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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 growth of the market depends on several factors, including increasing concerns about terrorism and crime, high adoption of physical protection across all business segments, and increasing demand in smart cities. The market refers to the industry that designs, implements, and maintains physical safety measures to protect people, assets, and information from physical threats such as theft and other criminal activities. Physical protection solutions include video surveillance systems, access control systems, perimeter intrusion detection systems, and other related technologies. The market encompasses a range of industries, including government and public safety, military and defense, transportation and logistics, retail, banking and finance, and others. It is driven by the increasing demand for advanced protection solutions and is expected to continue to grow as protection threats continue to evolve and become more complex, leading to an increased demand for innovative and effective protection solutions in the forecast period.
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The market is driven by escalating concerns over vandalism, potential burglaries, and fire incidences, prompting the adoption of advanced security measures. Cloud-based data storages and technological developments offer enhanced surveillance capabilities, while legacy solutions are gradually being replaced by more robust systems. Badge readers, alarm systems, and door locks are integral components, bolstering physical protection alongside advanced logical security measures like breach detection and threat management. However, challenges persist, including security breaches, the complexity of IoT connectivity, and the integration of diverse physical objects with integrated sensors and access systems.
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.
Moreover, it 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 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 market research report includes the adoption lifecycle of the market research and growth, 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 and forecasting strategies.
Customer Landscape
Physical Security encompasses various measures and technologies designed to protect physical assets, premises, and individuals from threats such as vandalism, burglaries, and fire incidents. With the advent of technological developments, traditional security solutions have evolved to include cloud-based data storage, advanced logical security, and integrated sensors. Organizations and government agencies invest in physical protection solutions like badge readers, alarm systems, and door locks to ensure employee safety and prevent security breaches. Smart city initiatives leverage Internet of Things (IoT) connectivity and access systems to enhance threat management and intrusion prevention. Fire and life safety systems, along with surveillance tools like analog and network cameras, form integral components of physical security strategies.
The market share growth by the hardware and software segment will be significant during the forecast period. Hardware includes various 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 89.80 billion in 2018 and continued to grow until 2022. 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.
Based on the end-user, the large enterprises segment holds the largest share. The demand for physical security solutions in large enterprises is expected to grow in the coming years as organizations become increasingly aware of the importance of protecting their assets and data. Hence, the market is also driven by the need for compliance with regulatory standards and the adoption of advanced technologies, such as cloud-based solutions and artificial intelligence, which is expected to drive the growth of the segment in the forecast period.
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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. 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.
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.
NEC- The company offers antivirus software which is designed to automatic scan software, files and apps in order to protect system from any sort of malware.
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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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Physical Security solutions are crucial for organizations, government agencies, and even individuals to safeguard against various threats. This market segment encompasses a wide array of technologies and systems, including analog cameras, Axis network cameras, video encoders, and monitors, complemented by storage solutions for footage retention. Remote monitoring capabilities allow for real-time surveillance, catering to the needs of large enterprises, SMEs, and even smart homes. In addition to traditional security concerns like intruders and burglaries, it addresses emerging threats such as cyber attacks and terrorism. Innovative technologies like LiDAR-based video surveillance and Smart locks, including Bluetooth-enabled options, offer advanced protection measures against evolving risks, ensuring safety and security in diverse environments.
Further, these solutions cater to a broad spectrum of entities and scenarios, from organization and government agencies to large enterprises and SMEs, even extending to critical sectors like banking institutions. This market segment addresses various concerns, including cyber threats, traffic congestion, accidents, and potential terror attacks. Innovative technologies such as Edge360 and solutions from companies like Quanergy Systems, Inc., offer advanced surveillance capabilities for monitoring crowds and enhancing overall security. Moreover, the integration of Smart lock systems with Bluetooth technology adds an extra layer of protection, ensuring secure access control and bolstering safety measures across diverse environments.
Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.79% |
Market growth 2023-2027 |
USD 48.6 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
6.0 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 32% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, market growth analysis, Market forecasting, market report, market forecast Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
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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
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