Video Management Software Market Report Scope & Overview:

The video management software market size was valued at USD 12.2 billion in 2024 and is expected to reach USD 36.9 billion by 2032, growing at a CAGR of 14.80% during 2025-2032.

Demand for integrated and intelligent video surveillance systems from BFSI, transportation, government, and retail industries is one of the significant factors that are driving the video management software market growth. The expansion of the market can be attributed to growing public safety concerns, increasing adoption of IP-based cameras, and rising government investment in smart city projects. The old school surveillance methods are transitioning to cloud-based solutions and AI-powered video analytics for real-time and predictive threat detection. Additionally, the rise of 5G networks, IoT devices, and edge computing only strengthens the scalability and responsiveness that a modern video management system can offer. Existing alarm management systems and access control systems add value, enabling organization-wide deployment.

The U.S. video management software market trends include enhanced demand for advanced surveillance in public safety, along with its applications in the retail and transportation sectors. Increasing demand for cloud-based VMS, along with AI-based analytics, improves video intelligence and operational efficiencies. Integration with IoT and mobile devices is speeding up delivery across smart infrastructure programs.  The U.S. Video Management Software Market was valued at approximately USD 3.5 billion in 2024 and is projected to reach USD 10.3 billion by 2032, growing at a CAGR of 14.56% during the forecast period.

Market Dynamics:

Drivers:

• Increased Demand for Real-Time Surveillance in Public Safety and Smart Cities Accelerates Adoption of Advanced Video Management Software

The growing demand for featuring real-time surveillance in urban and critical infrastructure environments is the prime driver for the growth of the Video Management Software (VMS) market. There is massive funding from government agencies, transportation networks, and large enterprises in advanced VMS to provide greater public safety, crime prevention, and operational monitoring. Live alerts, facial recognition, and AI-based analysis enable quick detection and response to threats. In addition, VMS integration with access control, intrusion detection, and emergency communication systems enhances situational awareness and helps in a more centralized control. The demand and implementation of intelligent video management solutions are expected to be boosted in the future as the global smart city project expands in the U.S.-Canada region and Asia-Pacific countries.

For instance, in 2024, over 330 cities globally have implemented smart surveillance projects using real-time video management systems, up from 270 in 2022.

Restraints:

• High Initial Deployment and Integration Costs Limit Adoption Among Small and Medium-Sized Enterprises

Though the benefits of Video Management Systems are numerous, the high cost of deploying and integrating advanced video management software is one of the major restraints. It is particularly when the adoption involves upgrading the existing analog systems to IP-based security systems, for small and medium enterprises, as these enterprises are usually late adopters and have their budget constraints. Cost is not limited to just the software, though it also encompasses hardware infrastructure and high-resolution IP cameras, storage systems, and network bandwidth. Furthermore, integration with legacy systems, training for users, and customization of the system add complexity and costs to implementation. Such economic and operational bottlenecks delay the adoption rate and restrict the overall market growth opportunity for some segments in price-sensitive regions and among enterprises with little or no IT expertise.

For instance, nearly 50% of SMEs allocate less than 5% of their total IT budget to cybersecurity, with just ~33% dedicating 5–10%.

Opportunities:

• Rising Shift Toward Cloud-Based VMS Solutions Enables Scalable, Cost-Efficient, and Remotely Accessible Surveillance Systems

There is a substantial potential for growth with the rise in cloud-based video management software. The cloud VMS solution minimizes onsite infrastructure is scalable and offers remote access, along with cost-efficiency. Getting the real-time video, monitoring multiple locations, and updating the software effortlessly. Cloud also provides support for integration with AI and analytics tools, so it can access predictive data and automation capabilities. SMEs, retail chains, and educational institutions with distributed environments will find this model particularly appealing. Above all, with the advent of 5G networks and edge computing deployment, cloud VMS solutions are transforming into agile and safer systems, making them a preferred option in the future-proof, intelligent surveillance ecosystems for public and private sectors alike.

According to SDM’s 2024 industry forecast, 62% of security professionals now offer remote video monitoring, and 71% offer Video Surveillance as a Service (VSaaS), reflecting strong uptake of managed, cloud-based surveillance solutions.

Challenges:

• Growing Data Privacy and Cybersecurity Concerns Hinder User Trust and Regulatory Compliance in VMS Deployment

An important challenge in the video management software market is privacy and cybersecurity of data. With VMS becoming more internet-connected (and cloud) than ever, this opens up doors where cyber threats, data breaches, and unauthorized access could potentially threaten VMS. The need to comply with regulations, such as GDPR, HIPAA, and other national privacy laws requires a security framework that makes compliance efforts complicated and expensive. Additionally, the storage and processing of video data, which can include personal information or operational information that parties want to keep confidential, gives users pause that their data may be used inappropriately or that surveillance will extend beyond where it should go. Tackling these challenges creates an ongoing need for investments in encryption, access control, and threat mitigation technologies.

Segmentation Analysis:

By Technology:

Analog-based video systems dominated the market in 2024 and accounted for 68% of the video management software market share, due to the presence of an installed base in small and cost-sensitive markets, primarily in developing regions. Legacy users are attracted by their lower upfront cost and simpler setup. Scalability and limited resolution will slow growth. Even in the case of dominance, analog solutions will phase out slowly as digital transformation sets in harder on mid to large-scale urban population centres, enterprise-scale deployments through 2032.

IP-based VMS is rapidly growing due to the advancement of fiber cable and factors, such as higher resolution, remote access, AI integration, and IP-based compatibility with cloud technology, which gives the inclination toward IP-based VMS to a greater extent. The exuberating demand for IP systems as great strides are made in the development and deployment of smart cities, AI-propelled analytics, mobile surveillance, and more. The flexibility of it and also real-time process, and comparatively lower Operating charges in the long term make it best suited for scalable applications.

By Deployment:

The on-premises segment dominated the video management software market in 2024 and accounted for 71% of revenue share. It offers greater control, data security, and consists of real-time processing, which makes on-premises video management software suitable for critical infrastructure and government verticals. Companies with stringent compliance requirements still favor on-premise storage. Due to increasing operating expenses and a lack of scalability, growth is forecast to decelerate beyond 2032 as organizations start to migrate to flexible, nimble, and cheaper cloud solutions.

Technavio’s October 2024 report highlights a USD 14.01 billion growth in the Video Management Software market (2024–2028), attributing much of the on-premises segment’s resilience to increased adoption of AI-driven analytics in secure, local deployments. 

The cloud segment is growing rapidly owing to factors, such as high scalability, accessibility from remote locations, reduced initial expenses, seamless integration with AI and analytics tools. The adoption is fuelled by a surge in smart city projects, hybrid work models, and a move from license-based to subscription services. By 2032, 5G, and edge computing integrations will champion cloud-based VMS for future rollouts, persistently in favour of SMEs and multi-site enterprise configurations.

By Application:

The video analytics segment dominated the video management software market in 2024 and accounted for a significant revenue share owing to advances in technology, which convert video data into actionable intelligence by applying AI and machine learning. It utilizes facial recognition, behavior analysis, and license plate recognition technology for improved security and efficiency. Rising adoption in smart cities, retail, and transportation sectors guarantees strong growth as analytics evolves into a key function of next-gen VMS platforms by 2032.

Remote monitoring is the fastest-growing segment due to the increased adoption of cloud-based video management systems (VMS), growing need for mobile surveillance applications, and rising need for remote monitoring for access 24/7 or at multiple locations. Remote monitoring is becoming more common in sectors such as logistics, retail chains, and education. Remote monitoring will become a common VMS capability by 2032 as 5G connectivity, edge computing, and VSaaS models proliferate.

By Vertical:

Retail and e-commerce dominated the video management software market in 2024 and accounted for a significant revenue share due to such growing demand for some important applications in these sectors, such as loss prevention, inventory, and customer behaviour analysis. Retail video analytics coupled with VMS can help retailers with operations and shrinkage management, and enhance in-store experiences. As retail continues to grow, especially at the physical store level, the use of VMS will not only remain strong through 2032, but it will also become critical for retailers as they expand their omnichannel footprint.

Healthcare is the fastest-growing vertical as hospitals and clinics must improve patient safety, surveillance of restricted areas, and compliance with data protection legislation. The post-COVID digitization wave and a rise in threats to healthcare facilities have driven the implementation of AI-enabled VMS. Expansion of telemedicine and remote monitoring of facilities will accelerate the rapid adoption of VMS in healthcare settings by the end of 2032.

Regional Analysis:

North America dominated the video management software market in 2024 and accounted for a 36% of revenue share, due to a high early adoption rate for sophisticated surveillance technologies along with advanced security infrastructure and implementation of AI-based video analytics in public safety, retail, and critical infrastructure. Demand for cloud-based VMS will grow in line with government smart city initiatives that should keep VMS at the forefront, while law enforcement and enterprise investment are projected to continue between 2025 and 2032.

According to a video management software market analysis, Asia-Pacific is the fastest-growing region during the forecast period. Driven by growing security needs and massive smart city projects following rapid urbanization. The expansion of infrastructure across the sectors of transportation, retail, and government drives the demand for scalable VMS solutions. The growth is expected to be rampant by 2032, due to the rising digital transformation and increasing implementation of IP-based and cloud-based video management systems (VMS).

Europe’s video management software market is driven by growing AI-based Surveillance, GDPR GDPR-compliant data Security, and Rising Smart city initiatives are driving the market in Europe. Growth is fueled by increasing adoption in transportation and public safety. Europe will experience solid growth, primarily in the cloud VMS and integrated analytics platform market, by 2032.

The UK leads Europe’s VMS market due to its advancement in surveillance infrastructure along with high investment in public safety is one of the major factors contributing for the growth of VMS in Europe market. The U.K. is expected to remain ahead of the curve, innovating by 2032, with continuous upgrades of surveillance at metro, airports and retail.

Key Players:

The major video management software market companies are Milestone Systems, Genetec Inc., Avigilon (Motorola Solutions), Bosch Security Systems, Honeywell International Inc., Axis Communications, Johnson Controls, Dahua Technology, Hanwha Vision, Exacq Technologies (Tyco International), Panasonic i-PRO Sensing Solutions, Pelco (Motorola Solutions), Hikvision, FLIR Systems, VIVOTEK Inc., Qognify, Digifort, Verint Systems, Eagle Eye Networks, Camcloud, and others.

Recent Developments:

• In March 2025, Milestone Systems launched XProtect 2024 R2 with enhanced cloud-connected remote management, multilingual interface support, and advanced system health monitoring at ISC West 2025. This update strengthens Milestone’s hybrid VMS strategy and reflects its ongoing investment in AI-integrated and scalable surveillance platforms.

• In January 2025, at Intersec 2025, Genetec Inc. unveiled Security Center SaaS, a cloud-native version of its flagship platform, alongside new unified controllers (Cloudlink 110 and Axis Powered by Genetec). This move underscores Genetec’s leadership in unified security and cloud-first deployments across the Middle East and global markets.