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Why Cloud Video Surveillance as a Service Must Become the Core of Telecom and ISP Business Strategy in 2026

Telecom is no longer just about connectivity. Across the industry, revenue from traditional services is slowing, and operators are being…

Why Cloud Video Surveillance as a Service Must Become the Core of Telecom and ISP Business Strategy in 2026

29th January 2026

Telecom is no longer just about connectivity. Across the industry, revenue from traditional services is slowing, and operators are being pushed to rethink how they grow. As 2026 approaches, one thing is becoming increasingly clear: cloud-based video surveillance as a service (VSaaS) is no longer optional. It is quickly becoming a core part of a modern telecom business.

For years, operators have relied on network expansion and data usage growth. That model is reaching maturity. To stay relevant, telecom companies and regional ISPs alike are turning toward digital services that sit closer to customer needs and generate recurring income. Cloud VSaaS fits this shift naturally.

The global video surveillance and analytics market was valued between USD 59.3 billion and USD 84.1 billion in 2025, depending on how it is measured. Most forecasts now point toward a market approaching USD 150 billion by 2032. This growth is not driven by cameras alone. Smart city projects, retail automation, critical infrastructure protection, and the rapid adoption of AI-based analytics have all played a major role, especially over the last three years.

What matters most today is not the hardware installed on a wall or pole. The real value lies in how video is delivered, managed, and monetised. Enterprises and public-sector organisations increasingly expect cloud-based solutions that are easy to scale, priced on a usage basis, and capable of integrating advanced analytics while still meeting local regulatory requirements.

This shift strongly favors telecom operators. With control over networks, edge infrastructure, and long-standing customer relationships, telecoms and ISPs are well positioned to deliver carrier-grade cloud VSaaS in a way that global hyperscalers often cannot.

Regional Market Data for Cloud Video Surveillance

In Asia Pacific, cloud VSaaS is expanding faster than anywhere else. The region is expected to reach around USD 35 billion in market size in 2026, with growth continuing at more than 18 percent annually through the early 2030s. Rapid urbanisation, government-backed smart city initiatives, and investment in public safety are pushing adoption forward.

North America, while more mature, remains a major market. Valued at roughly USD 24.6 billion in 2025, it continues to lead in early adoption of cloud platforms, AI-driven video analytics, and integrated surveillance systems across both enterprise and government use cases.

Europe is growing at a steadier pace, with a market size of about USD 18 billion in 2025. Much of this growth comes from modernisation projects that must comply with GDPR, as well as increasing demand for intelligent analytics rather than traditional CCTV systems.

In regions such as the Middle East, Africa, and Latin America, VSaaS adoption is still emerging but accelerating. Combined, these markets already represent hundreds of millions of dollars in revenue as spending on security, smart infrastructure, and cloud services increases year by year.

Summary

 

Region 2025 Market Size (USD) 2026 Projection (USD) Market Momentum & Key Factors
Asia Pacific (APAC) approx. $31.2B approx. $35.0B The fastest-expanding market globally, driven by rising adoption of AI-powered VSaaS in China and India, alongside large-scale smart city and urban infrastructure programs.
North America approx. $24.6B approx. $27.7B Strong early uptake of 5G and IoT technologies, a dense base of enterprise VSaaS customers, and growing demand for predictive and behavioral AI analytics.
Europe approx. $18.0B approx. $20.0B Growth centered on GDPR-aligned cloud deployments, with increasing use of hybrid cloud surveillance models, particularly in markets such as the UK and Germany.
Middle East & Africa approx. $4.1B approx. $4.8B Continued investment in public safety and smart infrastructure, led by large national projects in countries like the UAE and Saudi Arabia.
Latin America approx. $2.5B approx. $2.9B Rising demand for wireless and mobile surveillance solutions, especially in major metropolitan areas across Brazil and Mexico.

 

Why Telecom Operators and Internet Service Providers Are Investing in Cloud VSaaS?

For large telecom operators, cloud VSaaS aligns closely with broader investments in 5G, edge computing, and private networks. Video applications are bandwidth-intensive and time-sensitive, making telecom infrastructure a natural foundation. By layering analytics, real-time alerts, and industry-specific solutions on top of connectivity, operators can move up the value chain.

Data sovereignty and privacy requirements also work in telecoms’ favor. In regions like Europe and the Middle East, strict regulations mean video data often needs to be processed locally or at the network edge. VSaaS platforms designed specifically for telecom operators allow this without sacrificing performance or reliability.

Regional ISPs face a different but equally important opportunity. For them, cloud VSaaS can become a powerful differentiator rather than just another service. Bundling video surveillance with internet access, support, and managed services is especially attractive for small and medium-sized businesses, municipalities, schools, and multi-site organisations looking for a single, trusted provider.

Cloud-based surveillance also removes the barrier of high upfront costs. Businesses no longer need to invest heavily in equipment. Using platforms like Aipix Cloud VSaaS, ISPs can launch video services quickly, scale them as demand grows, and generate predictable recurring revenue without adding significant operational complexity.

Over time, cloud VSaaS proves to be a durable revenue engine. Subscription models typically deliver strong margins and low churn, and video services tend to remain stable even during economic downturns. In regions such as Asia Pacific and Latin America, many telecom operators have already adopted VSaaS, accelerating digital transformation in both smart cities and commercial security.

Final Word about Cloud Video Surveillance as a Telecom Service Development Worldwide

By 2026, telecommunication operators that embrace cloud video surveillance as a service will be more than connectivity providers. They will be positioned as full digital service partners. Those that delay risk losing relevance as hyperscale cloud platforms and specialised providers move deeper into the market.

Cloud VSaaS is no longer just about video. It is about owning a meaningful share of the digital value chain. Position yourself early in this journey to secure a stable outcome for next decades!

Categories: Tech

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