Security Camera Price Increase 2026: DRAM Shortage and AI Demand Driving Global Cost Surge

Оглавление

Wired vs. Wireless Security Cameras Exploring Pros and Cons

Quick Summary:

Key Factor

Impact on Security Camera Industry

AI Computing Demand Explosion

Massive demand for DRAM and storage chips used in AI servers

Global DRAM Shortage

Memory manufacturers shifting capacity to high-margin HBM

Automotive Smart Systems

Vehicle-grade DRAM demand surging due to autonomous driving

Supply Chain Imbalance

Global DRAM demand growth outpacing supply

Rising Raw Material Costs

PCB, controllers, memory and storage components increasing

CCTV Industry Impact

Security camera and NVR production costs rising globally

Bokysee Strategy

Stable supply chain, transparent pricing, long-term partner support

Short Answer:
Due to the global DRAM shortage, AI computing demand, and supply chain imbalance, security camera and surveillance equipment prices are expected to continue rising through 2026. Distributors and installers are advised to plan procurement earlier and secure stable suppliers.

Security Camera Price Increase Trend: Why the CCTV Industry Is Facing Rising Costs

Since September 2025, the global semiconductor market has entered a new price increase cycle, especially in the memory chip sector.

Driven by the explosive development of artificial intelligence computing, demand for high-capacity DRAM and storage chips has grown far faster than supply. This imbalance has triggered a wave of price increases across the entire electronics manufacturing industry.

For the security camera industry, the impact is particularly significant. Almost every IP camera, NVR, DVR, and video surveillance system relies heavily on components such as:

  • DRAM memory

  • Flash storage

  • Main control chips

  • Image processors

  • PCB boards

  • Electronic components

As these core materials increase in cost, the production cost of surveillance equipment continues to rise.

Several leading memory manufacturers have already announced new price adjustments, confirming that the current price increase cycle is likely to continue into 2026 and beyond.

According to industry analysis released by the National Development and Reform Commission Price Monitoring Center, global storage chip prices are expected to maintain an upward trend due to persistent supply shortages.

DRAM Shortage: The Core Reason Behind the Security Camera Price Increase

The most significant factor driving the current price increase is the global shortage of DRAM (Dynamic Random Access Memory).

DRAM is a critical component used in:

Without sufficient DRAM supply, manufacturers cannot maintain stable production.

В 2026 Q1, DRAM contract prices increased dramatically:

  • Standard DRAM prices rose 80%–95% quarter-on-quarter

  • Automotive-grade DRAM increased nearly 180% within three months

This sharp price surge reflects a fundamental global supply-demand imbalance.

Memory chip production cannot expand quickly because semiconductor fabs require 2-3 years to build new capacity. Meanwhile, global inventory levels are extremely tight, with some markets having less than four weeks of supply available.

For manufacturers of security cameras and surveillance systems, this means component costs will remain volatile for the foreseeable future.

AI Computing Boom: Why AI Servers Are Consuming Global Memory Supply

Another major factor accelerating the security camera price increase is the explosive growth of AI computing infrastructure.

Large-scale AI models require massive computing power. Training and running these models demands enormous amounts of high-bandwidth memory.

As a result:

  • AI servers have become major consumers of DRAM

  • Memory manufacturers are prioritizing AI-related chips

Industry data shows that global AI server orders in Q1 2026 increased by 287% year-on-year.

Because AI servers require high-performance memory, semiconductor manufacturers such as:

  • Samsung

  • Micron

  • SK Hynix

have shifted a large portion of their production capacity toward HBM (High Bandwidth Memory).

While this improves profitability for chip manufacturers, it reduces the available capacity for standard DRAM used in CCTV systems, further tightening supply.

Automotive Electronics Demand: Another Driver of DRAM Price Growth

In addition to AI, the automotive industry has become a major consumer of memory chips.

Modern vehicles now require large amounts of storage and processing power for features such as:

  • Smart cockpit systems

  • Advanced driver assistance systems (ADAS)

  • Autonomous driving technology

  • Vehicle cameras and monitoring systems

These technologies rely heavily on automotive-grade DRAM and NOR Flash memory.

However, automotive-grade chips must meet extremely strict reliability standards, making them harder to produce.

Industry estimates suggest that automotive DRAM supply may meet less than 50% of global demand, creating severe shortages.

As a result, automotive chip demand is absorbing large amounts of memory production capacity that would otherwise be used for consumer electronics and surveillance equipment.

Supply Chain Impact: From Memory Chips to Security Camera Components

The current price increase is no longer limited to memory chips.

It has already begun spreading across the entire electronics supply chain.

Key surveillance system components affected include:

  • Main control chips

  • Image processing chips

  • PCB boards

  • DDR memory modules

  • Flash storage

  • Electronic capacitors and connectors

In addition, the cost of manufacturing materials such as:

  • silicon wafers

  • copper foil

  • packaging materials

has also increased.

These factors are placing significant cost pressure on CCTV camera manufacturers and surveillance equipment suppliers worldwide.

For many companies in the security industry, maintaining stable product quality while controlling costs has become a major challenge.

Security Camera Price Increase Outlook for 2026

Industry experts widely agree that the memory chip market has entered a new upward cycle.

The key indicators include:

Global DRAM demand growth:
Approximately 26% in 2026

Global DRAM supply growth:
Approximately 21%

This creates a structural supply gap of about 14%, which is likely to keep prices elevated.

In addition, the long semiconductor production cycle means that new capacity cannot be quickly added.

Therefore, most analysts expect the security camera price increase trend to continue throughout 2026.

For distributors, system integrators, and installers, this means that early procurement and strategic inventory planning will become increasingly important.

How Bokysee Supports Partners During the Security Camera Price Increase

В Бокизее, we understand that price adjustments can impact our partners' business planning.

Our goal is always to maintain stable cooperation and transparent communication.

In response to the current market situation, we have taken several measures:

Transparent Pricing Policy

Our product price adjustments are strictly based on actual raw material cost increases, ensuring fairness and transparency.

Stable Supply Chain

With years of experience in the global CCTV manufacturing industry, we have established a stable supply chain network that helps reduce the impact of market fluctuations.

Flexible OEM & ODM Solutions

For distributors and system integrators, we continue to support:

  • Private label branding

  • Customized packaging

  • Product configuration adjustments

  • Firmware customization

This allows partners to maintain strong competitiveness in their local markets.

Long-Term Partnership Support

We also help partners with:

  • product selection guidance

  • project quotation support

  • technical consulting

  • market trend analysis

Our goal is not just to sell products, but to grow together with our partners worldwide.

What CCTV Distributors and Installers Should Do Now

Given the current security camera price increase trend, we recommend our partners consider the following strategies:

Plan Procurement Earlier

Ordering earlier helps reduce the risk of future cost increases.

Optimize Product Structure

Focus on products with strong market demand such as:

  • AI IP cameras

  • Системы камер безопасности PoE

  • PTZ surveillance cameras

  • солнечные камеры безопасности

These solutions offer higher value and stronger market demand.

Secure a Stable Manufacturing Partner

Working with a reliable manufacturer ensures stable supply even during industry fluctuations.

Industry Confirmation: Hikvision and Dahua Have Announced Price Adjustments

Another important signal confirming this trend is that major global surveillance brands have already announced price adjustments.

Recently, leading security camera manufacturers such as Hikvision и Dahua have issued official notifications to their partners regarding product price increases. The main reasons cited are also related to:

  • Rising DRAM and storage chip prices

  • Increasing semiconductor manufacturing costs

  • Supply chain instability

  • Higher component procurement costs

As the two largest surveillance equipment suppliers in the world, their pricing decisions often reflect broader industry trends.

This means the current price increase is not limited to a single manufacturer, but is a structural change affecting the entire CCTV supply chain.

For distributors, installers, and security system integrators, this is an important signal:
the surveillance industry is entering a new cost structure driven by semiconductor supply constraints and AI-driven technology demand.

Instead of focusing solely on low-price competition, companies across the industry are now shifting toward:

  • stronger product differentiation

  • stable supply chain partnerships

  • brand development

  • higher value security solutions

This transition is becoming essential for long-term market competitiveness.

Why High Value Products and Strong Brands Matter More Than Low Prices

During periods of supply chain volatility, businesses that rely only on low-price competition often face greater risks.

When component prices increase, manufacturers that operate on extremely thin margins may struggle to maintain product quality or stable delivery.

For security camera distributors and installers, a more sustainable strategy is to focus on:

  • high value security solutions

  • reliable product performance

  • stable long-term supply

  • trusted manufacturing partners

This is why many partners today are moving toward private label brands and customized security camera solutions, allowing them to build stronger market positioning rather than competing purely on price.

Bokysee: A Flexible OEM Security Camera Factory for Global Partners

Как источник CCTV manufacturer, Бокизее is well positioned to support partners during this industry transition.

Unlike many large brands that focus primarily on high-volume distribution, Bokysee offers flexible cooperation models, especially for growing distributors and system integrators.

Our advantages include:

Flexible Small MOQ OEM Support

We support small-batch OEM and ODM customization, making it easier for partners to develop their own security camera brands.

Cost-Effective Manufacturing

With more than 10 years of experience in CCTV manufacturing, we focus on delivering high performance-to-price ratio products, helping partners remain competitive even when industry costs rise.

Fast Customization for Local Markets

We can customize products based on partner needs, including:

  • logo printing

  • packaging design

  • firmware configuration

  • product feature adjustments

Надежная цепочка поставок

Our long-term component sourcing partnerships allow us to maintain stable production and reliable delivery schedules.

For distributors who want to build their own security brand, Bokysee provides the flexibility and support needed to grow in competitive markets.

Working Together to Navigate the Security Camera Price Increase

The current global security camera price increase is a challenge, but it is also an opportunity for the industry to evolve.

As technology advances and AI becomes increasingly integrated into surveillance systems, the market is shifting toward:

  • smarter security solutions

  • more reliable equipment

  • stronger brand positioning

Instead of focusing only on short-term pricing pressure, successful companies are preparing for the next stage of the security industry.

At Bokysee, we are committed to working closely with our partners worldwide.

Объединив stable manufacturing, flexible OEM solutions, and long-term cooperation, we aim to help our partners build stronger businesses even during market fluctuations.

Together, we can face this industry change and continue to grow in the global video surveillance market.

FAQ: Security Camera Price Increase and Supply Chain

Will security camera prices continue to rise in 2026?

Yes. Due to the global DRAM shortage and strong AI demand, most analysts expect surveillance equipment prices to remain under upward pressure throughout 2026.

Why does the DRAM shortage affect CCTV cameras?

DRAM is essential for video processing, storage buffering, and AI analytics in IP cameras and NVR systems. When DRAM prices rise, camera production costs increase.

Should distributors stock security cameras earlier?

Early procurement can help distributors avoid future price increases and maintain stable inventory during supply chain fluctuations.

Is the price increase affecting all security camera brands?

Yes. The entire surveillance industry relies on similar semiconductor components, so rising chip costs affect nearly all manufacturers.

How does Bokysee support long-term partners?

Bokysee offers stable supply, flexible OEM services, technical support, and strategic guidance to help partners grow their security business globally.

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