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The physical security market size is estimated to grow at a CAGR of 6.85% between 2022 and 2027. The market size is forecast to increase by USD 46.29 billion. The growth of the market depends on several factors, including increasing concerns about terrorism and crime, high adoption of physical security across all business segments, and increasing demand in smart cities.
This physical security market 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 includes historic market data from 2017 to 2021.
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The increasing concerns about terrorism and crime are notably driving the market growth, although factors such as high initial investment may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing concerns about terrorism and crime are notably driving the market growth. Governments, companies, and individuals are all looking for ways to protect their resources, property, and people as global terrorism and crime have increased. A wide variety of goods and services are available in the market that is intended to stop unauthorized access, identify and stop threats, and deal with security incidents. Systems for perimeter security, intrusion detection, access control, video surveillance, and more are among the goods and services offered.
In addition to terrorism and criminal activity, other factors such as increased security awareness, technological advancements, and rising demand for cloud-based and integrated security solutions are propelling the growth of the global market. As a result, the demand for comprehensive and dependable security solutions in a world that is getting more complex and interconnected is expected to fuel the growth of the market during the forecast period.
The increasing demand for UHD video surveillance is an emerging trend in the market growth. With the advent of 4K video surveillance cameras, UHD video surveillance and security monitoring are anticipated to become popular choices. Additionally, it meets the demand for more storage space. It has a feature that can record continuously, which is similar to a conventional high-definition (HD) camera. However, this camera's average daily storage capacity for a 1080p recording at 15 frames per second (FPS) is 45 GB. Compared to a conventional closed-circuit television (CCTV) camera, this has nearly twice the bandwidth and storage capacity.
Physical security is more important because they have better processing capabilities, connection options, and support services. During the forecast period, this is anticipated to contribute to better monitoring of the business's premises. Thus, the increasing demand for UHD video surveillance is expected to help in the growth of the market during the forecast period.
The high initial investment is a major challenge impeding the market growth. Some businesses find it challenging to bear the initial cost of an IT infrastructure investment, which can reach tens of thousands of dollars. As a result, the industry has seen fewer new entrants. The amount spent on reputable vendors is also sharply rising. Additionally, the cost of replacing and upgrading software and physical security equipment is very high.
Furthermore, the growing demand for up-to-date professional expertise would result from the emergence of numerous new physical security technologies. Organizations spend a lot of money training employees if they lack professional expertise. Additionally, because there are few professionals who are proficient in new technologies, hiring them would be expensive for organizations. Hence, such factors will hinder the growth of the market during the forecast period.
The 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 Customer Landscape
Vendors 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.
Genetec Inc. - The company offers network security, cloud security, security operation, zero trust access networking, and communications security-as-a-service. The key offerings of the company include antivirus software which is designed to provide malware, ransomware and phishing protection in PC and laptops.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the hardware and software segment will be significant during the forecast period. Hardware includes various physical security items like alarms, access control systems, surveillance cameras, and more. These items are made to improve physical security measures, offer ongoing monitoring, and defend against potential dangers. The software includes a number of security options, including software for access control and video management. These solutions offer advanced analytics and reporting capabilities in addition to managing and watching over hardware devices.
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The hardware and software segment was valued at USD 86.31 billion in 2017 and continued to grow until 2021. A complete physical security system must include both hardware and software. The system's foundation is provided by the hardware, and advanced functionality and management abilities are added by the software. As a result, they collectively offer a comprehensive solution for ensuring the security and safety of people, assets, and properties, which is anticipated to propel the segment's growth during the forecast period.
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North America is estimated to contribute 32% 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.
North America will have the largest revenue share in the global market, with the US leading the region's contribution, followed by Canada during the forecast period. The North American market covers a wide range of industries, including government, military, law enforcement, commercial, and residential, and offers a variety of goods and services to safeguard people, assets, and property. Factors like increased demand for video surveillance systems, rising adoption of smart home technology, and increased focus on cybersecurity will drive the growth of the regional market during the forecast period.
The outbreak of the COVID-19 pandemic hampered the growth of the regional market in 2020. However, the successful COVID-19 vaccination drives conducted by governments across the region and the resumption of industrial activities stabilized the growth of the market in 2021. Furthermore, the introduction of technologically advanced physical security solutions and the high adoption of physical security across all business segments are expected to augment the growth of the market in the region during the forecast period.
The physical security 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.
Technavio categorizes the global physical security market as a part of the global IT consulting and other services market within the global IT services market. The parent global IT services market cover companies offering IT consulting and system integration services, application services, electronic data processing services, business process outsourcing services, infrastructure services, and Internet services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Physical Security Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.85% |
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Market growth 2023-2027 |
USD 46.29 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.0 |
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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 32% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Allied Universal, 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., ICTS International NV, Johnson Controls International Plc, KBR Inc., Motorola Solutions Inc., NEC Corp., Robert Bosch GmbH, Schneider Electric SE, Securitas AB, Stanley Black and Decker Inc., WESCO International Inc., Zhejiang Dahua Technology Co. Ltd., and Kastle Systems International LLC |
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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, Market condition analysis for the forecast period. |
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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 in touch
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 Trends
11 Vendor Landscape
12 Vendor 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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