Physical Security Market

The physical security market size was valued at around USD 127.2 Bn in 2022 and is projected to reach USD 226.1 Bn by 2031, expanding at a CAGR of 6.6% during the forecast period, 2023 – 2031. The growth of the market is attributed to the rising concerns about privacy and security in various end-user industries .and residential establishments.

Physical security includes the deployment of different technology and hardware solutions for providing security and privacy to organizations or residential establishments from damaging physical actions and events. Security measures are arranged for an establishment's personnel, software, data, hardware, and other intellectual & physical assets.

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Implementation of physical security measures provides safety against real-world threats such as intrusions and physical deterrence. Cameras, scanners, detectors, and sensors, among other devices, are installed on the entire premise and inside the building to effectively deal with physical threats. These gadgets help monitor, alert, and prevent harmful incidents within the intended premises.

The advancements in Artificial Intelligence, Machine Learning, and the Internet of Things (IoTs) are enabling organizations to deploy highly sophisticated physical security solutions on the premises. The physical security solutions measures are rapidly getting integrated with technological advances to monitor and respond to various threats in a real-time mode.

Different levels of security layers are adopted by enterprises to provide access to only authorized personnel in a certain section/building of the premises based on their credentials. This significantly keeps sensitive areas and valuable assets of the company protected from internal to external threats.

The emergence of COVID-19 has increased the importance of physical security in private and residential premises owing to healthcare dangers and the need for effective surveillance during lockdowns. The pandemic boosted the development of various innovative physical solutions from the key players in the physical security market. These innovations are effective in immediately detecting physical dangers ranging from healthcare issues to possession of drugs, weapons, and weapon alike devices, among others.

Market Trends, Drivers, Restraints, and Opportunities:

• Increasing need for healthcare surveillance to check infections, body temperature, and other health matters at entry gates, is a major trend in the market. The demand for contactless biometrics systems is rapidly growing, as it facilitates identity verification without coming into direct physical contact with the person.
• Enterprises spending on physical security is increasing at a robust rate across the sectors, which is one of the key drivers for the market. The protection of personnel, technology, and organizational assets has become important owing to rising white-collar criminal activities globally. Enterprises are readily spending extra costs to install surveillance cameras, health monitoring gadgets, access systems, and scanners to ensure safety and security from external and internal threats.
• Various governments around the world placed strict surveillance measures in private and public places for monitoring and tracking COVID-19 infections. This played a crucial role in driving the growth of the global market. In fact, several organizations are continuing to improve monitoring and security solutions to protect personnel and assets from different risk factors.
• The awareness about adopting physical security solutions is increasing. However, the high cost required for installing security systems and gadgets is likely to hamper the market growth. The high cost required for the purchase, installation, and maintenance of advanced security solutions, is limiting the buying of security products from SMEs and residential end-users.
• Manufacturing innovative security solutions with the integration of advanced technology such as AI, ML, Analytics, and IoT solutions are expected to create significant growth opportunities for the market. Organizations from several end-user industries are adding enhanced security covers on the premises to prevent the theft of data and systems, and protect the privacy of the personnel 24/7. The growing advances in security gadgets and the expansion of security measures’ installation in SMEs of various sectors are expected to boost the market growth prospects significantly in the years to come.

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Scope of Physical Security Market Report

The report on the global physical security market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Physical Security Market Segment Insights

Based on the component segment, the global physical security market is divided into systems and services.

The systems segment accounted for the highest share of the market in 2022 and is projected to grow at a robust growth rate during the forecast period.

Physical security systems include several layers of security solutions such as CCTV cameras, monitoring systems, smart locks, access controls, and sensors, among others. These solutions work in a coordinated manner to prevent major security incidences such as fire incidents, thefts, and unauthorized entry.

The services component sub-segment is projected to grow at a rapid pace during the forecast period owing to the increase in demand for outsourcing cloud-based security services. The installation, management, and proper maintenance of security solutions require high costs as well as expertise. Private offices and residences are increasingly opting for cloud AI driven security services as it facilitates better security and cost-saving benefits.

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On the basis of the system type segment, the market is categorized as a video surveillance system, physical access control system (PACS), perimeter intrusion detection & prevention, physical identity & access management (PIAM), physical security information management (PSIM), security scanning, fire & life safety, and imaging & metal detection.

The video surveillance system segment held a key revenue share of the market in 2022 and is expected to expand at the highest compound annual growth rate during the projection period.

The growth of the segment is attributed to the rising demand for security cameras, monitors, and video encoders, among others from commercial and residential end users. The key players in the physical security industry are offering ultra-high-definition (UHD) video surveillance camera systems at low cost, which is likely to further fuel the segment’s growth.

In terms of service type segment, the market is divided into remote monitoring service, access control as a service (ACaaS), security systems integration service, video surveillance as a service (VSaaS), and others.

The security systems integration service segment is expected to grow at the fastest pace in the coming years. The growth of the segment is owing to enhanced security and prevention measures facilitated by integrated security services. The increasing availability of cloud computing solutions along with rapid enhancements in connectivity technology of security gadgets is expected further to boost the growth of the security system integration services segment during the forecast period.

The video surveillance as a service (VSaaS) segment is anticipated to grow at a rapid pace in the coming years, owing to the availability of budget-friendly solutions over third-party cloud platforms. Commercial and residential users can easily subscribe to cloud video surveillance services as per their unique requirements. Cloud services enable saving costs and provide various customized solutions.

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Based on enterprise type, the global physical security market is divided into large enterprises and small & medium enterprises.

The large enterprises segment held more than 55% share of the global market revenue in 2022. The growth of the segment is highly driven by an increasing focus on implementing top-level physical security mechanisms for protecting staff and physical and intellectual assets.

The rising criminal activities and the need to protect technology and data is fueling the use of physical security solution at large corporations. Additionally, companies in chemical, oil & gas, energy & utilities, and other such end-user industries require to keep a constant tab on individual activities happening at processing plants, owing to which demand for security is consistent from large enterprises in these sectors.

The small & medium enterprises (SMEs) segment is also expected to grow at a considerable rate. The need for the protection of all types of assets and preventing illegal access within premises is significantly boosting the demand for various security systems and services from the SMEs segment.

On the basis of end-user, the market is divided into banking, financial services & insurance (BFSI), government, hospitality, retail, transportation, residential, IT & Telecom, and others.  

The government segment accounts for the largest share of the market owing to the continuous need to protect government officials, politicians, and VIP personnel and offices. The threat of terror activities, privacy intrusion, and other such dangers are looming continuously owing to the rising complex geopolitical environment around the world.  Various government agencies are adopting physical security solutions such as surveillance cameras, sensors, detectors, scanners, and other such measures to effectively deal with physical security threats.

The transportation segment is expected to grow at a considerable growth rate owing to the rising availability of cutting-edge sensors, cameras, and detector technology. The need to resolve rising traffic congestion issues and illegal driving activities is further fueling the demand for high-tech surveillance cameras, monitoring devices, and scanners. The need to monitor crowded places due to security threats Is also increasing the demand for physical security solutions. Enterprises are also proactively increasing physical security for transportation and logistics arrangements to facilitate trouble-free goods carriage.

Regional Analysis of Global Physical Security Market

In terms of region, the global physical security market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America accounted for more than 35% share in 2022 and is projected to dominate the global market throughout the forecast period. The strong demand for advanced physical security solutions coupled with the increasing budget for protecting personnel and organizational assets across the sectors is fueling the market in the region.

The physical security market in the Asia Pacific is projected to grow at a rapid pace owing to the increasing requirement to respond rapidly to criminal activities and terrorism threats. The adoption of high-tech physical security solutions is growing at a robust pace across organizations in major economies of the region China and India. The increasing need to manage large crowds and transportation in urban areas is also driving market growth in Asia Pacific.

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Segments

The global physical security market has been segmented on the basis of

Component

• Systems
• Services

System Type

• Video Surveillance System
• Physical Access Control System
• Perimeter Intrusion Detection & Prevention
• Physical Identity & Access Management
• Physical Security Information Management
• Security Scanning
• Fire & Life Safety
• Imaging & Metal Detection

Service Type

• Remote Monitoring Service
• Access Control as a Service
• Security Systems Integration Service
• Video Surveillance as a Service
• Others

Enterprise Type

• Large Enterprises
• Small & Medium Enterprises

End-user

• Banking, Financial Services & Insurance
• Government
• Hospitality
• Retail
• Transportation
• Residential
• IT & Telecom
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• ADT
• Johnson Controls
• Cisco Systems, Inc.
• TELUS
• Wesco International
• Honeywell International Inc.
• Genetec Inc.
• Hangzhou Hikvision Digital Technology Co., Ltd.
• Bosch Sicherheitssysteme GmbH
• Robert Bosch GmbH
• HID Global Corporation
• Pelco
• SECOM CO., LTD.
• Arthur J. Gallagher & Co.
• Allied Universal
• STANLEY CONVERGENT SECURITY SOLUTIONS, INC.
• Dahua Technology Co., Ltd
• Axis Communications AB
• Teledyne FLIR LLC
• Hanwha Techwin America
• Huawei Technologies Co., Ltd.
• General Dynamics Corporation
• Hexagon AB
• BAE Systems
• NEC Corporation
• Qognify
• SmartCone Technologies
• IOTAS, Inc.
• Verkada Inc.
• Cloudastructure
• Siemens
• Senstar Corporation

Competitive Landscape

Key players in the global physical security market are ADT; Johnson Controls; Cisco Systems, Inc.; TELUS; Wesco International; Honeywell International Inc.; Genetec Inc.; Hangzhou Hikvision Digital Technology Co., Ltd.; Bosch Sicherheitssysteme GmbH; Robert Bosch GmbH; HID Global Corporation; Pelco; SECOM CO., LTD.; Arthur J. Gallagher & Co.; Allied Universal; STANLEY CONVERGENT SECURITY SOLUTIONS, INC.; Dahua Technology Co., Ltd; Axis Communications AB; Teledyne FLIR LLC; Hanwha Techwin America; Huawei Technologies Co., Ltd.; General Dynamics Corporation; Hexagon AB; BAE Systems; NEC Corporation; Qognify; SmartCone Technologies; IOTAS, Inc.; Verkada Inc.; cloudastructure; Siemens; and Senstar Corporation.

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. The competitive landscape covers key insights into growth strategies adopted by major market players.

• On December 1, 2022, cloudastructure announced its expansion in South America. The company had recently announced its foray in Canada and the United Kingdom as well. Major four corporations have been onboarded with cloud computing-based AI security platforms to enhance the protection and security of their various physical assets, and save significantly on costs.
• On December 1, 2022, Honeywell announced the expansion of its strategic alliance with Nexceris, developer of Li-ion Tamer® lithium-ion gas detection solutions.  This is intended to help enhance the safety of electric vehicles (EVs). The firms are to co-develop sensor-based solutions that support preventing conditions leading to thermal runaway in EV batteries, a phenomenon that increases temperature levels of EV batteries, which can lead to causing a fire.