As fiber optic infrastructure rapidly expands across Latin America, operators are not just paving the way for faster and more reliable internet services – they’re unlocking an entire ecosystem of value-added services. One of the most promising among these is Video Surveillance as a Service (VSaaS).
Infrastructure Ready, Demand Growing, VSaaS in Latin America presenting opportunities with Broadband Penetration
Latin America has made significant strides in broadband deployment.
Here’s top countries with the highest broadband penetration:
| Country | Broadband penetration percentage |
|---|---|
| Chile | 80% |
| Brazil | 66% |
| Argentina | 65% |
| Mexico | 60% |
| Columbia | 58% |
| Peru | 50% |
| Ecuador | 40% |
| Venezuela | 30% |
Reliable high-speed internet is uneven. A report notes that the “quality of connectivity” and the distance to cloud servers (often in the U.S.) create high latency – a major challenge for Latin America. Low latency and sufficient bandwidth are critical for cloud video surveillance service.
Also, as broadband penetration increases, the potential to bundle value-added services based on video surveillance with Internet packages becomes a compelling opportunity for both consumers and businesses
The growing Latin American data-center industry is one more major enabler. The market for data centers is projected to double from around $5–6 billion (2023) to $8–10 billion by 2029. New data centers in Brazil, Mexico, Chile and elsewhere mean that service providers can host data locally, cutting latency and boosting trust. This regional digital infrastructure boom facilitates VSaaS deployment and reliability.
VSaaS in Latin America fuel: A Growing Telecom Opportunity
The Latin American VSaaS/video surveillance market has grown rapidly. Mordor Intelligence similarly projected roughly $4.08 billion in 2025 growing to $5.34 billion in 2030 (CAGR ~5.5%).
Brazil and Mexico are the largest markets. In 2024 Brazil’s video surveillance/VSaaS market was about $1.01 billion and Mexico’s about $1.60 billion. Grand View projects Brazil to grow to $1.88 billion by 2030 (10.7% CAGR) and Mexico to $3.38 billion (13.1% CAGR). Other major contributors include Argentina and Colombia – analysts note these four countries (Brazil, Mexico, Argentina, Colombia). Many expect them to be the major contributors” to Latin American market growth.
Key verticals are commercial (retail, banking, offices), infrastructure (transport, utilities), industrial, government/public safety and defense, and residential. For example, DataInsights reports major demand in commercial, industrial and infrastructure sectors, while Allied Research notes that the residential segment has emerged as a leading category in Latin America. Other segments include military/defense and institutional (schools, hospitals). Many smart-city projects also cut across applications (e.g. traffic, parks).
The rise of VSaaS in Latin America is driven by many global trends. There are three of them unveiled:
1. Public Safety Needs
Traditional on-premise surveillance systems are costly and complex. VSaaS, offering scalable, cloud-managed surveillance, reduces upfront costs and democratizes access to security.
Rapid urban population growth and high crime rates in cities are driving demand for surveillance. Governments and businesses increasingly see VSaaS as a scalable solution to enhance security. Smart city initiatives in countries like Brazil and Mexico inject public funding and grant approvals for surveillance networks.
Additionally, with consistently high urban crime rates in many parts of the region, video surveillance is more than a convenience – it’s a necessity. Operators are perfectly positioned to meet this demand by leveraging the very infrastructure they’ve already deployed.
2. Telco to Techco Evolution
Telecom operators are evolving beyond being simple “pipes” for data and third-party service providers. Many are transforming into technology service providers (“Techcos“), offering integrated digital solutions.
By bundling security services like VSaaS/Smart Intercom/Access Control with connectivity and Internet, operators can differentiate themselves from competitors, move up the value chain, and capture more revenue per customer.
3. Smart City Initiatives
Urbanization is fueling smart-city projects. Latin America is highly urban ≈82% population urban, so city governments are deploying connected cameras and VSaaS platforms for traffic management, crime prevention, and public safety.
For example, telecommunications operators in Brazil are integrating VSaaS with their 5G rollouts to support public safety, using “smart surveillance” in high-crime areas. Cloud-based video feeds are being used for traffic control, incident response and even non-security uses (e.g. environmental monitoring, crowd analytics).
Operators that position themselves as partners in these initiatives stand to gain long-term public contracts and strengthen their role as critical national infrastructure providers.
B2C Use Case of VSaaS in Latin America: Public Surveillance in Residential Blocks
A clear example of this opportunity lies in multi-family residential buildings. Typically, two or more public cameras are installed in common areas such as entrances, parking lots, or elevator lobbies. By offering access to these feeds as part of a bundled service, operators can add value to existing internet plans.
| Country | Number of apartment blocks | Average home internet cost, $ |
|---|---|---|
| Chile | 160000 | 25,51 |
| Brazil | 1950000 | 20,92 |
| Argentina | 400000 | 16,84 |
| Mexico | 455000 | 31,05 |
| Columbia | 425000 | 14,38 |
| Peru | 225000 | 20,92 |
| Ecuador | 120000 | 35,28 |
| Venezuela | 95000 | 35 |
Typical Setup:
- 2 to 10 cameras in shared areas like entrances, hallways, elevators, and parking lots
- Footage accessible through a mobile app or desktop dashboard
- Basic motion detection and alert features included
By offering bundled plans that add surveillance access for a small premium (10–20% above the regular internet fee), operators can tap into a vast and underpenetrated market.
For example, if the average broadband subscription costs $25/month, an additional $2.50–$5 fee for video surveillance access is both affordable for residents and profitable for providers.
In a building with 100 households, even a conservative 50% adoption rate could generate an additional $125–$250 monthly revenue – from a single property.
Further, offering surveillance services strengthens community security, improves resident satisfaction, and builds deeper brand loyalty for the operator.
Furthermore, as an additional benefit, residents could be given the option to install in-house video surveillance, such as private cameras within their individual apartments. This feature would offer an even more personalized and secure living experience, providing peace of mind for both residents and operators alike.
B2B Use Case of VSaaS in Latin America: Supporting Businesses of All Sizes
The opportunity is just as strong in the B2B segment.
| Country | B2B customer base |
|---|---|
| Chile | 419000 |
| Brazil | 1971000 |
| Argentina | 2380000 |
| Mexico | 443000 |
| Columbia | 2747000 |
| Peru | 420000 |
| Ecuador | 308000 |
| Venezuela | 104000 |
Possible Target Segments:
- Retail stores
- Restaurants and cafes
- Small offices
- Warehouses and logistics hubs
- Manufacturing facilities
- Corporate campuses
Two Main B2B Customer Segments:
1. Businesses with Existing Video Surveillance Systems
- Streamlined modernization of current surveillance infrastructure
- Reduced costs for equipment procurement and maintenance
- Compatibility with a wide range of RTSP-supported cameras and recorders
- Ongoing support for system upgrades, operations, and technical issues
2. Businesses Planning to Implement Video Surveillance
- System commissioning with continuous technical support
- Turnkey video surveillance solutions from start to finish
- Custom system design tailored to specific business needs
- Equipment selection and procurement based on project goals
- Professional installation and configuration of hardware
Operators can offer all of it as a complete VSaaS packages.
Such an approach simplifies operations for businesses and locks in operators as critical service providers, making it harder for customers to switch once the system is deployed.
Additionally, B2B VSaaS packages can be structured into multi-year contracts, ensuring stable recurring revenue.
Strategic Upsell and Market Differentiation of VSaaS
In a market where basic broadband services are rapidly commoditizing, bundling value-added services like VSaaS gives operators a clear competitive advantage.
Key benefits for telecom operators:
- Higher ARPU (Average Revenue Per User) through service bundling
- Reduced churn rates due to the high “stickiness” of integrated security solutions
- Strengthened brand positioning as a holistic technology partner
- Expanded customer relationships into enterprise and public sector domains
VSaaS also aligns with broader digital transformation goals, enabling operators to build broader ecosystems that include IoT, home automation, and cloud services.
Conclusion
The message to telecom operators is both clear and strategic: broadband infrastructure should be seen not merely as a utility, but as a powerful foundation for business expansion and innovation.
With broadband access steadily increasing and digital transformation accelerating across Latin America, Video Surveillance as a Service (VSaaS) is quickly becoming a natural and high-value addition to the telecom service offering.
A critical component of success in this space is choosing a reliable and telecom-ready VSaaS software partner. At Aipix, we’ve designed our platform specifically with telecom providers in mind. As our solution is not only scalable and optimized for delivering VSaaS – it also seamlessly integrates with telecom operations, supporting automation and aligning with the industry’s established workflows and business models.
By delivering global innovation through localized solutions, Aipix is helping telecom operators unlock new value and stay ahead in a rapidly evolving digital landscape with VAS based on cloud Video Surveillance.
The opportunity to lead is right in front of you. Don’t wait – reach out to us today to discover how Aipix can tailor a solution for your unique business needs!
