AI AND VIDEO ANALYTICS BLOG
Video Surveillance & Physical Security Industry Viewpoints
April 24th, 2025
Author: Kara Arroyo

From Cost Center to Value Driver: The Real ROI of Video Analytics

How AI is Transforming Video Surveillance

For years, video surveillance technology has been considered a necessary tool for protecting people and property—an unavoidable cost of doing business. But today, with the evolution of artificial intelligence, video systems can do far more than simply document events after they occur. They’re driving business value by enhancing safety while also optimizing operations and reducing costs to deliver measurable return on investment.

This shift is especially critical for physical security leaders navigating increased budget scrutiny. As they work to prove the value of every investment, organizations are looking beyond traditional surveillance and toward solutions that contribute to broader business goals. That’s why the role of video analytics is becoming more strategic than ever. These solutions not only accelerate investigations by making video easy to search, they also reduce the time and resources needed to close cases.

In fact, a recent Omdia report found that more than 85% of organizations achieve ROI from video analytics within just one year—a clear indicator that this technology is delivering measurable impact across security, operations, and business performance.

Video analytics ROI across security and operations

The Changing Conversation Around Security ROI

The value of physical security is no longer taken at face value. Leaders across industries are being asked to show how their tools impact the bottom line—and that includes surveillance investments. In fact, nearly 70% of video analytics end users said they’ve been asked to justify video technology purchases with clear ROI metrics.

This growing pressure is driving a more data-driven approach to security planning. Solutions like video analytics are helping teams respond with confidence by demonstrating cost savings, operational efficiencies, and even new revenue opportunities. By connecting security to outcomes that matter to finance, IT, and executive teams, video analytics is giving security leaders a stronger voice in strategic conversations.

Where ROI is Being Realized

As organizations embrace a more data-driven approach to physical security, the value of video analytics is being recognized far beyond the control room. While specific outcomes vary by industry and use case, the strongest returns tend to fall into three key categories:

Security and Safety
Real-time alerts, automated monitoring, and advanced detection features help reduce response times, minimize losses, and improve situational awareness—ultimately enhancing protection while lowering risk.

Operational Efficiency
By automating manual tasks and streamlining video review workflows, analytics ease the burden on security teams and reduce the time and resources required to investigate and resolve incidents.

Business Intelligence
Heatmaps, dwell time analysis, and traffic flow data provide valuable insights that help teams optimize space utilization, improve tenant strategies, and capture additional revenue.

These aren’t abstract theories. These are real use cases playing out in real-world environments. At a major U.S. airport, for example, a single analytics-enabled video system reduced investigation costs, increased vendor fee recovery, and improved passenger satisfaction, all while supporting the airport’s broader operational goals. These are the types of stories being told about video analytics across diverse industries.

Key ROI Data from Omdia

In their report, Omdia surveyed 140 video analytics users across North America and Europe, and the findings reveal just how widespread and measurable the benefits of video analytics really are:

  • 86% of organizations achieved ROI within 12 months
  • 69% said the investment was financially worthwhile
  • 79% view video analytics as critical to their overall security strategy
  • Nearly 50% reported double-digit savings in theft prevention and guard costs

The returns are even more pronounced in large organizations—those with more than 1,000 employees—where respondents were more likely to report significant savings in frontline labor costs and reduced time spent on reporting. These gains reflect the scalability of analytics solutions and their ability to drive efficiency at enterprise scale.

What’s Driving ROI Across Verticals

While the benefits of video analytics are widespread, the most significant returns are closely tied to an organization’s specific goals. According to Omdia, staff safety and internal site security consistently rank among the top business priorities, and they’re also where video analytics is delivering the strongest impact. Beyond those core use cases, respondents reported measurable ROI in several other areas, including:

Perimeter security, particularly in industries like utilities, energy, and transportation
Compliance monitoring, where automation reduces manual reporting and legal exposure
Employee productivity, as predictive alerts and streamlined workflows support leaner teams

Even in sectors like healthcare and retail that have more complex environments, ROI is happening fast. Nearly half of respondents in these verticals reported returns within six months, underscoring the versatility and scalability of analytics solutions across different industries.

What to Look for in a Solution

Delivering ROI isn’t just about deploying video analytics. It’s also about choosing a solution that aligns with your organization’s goals, workflows, and infrastructure. According to the Omdia survey, several key features and capabilities consistently influence the decision-making process:

  • Ease of use and intuitive interfaces, which support faster adoption and reduce the need for extensive training
  • Robust functionality, including reliable, high-accuracy analytics tailored to real-world use cases
  • Cybersecurity readiness, with strong data protection measures and system hardening practices
  • Scalability, including hybrid and cloud deployment options that support future growth

As adoption expands, so does the demand for advanced capabilities. Features like facial recognition, object tracking, and perimeter alerts are becoming increasingly valuable both for enhancing safety and improving operational insight and business outcomes.

A Smarter Approach to Security Investments

Video analytics is no longer a niche add-on; it’s the cornerstone of modern security and operations strategies. As organizations face growing pressure to justify technology investments, solutions that deliver measurable value across departments are becoming non-negotiable.

The data is clear: analytics tools are helping teams reduce costs, accelerate investigations, improve safety, and uncover new business insights. Whether you’re focused on security, efficiency, or revenue growth, the ability to generate ROI from your video surveillance system is a powerful competitive advantage.

To learn how your organization can do the same, and to explore the use cases where video analytics delivers the greatest impact, download the full Omdia report and start building your business case.