The growing need for smart surveillance solutions requires that modern video capturing devices to be equipped with advance features, such as object detection, scene characterization, and event detection, etc. Image segmentation into various connected regions is a vital pre-processing step in these and other advanced computer vision algorithms. Thus, the inclusion of a hardware accelerator for this task in the conventional image processing pipeline inevitably reduces the workload for more advanced operations downstream. Moreover, design entry by using high-level synthesis tools is gaining popularity for the facilitation of system development under a rapid prototyping paradigm. To address these design requirements, we have developed a hardware accelerator for image segmentation, based on an online K-Means algorithm using a Simulink high-level synthesis tool. The developed hardware uses a standard pixel streaming protocol, and it can be readily inserted into any image processing pipeline as an Intellectual Property (IP) core on a Field Programmable Gate Array (FPGA). Furthermore, the proposed design reduces the hardware complexity of the conventional architectures by employing a weighted instead of a moving average to update the clusters. Experimental evidence has also been provided to demonstrate that the proposed weighted average-based approach yields better results than the conventional moving average on test video sequences. The synthesized hardware has been tested in real-time environment to process Full HD video at 26.5 fps, while the estimated dynamic power consumption is less than 90 mW on the Xilinx Zynq-7000 SOC.