Strategic insights into the future of video surveillance

IP cameras have undergone a significant transformation from simple monitoring devices to sophisticated tools that deliver real-time insights and operational value. This evolution is driven by technological advancements, expanded use cases, and growing integration across industries. This progression invites a closer look at the innovations, strategic benefits, and shifting market trends, shaping the future of intelligent video systems.

The journey from basic video surveillance to intelligent sensing has been marked by a steady progression of breakthroughs – each expanding what cameras can see, understand, and do. What began as a shift from analog to digital has evolved into a fusion of edge computing, AI-driven analytics, and cloud-native architecture.

A foundational enabler was the development of purpose-built chipsets, bringing advanced image processing and analytics directly to the camera and reducing latency, bandwidth use, and reliance on central servers. This made possible the first built-in video analytics, from basic motion detection to advanced object detection and metadata-generated tools, paving the way for today’s deep learning models. Meanwhile, image quality advanced with megapixel resolution, multisensor designs, and innovations like Lightfinder and Forensic WDR, delivering clarity in low-light and high-contrast conditions. To manage rising data volumes, compression technologies – from H.264 and H.265 to AV1-enabled efficient storage and streaming, especially in cloud-based systems.

The rise of cloud and hybrid architectures gave organizations flexibility to scale while maintaining edge performance. Features like auto-configuration, remote updates, and health monitoring made deployment and management faster, more consistent, and less resource-intensive. Industry-wide adoption of open standards such as ONVIF-enhanced interoperability, while growing connectivity brought cybersecurity to the forefront –with secure boot, signed firmware, and encryption now essential safeguards. Together, these milestones have transformed IP cameras into intelligent systems that deliver real-time insight, operational efficiency, and strategic business value.

As IP cameras have evolved, so has their role. No longer limited to surveillance, these systems now deliver immediate intelligence, support faster decision-making, and create value across industries. Their impact is expanding in operational efficiency and business intelligence as well, reshaping how organizations operate, plan, and respond.

From passive surveillance to real-time intelligence 

Traditionally, cameras served as passive devices – footage was often reviewed after incidents occurred. Today, IP cameras proactively detect unusual activity, recognize patterns, and trigger real-time alerts. This allows organizations to respond quickly and prevent incidents from escalating.

Smarter sensing at the edge

Onboard processing means critical information is generated the moment it’s needed, enabling capabilities like license plate recognition, object detection, and scene analysis without relying on centralized infrastructure. This improves response times and situational awareness in fast-paced environments like transportation, logistics, and retail.

Improved image quality, efficiency, and reach

New generations of IP cameras deliver high-quality imagery even in low light or harsh conditions, ensuring accurate scene capture across diverse environments. At the same time, energy-efficient designs enable wide-scale deployment – including in remote or infrastructure-light areas – while AI-enhanced image processing reduces false positives and improves long-term reliability

Scalable systems, simplified management

Features like auto-configuration, remote updates, and hybrid cloud support streamline deployment, maintenance, and scaling. Open standards further enable integration across locations and systems, offering flexibility and consistency for distributed operations.

Cross-sector value and measurable ROI

Across industries, intelligent video is driving measurable outcomes:

• In retail, it reduces shrinkage and informs layout and staffing strategies
• In transportation and logistics, it increases throughput and reduces errors
• In industrial settings, it supports safety, compliance, quality control, and predictive maintenance
• In smart cities, it improves traffic flow, emergency response, and public safety

While security and safety remain primary drivers, the role of video surveillance is rapidly expanding into operational efficiency and business intelligence, reflecting a broader shift toward intelligent, value-generating infrastructure.

In 2025, Axis annual surveys of end customers across the Americas, EMEA, and APAC show continued strong demand for security and safety use cases, alongside increasing adoption of video systems for operational efficiency (42%) and business intelligence (38%). By comparison, in 2024, 38% of respondents reported using video systems for operational efficiency and 20% for business intelligence, in addition to security and safety functions.

Architects and Engineers (A&Es) who specify and recommend these systems report similar adoption rates, signaling growing demand for solutions that contribute to broader innovation goals and deliver measurable business value. 

When asked about anticipated future use cases for video surveillance, their responses suggest that customers will significantly expand their usage of IP cameras in all areas, including security, safety, operational efficiency and business intelligence. 

Security remains the cornerstone – cited by 89% end customers and 96% of A&Es as the primary use case – reaffirming its critical role in protecting people, assets, and infrastructure. Yet organizations are now layering on new applications:

• Safety has become a central focus, with 81% of customers prioritizing it in their video strategy. This reflects a shift toward proactive risk management — using technology not just to respond to incidents, but to prevent them.
• Operational efficiency is a growing priority with 42% of organizations leveraging video to optimize workflows, manage resources in real time, and streamline logistics.
• Business intelligence is also on the rise with 38% using video to uncover insights on customer behavior, space utilization, and performance trends that inform smarter decisions.

Together, these trends reveal a powerful shift: video technology is evolving into a multi-dimensional platform. While security remains fundamental, organizations increasingly see camera networks as tools for insight, safety, and operational excellence – protecting what matters most while driving measurable business value.

Overall, this data underscores a broader transformation underway in the video surveillance market. According to Novaira Insights, the number of installed cameras outside China is projected to reach 562 million by the end of 2025, climbing to 736 million by 2029. Globally, the largest regional installed bases in 2025 include the U.S. (100 million), India (86 million), and Latin America (70 million), with Western Europe, the Middle East and Turkey, Southeast Asia, Northeast Asia, and Oceania contributing significant additional volumes.

In the U.S., an estimated 10 million cameras are added each year, while other regions see annual shipments ranging from 0.8 million in Oceania to 11 million in India. As analog HD cameras continue their steady decline – accounting for just 10% of total camera revenue in 2024 – IP cameras accounted for 90%, highlighting the prevalence of connected, digital infrastructure.

In parallel, intelligence is becoming the new standard: nearly 80% of cameras shipped in 2024 included analytics capabilities – with 23% offering rules-based analytics and two-thirds already featuring deep learning-based functionality.

As technology becomes more advanced and interconnected, it is enabling smarter, more responsive environments. IP cameras are now integral to digital transformation strategies, positioning video not just as a security asset, but as a driver of enterprise intelligence.

With embedded analytics, AI capabilities, and seamless integration into broader systems, IP cameras now contribute directly to business operations, customer experience, and strategic decision-making. Their expanding role reflects a broader shift from passive monitoring to active, value-generating assets within the modern enterprise.

IP cameras have evolved into platforms that deliver real-time analytics, AI-driven threat detection, and automated response. Their capabilities now span risk mitigation, compliance, and operational insight, driving measurable business value.

• Real-time threat detection: IP cameras can automatically detect behaviors like loitering, perimeter breaches, and large gatherings, triggering immediate alerts. For example, in the US, the rise of real-time crime centers (RTCCs) underscores the value this provides: the country now has over 300 RTCCs, up from roughly 80 five years prior. These centers depend on integrated video intelligence, showcasing the growing demand for real-time situational awareness.

• Secure, evidence-grade video: in regulated environments, video systems must meet a growing number of compliance requirements. End-to-end encryption, signed firmware, and secure boot help ensure chain of custody and prevent tampering or unauthorized access. This is crucial in sectors like healthcare, finance, and critical infrastructure, where compromised video handling can erode trust and increase legal and compliance risk.

Today’s IP cameras are generating actionable business insights by analyzing behavior and activities.

• Foot traffic analysis and dwell time: cameras track visitor counts, entry/exit flows, and the duration individuals spend in specific zones. Retailers use this data to optimize layout, staffing, and marketing, while transit hubs manage passenger flows and improve scheduling.
• Heatmaps and space utilization: visual heatmaps illustrate the most frequented areas, helping facility managers maximize space usage and enhance customer experience. Airports and large venues use this data to improve crowd management and operations.
• Customer and visitor analysis: AI-enabled cameras interpret movement and engagement patterns, enabling personalized promotions and operational improvements. Malls can identify peak food court times to adjust staffing, while transit hubs can improve wayfinding and manage passenger flows. 

IP cameras extend significant value supporting asset monitoring, logistics, and compliance.

• Equipment and process monitoring: Cameras monitor machinery and production processes to detect anomalies, malfunctions, and safety hazards early, preventing downtime.
• Logistics visibility: In warehouses and distribution centers, cameras track goods, employees, and vehicles to optimize inventory management and supply chain efficiency.
• Predictive maintenance: Integrating visual data with other sensors allows predictive analytics to forecast maintenance needs, shifting operations toward proactive care.
• Compliance support: Cameras ensure compliance by monitoring safety protocol adherence and environmental controls in sensitive areas, providing audit trails and reducing liability.
• License plate recognition (LPR): LPR solutions verify the identities of known vehicles, streamlining deliveries to warehouses, critical infrastructure sites, and secure locations.
• Quality assurance: In manufacturing, video analytics can identify product defects and other quality issues, streamline QA practices and reduce potential losses.
• Automation and control: IP cameras trigger automated responses such as lighting adjustments, access controls, or alert dispatch based on real-time analytics.

Advances in sensor technology and AI are pushing intelligent IP cameras beyond purely visual capabilities into multimodal analytical domains, enhancing situational awareness, detection accuracy, and contextual understanding. Cameras are increasingly becoming data-rich platforms capable of interpreting complex environments both in real time and over time.

• Audio analytics: detecting sound events – such as raised voices, breaking glass, machinery noise, or gunshots – adds vital context that complements visual analysis for better threat detection, incident validation, or equipment monitoring.
• Thermal imaging: thermal sensors offer visibility in low-light or obstructed conditions and can detect temperature variations for perimeter surveillance, asset monitoring, and fire prevention.
• Environmental sensing: integrated or networked sensors measure air quality, humidity, or pollutants, supporting use cases in manufacturing compliance, cleanroom monitoring, and urban air quality assessment.
• Radar integration: radar delivers range, speed, and motion data, enhancing detection where video alone may underperform, such as in poor lighting or bad weather. Radar-video fusion reduces false positives and improves motion tracking.
• Text and license plate recognition (OCR/LPR): optical character recognition systems extract textual information – such as license plates, signage, or product labels – adding semantic context for access control, logistics tracking, and safety enforcement.
• Object classification and metadata tagging: AI-driven detection distinguishes between people, vehicles, or other objects and metadata tagging (e.g., size, direction, motion) enables advanced search, behavior analysis, and system-wide filtering.
• Temporal and Contextual Analysis: timeline-based reasoning tracks how events evolve. This helps differentiate routine activity from emerging anomalies or risks in complex, dynamic environments.

As intelligent camera technology evolves, form factors are diversifying to meet the distinct operational, environmental, and regulatory demands of various industries. This expansion is enabling more precise, scalable, and context-aware deployments across sectors such as public safety, healthcare, manufacturing, transportation, and critical infrastructure.

• Bispectral: Cameras that capture both visible and thermal imagery simultaneously support complex use cases such as condition monitoring, industrial inspection, and concealed object detection.
• Integrated audio and intercom: Devices with built-in microphones and speakers enable real-time two-way communication, enhancing visitor verification, access control, and emergency response workflows.
• Thermal and specialized cameras: In sectors like healthcare, energy, and manufacturing, thermal imaging supports applications from elevated temperature detection to equipment monitoring and fire prevention in visually obstructed environments.
• 360° / Panoramic: Fisheye and multi-sensor cameras provide wide-area coverage from a single device, reducing blind spots and total camera count. These are increasingly deployed in transportation hubs, large retail spaces, and public venues.
• Ruggedized and discreet: Designed for harsh or specialized conditions, rugged cameras are weatherresistant, vibration-proof, or explosion-protected. Meanwhile, compact or sensor-unit designs allow discreet installation in environments where aesthetics or discretion is critical.
• Drone and mobile-mounted: In emerging applications, intelligent cameras are mounted on drones or mobile platforms to inspect large-scale or hard-to-reach infrastructure. These deployments are gaining traction in energy, utilities, and remote site monitoring.

Intelligent video is entering a new era – one defined not just by smarter cameras, but by a shift in how organizations think about security, data, and enterprise performance. As imaging, AI analytics, hybrid architectures, and secure lifecycle management converge, IP cameras have evolved into powerful edge platforms that deliver real-time insights across the business.

Organizations are already moving in this direction, prioritizing modernization, unification, cybersecurity, and the adoption of AI, IoT, and cloud technologies. What began as a security function is now expanding into broader operational and strategic value, enabling teams to improve safety, streamline processes, optimize resources, and make more informed decisions.

This creates new expectations for integrators, technology providers, and end users – demanding deeper expertise, stronger security practices, and seamless integration across ecosystems. Success from here will hinge on how well organizations bring these technologies together and overcome challenges like legacy integration, data complexity, and workforce adoption.

Those that get it right will turn intelligent video into a long-term competitive advantage. The intelligent camera has become a true strategic asset. And as organizations embrace more connected, AI-enabled, and secure video systems, the question is no longer if video will shape the future of operations and decision-making – but how far its impact will reach.

A glimpse into what’s next for intelligent video, the Axis Perspectives 2026 report delivers research-driven insight, expert analysis, and strategic foresight on how smart, connected technologies are reshaping security and beyond.

* For sources of industry and Axis research data cited on this page, please go to the report.