The global physical security market generated $78 billion in 2016, and is expected to generate $153 billion by 2023, registering a CAGR of 10.3% over the period.
That’s according to the latest report from Allied Market Research, which says COVID-19, an increase in terrorism activities, surge in awareness regarding personal security, and technological advancements are driving the growth in the market.
However, it cautions that concerns regarding privacy and lack of physical & logical security integration could hinder the market growth. On the other hand, high demand in smart cities will create new opportunities in the coming years.
Specifically, it says the impact of the COVID-19 pandemic will be felt in the following ways:-
- The Covid-19 pandemic provided new growth opportunities as security measures have been implemented across various verticals to ensure business continuity during the post-lockdown period. The thermal cameras have been installed to detect the temperature of visitors and employees in commercial, industrial, and banking spaces.
- In residential spaces, building operators have been installing “Building Wellness” systems and various products to meet the new standards of safety for its residents.
- The demand for ACaaS and VSaaS services has grown significantly as customers want more value from their investments in the times of economic turbulence and investing less upfront capital expenditure.
Based on type, the Services segment contributed to the highest market share in terms of revenue in 2016, and will maintain its highest contribution throughout the forecast period. However, the system segment is projected to register the highest CAGR from 2017 to 2023.
Based on industry vertical, the education, healthcare, retail, energy & utilities, manufacturing & industrial segment collectively garnered the highest revenue share in 2016, and will maintain its dominance during the forecast period. However, the residential sector is estimated to witness the highest growth rate by 2023.
Based on region, North America is the largest supplier of physical security solutions across the world, and the U.S. leads the global market as compared to other countries. However, Asia-Pacific is expected to register a considerable growth throughout the forecast period. China leads the market in Asia-Pacific.
Top players of the global physical security market analyzed in the report include Anixter International Inc., Cisco Systems, Inc., Tyco International PLC., Stanley Security, ADT Corporation, Genetec Inc., Bosch Security Systems, Inc., Honeywell International, Inc., and Senstar Corporation.