Want to know more about CCTV? This guide will take you beyond the acronym, exploring not only what CCTV is and how it works, but also how advanced features like AI and video analytics are transforming it into an essential tool for security, operational efficiency, and business intelligence. Read on to discover how a modern CCTV system protects your assets and enhances your entire operation.
CCTV stands for Closed Circuit Television. It is a video system that consists of strategically placed video cameras around an area that records footage, and is then transmitted to a display monitor(s) for real-time viewing as well as footage playback.
A CCTV system therefore refers to all aspects and components that make up the system, such as the camera, wiring, video footage storage (via the cloud or digital video recorder), monitors, access control and general system management.
You would want to use a CCTV system to increase the security of your business premises and have surveillance on key areas at any one time. This would be particularly useful for large premises or one that holds valuable equipment, products or information.
Investing in a robust security infrastructure is more critical than ever, with UK police-recorded shoplifting offences surging by 20% in the year ending March 2025, reaching the highest figure since current recording practices began. Furthermore, robbery of business property saw a significant 50% increase in the same period, underscoring the growing threat to commercial assets.
As well as recording video footage, a CCTV system can also notify you if there is activity or movement on a certain camera at a set time. For instance, in the dead of night whilst the business premises in closed and employees have gone home. This notification could indicate that someone may be about or looking to break-in to your site.
Although a CCTV system can be used for the surveillance of on-site activity, during and out of working hours, it can also be used to help identify wanted criminals, as well as act as a deterrent to potential intruders.
Modern video surveillance has evolved dramatically from simple footage recording. Today, sophisticated CCTV systems, especially those utilising advanced Video Analytics, are key to generating valuable business intelligence. For companies managing complex operations, such as those in the logistics and storage sector, cameras can be used to monitor workflow efficiency, manage vehicle flow, and ensure compliance with critical health and safety protocols.
In large commercial properties or office buildings, analytics can track foot traffic and occupancy rates, helping managers optimise space and energy consumption—a vital function when considering the total cost of retail crime, which includes a record-high spend on prevention measures, as reported by the British Retail Consortium. For high-security environments, such as a farm or data centre, integrating CCTV monitoring with perimeter protection offers proactive threat mitigation, rather than just reactive evidence collection.
This technological leap is fundamentally changing the value of security, moving it from a cost centre to a strategic business asset. The rise of AI-driven solutions, which prioritise intelligent automation and predictive analysis, is the biggest trend shaping the industry in 2025, according to the Security Industry Association. These advanced systems are becoming essential for maintaining data privacy and compliance while enabling more effective security operations, as detailed in our guide on is it legal to watch your staff constantly on CCTV.
Want to know the ins and outs of how a CCTV system works? It’s not complicated, but it does vary depending on the type of system you install and the components used. However, the overall process is the same.
Consisting of at least one camera, lens, monitor and recorder, a CCTV system can be scaled up or down depending on the size of area wanting surveillance. CCTV works by the camera or cameras taking a constant sequence of images that are then transmitted by cable or wirelessly (depending on the chosen system type) to the recording device and then on to the display monitor, which enables an individual to see the sequence of images as video footage. Depending on the type of cameras used, they may also have the ability to zoom in and out and rotate 360 degrees.
As mentioned previously, there are many types of CCTV systems with various cameras that have a number of uses, such as night vision, thermal imaging and number plate recognition.
While analogue systems remain a cost-effective choice for certain applications, modern commercial security is overwhelmingly driven by IP (Internet Protocol) systems. These digital systems transmit data over network cables, providing superior resolution (often 4K or higher) and greater flexibility for integration. They form the backbone of a Smart Business Solution, enabling real-time data sharing between cameras, access control, and fire safety systems.
Crucially, IP systems facilitate the deployment of Artificial Intelligence at the edge. This means the camera itself can process video data, instantly identifying anomalies like a person attempting to scale a perimeter fence or a package left unattended, before sending an alert. This targeted detection is vital for improving response times and reducing the volume of false alarms, which continue to plague Fire and Rescue Services, as highlighted in the latest UK fire incident statistics. Understanding the nuances of these cutting-edge systems is key to making an informed decision, especially when comparing different providers, a topic we cover in depth in ADT vs. Verisure vs. BusinessWatch: which commercial security system offers better ROI.
The two main types of system are:
Wired: Cameras and the rest of the system is hard wired. This typically includes modern IP cameras using Ethernet cables for both data and power (PoE), offering the most secure and reliable connection, which is essential for businesses that require high-level security system certification.
Wireless: No wires are needed as the system works via an internet connection. Wireless cameras offer installation flexibility but require strong, encrypted Wi-Fi networks and regular battery maintenance to maintain security integrity. They are often best suited for temporary setups or areas where running cables is impractical, as discussed in our guide on 10 tips for choosing a CCTV system for your business.
For more information on all the different types of CCTV camera available, visit our Complete Guide to CCTV Camera Types.
