Global Physical Security Market in the Retail Sector 2016-2020

This industry research report identifies Axis Communications, Bosch, Checkpoint Systems, Crossmatch, Honeywell, and Tyco Security as the key vendors in the global physical security market in the retail sector. This report also presents a competitive analysis of the physical security market share by type (EAS, video surveillance, and access control and intruder alarm system) and by geography (the Americas, APAC, and EMEA).

Overview of the global physical security market in the retail sector

Market research analysts at Technavio have predicted that the global physical security market size in the retail sector will grow steadily at a CAGR of more than 6% by 2020. Retail shrinkage is the loss of a store's inventory and occurs due to several reasons such as employee theft, shoplifting, supply chain theft, and administrative errors. The recent years have witnessed a considerable increase in the level of retail shrinkage, and shoplifting has been identified as the biggest cause of retail shrinkage in most countries. This will induce retailers to adopt various strategies to approach losses from a wider perspective from all levels within the organization. Since physical security solutions such as EAS, intruder alarms, and surveillance systems help to control the inflow and outflow of products and enable reduced retail shrinkage, there will be an increase in the demand for physical security systems in the coming years.

This market research identifies the emergence of thermal cameras as one of the major physical security market trends gaining traction in the coming years. Thermal cameras use infrared radiation to capture images and are heat and water-resistant, which makes them ideal for monitoring large-scale or unique outdoor environments. Moreover, increased government grants for the purchase of efficient surveillance equipment will also increase the demand for thermal cameras as they are an excellent addition to complete physical security systems.

Competitive landscape and key vendors

This market is characterized by the presence of several large- and small-scale vendors who compete with each other to gain a considerable share of the market. In this market, the security system providers focus on delivering innovative retail security solutions with high efficiency, as it will result in the development and introduction of innovative retail security systems. To sustain the level of competition and to retain their share of the market, vendors are trying to provide customized security services to retailers. Major physical security companies have also started following M&A strategies and acquire small companies to increase their product portfolio.

Some of the leading vendors in the physical security market are -

• Axis Communications
• Bosch Security Systems
• Checkpoint Systems
• Crossmatch
• Honeywell Security
• Tyco Security

The other prominent vendors in the physical security market are ADT, A2 Systems, ALL-TAG Security Americas, Assa Abloy, AxxonSoft, Genetec, Hikvision Digital, Impinj, Ketec, Moonblink, Nedap, Panasonic, Salient Systems, Schneider Electric, Siemens, and VideoNEXT.

Segmentation by type and analysis of the physical security market in the retail sector

• Access control and intruder alarm system
• EAS (electronic article surveillance)
• Video surveillance

According to this market study, the video surveillance market segment will continue its dominance in the market throughout the forecast period and will post an impressive revenue of more than USD 2 billion by 2020.  The demand for video surveillance has induced vendors to introduce products that provide HDTV image quality both in real-time and recordings and also combines video surveillance with intelligent video functions and analytic tools. Since these devices enable efficient loss prevention in retail stores, in merchandising, and other store operations, there will be a constant demand for video surveillance equipment in the coming years.

Geographical segmentation and analysis of the physical security market in the retail sector

• Americas
• APAC
• EMEA

This market study estimates that in terms of geography, the Americas will account for more than 46% shares of the physical security market in the retail sector by 2020 and will also dominate this market throughout the forecast period. The increased demand for security solutions will mainly attribute to the growth in the number of retail stores and facilities in the region, as per the physical security market report.

Key questions answered in the report include

• What will the physical security market size and the growth rate be in 2020?
• What are the key factors driving the global physical security market in the retail sector?
• What are the key market trends impacting the growth of the global physical security market in the retail sector?
• What are the challenges to the physical security market growth?
• Who are the key vendors in the global physical security market in the retail sector?
• What are the market opportunities and threats faced by the vendors in the global physical security market in the retail sector?
• Trending factors influencing the physical security market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global physical security market in the retail sector?

Technavio also offers customization on reports based on specific client requirement.

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