The global physical security market size is expected to reach $171bn by 2027, equivalent to a CAGR of 6.5% over the forecast period.
That’s according to a new report by Grand View Research, which says safeguarding the physical perimeter and individual assets, including expensive technological equipment, has gained importance and is driving the market growth.
The report adds that increasing awareness about securing the perimeter in developing economies has led to a rise in deployment of IP-based cameras in residential and commercial complexes and offices. Furthermore, increasing terror threats, border disputes, and refugee crises drive the adoption of stringent safety measures, thereby driving the physical security market growth.
Key report findings include:
- Video surveillance dominated the physical security market with a value of $33.1 billion in 2019 as these systems enable real-time continuous monitoring and help lower chances of theft
- System integration is anticipated to dominate the market through the forecast period owing to factors such as stringent regulations and demand for cost-effective systems
- The residential segment is anticipated to register the highest CAGR of more than 7% over the forecast period owing to measures taken by consumers to protect their assets from potential threats
- Key companies in the market include Hangzhou Hikvision Digital Technology Co., Ltd.; Honeywell International, Inc.; Johnson Controls; Robert Bosch GmbH; and ADT. These players focus on adopting strategies such as mergers and acquisitions to enhance their market presence
The report highlights that governments across different countries and regions are taking up smart city initiatives to enhance their infrastructure and are hence deploying improved security systems. Additionally, modernising the existing infrastructure with robust security measures and strengthening the security of government agencies have been some of the top priorities for governments across developed countries. Organizations are increasingly concerned about employee safety and are hence setting up systems to prevent unauthorized access, further driving the demand for physical security solutions.
China accounted for the largest share of the Asia Pacific market in 2019. The market in China has been strongly supported by the growth in new construction projects and smart city initiatives. Furthermore, the presence of technology giants such as Hangzhou Hikvision Digital Technology Co., Ltd and Dahua Technology Co., Ltd is another factor contributing to the market growth.
Companies in the market are focusing on strategic partnerships and acquisitions to enhance their product and service offerings. In August 2019, Dahua Technology Co., Ltd entered into a strategic alliance with Pepper to offer enhanced security to its video as well as non-video IoT services to protect against unauthorised access of data. The partnership would allow the incorporation of Pepper’s intelligent solutions into Dahua Technology Co., Ltd’s hardware.