H.264 vs H.265 Compression in Security Cameras

Jun 23, 2025

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H.264 and H.265 are two major video compression standards used in smart security cameras. These standards directly affect video quality, storage requirements, and bandwidth usage. This guide explains how these codecs work, compares them, and shows how they impact surveillance systems.

What Is Video Compression in Security Cameras?

Video compression reduces file size without losing essential visual data.

Security cameras capture raw footage. Without compression, this footage consumes large amounts of storage and bandwidth. Compression codecs like H.264 and H.265 encode the video into smaller, more manageable sizes.

Why Do Security Cameras Use Compression?

Security cameras use compression to:

Lower storage consumption (up to 80%)
Decrease streaming bandwidth
Improve remote viewing efficiency
Optimize network performance
Extend recording duration

Uncompressed video at 1080p, 30 fps, requires around 1.5 Gbps bandwidth. Compression can reduce it to 2-5 Mbps using H.264 or 1-2 Mbps using H.265.

How Does H.264 Video Compression Work?

H.264 (also known as AVC) compresses video by removing temporal and spatial redundancies.

Key Features of H.264

Attribute	Description
Codec Name	Advanced Video Coding (AVC)
Bitrate Reduction	Reduces file size by up to 50% vs. MPEG-2
Frame Structure	Uses I, P, and B frames for motion estimation
Compatibility	Supported by most NVRs, DVRs, and VMS platforms
Resolution Support	Up to 4K

How H.264 Optimizes Storage?

H.264 processes:

Intra-frame compression to reduce spatial redundancy.
Inter-frame compression to reduce temporal redundancy.
Motion estimation to predict and encode only changes between frames.

This results in smaller file sizes while retaining clarity.

What Is H.265 and How Is It Different?

H.265 (also known as HEVC) is the successor of H.264. It offers better compression by using advanced prediction models and larger coding blocks.

Key Features of H.265

Attribute	Description
Codec Name	High-Efficiency Video Coding (HEVC)
Bitrate Reduction	40–50% lower than H.264 at same video quality
Frame Structure	Uses more complex motion vector prediction
Compatibility	Newer systems and devices only
Resolution Support	Up to 8K

How H.265 Enhances Video Efficiency?

H.265 improves over H.264 by:

Using Coding Tree Units (CTUs) instead of macroblocks
Allowing better motion compensation
Supporting parallel processing

This allows smoother playback at lower bandwidths.

H.264 vs. H.265 in Security Cameras: Key Differences

Feature	H.264	H.265
Compression Efficiency	Moderate	High (50%+ savings)
File Size	Larger	Smaller
CPU Load	Lower	Higher
Compatibility	Widely supported	Limited to newer systems
Streaming Quality	Good	Excellent at lower bitrates
Resolution Cap	Up to 4K	Up to 8K

Real-World Impact in Security Systems

Storage savings: H.265 allows 30–60% more footage per TB.
Bandwidth usage: Reduces bandwidth by up to 50% vs. H.264.
Playback smoothness: Better under low-speed internet.
Cost efficiency: Longer retention times with same hardware.

When Should You Use H.264 in Surveillance?

Use H.264 if:

Your NVR or DVR doesn’t support H.265
CPU power is limited
Backward compatibility is critical
You are deploying on older systems or legacy infrastructure

When Is H.265 the Better Choice?

Use H.265 if:

You need to store large amounts of high-res video
You're installing 4K or 8K cameras
Bandwidth is limited
You're using modern VMS platforms

H.265 cameras and recorders work best in professional systems with ample processing power.

What is the difference between H.264 and H.265?

H.265 offers up to 50% better video compression than H.264 at the same quality.

H.264 uses macroblocks while H.265 uses coding tree units for more efficient encoding. H.265 supports higher resolutions (up to 8K), reduces bandwidth usage, and requires more processing power than H.264.

Is H.264 better than H.265 for night vision smart camera?

H.265 is better than H.264 for night vision smart cameras.

H.265 handles low-light scenes more efficiently by preserving detail with lower noise at reduced bitrates. It reduces storage needs and improves remote playback performance, especially in motion-heavy infrared footage.

How Compression Affects Video Quality?

Higher compression leads to lower bitrate, but may cause artifacts.

Compression algorithms balance quality and size. However, too much compression can degrade footage and affect forensic usability. Smart encoding adjusts compression dynamically based on scene complexity.

Key Quality Factors

Bitrate control: Constant (CBR) vs. variable (VBR)
Scene complexity: Motion-heavy scenes require higher bitrate
Resolution: Higher resolutions benefit more from H.265
Lighting conditions: Low-light scenes challenge compression

What Is Smart H.265 and Smart H.264?

Smart compression enhances traditional codecs with AI-based algorithms.

Features of Smart H.265/H.264

Region of Interest (ROI) encoding
Scene-based bitrate control
Noise reduction preprocessing
Dynamic GOP structures

These enhancements reduce data volume while preserving critical visual data.

Are There Licensing or Legal Differences?

Yes. Both H.264 and H.265 are patented technologies with licensing implications.

H.264: Licensed via MPEG LA.
H.265: Licensed via multiple pools (MPEG LA, HEVC Advance, Velos Media).

Some manufacturers pass licensing fees to end-users. Open-source alternatives like AV1 are emerging but are not yet mainstream in surveillance.

What Should You Consider Before Choosing a Codec?

Factors that influence codec selection:

Hardware compatibility
Storage and bandwidth capacity
Camera resolution
Network infrastructure
Legal and licensing costs
Future scalability

Summary Table: Codec Selection Guide

Use Case	Recommended Codec
Legacy Systems	H.264
Budget Installations	H.264
High-Resolution (4K/8K) Footage	H.265
Long-Term Storage	H.265
Low-Bandwidth Environments	H.265
Maximum Compatibility Needed	H.264

What's Next in Video Compression for Surveillance?

Next-generation codecs like AV1 and VVC (H.266) promise higher efficiency. However, as of 2025, they lack widespread support in security hardware.

H.265 remains the best option for efficient, high-resolution surveillance with future-ready compatibility.

FAQs

Does H.265 double the storage savings compared to H.264?

Yes. H.265 can reduce video file sizes by 40–60% at the same quality level.

Are H.265 cameras more expensive?

Yes. H.265-enabled cameras and recorders cost more due to hardware requirements.

Can I mix H.264 and H.265 cameras on the same NVR?

Only if the NVR supports both codecs. Check your device’s specifications.

Is H.265 better for remote monitoring?

Yes. Lower bitrates improve streaming performance over limited networks.

Is there visible quality difference?

At the same bitrate, H.265 often produces better quality due to better motion prediction.

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