On April 1, 2026, India introduced stringent restrictions on uncertified internet-connected CCTV cameras, leading to the effective ban of prominent Chinese brands like Hikvision and Dahua. This policy shift has created a vacuum in the Indian surveillance market, previously dominated by these brands, and has opened up significant opportunities for domestic players to step in and fill the gap. As Indian companies race to meet the burgeoning demand, the question remains whether they can adequately address security needs before vulnerabilities emerge.
### Indian Incumbents Shore Up Their Base
Indian surveillance manufacturers are among the primary beneficiaries of the recent policy changes. Companies that have previously invested in local assembly and compliance infrastructures are now well-positioned to capitalize on the growing demand. The Indian CCTV market, valued at $4.8 billion in 2025, is projected to surge to $14.25 billion by 2031, according to Mordor Intelligence.
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Aditya Infotech, the owner of CP PLUS, has seen its market share grow from 20.2% in FY25 to 45.4% by Q3 FY26, following the exclusion of non-compliant foreign players. The company has reported increased demand for Indian alternatives, particularly in government and enterprise sectors where cybersecurity and data sovereignty are crucial. CP PLUS is scaling up its manufacturing capabilities to produce 2.5 million units monthly by Q2 FY27 and is investing in AI-enabled surveillance technologies to stay competitive.
Similarly, Sparsh CCTV, an original equipment manufacturer, is expanding its operations. Focused on critical infrastructure sectors, the company emphasizes video management systems and AI software, aligning its strategy with the new certification regime. Sparsh CCTV is increasing its manufacturing capacity with new facilities in Kashipur, building upon its existing operations in Haridwar.
### Opportunities and Challenges in the Surveillance Market
The policy shift has created a favorable environment for Indian startups and manufacturers specializing in optics, sensors, system-on-chips (SoCs), and memory components. With the market moving towards trust and compliance-driven decision-making, companies are rebranding themselves as comprehensive security technology providers.
However, the new certification requirements have raised entry barriers, posing challenges for smaller and newer players. The need for high compliance and significant investment may limit the ability of these companies to enter the market quickly, despite the opportunities presented by the exit of Chinese brands.
### Implications for India’s Startup Ecosystem
The Indian government’s move to enforce STQC norms reflects a broader trend of prioritizing cybersecurity and data sovereignty. This regulatory environment encourages domestic innovation and strengthens local manufacturing capabilities. Indian startups in the semiconductor and AI surveillance sectors stand to benefit from increased demand for certified, high-quality products.
For the Indian startup ecosystem, this development signals a promising avenue for growth. As the market evolves, startups have the opportunity to leverage their technological expertise to offer advanced, compliant solutions. This can lead to increased investment in the sector, driving further innovation and competitiveness.
Looking ahead, the focus will likely be on how quickly Indian companies can ramp up production to meet demand and whether new entrants can overcome the challenges posed by certification requirements. For founders and investors, the key will be to monitor how these companies navigate compliance hurdles and capitalize on the demand for secure, reliable surveillance solutions.
