New compliance norms and data‑localisation drive rise of Indian surveillance manufacturers
India’s closed‑circuit television sector is undergoing a profound transformation as regulatory reform, cybersecurity concerns, and a strategic push for self-reliance usher in a shift towards domestic manufacturers. Once dominated by inexpensive imports—predominantly from China—Indian brands are now steadily capturing market share across residential, enterprise, and public infrastructure segments.
Since April 2025, the Standardisation Testing and Quality Certification (STQC) has become mandatory for all CCTV products sold in India. The new rules require cybersecurity audits, detailed supply-chain disclosure and factory inspections prior to commercial release, placing significant demands on providers.
Industry data shows Indian imports of surveillance equipment plummeted from USD 767.09 million in FY2020 to just USD 28.49 million in FY2025—evidence that regulatory deterrents and supply‑chain scrutiny are reshaping the landscape.
Local players rise to the challenge
Market leaders like CP Plus, Prama Hikvision and Sparsh CCTV have aligned rapidly with the STQC regime. CP Plus now accounts for nearly 48 per cent of market volume, benefiting from double-digit growth and strong public and private sector traction.
Sanjeev Sehgal, Managing Director of Sparsh CCTV—the first Indian firm to secure STQC compliance—pledged to raise its market share from 2 per cent to around 5–7 per cent within a year. He underlined that products conforming to government-defined Essential Requirements are expected to replace non-compliant competitors.
Other firms are expanding capacity and building chip and firmware design capabilities domestically, signalling deeper localisation across the value chain.
The surveillance market is estimated at around USD 3.5 billion in 2024 and could exceed USD 7 billion by 2030. India’s CCTV sector is projected to grow at over 30 per cent annually—with adoption driven by urbanisation, smart cities and infrastructure development.
Demand is especially strong in Tier II and III towns, bolstered by public safety contracts and private investment across retail, education and residential sectors.
Security, compliance & road ahead
Tarun Pathak of Counterpoint Research notes that government-led procurement now mandates locally sourced components and India-hosted software. This drives OEMs toward full localisation of chips, firmware and manufacturing. While these norms raise costs, they lend credibility to certified brands.
M. A. Johar of CP Plus emphasised strong R&D investment and AI-led analytics:
“As part of our commitment to innovation, we’ve invested heavily in R&D … The CCTV surveillance sector in India is currently valued at approximately ₹9,000 crore, with a significant 30 per cent annual growth rate.”
Ashish P. Dhakan of Hikvision India added:
“Hikvision India is committed to the ‘Make‑in‑India’ vision … Our state‑of‑the‑art manufacturing facility at Vasai is a living testimony of our alignment with the initiative.”
The stricter STQC deadline—set by MeitY in April 2025—poses existential risk to many SMEs and low-cost providers that rely on Chinese-derived components. Some may struggle to comply in time.
In parallel, the Digital Personal Data Protection Act introduces another compliance layer, as CCTV footage qualifies as personal data. Experts say firms must now also meet obligations under India’s broader data governance regime.