North America Video As A Sensor Market Size, Share & Industry Analysis Report By Offering (Hardware, Software, and Services), By Product (Video Surveillance, Machine Vision & Monitoring, Thermal Imaging, and Hyperspectral Imaging), By End-Use (Commercial,

The North America Video as a Sensor Market would witness market growth of 7.5% CAGR during the forecast period (2025-2032).

The US market dominated the North America Video As A Sensor Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $31,052.6 million by 2032. The Canada market is experiencing a CAGR of 9.7% during (2025 - 2032). Additionally, The Mexico market would exhibit a CAGR of 8.8% during (2025 - 2032).

The Video as a Sensor (VaaS) market in North America emerged from traditional CCTV systems into intelligent, analytics-driven platforms. Originally funded and documented through government agencies such as the U.S. Department of Homeland Security—whose CCTV Technology Handbook detailed early IP, DVR, and network storage architectures—this transition laid the groundwork for video sensors capable of real-time data transmission.

As federal and state entities embraced smart surveillance for urban safety and critical infrastructure, OEMs and system integrators responded by embedding digital image sensors (CCD and CMOS) with networked processing and storage, aligning with utility-grade monitoring needs. Over time, commercial and industrial adopters recognized video systems as decision-making tools—tracking objects, analyzing patterns, and generating alerts—marking a shift from reactive recording to proactive ‘sensor’ functionalities.

Market Trends in the North America Video as a Sensor Market

1. Proliferation of AI-Based Video Analytics in Security and Surveillance

North America is witnessing rapid growth in AI-enhanced video analytics for public safety and critical infrastructure protection. These solutions go beyond traditional video monitoring, providing functionalities such as facial recognition, behavior detection, and real-time threat alerts.

For instance (2023):

In July 2023, the New York City Police Department (NYPD) expanded its use of AI-based video analytics as part of its subway surveillance system. The city upgraded its network with edge-based computing nodes and object recognition AI to detect unattended bags, abnormal movement, and identify known individuals through facial recognition.

Additional Note:

Chicago’s Office of Emergency Management and Communications continues to expand its Strategic Decision Support Centers (SDSCs), integrating AI-enabled cameras to proactively monitor high-crime areas since its initial deployment in 2017, with major upgrades introduced in 2022.

2. Expansion of Smart Cities and Connected Infrastructure

Smart city projects across the U.S. and Canada increasingly rely on intelligent video sensors for optimizing traffic, monitoring environmental conditions, and ensuring public safety. These sensors form the core of next-generation urban infrastructure.

For instance (2023):

In February 2023, the City of Las Vegas announced the next phase of its smart city initiative in partnership with NTT Group and Dell Technologies. The project involves AI-powered video sensors to monitor real-time vehicle and pedestrian flow, with results used to reduce road accidents and congestion in the downtown corridor.

State of Competition – North America Video as a Sensor Market

North America represents one of the most dynamic and competitive regional markets for Video as a Sensor technology, driven by smart city rollouts, high public safety spending, industrial automation, and military-grade surveillance demands. The competitive environment is characterized by a strong base of domestic OEMs, influential cloud infrastructure providers, and aggressive adoption of AI-enabled surveillance technologies.

1. Dominance of U.S.-based OEMs with Government & Enterprise Ties

Key Players: Cisco Systems, Motorola Solutions (Avigilon), FLIR Systems (Teledyne), Honeywell Security, Axis Communications (North American operations), Pelco

U.S.-based OEMs dominate the enterprise and government segments. For example:

• Avigilon (Motorola Solutions), headquartered in Chicago, delivers AI-powered video analytics widely used across North American school campuses and urban surveillance projects.
• FLIR Systems, acquired by Teledyne Technologies, supplies thermal and infrared video sensors used in border security and defense.
• Honeywell offers building security solutions with AI video analytics tailored for industrial and infrastructure clients.

Impact:

• Strong Institutional Integration: Preferred vendors for federal and municipal contracts.
• Focus on Compliance: Adherence to NDAA, FIPS, and FedRAMP standards secures long-term federal and critical infrastructure contracts.
• In-house AI Investment: Players like Avigilon use in-house silicon (H4 platform) to reduce reliance on third-party AI providers, enabling optimized edge AI inference.

2. Surge of Cloud-native Video Analytics Platforms

Key Players: Rhombus Systems, Verkada, Eagle Eye Networks, Openpath (acquired by Motorola)

These firms focus on scalable, secure cloud-based video management platforms that appeal to enterprise IT departments:

• Verkada, based in California, integrates cameras with access control and environmental sensors, all monitored from a single cloud dashboard.
• Eagle Eye Networks offers open API cloud-based VMS solutions, enabling AI analytics through partnerships.

Impact:

• Scalable Multi-site Surveillance: Widely adopted across U.S. retail, education, and health facilities for centralized monitoring.
• Shift from DVR/NVR: These cloud-native models reduce CapEx, favoring OpEx-driven SaaS subscriptions.
• Cybersecurity Emphasis: Built-in zero-trust architecture and remote firmware updates give them an edge in security-sensitive deployments.

Offering Outlook

Based on Offering, the market is segmented into Hardware, Software, and Services.

Hardware – North America Perspective

• Trend: Rapid expansion of video telematics systems in commercial fleets continues to drive growth.
• Trend: New rugged edge-AI devices and vision processors are enabling advanced analytics in harsh environments like construction, logistics, and first responder operations.

For instance: In early 2025, Kyocera introduced its DuraForce PRO 3 rugged smartphone featuring an AI-capable depth sensor over private 5G—supporting outdoor and industrial VaaS use cases. Texas Instruments also released ultra-low-power vision processors (AM62A / AM68A / AM69A) supporting multi-camera inferencing at sub-1 W power for smart security and industrial embedded sensors.

North American hardware market features established OEMs like Axis, Hanwha, and Bosch in surveillance; Kyocera and TI in rugged and embedded sensors; and compute module leaders NVIDIA, Intel, and TI providing edge-AI foundations.

Software – North America Perspective

• Trend: Enterprise-grade video and sensor data management platforms are being adopted by public sector agencies for mission-critical operations.

For instance: In August 2024, Airship AI secured a multi-year DoD contract for its Acropolis enterprise video/data management platform—a sign of the U.S. government’s trust in VaaS software ecosystems.

Software leadership in North America includes Airship AI, BriefCam, Genetec, and Avigilon, with compute integration from Sony, NVIDIA, and TI, and 5G delivery via Ericsson and carriers.

Product Outlook

Based on Product, the market is segmented into Video Surveillance, Machine Vision & Monitoring, Thermal Imaging, and Hyperspectral Imaging.

1. Video Surveillance

Trend: Accelerating deployment of AI-enhanced surveillance in public safety and urban infrastructure

For instance: Loudoun County, VA, is implementing AI-driven surveillance cameras (by VOLT AI) to detect fights, bullying, and medical emergencies in school environments. This system flags events in real-time, verified by staff before alerts are sent — illustrating growing reliance on intelligent video systems in community settings.

A recent report from Axis Communications emphasizes North America’s rapid shift from passive CCTV to AI-enabled systems supporting facial recognition, behavior analysis, and operational insights.

2. Hyperspectral Imaging

Trend: Expanding use of hyperspectral sensors in defense, healthcare, and environmental applications

For instance, North America dominates global hyperspectral imaging usage with a 35% regional share, driven by heavy investments in defense and healthcare sectors.

Though specialized, hyperspectral imaging is gaining in public sector use (e.g., agriculture and food safety). Notably, government-funded remote sensing projects are increasingly leveraging these systems.

End-Use Outlook

Based on End-Use, the market is segmented into Commercial, Industrial, Government, and Other End-Use.

Government

Trend: Federal and municipal agencies are deploying edge-enabled video sensors integrated with AI for enhanced border security, law enforcement, and public safety.

For instance:

• Department of Homeland Security (DHS) awarded $10.9 million in contracts to Airship AI for rugged edge-compute “Outpost AI” appliances—used to stream and analyze border surveillance data in real time.

Commercial

Trend: Commercial entities—especially retailers—are embracing AI gesture-recognition platforms to reduce theft and improve staff response, while respecting customer privacy.

For instance:

• Veesion’s AI gesture-recognition is currently deployed in 5,000+ stores across North America, reducing shoplifting significantly without facial recognition and integrating with existing CCTV systems.

Application Outlook

Based on Application, the market is segmented into Security & Surveillance, Traffic Management, Retail Analytics, Healthcare, Manufacturing, Mapping, and Other Application.

Security & Surveillance

Trend: AI-powered gesture and behavior detection is being deployed at scale in public and retail environments, enhancing situational awareness and loss prevention.

For instance:

• Veesion’s AI gesture-detection system is now installed in over 5,000 retail locations across Canada and the U.S., reducing shoplifting by up to 50%—focusing on gestures rather than faces.
• In Chicago’s Loop, businesses are using smart video cameras with real-time AI analytics to flag suspicious activity and alert law enforcement agencies.

Traffic Management

Trend: Automated video sensors and smart infrastructure are optimizing traffic flow, enforcing safety, and prioritizing emergency vehicles.

For instance:

• Oakland, CA approved a $4.86 million initiative to install 18 speed cameras by 2025; these systems capture only rear plates, with all revenue reinvested in safety programs.
• Nashville, TN, is upgrading its traffic signal network with AI, radar, and lidar sensors to “see, talk, and think,” aiming to reduce travel time once fully deployed.

Based on Offering, the market is segmented into Hardware, Software, and Services. Based on Product, the market is segmented into Video Surveillance, Machine Vision & Monitoring, Thermal Imaging, and Hyperspectral Imaging. Based on End-Use, the market is segmented into Commercial, Industrial, Government, and Other End-Use. Based on Application, the market is segmented into Security & Surveillance, Traffic Management, Retail Analytics, Healthcare, Manufacturing, Mapping, and Other Application. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.

List of Key Companies Profiled

• Axis Communications AB (Canon, Inc.)
• Motorola Solutions, Inc.
• Hangzhou Hikvision Digital Technology Co., Ltd.
• Bosch Sicherheitssysteme GmbH (Robert Bosch GmbH)
• Zhejiang Dahua Technology Co., Ltd.
• Sony Semiconductor Solutions Corporation (Sony Corporation)
• Honeywell International Inc.
• Johnson Controls International PLC
• OmniVision Technologies, Inc.
• i-PRO Co., Ltd.

North America Video as a Sensor Market Report Segmentation

By Offering

• Hardware
• Software
• Services

By Product

• Video Surveillance
• Machine Vision & Monitoring
• Thermal Imaging
• Hyperspectral Imaging

By End-Use

• Commercial
• Industrial
• Government
• Other End-Use

By Application

• Security & Surveillance
• Traffic Management
• Retail Analytics
• Healthcare
• Manufacturing
• Mapping
• Other Application

By Country

• US
• Canada
• Mexico
• Rest of North America

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