Physical Security Market

Global Physical Security Market:

The global physical security market size reached US$ 124.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 211.4 Billion by 2032, exhibiting a growth rate (CAGR) of 5.9% during 2024-2032. The rising security concerns among individuals, coupled with the emergence of video surveillance solutions for efficient monitoring of large areas, are primarily augmenting the physical security market across the globe.

Global Physical Security Market Analysis:

• Major Market Drivers: The growing incidences of theft and robbery are inflating awareness about physical security solutions in residential spaces, which is one of the key factors propelling the global market. Moreover, the increasing digitization and the inflating use of cloud-based data storage are also bolstering the physical security industry growth.
• Key Market Trends: One of the emerging trends in the physical security market is the introduction of advanced access control and video surveillance systems to prevent crime incidents, terrorism, and severe damage to individuals and infrastructures. Besides this, the increasing popularity of using smart fence sensors, mass notification systems (MNS), and drones for surveillance at major assemblies or events is also positively influencing the global market.
• Geographical Trends: According to the report, North America accounted for the largest market share. North America is a significant region in the physical security market, owing to several factors, including regulatory reforms by government bodies, the increasing investments by SMEs in physical security solutions, and economic growth.
• Competitive Landscape: Some of the leading players in the global physical security market include ADT LLC, Assa Abloy AB, Axis Communications AB (Canon Inc.), Cisco Systems Inc., Genetec Inc., Hangzhou Hikvision Digital Technology Co. Ltd. (China Electronics Technology Group Corporation), Honeywell International Inc., Johnson Controls International, Pelco Incorporated (Motorola Solutions Inc.), Robert Bosch GmbH (Robert Bosch Stiftung GmbH), Senstar Corporation, and Siemens AG and STANLEY Convergent Security Solutions Inc. (Stanley Black & Decker Inc.), among many others.
• Challenges and Opportunities: With the growing connectivity of physical security systems, there is a rising risk of cyberattacks on these systems, which could lead to breaches in physical security. This, in turn, is one of the key challenges in the global market. Additionally, the increasing budget constraints among organizations, as maintaining and upgrading physical security systems can be costly, are further hindering the market growth. However, key players are focusing on using novel advanced technologies and strategies to address current and future security threats, which will continue to augment the market growth over the forecasted period.
   

Global Physical Security Market Trends:

 Increasing Need for Advanced Security

The rising need for securing the physical environment from activities, including vandalism, potential burglaries, crime, theft, and fire incidences, is one of the primary factors augmenting the physical security market share. Besides this, the increasing concerns among organizations about employee safety are encouraging them to set up systems to prevent unauthorized access, thereby stimulating the demand for physical security solutions. The physical security environment continues to evolve globally. Apart from this, the shifting preferences from legacy solutions, such as alarm systems, door locks, and badge readers towards advanced logical security solutions, including threat management, intrusion prevention, breach detection, etc., as they aid organizations and government bodies to deter crime incidences and breach at a higher success rate, are acting as significant growth-inducing factors. For example, in September 2022, Axis Communications developed two multidirectional, dual-sensor cameras. They provide excellent wide-angle overviews and zoomed-in detailed coverage and were specifically designed for 24/7 operation in difficult lighting conditions.

Continuous Technological Advancements

The introduction of technological advancements is improving physical security solutions, which is creating a positive market outlook. For example, in August 2022, ADT and Uber partnered to integrate ADT's mobile safety solutions into the Uber app. The collaboration helped Uber users in the U.S. to contact ADT professional monitoring specialists via text or phone to receive live assistance. Moreover, with the integration of ADT's 24/7 professional monitoring, Safe by ADT helped to secure various gig economy employees and customers. It gave them access and assurance to emergency services when they needed them the most. In line with this, in March 2022, Edge360, a security solutions provider, partnered with Quanergy Systems, Inc., an AI-driven LiDAR platform. Additionally, the partnership enabled Edge360 to provide LiDAR-based video surveillance that supported business intelligence and physical security in financial sectors and residential buildings. As such, novel innovations in integrated video, sensors, and access systems for IoT-enabled devices are expected to propel the market growth in the coming years. Moreover, in September 2021, Intel Corporation stated that it used a software-based IoT platform to manage its virtual device and physical security access. Furthermore, this ensured that only authorized workers had physical access to the devices through keys or access credentials. Apart from this, regulations by government authorities are fueling the adoption of smart technologies and infrastructures. For example, government bodies in the UK have provided public funding and implemented regulatory changes and new legislation to introduce 5G connectivity and total fiber in the country.

Rising Investments by Regulatory Authorities

The rising focus of government bodies on strengthening their physical security across several countries to prevent the elevating threats is positively influencing the market growth. For example, in December 2021, Axis Communications, AB., a Sweden-based company that offers various services to private sectors, introduced its body-worn camera for the private security of government officials. In line with this, government bodies are focusing on upgrading their security defenses while staying within budget and working with legacy equipment. Furthermore, in February 2022, the Small Business Administration (SBA), a state government agency in the U.S. that helps small entrepreneurs and businesses, provided US$ 3 Million in funding to aid SMEs across the country to develop physical security infrastructures. The funding assisted them in securing their premises by protecting their resources and individuals.

Physical Security Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on component, enterprise size and industry vertical. 

Breakup by Component:

• System
• Services
   

System currently accounts for the majority of the global market share

The report has provided a detailed breakup and analysis of the market based on the component. This includes system and services. According to the report, system accounted for the largest market share.

Some of the common sub-segments of systems are video surveillance systems, perimeter intrusion detection and prevention, physical access control systems (PACS), physical security information management (PSIM), physical identity and access management (PIAM), fire and life safety plus. Besides this, the introduction of institutional and commercial infrastructures across numerous countries is escalating the demand for video surveillance, which, in turn, is fueling the growth of this segment. For example, in March 2022, Hexagon AB and Ouster Inc., which develops and manufacturers security systems, introduced a joint security solution, Ouster×Accur8vision, a video surveillance software for monitoring and protecting critical infrastructures, such as commercial buildings, crowded settings, residential properties, airports, etc. This enhanced existing security systems by adding a layer of awareness to detect future threats.

Breakup by Enterprise Size:

• Large Enterprises
• Small and Medium-sized Enterprises
   

Large enterprises exhibit clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprises and small and medium-sized enterprises. According to the report, large enterprises accounted for the largest market share.

Large enterprises are focusing on protecting their data from cyberattacks, thefts, and unauthorized access, which is propelling the demand for physical security solutions. Moreover, the growing prevalence of cyber threats that target businesses that store essential personal and sensitive information is also augmenting the market growth in this segment. According to the physical security industry statistics, in October 2021, Alert Enterprise Inc., a software development company and cyber-physical security provider, partnered with Bio Connect Inc., which is a prominent provider of biometric devices and technologies.

Breakup by Industry Vertical:

• Retail
• Transportation
• Residential
• IT and Telecom
• BFSI
• Government
• Others
   

Government sector holds the largest market share

The report has provided a detailed breakup and analysis of the market based on the industry vertical. This includes retail, transportation, residential, IT and telecom, BFSI, government, and others. According to the report, government represented the largest segment.

Government bodies across the globe are emphasizing on upgrading their security defenses while working with legacy equipment and staying within budget, owing to the changing and complex environment, which is propelling the market growth in the segment. For example, in July 2022, The European Commission, the European Union (EU), and the European Parliament agreed on a European guideline on critical entity resilience. This was done to protect essential providers of the process by enhancing their stability. Furthermore, according to IFSEC Global, a media production company based in London, the government in London provides consultation on how to regulate the use of construction products to ensure that fire protection is prioritized. New standards have been implemented to provide impartial advice on new guidance for construction products.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest physical security market share.

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America is a significant region in the physical security market. In line with this, numerous public transportation systems and facilities, such as railways, airports, seaports, bus stations, etc., are focusing on protecting their infrastructure through security layers, which will continue to drive the North America physical security market. For example, in January 2022, Allied Universal, a U.S.-based security provider company, acquired Norred & Associates Inc., (Allied Universal) a security firm. The acquisition enabled Allied Universal to provide a full range of security services to railways, bus stations, and airports in the region, including security consulting, manned guarding, investigation, pre-employment screening, etc.

Leading Key Players in the Physical Security Industry:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ADT LLC
• Assa Abloy AB
• Axis Communications AB (Canon Inc.)
• Cisco Systems Inc.
• Genetec Inc.
• Hangzhou Hikvision Digital Technology Co. Ltd. (China Electronics Technology Group Corporation)
• Honeywell International Inc.
• Johnson Controls International
• Pelco Incorporated (Motorola Solutions Inc.)
• Robert Bosch GmbH (Robert Bosch Stiftung GmbH)
• Senstar Corporation
• Siemens AG
• STANLEY Convergent Security Solutions Inc. (Stanley Black & Decker Inc.)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Physical Security Market News:

• February 2024: Rhombus, a leader in cloud-managed physical security, announced the securing of US$ 26 Million in equity investments co-led by Cota Capital and Tru Arrow and US$ 17 Million in debt financing from Silicon Valley Bank, with existing investors Uncorrelated Capital participating and Caden Capital.
• June 2023: Calif, a 3D LiDAR solution company, partnered with service-based systems integrator Convergint to provide enhanced physical security to the utility industry.

Physical Security Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the physical security market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global physical security market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the physical security industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.