Market Shift Driven by New Security Rules
India's surveillance technology market is transforming due to new security and certification requirements for internet-connected CCTV cameras. Starting April 1, 2026, these rules, led by the Ministry of Electronics and Information Technology (MeitY) and enforced by the Standardisation Testing and Quality Certification (STQC) regime, have blocked key Chinese manufacturers like Hikvision and Dahua. Industry data from February 2026 shows domestic Indian brands now hold over 80% of the CCTV market, a major increase from their previous share. Chinese companies, which once held about a third of sales, are now mostly sidelined or leaving. This major shift stems from foreign firms, and those using Chinese chipsets, failing to get required government certification. This certification demands disclosure of component origins and tough vulnerability testing. By early 2026, over 500 CCTV models had received STQC certification, clearing the way for compliant products to lead sales.
'Make in India' Initiative Boosts Local Production
This regulatory shift aligns with India's strategic goals, including the 'Make in India' initiative and efforts to improve cybersecurity and data control. The success in electronics manufacturing, where India is the second-largest mobile phone producer globally, serves as a model for other tech sectors. Global Original Equipment Manufacturers (OEMs) are increasing local production to meet rising demand. This mirrors the strategy of domestic players who have redesigned their supply chains to use non-Chinese components, often Taiwanese chipsets, and local firmware. CP Plus, for example, has significantly increased its market share to an estimated 45-50%, benefiting from the market changes. Chinese firms Hikvision and Dahua have seen their presence shrink dramatically—Dahua's business reportedly down by 80%—while global companies like Bosch and Honeywell are strengthening local operations to serve the premium segment.
Cybersecurity Fears and Global Trends
The main reason for these policies is national security, especially concerns about data leaks, unauthorized remote access, and foreign control over surveillance networks. The STQC framework requires that critical components, such as System-on-Chips (SoCs), are sourced responsibly and devices pass strict vulnerability tests. This focus on verifiable security standards and component transparency is shifting the industry from a price focus to one valuing trust and compliance. India is not the only country making these changes; similar restrictions on Chinese surveillance equipment are in place or being considered elsewhere due to cybersecurity fears. The industry had a two-year transition period after the Essential Requirements (ER) norms were introduced in April 2024, with the compliance deadline on April 1, 2026, allowing companies to sell old stock.
Economic Challenges and Supply Chain Risks
While the drive for domestic control and security is clear, the transition brings economic challenges. Switching from Chinese-origin components to alternatives, mainly Taiwanese chipsets, reportedly raises the Bill of Materials (BoM) by 15-20%. This cost increase, especially for mid- to high-end models, could mean higher prices for consumers and businesses. Demand might drop if local innovation and efficiency don't compensate. Moreover, India's component manufacturing, particularly for critical elements like SoCs, is still in its early stages. Relying heavily on specific foreign suppliers for essential components, even non-Chinese ones, might just shift dependencies instead of solving the issue long-term. Critics argue these strict measures could be seen as protectionist trade policy, potentially harming international trade relations and global trade norms, a view shared by some Chinese experts. The exclusion of major players like Hikvision and Dahua, once dominant, could also reduce competition in the medium term. While Indian brands are growing fast, developing foundational local technology, especially for high-value components, will be key for long-term market leadership and affordability.
Market Growth Forecast
The Indian video surveillance market is expected to grow robustly, with a projected Compound Annual Growth Rate (CAGR) of 10-20% from 2030-2035, potentially reaching USD 10-24 billion. The regulatory changes, despite cost challenges, are likely to create a more mature and secure market. Domestic players, supported by government initiatives and more local production, are well-placed to capture this growing market. Demand is rising for IP cameras, AI analytics, and cloud solutions across government, commercial, and residential sectors. Global OEMs are also strengthening their local presence, serving the premium segment and meeting market demands under the new rules. The focus is now on certified, secure, and locally compliant surveillance technology.