dynamics
One of the core drivers of the AI-powered video analytics market is the rising need for enhanced security and surveillance. Increasing threats, urbanization, and large-scale public infrastructure investments have accelerated adoption of intelligent monitoring solutions that can identify anomalies instantly.

Another major factor is operational efficiency. Businesses use AI analytics to streamline workflows-such as queue management, asset tracking, compliance monitoring, and process optimization-resulting in cost savings and improved productivity. The trend is especially strong in manufacturing, logistics, and retail.

Technological advancements including edge AI, 5G connectivity, and improved GPU performance are further boosting market growth. These innovations support faster data processing, reduce latency, and enable real-time analytics even in bandwidth-constrained environments.

However, data privacy concerns and stringent regulations pose challenges. Compliance with global standards like GDPR, along with ethical considerations over facial recognition and biometric tracking, can slow deployment and increase compliance costs.

Despite these hurdles, market opportunities remain strong. Increasing investments in smart city projects, expansion of IoT ecosystems, and integration of AI with advanced cameras, sensors, and cloud services are expected to create significant growth potential over the next decade.

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Segment Overview
The AI-powered video analytics market is segmented by component (software and services), deployment mode (on-premise and cloud), application (security and surveillance, traffic management, retail analytics, crowd management, facial recognition, and operations optimization), and end-use industry (transportation, retail, healthcare, BFSI, manufacturing, government, and smart cities). Software-led analytics currently dominate, while cloud-based deployments are expanding rapidly due to scalability and cost-efficiency.

On the basis of component, the software segment led the AI-powered video analytics market in 2024 and is expected to retain its leadership in the coming years. This dominance is driven by the growing need for advanced video processing algorithms, real-time analytics, and customizable features that significantly improve surveillance efficiency. Moreover, software-based solutions offer easier upgrades and seamless integration with existing systems, providing the scalability and flexibility required across smart cities, transportation networks, retail environments, and critical infrastructure applications.

Regional Analysis
Regionally, North America held the largest share of the AI-powered video analytics market in 2024, supported by the widespread adoption of intelligent surveillance technologies, strong emphasis on public safety, and the presence of leading solution providers. In contrast, Asia-Pacific is projected to record the fastest growth during the forecast period, fueled by rising security challenges, rapid expansion of smart city initiatives, ongoing infrastructure development, and increasing awareness among enterprises and government bodies about the advantages of AI-driven video analytics.

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Competitive Analysis
The market players operating in the AI-powered video analytics 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.

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.

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