New CCTV rules, Rs 1.3 lakh cr market: 3 stocks riding India’s shift to smarter surveillance
Xtreme News India
21-09-2026 19:39:55
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New CCTV rules, Rs 1.3 lakh cr market: 3 stocks riding India’s shift to smarter surveillance
Mumbai (Special correspondent) - The CCTV opportunity is changing. Tighter security norms are making compliance as important as cameras, creating a new opportunity for companies building India’s surveillance ecosystem. India’s CCTV market is entering a phase where regulation is becoming as important as demand. The market is projected to reach US$ 14.25 billion (around ₹1.3 lakh crore) by 2031, growing at a 19.88% CAGR between 2026 and 2031. But the opportunity isn’t just about installing more cameras.
Compliance is increasingly shaping who can supply them. CCTV cameras were brought under the government’s security requirements for public procurement in 2024, with Standardisation Testing and Quality Certification (STQC) responsible for security testing.
The change is already visible in government procurement. In March 2026, the government said departments are restricted from buying CCTV equipment that does not meet the prescribed security requirements. This creates a different kind of opportunity for certified domestic players.
Companies that can meet STQC, BIS and other applicable requirements can participate in segments where compliance is becoming a prerequisite. Hardware must be fully cyber-secured and certified by testing laboratories designated by the government of India.
Cybersecurity and control over surveillance data are also becoming part of the buying decision. For government and public infrastructure, the camera is no longer just hardware. Its software, firmware, security architecture and supply chain also matter. For domestic manufacturers, that could expand the addressable market beyond simply selling cameras.
AIL’s market share in the organized Indian video surveillance market effectively doubled to 43.3% in FY26. The company operates primarily through its flagship security brand, CP PLUS, and expanding brands like Nexivue. Internet Protocol accounts for 79% of its portfolio, reflecting a shift toward higher-value AI surveillance solutions.
This reflects the growing demand for intelligent visual AI, high-resolution surveillance, and enterprise storage solutions. The company is also engaging directly with enterprise accounts and government projects to secure empanelment at the design stage. This helps AIL secure larger, higher-value contracts.
Also, AIL sources 100% of its semiconductor System-on-Chips, which represent roughly 35% of the total Bill of Materials from global fabrication partners based in Taiwan. This enables AIL to source 100% compliant products that are legally cleared for sale across India.
India’s CCTV market is moving toward higher-value IP surveillance, AI-enabled products, local manufacturing and greater control over the electronics value chain. At the same time, STQC requirements and government procurement rules are making compliance an increasingly important entry point for domestic players.
(Source: Financial Express)
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