The potential growth difference for the physical security market between 2021 and 2026 is $62.75 billion, as per the latest market analysis report by Technavio.
The market is anticipated to witness an accelerating growth momentum at a CAGR of 9.4%. The analysts at Technavio have categorised the global physical security market as a part of the global IT consulting and other services market within the global IT services market.
The report provides extensive information on the value chain analysis for the physical security market, which vendors can leverage to gain a competitive advantage during the forecast period.
- Increasing concerns about terrorism and crime to boost the market growth
Modern cities are exposed to the threat of crimes and terrorism due to the rapid growth in population combined with socioeconomic factors such as joblessness among the youth. Terrorism and crime incidents are not limited to developing economies; the number of such incidents is also rising in developed economies. Hence, businesses, as well as commercial and residential complexes, are employing physical security solutions, which involve video surveillance, access control, and others. - High initial investments to emerge as a key threat
The new entrants to the market require a large amount of initial investment for the basic IT infrastructure of physical security solutions. An initial IT infrastructure investment can cost up to tens of thousands of dollars, which is difficult for certain companies to bear. Therefore, there are fewer new entrants in the industry. Since there are a number of new physical security technologies that are coming up, there would be an increasing need for updated professional expertise. If professional expertise does not exist, organizations invest plenty of resources in training personnel.
The hardware and software segment held the largest physical security market share in 2021. The segment will continue to account for the highest revenue throughout the forecast period. The growth of this segment can be attributed to the investments made by vendors in the market in hardware and software that are higher than that in services. An increase in loss resulting from customer theft, employee theft, poor inventory management, and inefficient operations has compelled retailers to invest in electronic article surveillance systems as part of a well-managed and well-executed loss prevention plan.
33% of the market’s growth will originate from Europe during the forecast period. Germany and UK are the key markets for physical security in Europe. Market growth in this region will be faster than the growth of the market in the North American, MEA, and South American regions. The rise in the crime rate in the country will facilitate the physical security market growth in Europe over the forecast period.
