Report Code: 10279 | Available Format: PDF
The global physical security market size was USD 109.1 billion (E) in 2023, and it will advance at a CAGR of 6.5% during 2023–2023, to reach USD 169.4 billion by 2030.
The market is primarily driven by the need to protect people from various threats, such as vandalism, burglaries, thefts, and fire. A recent article in Forbes estimates the number of annual home burglaries in the U.S. at over a million. Thus, the demand for security is expected to continue to rise with organizations and government agencies increasingly focusing on implementing advanced solutions to prevent and deal with such occurrences.
An essential factor driving the market growth is the rising spending on security to protect critical assets. Organizations are adopting cloud-based data storage solutions, advanced analytics, and AI and other technologies in access control and video surveillance systems to enhance their security measures. An example of the technological advancements in this space is the multidirectional, dual-sensor cameras launched by Axis Communications in September 2022. They are designed to operate in challenging lighting conditions and use deep learning to collect and analyze more data, thus improving emergency response.
Moreover, governments across different countries and regions are investing in smart city initiatives, thus leading to the deployment of improved security systems. Updating the present infrastructure with strong safety measures and offering government premises stronger security have become top priorities for developed countries. Organizations are also worried regarding worker safety and, are thus, installing systems to prevent illegal access.
The systems category dominates the industry in 2023, based on component. This is credited to the increasing rate of break-ins and other crimes at public and private buildings, which has made people more concerned for their safety. Additionally, the rising disposable income around the world is allowing customers to purchase integrated physical safety systems for offices, factories, and homes.
The video surveillance category is dominating the market, under the systems subsegment. These systems encompass various components, including monitors, analog cameras, video encoders, and storage. Their adoption has seen a surge in recent times due to technological improvements, including UHD video and IoT connectivity, as well as cost reductions. The primary driver behind their adoption is the need for enhanced remote monitoring and surveillance, in response to the growing concerns over safety and compliance with strict regulations.
The demand for video surveillance has been further fueled by the rapid development of commercial and institutional infrastructure in various regions. Hence, in March 2022, Hexagon AB and Ouster Inc. collaborated to launch Ouster×Accur8vision, a video surveillance software designed to safeguard residential properties, airports, commercial buildings, and crowded settings. This solution adds an extra layer of awareness to existing security systems, thus enabling the detection of potential threats well in advance.
The services category is projected to display robust development in the forecast period. The services offered by market players include system maintenance, integration & deployment, remote monitoring, and hardware and software upgrades.
Among these, system integration & deployment services witness a high demand, boosted by the emergence of new technologies, increase in clients’ focus on premises security, rise in the focus on regulatory compliance, and quick expansion of the commercial and industrial sectors.
Additionally, the fast infrastructure growth in developing countries and improvements in technologies such as facial recognition, AI, presence detection, and ML drive the demand for comprehensive physical security systems and the associated services.
The extensive utilization of cloud computing solutions, process automation, and a connected approach to business procedures across industries is expected to boost the deployment of integrated physical security solutions. Such hardware-and-software combinations connect to the mainframe of the company through IoT and wireless capabilities and control entry to zones with restricted access as well as the main premises. Moreover, to allow companies to save on IT expenses, the data gathered by these systems is stored on third-party servers.
For example, in February 2022, Tuchware, a company offering IoT-integrated physical safety and monitoring systems, introduced XS, a lock system with cloud storage.
The large enterprises category dominates the industry in 2023, as they have more-substantial infrastructure and vital data to guard and a larger spending capacity. Defending their data against thefts, unauthorized access, and cyberattacks impels these companies to deploy comprehensive physical security solutions.
Attacks on intellectual property are mostly aimed at businesses that store vital personal and public data. Such data can be stolen both remotely and at the site, thus resulting in monetary losses, compliance failure, and reputation damage. This is why multinational corporations, which have huge office and industrial premises to manage in many countries, are looking at these solutions.
In March 2021, Alert Enterprise Inc., a provider of cyber–physical security solutions, joined Bio Connect Inc. to introduce a cloud service policy-based access control (PBAC) system for large enterprises. The PBAC system connects to a cloud authorization service and allows businesses to create a dynamic permission framework for staff members to access restricted zones and protect their extremely important systems and documents from thefts.
The SMEs category is projected to experience substantial development during the forecast period. This can be credited to the ever-present environmental dangers and risk of thefts and intrusions, as small companies also have a lot of resources and individuals to protect. Moreover, many SMEs do not have robust security systems at their premises, for their lack of finances. Hence, IT vendors are offering systems that store data on the cloud, thus helping smaller firms save on their on-site hardware expenses.
Further, in 2022, U.S. Small Business Administration (SBA), a government agency that aids small industries and businesspersons, offered USD 3 million to aid SMEs across the country in implementing physical security infrastructure. Considering the surge in the count of attacks and unauthorized access at the premises of small businesses, such measures would support them in shielding their physical and digital assets, as well as employees.
The government category leads the market in 2023, under the end user segment. In an era where attacks on public premises are common, government agencies need to improve their security, while remaining within budget. In recent years, several government establishments have been targeted by miscreants and terrorists, such as an attack on a Pakistani military base in Baluchistan in July 2023 and another on an Indian military base in Bathinda in April.
The residential category is projected to experience considerable development during the forecast period because of the rising worth of damage to assets and resources during attacks and thefts. As per reports, although the number of home burglaries in the U.S. has come down significantly in recent years, the value of the goods stolen rose from USD 2,416 in 2017 to USD 2,926 in 2020. Therefore, people are arming their homes with video surveillance, intrusion detection, and smart access control systems.
Market Size in 2023
USD 109.1 Billion (E)
Revenue Forecast in 2030
USD 169.4 Billion
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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North America is the biggest industry in 2023, and it is projected to remain dominant throughout the projection period. The regional industry is boosted by the robust pace of economic development, stringent worker and data safety norms, and increasing expenditure by SMEs on intrusion detection solutions. Additionally, the region is home to some of the most-secretive military establishments, such as Area 51, and the largest BFSI sector in the world.
Moreover, the advancements in technologies, such as IoT, ML, AI, facial recognition, motion sensing, cloud computing, and presence detection, have allowed for the penetration of advanced physical security systems across sectors. In the same way, the U.S. has the largest number of data centers across the globe, and a proper identity & access management framework is vital at these places.
Over the forecast period, the market growth will likely be the fastest in APAC, as the crime rate is especially high in the major population centers of the region. India, Bangladesh, Afghanistan, and Pakistan are no strangers to terrorist attacks and communal tension, which lead to thousands of deaths each year. Hence, government and private bodies are installing high-resolution camera systems in public places, such as major roads and markets, to keep a track of everyday happenings and bring the culprits to justice.
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