Existing video compression methods, mostly in order to video compression and reduce the compression time, using the complexity and high cost of hardware circuit. According to the intra prediction algorithm for accuracy and efficiency, we used H.264 intra prediction algorithm and optimized design it, design the hardware circuit on this basis, after the combination of the JPEG image compression algorithm to compress the video further. The method to simplify the hardware circuit, reduce coding time, the purpose of data transmission rate and reliability. The tests show that in this study has achieve the above objectives and wish a relatively low-cost market advantage, and a good development prospects in the field of wireless video surveillance.