The Future of Surveillance

• By Lloyd Taylor
• Nov 25, 2025

The security industry has seen its share of growth, contraction, tranquility and disruption over the years. Now, our industry is facing its next transformative moment, with economic volatility and breakthrough technologies all reshaping the future of surveillance.

It is not only about cameras and hardware anymore if it ever really was. Now, it is about the convergence of business models, cloud infrastructures, artificial intelligence and how we define the role of manufacturers in our ecosystem.

Despite overall economic uncertainty, our industry is still resilient. Heightened customer expectations mixed with rapidly advancing enterprise technologies play a significant role in driving product development across our industry. Technology innovation is driving new conversations just as much as price to spur demand, and nowhere is that more evident than with AI.

AI has matured from a buzzword into a practical tool for enhancing image quality, generating smarter analytics, and delivering genuine operational value to end users. Cloud technology is also moving toward becoming a true unifying platform, delivering the type of intuitive management experience that customers increasingly expect.

At the same time, business models are shifting with the rise of hybrid cloud storage, recurring revenue models and managed services. Growth opportunities are expanding, particularly in data centers, education, city surveillance and intelligent traffic systems.

But innovation also often brings challenges: a wave of consolidation across manufacturers and integrators, the need to re-evaluate the role of the channel, and the persistent “talent gap” issue as our industry struggles to attract and develop the next generation of leaders.

The State of the Economy
The broader economy remains volatile. Fluctuating tariffs, shifting government priorities, contentious trade relationships and ongoing conflicts around the world all create uncertainty, which trickles down to our industry. Federal interest rates, which remained static earlier in the year, did drop by a couple of quarter-points in the fall; however, the debate over how much it will take to make a difference will likely continue into the new year.

What does that mean for our overall business? Distributors are holding less inventory, dealers are cautious about spending, and many end users are delaying projects, either replacements or upgrades. This “wait and see” environment has slowed some opportunities, particularly in government and education sectors where spending has been reduced.

The traditional election-year boost in government spending that we started 2025 with has also been disrupted, with many budgets cut or delayed. While legislation may eventually bring new opportunities, for now, we must look toward markets outside government where spending continues.

The State of the Surveillance Market
Regardless of economic headwinds, our industry is in a strong position, but we cannot afford to coast. This industry can never lose sight of the importance of continually making camera technology better. Customers are looking for more than just hardware, and AI is a common thread in every customer engagement, on the security side as well as on the operational side. While identification and detection capabilities — recognizing clothing, gender or other attributes — remain important, there is now equal emphasis on using AI to improve overall camera performance and to generate actionable business insights.

AI is expanding customers’ surveillance capabilities beyond security and into business intelligence, transforming cameras from passive devices into intelligent systems. From heat mapping in retail environments to queue monitoring in quick-service restaurants, AI-powered cameras help customers distribute staff more efficiently and streamline operations.

There’s no one “right” way to deploy AI; that is an individual and organizational decision. For example, Hanwha Vision’s approach combines both: AI in our “smart” cameras at the edge and through flexible AI servers or appliances that extend functionality to legacy systems.

Now, customers can maximize the significant technological investments they have made in their existing infrastructure, while updating their current capabilities at a pace that makes sense for their budget and resources. Our AI Box allows existing non-AI security cameras to take advantage of video analytics and AI capabilities, without having to rip and replace an entire environment all at once. Our new SoC chipset, Wisenet 9, allows us to enhance our overall camera technology by using AI to reduce noise, lower bandwidth and reduce storage requirements while delivering clearer video.

The Role of Cloud Technology
COVID accelerated demand for remote access, and cloud technology is now essential to delivering what customers expect: a “single pane of glass” dashboard view of video, access control and intrusion from anywhere. While full cloud storage is still not a practical choice for everyone, hybrid solutions are thriving. Today’s hybrid models combine local storage with cloud-based event management, providing both cost efficiency and flexibility.

The rise of cloud has also transformed how customers “purchase” security. As cloud adoption grows, subscription models are replacing traditional licensing. Recurring monthly revenue (RMR) models, once common only in the alarm business, are now standard for video and access control.

Customers are now more comfortable paying recurring monthly fees for services, just as they do in every other aspect of their lives, from home food delivery to streaming services. Manufacturers are adapting, focused on generating revenue of course, but also ensuring customers continually receive the latest features and updates while also alleviating them from the burden of day-to-day maintenance.

Growth Markets
As always, my guidance to our sales team is simple: focus on where the money is flowing today, not where it used to be.

We see several verticals expanding rapidly. Data centers are at the top of the list, which aligns with the whole conversation of cloud growth. City surveillance is another, with municipalities embracing cameras for public safety, liability protection, predictive analysis and traffic management. Intelligent transportation systems, and commercial “smart” buildings are also experiencing growth. Education remains steady at the higher ed and K-12 level, while government-funded markets face continued budget challenges.

Industry Developments
Our industry continues to attract startups, or at least companies with a “startup mentality,” particularly AI and software firms looking for strategic and/or financial partnerships. Many companies bring innovative solutions but lack the scale or channel support to reach a desired market on their own.

That is why we see many security companies partner with or even acquire technology-focused companies. At the same time, changing business models are reshaping how surveillance systems are delivered while affecting company valuations and fueling consolidation.

The Channel’s Evolution
Distribution and integration remain vital to our ecosystem and to the industry’s success. Each partner plays a distinct role: distributors provide logistics and financial support, integrators deliver the expertise to design and install systems and manufacturers supply the technology.

Cutting out any piece of that chain risks undermining the total customer experience. The real opportunity lies in training, equipping integrators with the knowledge and skills they need to deploy the right solutions. Without training, complexity can overwhelm customers. As products become simpler to use but more complex in functionality, training is essential to maintaining the value of the channel.

What is on the Horizon?
The next leap is generative AI combined with natural language processing. Just as we speak to Siri or Alexa at home, customers want to ask their security systems questions in natural language.

“Show me everyone who entered between 6 p.m. and 6 a.m.” or “Confirm all exterior doors locked.” I see this demand for simplicity, personalization and voice-driven search soon becoming the norm in enterprise security.

The Talent Gap
The security industry continues to struggle with a talent pipeline, essential for building the next generation of industry leaders. Every industry talks about the “talent gap,” and ours is no exception. Security is still a homegrown business; there are no college majors in surveillance or system integration. That is why manufacturers and associations must take responsibility for training and certification.

At Hanwha Vision, every salesperson goes through our certification programs, and we are investing in internship programs and co-op partnerships with colleges to expose young professionals to the industry. Developing the next generation of leaders requires intentional effort, and it is an effort we must all make.

The Role of Manufacturers
Manufacturers must go beyond producing hardware. We are responsible for raising awareness, educating the market, and supporting integrators with certification programs that ensure readiness for complex deployments. However, scale requires efficiency, so we must also focus on automation while strategically partnering to develop specialized solutions.

There are common concerns across the industry about tariffs, and many companies have had to increase their prices.

At Hanwha Vision, we have committed to price stability, holding the line even as our own costs rise. That is possible because of our manufacturing flexibility, which allows us to absorb cost fluctuations without passing them on to customers. We are agile enough to manage costs and respond quickly to challenges such as tariffs and supply chain disruptions, ensuring we stay competitive and reliable for our partners.

We planned, bought components in bulk and we have our own manufacturing plants. In fact, we are one of the few companies in the video surveillance landscape in North America that owns its manufacturing. More than owning it, we control our entire manufacturing process, ensuring quality and security throughout the lifecycle of every device we produce. That allows us to be nimble, make quick redesigns and use other components when necessary to effectively control our costs.

Hanwha Vision’s Path Forward
Like the industry at large, Hanwha Vision itself is evolving, keeping pace with changing customer needs and expectations. Our company has chosen to grow organically, investing in R&D to develop our own cloud and AI capabilities. That approach requires discipline, but it ensures our portfolio is fully integrated and aligned with customer needs without a heavy reliance on external acquisitions.

The company’s ongoing goal is to keep evolving as a full-solutions provider, anticipating where the market is headed and preparing our customers and partners for what is next. Our launch of the OnCloud cloud VMS and OnCAFE cloud-hosted access control platform mark significant milestones in that journey, enabling integration across cloud and on-prem environments. By combining advanced cameras, cloud software, access control and AI, we are building a full ecosystem that meets today’s customer needs while preparing for the next wave of innovation.

Looking ahead, we are investing in IoT integrations, sensors, intrusion detection and generative AI. Our strategy is clear: deliver complete, integrated security solutions that empower our customers and position us for long-term growth.

From my seat, the future of surveillance hinges on resilience in the face of uncertainty, innovation that goes beyond security, and partnerships that ensure long-term success for everyone.