Enjoy complimentary customisation on priority with our Enterprise License!
The physical security market size in the retail sector is estimated to grow at a CAGR of 7.15% between 2022 and 2027. The market size is forecast to increase by USD 4,846.45 million. The growth of the market depends on several factors, including the increasing incidents of theft, the consumer demand for safe shopping environments, and the rising concerns about employee safety. Physical security in the retail sector refers to the comprehensive measures, strategies, and technologies implemented to safeguard the physical assets, premises, and personnel of retail establishments from various threats, risks, and unauthorized access. Physical security in the retail sector involves the deployment of both traditional and advanced security measures.
This physical security market in the retail sector report extensively covers market segmentation by type (hardware and software, and services), end-user (large enterprises and SMEs), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
The increasing incidents of theft are driving physical security market growth. The escalating incidents of theft have emerged as a potent market driver propelling the growth of the global physical security market within the retail sector. Retailers are actively investing in cutting-edge surveillance systems equipped with sophisticated video analytics.
Moreover, the physical perimeters and sensitive areas are ensured by the inclusion of access control systems and intrusion detection technologies within retail establishments, limiting unauthorized access and deterring potential criminals. The expansion of e-commerce and omnichannel retailing has further exacerbated theft-related concerns. Few are expected to drive the growth of the global physical security market in the retail sector during the forecast period.
The increasing adoption of video surveillance is a key trend in the physical security market. Retailers appreciate the multifarious benefits of video surveillance systems for ensuring their own safeguarding. With the rapid advancements in camera technology, including high-definition (HD) and ultra-HD resolutions, retailers can achieve unparalleled clarity and detail in their video feeds.
Moreover, the widespread adoption of IoT technology has contributed to the expansion of video surveillance capabilities. Remote monitoring, which enables retailers to gain real-time access to video streams and alerts, is also facilitated by cloud-based solutions, enhancing their ability to respond swiftly to emerging situations. Such factors are expected to drive the physical security market growth in the retail sector during the forecast period.
The high cost of physical security solutions is a major challenge in the physical security market. In the retail sector, a significant challenge to the worldwide market for security systems is the large cost of solutions in this area. The expense associated with acquiring and installing state-of-the-art security equipment is a primary concern for retailers, particularly for small- and medium-sized businesses operating on tight budgets.
Moreover, the cost factor can also deter retailers from adopting cutting-edge security technologies, limiting their ability to stay ahead of evolving threats and vulnerabilities. As a result, in the retail sector, there is a gap in security capabilities, potentially leaving some businesses more susceptible to risks than others. Such factors are expected to hinder the growth of the global physical security market in the retail sector during the forecast period.
The market share growth by the hardware and software segment will be significant during the forecast period. The hardware and software segments of the global physical security market in the retail sector play a crucial role in protecting assets, improving operational efficiency, and ensuring the safety of both employees and customers.
Get a glance at the market contribution of various segments View Free PDF Sample
The hardware and software segment showed a gradual increase in the market share of USD 8,636.69 million in 2017 and continued to grow by 2021. In the hardware segment, various physical security components are employed to create a robust protection framework for retail establishments. Increasing demand for integrated safety solutions that can be linked and manage various devices and systems seamlessly drives the adoption of software platforms that offer unified management and monitoring.
Large enterprises in the retail sector implement comprehensive security strategies that integrate various physical security measures. These include surveillance systems, access control, intrusion detection, and alarm systems to create multi-layered defenses against potential threats. The large enterprise segment prioritizes loss prevention and asset protection as essential objectives. The primary concern of big retail enterprises is the security of their customers. A safe shopping environment, building confidence, and increasing customer loyalty are contributed by strategically installed surveillance cameras and well-designed access control systems. Physical security solutions extend to employee protection. Physical security solutions offer scalability and centralized management, ensuring consistent security protocols are applied across the entire network. Few factors are expected to drive the growth of the large enterprise segment of the global physical security market in the retail sector during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The physical security market in the retail sector in North America is a dynamic and influential force that shapes the safety and protection strategies of retail establishments across the region. North America is home to a plethora of leading physical security companies specializing in retail solutions.
Moreover, the adoption of cutting-edge technologies is a hallmark of the North American region. The integration of Internet of Things devices and artificial intelligence into physical security systems is at the forefront in North America. This integration allows real-time monitoring, threat detection, and transformational analysis to be performed. With the rise of e-commerce, the segment also focuses on securing online transactions, customer data, and the logistics involved in online order fulfillment. Such factors are expected to drive the growth of the regional physical security market in the retail sector during the forecast period.
The COVID-19 pandemic had both positive and negative impacts on the regional physical security market in the retail sector in 2020. However, with the initiation of vaccination drives in 2021, the physical security market in the retail sector in North America began a steady recovery. Retailers resumed their business, using a hybrid model of in-store and online shopping as the efforts to vaccinate grew more intense and restrictions eased. The recovery was marked by a renewed focus on technology-driven security solutions that not only ensured safety but also enhanced the overall shopping experience. Such factors are expected to drive the growth of the regional physical security market in the retail sector during the forecast period.
The Physical Security Market in the Retail Sector report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Physical Security Market in the Retail Sector Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cisco Systems Inc.- The company offers physical security such as video surveillance, access control, and intrusion prevention systems.
Corps of Commissionaires Management Ltd.- The company offers physical security such as manned guarding, access control, and security consulting.
Genetec Inc.- The company offers physical security such as video management systems, access control, and license plate recognition.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The physical security market in the retail sector market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Physical Security Market In The Retail Sector Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.15% |
Market growth 2023-2027 |
USD 4,846.45 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.91 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East, and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADT Inc., Allied Universal, ASSA ABLOY AB, Canon Inc., Cisco Systems Inc., Corps of Commissionaires Management Ltd., Genetec Inc., Hangzhou Hikvision Digital Technology Co. Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., Johnson Controls International Plc, Kastle Systems International LLC, KBR Inc., Motorola Solutions Inc., Robert Bosch GmbH, SECOM Plc, Securitas AB, Stanley Black and Decker Inc., WESCO International Inc., and Zhejiang Dahua Technology Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.