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The physical security market size is forecast to increase by USD 48.6 billion at a CAGR of 6.79% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Primarily, heightened concerns over terrorism and crime have led businesses and governments to prioritize security measures. Furthermore, the widespread adoption of physical security solutions across various business sectors is fueling market expansion. Access control, video surveillance, and legacy solutions such as badge readers and alarm systems are integral parts of this infrastructure. Smart city initiatives and infrastructure projects prioritize employee safety and security, necessitating the adoption of advanced physical security systems. Additionally, the development of smart cities is creating a substantial demand for advanced security technologies. These trends are expected to continue, making the physical security market a crucial and dynamic sector in the coming years.
The market encompasses various solutions designed to safeguard both digital and physical assets from potential threats. These include vandalism, burglaries, theft, and fire incidences. Technological developments have led to advanced analytics and access control systems, such as badge readers and alarm systems, which enhance security measures. Cloud-based data storages and integrated sensors enable real-time monitoring and breach detection, while threat management and intrusion prevention systems ensure unauthorized access is minimized. Advanced logical security and connectivity solutions protect system segments from cyberattacks. Physical objects, including door locks and analog cameras, are essential components of comprehensive security systems. Smart city initiatives leverage these technologies to ensure employee safety and infrastructure protection. Video surveillance and breach detection systems are crucial for maintaining security in various industries and sectors.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The hardware and software segment is estimated to witness significant growth during the forecast period. The market encompasses video surveillance, access control, and perimeter security against potential burglaries, vandalism, and fire incidences. The system segment, which includes hardware and software, dominates the market due to substantial investments in advanced technological developments, such as cloud-based data storages, advanced analytics, and connectivity. End-users require separate hardware components, including surveillance cameras, intruder alarm systems, and fire alarm systems, to safeguard their premises. Retailers are increasingly investing in electronic article surveillance systems to mitigate theft and improve inventory management. Advanced logical security solutions, like badge readers, door locks, and alarm systems, offer enhanced access control and threat management. Technological advancements include intrusion prevention, breach detection, and threat management systems, ensuring the safety of rescuers and employees.
Furthermore, smart city initiatives and infrastructure development necessitate integrated sensors, video, and access systems. The large enterprise segment faces cyber threats, necessitating advanced security measures, while SMEs require cost-effective solutions. The market is witnessing a shift towards remote monitoring and integrated storage solutions, including analog cameras, Axis network cameras, video encoders, monitors, and storage solutions.
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The hardware and software segment accounted for USD 89.80 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 31% 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.
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The market in North America is characterized by the protection of vital assets and resources, driven by the adoption of advanced technologies such as IoT and smart homes. Banking institutions and other critical infrastructure are major sectors investing in surveillance systems to mitigate risks from traffic congestion, monitoring crowds, and preventing accidents or terror attacks. Innovations like LiDAR-based video surveillance, Edge360, and solutions provided by Quanergy Systems, Inc, are revolutionizing the industry. Smart locks and Bluetooth-enabled access control systems are also gaining popularity in both residential and commercial applications. Despite population growth and employment challenges, the North American market is expected to continue its steady revenue growth, underpinned by the demand for enhanced security solutions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in development of physical security system is the key driver of the market. The market is experiencing significant growth due to escalating concerns over vandalism, potential burglaries, and theft, as well as fire incidences. Cloud-based data storages and advanced analytics are becoming increasingly popular, driven by technological developments and the need for more sophisticated security solutions. Access control, video surveillance, and intrusion detection systems are essential components of this market, with legacy solutions such as badge readers and alarm systems continuing to play a role. Advanced logical security, breach detection, and threat management systems are also in high demand to prevent unauthorized access and security breaches. Rescuers and smart city initiatives are also driving the market, with infrastructure protection and employee safety being key concerns.
Furthermore, integrated sensors, video, and access systems are becoming more common in the system segment, which includes analog cameras, Axis network cameras, video encoders, monitors, and storage solutions. Remote monitoring is also gaining popularity, particularly in the large enterprise segment, where cyber threats are a major concern. SMEs are also investing in physical security solutions to protect against theft and intruders, making this a diverse and dynamic market. Connectivity and physical object security are also important considerations, with the integration of various technologies and systems playing a crucial role in enhancing overall security.
Integration of IoT in physical security is the upcoming trend in the market. The market encompasses a variety of solutions designed to safeguard against vandalism, potential burglaries, theft, and fire incidences. Technological developments have led to advancements in access control systems, including cloud-based data storages and advanced analytics. These innovations enable real-time threat management through intrusion prevention, breach detection, and unauthorized access protection. Physical security solutions include video surveillance systems, which utilize integrated sensors and access systems to transmit video feeds remotely for real-time monitoring. The system segment consists of components such as analog cameras, Axis network cameras, video encoders, monitors, and storage solutions. Large enterprises and critical infrastructure, such as waste management plants, energy plants, and water management facilities, are significant contributors to the market's growth.
Furthermore, these entities prioritize employee safety and invest in advanced logical security measures, including access control systems and advanced alarm systems, such as door locks and badge readers. Smaller businesses, or SMEs, also recognize the importance of physical security, particularly against theft and intruders. However, they may face unique challenges, such as cyber threats, which require a comprehensive approach to security that integrates both physical and logical measures. The increasing adoption of smart city initiatives and the Internet of Things (IoT) in infrastructure development further expands the market's potential. IoT connects physical objects, enabling real-time data collection and analysis, which is crucial for effective threat management and response. Despite these advancements, the market remains vigilant against evolving threats, ensuring the safety of rescuers, employees, and infrastructure.
High initial investment in physical security system is a key challenge affecting the market growth. In the market, the implementation of advanced technologies and solutions is essential to mitigate risks such as vandalism, potential burglaries, theft, and fire incidences. However, the initial investment required for IT infrastructure can be substantial, reaching up to tens of thousands of dollars for components like cloud-based data storages, advanced analytics, and technological developments. Moreover, the replacement and upgrades of physical security devices and software also necessitate significant spending. With the emergence of new physical security technologies, the demand for updated professional expertise is increasing.
Furthermore, these developments include advanced logical security features like breach detection, threat management, and intrusion prevention. However, the large enterprise segment faces cyber threats, while SMEs grapple with the cost of implementing these solutions. Theft and unauthorized access are constant concerns, making connectivity and physical object security crucial. Integrated sensors, video, and access systems are becoming increasingly common in modern security systems. The system segment includes components like analog cameras, Axis network cameras, video encoders, monitors, and storage solutions. Remote monitoring and large enterprise segment solutions require strong connectivity and advanced capabilities like real-time threat detection and response. In conclusion, the market is undergoing significant technological advancements, necessitating substantial investments in IT infrastructure, upgrades, and expertise. These developments aim to address concerns related to vandalism, potential burglaries, theft, fire incidences, cyber threats, and unauthorized access.
The market forecasting 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 market growth analysis strategies.
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.
Allied Universal - The company offers physical security such as Perimeter protection, Perimeter detection, Fenceline hardening, Mechanical security.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Physical security refers to the protective measures implemented to secure a building or facility from unauthorized access, theft, vandalism, or damage. The market encompasses various products and services, including access control systems, surveillance cameras, intrusion detection systems, and security consulting services. These solutions aim to provide a secure environment for people and assets. The demand for physical security solutions is driven by the increasing concerns over security threats and the need to protect critical infrastructure. The market is witnessing significant growth due to the integration of advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) in security systems.
Moreover, the increasing adoption of cloud-based security solutions and the rising trend of remote work are also contributing to the market's growth. The market is segmented based on components, applications, and end-users. Access control systems and surveillance cameras are the most commonly used physical security solutions across various industries. The market caters to various end-users, including BFSI, healthcare, government, retail, and education sectors. The market is expected to continue its growth trajectory due to the increasing focus on enhancing security measures and the rising security threats.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.79% |
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Market growth 2024-2028 |
USD 48.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.24 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 31% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Advancis Software and Services GmbH, Allied Universal, AxxonSoft, Canon Inc., Cisco Systems Inc., Corps Security UK Ltd., Genetec Inc., Hangzhou Hikvision Digital Technology Co. Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., ICTS International NV, Johnson Controls International Plc., Kastle Systems International LLC, KBR Inc., Motorola Solutions Inc., NEC Corp., Robert Bosch GmbH, Schneider Electric SE, Securitas AB, Stanley Black and Decker Inc., WESCO International Inc., and Dahua Technology Co. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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