Report Highlights

Under Vehicle Surveillance in the U.S.: Market Overview

The U.S. under vehicle surveillance market is a government-led niche within the broader perimeter security industry. Demand is measured by installed lanes at federal buildings, port of entry facilities, state prisons, military installations and judicial complexes rather than by consumer vehicle sales. The market was valued at USD 412 million in 2024 and is forecast to reach USD 697 million by 2032, growing at a CAGR of 6.8%. Hardware accounts for roughly 55% of spending, with software, cameras and maintenance making up the balance.

Compared with global norms, the U.S. differs in procurement rules and standards. Demand across the Middle East and Asia leans toward commercial parking and checkpoint security, while the U.S. buys through federal schedules and state competitive bids with strict domestic-content thresholds. Buyers specify interoperable imaging, NDAA-compliant networking and integration with license plate recognition, which turns the product into a systems sale rather than a standalone device.

Growth Drivers in U.S. Under Vehicle Surveillance

Three country-specific drivers sustain demand. First, the Infrastructure Investment and Jobs Act of 2021 directed funding toward port of entry modernization and federal building security, with U.S. Customs and Border Protection receiving capital for non-intrusive inspection technology. Second, updated Interagency Security Committee facility standards call for risk-based vehicle screening at federal facilities, converting threat assessments into mandatory lane installations.

Third, state correctional and judicial budgets are shifting toward contraband detection. Several state departments of corrections have funded vehicle inspection pits at visitor entry lanes to intercept drugs and weapons, a use case that broadens the buyer base beyond federal agencies. Population growth in Texas, Florida and Georgia adds new facility construction, and each project requires perimeter specification from the design stage.

Market Restraints and Entry Barriers

Section 889 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 bars federal agencies from procuring video surveillance equipment from Hikvision, Dahua, Hytera and ZTE. Integrators must audit camera sub-components, which lengthens qualification and eliminates lower-cost Asian imaging modules. Buy American Act and Trade Agreements Act thresholds further require domestic assembly, so vendors without certified supply chains are excluded from federal bids entirely.

Incumbent advantage is structural. Gatekeeper Systems and Smiths Detection hold long-term maintenance agreements at many federal sites, and procurement officers rarely reopen competitions during warranty periods. Distribution is also fragmented, with state and local buyers running separate rules, Davis-Bacon prevailing wage requirements applying to federally funded construction, and installation requiring civil works permits that extend project timelines by 9 to 14 months.

Market Opportunities in U.S. Under Vehicle Surveillance

Near-term entry lies in port of entry and land border modernization. CBP's non-intrusive inspection programme and planned upgrades across southwest land ports create an addressable pool estimated at USD 120 million through 2028 for undercarriage and under vehicle imaging. Secondary demand comes from state transportation agencies upgrading weigh stations and inspection plazas, where existing contracts favor retrofit kits over full lane replacement.

Commercial and critical infrastructure represent the faster-growing opportunity. Event venues hosting 2026 FIFA World Cup matches in Atlanta, Dallas, Houston, Kansas City, Los Angeles, Miami and Seattle require vehicle screening at perimeter entry points, with temporary UVIS rentals estimated at USD 35 million. Data center, hospital and utility campuses form a recurring retrofit pool of roughly USD 60 million annually.

Market at a Glance

Leading Market Participants

• Gatekeeper Systems
• Smiths Detection
• Rapiscan Systems
• Advanced Interactive Systems
• Leidos
• Motorola Solutions
• Axis Communications
• Bosch Security Systems
• Genetec
• Hanwha Vision

Regulatory and Policy Environment

The Interagency Security Committee issues the Risk Management Process standard, which sets federal facility security levels and vehicle screening requirements. The Cybersecurity and Infrastructure Security Agency guides hardening of networked surveillance hardware, while the General Services Administration manages the schedule contracts through which most federal lanes are bought. Section 889 compliance requires written supplier representations under FAR 52.204-25, which vendors must file before award.

Subsidies flow mainly through grants. The Port Infrastructure Development Program received USD 2.25 billion under the Infrastructure Investment and Jobs Act, and CBP-facing port projects remain eligible for funding. Federal lane procurements typically run 6 to 12 months from solicitation to installation acceptance, with environmental review under NEPA adding time where new civil works are required.

Long-Term Outlook for U.S. Under Vehicle Surveillance

By 2032 the U.S. under vehicle surveillance market will be defined by integrated, networked lanes rather than standalone inspection pits. Vendors that combine undercarriage imaging with license plate recognition and cloud-based alert management will hold the largest share of renewals. Revenue per lane will rise as software subscriptions replace one-time hardware sales.

Competitive intensity will rise as Section 889 and domestic-content rules narrow the supplier base to vendors with verifiable U.S. assembly. Smiths Detection, Rapiscan Systems and Gatekeeper Systems are positioned to retain federal share, while smaller entrants win through state and commercial channels. Investors should expect steady, government-funded growth with limited price volatility.

Market Segmentation