The global physical security market size is expected to grow from $84.2 billion in 2018 to $120.3 billion by 2025, equivalent to a Compound Annual Growth Rate (CAGR) of 5.2% during the forecast period.
A new report from ResearchandMarkets says rising incidents of terror attacks, technological advancements and deployment of wireless technology in security systems, and increasing use of Internet Protocol (IP)-based cameras for video surveillance are expected to drive the overall growth of the physical security market across the globe.
However, violation of privacy related to physical security systems and services is expected to restrict the growth of the market.
The Services segment is projected to lead the physical security market during the forecast period. The reports says Physical security services play a vital role in enhancing the existing video surveillance system by integrating digital video surveillance with network and IT systems.
This integration enhances property safety and reduces loss from thefts. Moreover, the service segment is being continuously affected by the introduction of the integrated Social, Mobile, Analytics, and Cloud (SMAC) solutions, which need proper monitoring.
Based on organization size, the Large Enterprises segment is expected to lead the physical security market in 2020. These enterprises were the early adopters of physical security solutions and services, as they have a larger revenue pool to spend and a larger infrastructure to be protected. High spending on security, followed by the high need for securing large assets is leading large enterprises to contribute to a higher market share in the physical security market.
Meanwhile, business and recreational travellers demand safe and secure hotel accommodation with responsive and friendly customer service. Hence, the Residential segment faces the challenge to manage security without violating the privacy of their guests, comfort, and travel experiences.
In residential premises, the implementation of access control and video surveillance security systems is growing. The residential properties are installing access control systems to prevent invasion and burglary. There is also an increasing demand for access control systems. Residential properties are increasingly adopting electronic lock-based access control systems. The demand for electronic products is growing with the increased home automation trend.
Overall, the APAC physical security market is projected to grow at the highest CAGR during the forecast period. This growth is primarily driven by the rising adoption of access control systems in Small and Medium-sized Enterprises (SMEs), hospitality businesses, airports, ATMs, banks, residential buildings, and religious places, among others are expected to drive the physical security market.
Security systems are expected to witness increasing adoption in APAC as the countries in the region are emerging economies with a growing number of manufacturing bases, and there is also a constant risk of terror threats in the region.