Cloud VSaaS: The Strategic Growth Engine Telecom Operators and ISPs Need in 2026

Cloud VSaaS: From Value-Added Service to Strategic Necessity

For years telecoms move towards maturity and their revenues from connectivity start to plateau. So operators of all sizes are looking for new digital revenue opportunities. By 2026, cloud video surveillance as a service will be a necessity for all telecom operators and regional internet service providers.

The global market for video surveillance and analytics is estimated at USD 59.3 Billion – USD 84.1 Billion in 2025 (varying by report scope) expected to grow to more nearly USD 150 billion by 2032. Various sectors such as smart cities, retail automation and critical infrastructure protection force this expansion. Furthermore, the application of AI is also propelling it for the last 3 years. 

The key differentiator today is not the hardware itself but rather the delivery model that organisations choose to deploy. Businesses and government customers now demand the flexibility of cloud-based, pay-as-you-go video solutions that can automatically increase in power to meet high demand, integrate with AI technology and conform to regional regulations. 

Telecom operators are in a distinctly advantageous position by this trend. Telecoms and ISPs are ideal providers to deliver carrier grade cloud Video Surveillance as a Service (VSaaS). This growth strategy is clear thanks to their control of networks, caching servers and trusted customer relationships.

Key Regional Market Data for Cloud VSaaS & Video Surveillance

• Asia Pacific (APAC). The fastest-growing VSaaS market. With APAC accounting for approximately USD 35 billion in 2026 and projected to grow at a CAGR ~18.2 % through 2033. It’s driven by rapid urbanization, smart city programs, and strong government investments in public safety infrastructure.
• North America. A major mature market for VSaaS, reaching around USD 24,6 billion in 2025. It leads in early adoption of cloud technologies, AI analytics, and integrated surveillance solutions in enterprise and government sectors. 
• Europe. Steady growth in the VSaaS market with about USD 18 billion in 2025. supported by GDPR-compliant surveillance modernization, public safety upgrades, and demand for intelligent analytics.
• Middle East & Africa + Latin America. Emerging but growing adoption of cloud-based services and video analytics, combining for several hundred million in market revenue as regional security and smart infrastructure spending increases. 
• Overall Video Surveillance Market (All Regions). The prediction of global video surveillance market, encompassing hardware, analytics, and cloud services like cloud VSaaS growth from about USD 150 billion by 2032, illustrating broad demand across all geographies. 

Why Large Telecom Operators Are Investing in Cloud VSaaS

The advent of cloud video surveillance as a service is highly complementary to the cloud based strategies being adopted by Tier One telecoms companies for their 5G, edge and private network rollouts. 

Telecom infrastructure is the basis for intelligent video applications, these being heavily reliant on bandwidth and time. By converting raw connectivity into high-value services, VSaaS, which is cloud based, can help operators. Service offerings can include AI powered video analytics and real-time alerts plus industry-specific applications. In Europe and the Middle East data privacy is strictly enforced, and telecom operators therefore have an advantage.

For cloud VSaaS platforms designed for network operators, video data may be processed and stored either locally or at the edge of networks. This arrangement means that network operators are able to meet the requirements of GDPR plus other national regulations without any degradation in video surveillance performance.

Why Regional ISPs Cannot Afford to Ignore Cloud VSaaS

For smaller regional internet service providers, a cloud based video surveillance as a service can be a major selling point. Internet service providers can offer cloud video surveillance as a service bundled with internet connectivity, support services and managed services.

Small to medium-sized businesses and municipalities, schools and companies with numerous locations will benefit from the simplicity and compliance this solution offers, if they are looking for a single service provider.

With cloud-based video surveillance systems, a business doesn’t require to invest a significant amount of money on video security equipment. By utilising a platform such as Aipix Cloud VSaaS Software, Internet Service Providers are now able to roll out video services quickly, scale as required and generate predictable revenue on a recurring basis all with minimal operational complexity.

Cloud VSaaS as a Long-Term Revenue Engine

Cloud video surveillance as a service offers the possibility of business models with high margins, subscription-based, with low client churn rates. Video streaming services fit within consumer lives and this has provided a degree of resilience in the service during times of economic uncertainty.

Cloud video surveillance as a service already adopted by many in Asia Pacific and Latin America telecom companies. This fact speeds up the process of digital change in smart cities and in commercial security, thereby indicating the direction the market will take. Telecom operators that have adopted cloud Video Surveillance as a Service by 2026 will be more than connectivity providers. They will be comprehensive digital service providers.

If businesses procrastinate they risk becoming less relevant to the big cloud computing players and specialist solutions providers. Decision-makers at Telecom and ISPs now know that cloud VSaas is no longer only about video but rather it’s about owning the digital future’s value chain.

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