Physical Security Market Analysis Report By Component, By Systems, By Services, By End Use, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The physical security market size across the globe was valued at USD 102.9 billion in 2019. It is projected to witness a CAGR of 6.5% over the forecasted years, 2020 to 2027. The increasing need for ensuring the safety and security of corporate offices, educational institutions, public places, and residential complexes is driving the need for market growth of physical security.

A majority of industries like banks, retail, hospitality, and transportation are facing security challenges due to the rising number of thefts and breaches. Also, failure in the manually operated security systems can result in heavy data and monetary loss. These factors are projected to upsurge the need for technologically advanced physical security solutions across the globe.      

Several governments across the globe are ensuring to strengthen their security of infrastructure for curbing the number of threats. However, small organizations cannot afford expensive security solutions. Thus, the cost incurred in the deployment of these physical security solutions is hindering market growth. To overcome this drawback, the key players have started developing cost-effective solutions that can be operated remotely.

Component Insights

The market can be segmented into services and systems based on component type. The segment of systems is projected to account for the highest share across the global market. This can be associated with the surging need for systems of video surveillance across the residential sector. Moreover, its usage for the detection of security breaches coupled is also expected to propel market growth.

The segment of services is projected to witness a 6.5% CAGR over the forecasted period. This can be associated with the rising need for maintenance and deployment of software and equipment for enhancing operational performance. Moreover, advances in terms of technology like UHD (Ultra High Definition) surveillance are expected to further fuel up the market growth for the service segment.

Systems Insights

The global physical security market can be segmented into intrusion detection, video surveillance, exterior security systems, and access controls based on system type. In 2019, the video surveillance segment held the largest share of around 45.0% across the global market. This can be associated with rapid technological advances and reduced equipment costs.

The segment of access control is projected to register the fastest growth from 2020 to 2027. This can be attributed to the rising demand for access controls over mobile phones coupled with the need for developing technologically advanced security architecture. Also, rapid automation, industrialization, and the increasing number of attacks, threats are contributing majorly towards the market growth of this segment.

Services Insights

The market can be classified into remote monitoring, system integration, and others based on services provided. The segment of system integration held a share of around 48.0% across the global market in 2019. This can be associated with the rapid technological advances, shifting trend among consumers over the adoption of security solutions, rising demand for security hardware with lower prices, and regulatory compliance standards prevailing across the globe.

Rapidly increasing usage of cloud technologies across several organizations coupled with the rising need for automation of business processes are expected to boost the usage of integrated security solutions. For example, smart door locks making use of IoT technology, that can be operated on mobile phones are gaining traction across the globe.

End-use Insights

The global physical security market can be segmented into government, transportation, banking & finance, residential, utility & energy, manufacturing & industrial, hospitality, commercial, retail, and others based on its end-use. The residential segment is expected to witness the fastest growth with a CAGR of 7.4% over the forecasted period. This can be attributed to the surging number of breaches and damages to resources and assets. Moreover, the emergence of smart systems like access controls, video surveillance, and intrusion detection are projected to fuel up the market growth.

Rapid technological advances such as the emergence of IoT and rising awareness about thefts and cyber-attacks are driving the need for such solutions across the banking & finance sector. The segment of transportation is expected to register second-highest growth in the upcoming years on account of the surging need for crowd monitoring, surveillance, and visualizing traffic congestions.

Regional Insights

In 2019, North America accounted for the largest share across the global market. It is also anticipated to register substantial growth over the forecasted period. This can be attributed to the regulatory reforms, rapid economic growth, and huge investments by many SMEs for developing solutions for their physical security. Moreover, the need for safeguarding public places like railways, bus stations, airports, and seaports is expected to propel the demand for physical security.

The Asia Pacific is anticipated to witness the fastest growth from 2020 to 2027. This can be associated with the surging need for smart solutions for enhancing security across countries like China and India. Also, huge investments are undertaken by the Chinese government for improving traffic monitoring and city surveillance is projected to drive market growth.

COVID-19 Impact Insights

The global market has been affected positively due to the ongoing COVID-19 pandemic. Rising concerns about security breaches and theft threats on account of increasing unemployment due to pandemics are driving the need for ensuring physical security. Also, abandoned warehouses and governmental institutions due to the imposition of lockdown are assumed to face security breaches. These factors are driving the need for physical security solutions. Moreover, rapid technological advances like the usage of IoT for the development of smart security devices are anticipated to drive market growth over the post-pandemic period.

Physical Security Market Share Insights

The key players in the market are Honeywell International, Inc.; Pelco; Genetec Inc.; ADT LLC; Axis Communications AB; Robert Bosch GmbH; and Genetec Inc. These players are developing many diverse solutions for ensuring the safety and security of their customers.

They are also engaged in developing strategic alliances, acquisitions, and mergers to widen their product portfolio and geographical reach. For example, Flir Inc. gained acquisition over Point Grey Research and merger with Johnson Controls. Huge investments for carrying out R&D activities are also being undertaken by these players.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For this study, Million Insights has segmented the global physical security market based on component, systems, services, end-user, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2027)
    • Systems
    • Services

• Systems Outlook (Revenue, USD Billion, 2016 - 2027)
    • Video Surveillance
    • Intrusion Detection
    • Access Control
    • Exterior Security Systems

• Services Outlook (Revenue, USD Billion, 2016 - 2027)
    • System Integration
    • Remote Monitoring
    • Others

• End-use Outlook (Revenue, USD Billion, 2016 - 2027)
    • Transportation
    • Government
    • Banking & Finance
    • Utility & Energy
    • Residential
    • Manufacturing & Industrial
    • Retail
    • Commercial
    • Hospitality
    • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
    • North America
        • The U.S.
        • Canada
    • Europe
        • The U.K.
        • Germany
        • France
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
        • Mexico
    • Middle East & Africa