From Basic Internet Services to Technology Ecosystems
In the last decade the global internet service provider (ISP) industry is undergoing a remarkable transformation. What was once a sector focused solely on delivering basic internet connectivity is now evolving. It has become a hub for technology ecosystems.
This shift is driven by the rising demand for Value-Added Services (VAS) and Video Surveillance as a Service (VSaaS) solutions, who are particularly shaping internet service provider trends in 2025 and the next decades.
The commercial VSaaS segment dominates, driven by its widespread use in businesses, retail, and real estate. This rapid growth comes from the increasing adoption of cloud-based video surveillance solutions. These solutions offer cost efficiency, scalability, and seamless integration.
The Global Growth of VSaaS
MarketsandMarkets research values the global VSaaS market at $5 billion in 2024. It is projected to reach $10.7 billion by 2029, growing at a CAGR of 16.1%. The global video surveillance market will grow from $59.46 billion in 2024 to $135.68 billion by 2033. This growth is projected at a CAGR of 9.6% (Straits Research). The commercial VSaaS segment is set to dominate, driven by its use in businesses, retail, and real estate. This rapid expansion results from the growing adoption of cloud-based video surveillance solutions, offering cost efficiency, scalability, and easy integration.
These trends highlight the increasing reliance on smart surveillance solutions across various industries.
Businesses and residential users alike are prioritizing smart security solutions, making VSaaS a cornerstone of technological ecosystems provided by ISPs.
Regional Trends of VSaaS and VAS Evolution
North America
The United States and Canada are leading adopters of VSaaS, particularly in retail and financial sectors. These industries rely on video surveillance for enhanced security, fraud prevention, and customer analytics.
Europe
In countries like the UK and Germany, smart city initiatives, public safety systems, and transportation monitoring integrate VSaaS. The region’s focus on data privacy and regulation-compliant solutions also drives demand for innovative VSaaS platforms.
Asia-Pacific
Urbanization in China, India and Thailand has amplified the need for scalable security systems. The region’s rapid digital transformation supports the adoption of VSaaS, especially in residential complexes and public infrastructure projects.
Middle East and Latin America
These emerging markets of Middle East and Latin America are adopting VSaaS to strengthen security in both commercial and public sectors. Investments in smart city projects and infrastructure modernization are key drivers in these regions.
Popular Value-Added Services (VAS) for ISPs
The integration of smart intercom and access control systems is becoming a key component of Value-Added Services (VAS) offered by ISPs. These technologies enhance security and convenience in residential and commercial settings, aligning with the growing demand for smart home solutions.
Market Overview
Value-Added Services (VAS) enhance traditional intercom systems by integrating features that offer more convenience, security, and functionality. VAS for intercom typically include:
- Video Intercom Devices. The global market for video intercom devices is at approximately $21.70 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 13.6% from 2023 to 2030. Increasing demand in the security and surveillance sector drives this growth. There is significant adoption in residential buildings to protect against intruders.
- IP Intercom Systems. The IP intercom market was valued at $2.04 billion in 2023. It is expected to reach $4.09 billion by 2032, growing at a CAGR of 8.06%. The residential segment accounts for approximately 35% of installations, reflecting the rising popularity of smart home technologies.
- Smart Home Access Control. The share of the smart home access control sector estimates at $2.43 billion in 2024. The expectation is to reach $3.65 billion by 2029, with a CAGR of 8.5%. Heightened safety concerns and the increasing prevalence of nuclear families, especially in urban areas, drive this growth.
The Intercom Systems Regional Insights
- North America and Latin America
In 2023, North America held a 34% share of the video intercom devices market, driven by smart home technologies and a growing focus on security.
- Asia-Pacific
Urbanization and infrastructure advancements will drive significant growth in the region. This will lead to increased adoption of smart intercom and access control systems.
Intercom Industry Developments
The growth of the smart intercom and access control industry caused by advancements in security, technology, and convenience. Residential, healthcare, commercial, and education sectors lead the demand for integrated, reliable, and efficient solutions. These sectors seek to enhance security and improve operational efficiency with advanced technologies.
As the demand for touchless and remote solutions grows, smart intercom systems will shape the future of building security.
How Aipix transforms the VSaaS and VAS Landscape Answering Internet Service Provider Trends
Aipix stands out as a leading software platform for VSaaS and VAS, empowering ISPs to seamlessly deliver video surveillance services.
Key features include:
- Aipix Mediaserver, which is robust solution for capturing, storing, and distributing video streams
- AI-powered Aipix Video Analytics for real-time monitoring and actionable insights
- Scalability
- Seamless integration in the existing infrastructure
- And many other advantages for telecom and internet providers
By leveraging Aipix, ISPs can deploy efficient, scalable, and customer-centric VAS and VSaaS offerings. This aligns with the growing market demand for cloud-based surveillance solutions that are easy to manage and integrate.
Internet Service Provider Trends in 2025. Conclusion
The evolution of ISPs into providers of comprehensive technology ecosystems reflects the growing demand for innovative services. As VAS and VSaaS gain momentum, Aipix helps ISPs stay competitive and meet customer expectations. By embracing these solutions, ISPs can unlock new revenue streams and secure their place in the digital landscape.
Integrating smart intercom and access control systems into VAS portfolios enhances ISPs’ service offerings. With the rise of smart home technologies and security focus, these solutions will become standard. ISPs must adopt VSaaS and advanced platforms like Aipix to stay ahead of market trends.