Delray Beach, Florida, June 10, 2026 /PRNewswire/ — According to MarketsandMarkets™ The AI video analytics market for smart cities is projected to reach USD 28.76 billion by 2030 from USD 8.5 billion in 2025, at a CAGR of 27.6%.
(PRNewsfoto/MarketsandMarkets)
Browse 290 pages of 220 market data tables and 60 figures, and read the detailed table of contents on ‘AI Video Analytics for Smart Cities Market – Global Forecast to 2030’
Market size and forecast for AI video analytics for smart cities:
Annual market size: 2021-2030
Market size in 2025: $8.5 billion
Predicted market size in 2030: $28.76 billion
CAGR (2026-2030): 27.6%
AI Video Analytics Trends and Insights for Smart Cities Market:
AI video analytics for smart cities includes an AI-powered software platform, edge-embedded cameras, cloud analytics services, and integrated command center solutions that use CNN, transformer-based vision models, and multimodal AI to enable real-time intelligent video processing for traffic management, public safety, crowd monitoring, environmental sensing, and urban planning.
This hardware segment is expected to account for the largest market share in 2025, supported by widespread deployment of AI-enabled cameras, storage systems, surveillance equipment, and edge surveillance infrastructure across smart city projects.
By application, the public safety and law enforcement sector is expected to hold the largest market share in 2025 due to rising demand for real-time threat detection, crime prevention, crowd monitoring, and emergency response management.
By system type, the IP video surveillance system segment is expected to dominate the market in 2025 due to increasing adoption of network-connected and AI-enabled surveillance architectures that can support advanced analytics and centralized monitoring.
By analytics type, real-time analytics segment is expected to register the highest growth during the forecast period due to rising demand for instant incident detection, traffic management, and proactive public safety activities.
By deployment mode, edge-based segment is expected to grow at the highest CAGR during the forecast period as it enables low-latency processing, reduced bandwidth requirements, and real-time decision-making capabilities.
Regionally, North America is expected to capture a 35.0% market share in the AI video analytics in smart cities market in 2025 due to large-scale smart city investments, advanced surveillance infrastructure, and strong adoption of AI-powered public safety solutions.
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Growth is being driven by the rapid expansion of smart city initiatives, increased public safety requirements, and increased investment in intelligent transportation and urban infrastructure modernization. Governments and local governments are increasingly deploying AI-powered video analytics to enhance situational awareness, improve traffic management, strengthen security surveillance, and optimize emergency response capabilities. The proliferation of connected cameras, edge AI devices, IoT-enabled infrastructure, and high-speed connectivity technologies such as 5G is accelerating adoption across urban environments. Additionally, demand for real-time urban intelligence, predictive analytics, and automated incident detection is driving widespread adoption of edge-to-cloud video analytics platforms across transportation hubs, public spaces, and critical infrastructure.
Showing the highest CAGR based on applications, public safety, and surveillance.
Public safety and surveillance is expected to record the highest growth among AI video analytics for smart cities market due to increasing concerns about urban security, increasing investments in intelligent surveillance infrastructure, and growing need for proactive threat detection. AI-powered video analytics solutions are increasingly being deployed for real-time incident detection, crowd monitoring, identifying suspicious behavior, managing traffic violations, and optimizing emergency response. By integrating facial recognition, anomaly detection, behavioral analytics, and edge AI technologies, city governments can improve situational awareness, reduce response times, and improve citizen safety across transportation hubs, public spaces, and critical infrastructure environments.
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North America accounts for the largest share. Fastest growing in the Asia Pacific region.
North America accounts for the largest share of AI video analytics in the smart cities industry due to its large-scale deployment of advanced surveillance infrastructure, strong investments in public safety modernization, and early adoption of AI-enabled city management technologies. The region benefits from well-established smart city initiatives, cloud penetration and high spending on intelligent transportation systems. Meanwhile, Asia-Pacific is projected to experience the fastest growth, driven by large-scale smart city projects, expanding urban populations, increased government investment in digital infrastructure, and increased adoption of AI-enabled surveillance systems in countries such as China, India, Singapore, South Korea, and Japan.
Leading companies working on AI video analytics for smart city enterprises include Hikvision, Dahua, Motorola Solutions/Avigilon, Honeywell, Huawei, NEC, Genetec, BriefCam/Canon, Axis Communications, and Milestone Systems/Canon. These companies compete on AI-enabled surveillance hardware, video management software, cloud-based analytics platforms, and integrated smart city solutions. Market participants are increasingly turning to edge AI capabilities, real-time analytics, intelligent transportation applications, and cloud-native architectures to strengthen their market positioning. Strategic partnerships with governments, local governments, communications providers, and smart infrastructure developers also remain critical to expanding deployment across the urban surveillance and public safety ecosystem.
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