Market Overview

Based on vendor shipment value, the domestic market size of security cameras and systems reached 225.4 billion yen in FY2024, marking a substantial 12.8% increase from the previous fiscal year. This growth was driven by AI-powered video content analysis (VCA) solutions and cloud surveillance camera systems. Beyond their traditional use in crime prevention and monitoring, these systems have become essential business infrastructure that supports the operation of commercial facilities, increases work efficiency, and improves data utilization. Deployment of edge cameras featuring AI-powered analytics has particularly expanded. This allows users to analyze footage in real time on site. Edge AI cameras have solved the latency of transmitting image signals from sources to destinations, which motivated proactive use of AI by on-site workers. Recently, incorporating AI into edge cameras has become standard rather than an advanced feature. With deeper integration with video management systems (VMS), edge cameras can integrate image management, analytics, and sharing. This is prompting major vendors to promote solutions for consolidating multiple-base operations.

Noteworthy Topics

Rapid Expansion of AI-Powered VCA Solutions and Cloud Surveillance Camera Systems

In FY2024, VCA solutions and cloud surveillance camera systems became the largest driver of the market expansion. VCA solutions expanded their applications from crime prevention and surveillance to include improving operational efficiency of facilities and enhancing company performance. Thanks to the progress in AI technology, VCA’s object detection, attribute estimation, and behavioral analytics have increased accuracy and established themselves as a core technology of video surveillance. Retail and commercial facilities use VCA solutions for marketing purposes, including counting visitors and analyzing traffic flow. Factories and the transportation sector increasingly use these solutions for safety management and operational efficiency. The configuration that aligns with edge AI cameras and the cloud enables real-time processing, which shortens the time needed for footage processing, saving electricity for the process. Meanwhile, cloud surveillance camera systems have been introduced primarily in retail and commercial facilities, small- and medium-sized offices, and public facilities. The simplicity in installation and operation, and the ease of aligning remote surveillance with AI analytics have expanded their applications from crime prevention and surveillance to include performance improvement.

In this context, software as a service (SaaS)-based recurring-revenue businesses, including cloud-based AI video analytic services, are garnering attention. To provide these services, major vendors are enhancing service features and optimizing prices. As users begin to use AI to analyze their cloud-stored footage and leverage the results to determine customer behavior in stores and facility operations, vendors are expected to earn additional revenues.

Future Outlook

Based on vendor shipment value, the domestic security camera and system market is projected to reach 252.9 billion yen in FY2025, which is a 12.2% increase from the previous fiscal year. Due to the anticipated robust growth, the market is expected to reach 436.2 billion yen by FY2030. The major driving factors continue to be VCA solutions and cloud surveillance camera systems. These systems' applications for facility operations, work efficiency, and data utilization are likely to progress further. As the source of added value shifts from hardware to software solutions, the idea of viewing footage as a marketing and work efficiency tool that contributes to management assets rather than merely as a surveillance method, is likely to proliferate.

Security cameras can be categorized as IP or analog. The deployment of IP cameras continues to expand. In FY2025, IP cameras are expected to account for 83.7% of the total domestic shipment volume of security cameras. This figure is expected to reach 89.1% by FY2030. This growth is driven by the prevalence of VCA solutions and cloud surveillance camera systems. The deployment is expanding into previously scarce areas such as schools and medical and long-term care facilities, public facilities, stores, and factories. In the future, companies that can offer consolidated solutions, optimally integrating AI, cloud, and edge AI cameras, are expected to drive market growth.

Research Outline