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Researchandmarkets

Physical security market set for 6.8% growth this decade

960 640 Stuart O'Brien

The global physical security market size is expected to reach $216.43 billion by 2030, registering a CAGR of 6.8% over the next seven years.

ReseachAndMarkets’ latest study says increasing awareness about securing the perimeter in developing economies has led to a rise in deployment of IP-based cameras in residential societies as well as commercial complexes and offices. Furthermore, increasing terror threats, border disputes, and refugee crises drive the adoption of stringent safety measures, thereby driving the market growth.

For instance, in February 2022, Hangzhou Hikvision Digital Technology Co., Ltd, the world’s prominent manufacturer of innovative video surveillance systems and solutions, introduced the TandemVu PTZ camera line, which combines PTZ and bullet camera capabilities into a single unit.

These cameras can monitor broad regions and zoom in on individual security incidents while simultaneously maintaining attention on both viewpoints. Further, this camera would be deployed in commercial complexes and residential societies to reduce terror threats and adopt more physical security on the premises.

The increasing convergence of IT and OT technologies have potentially increased concern towards inbuilt security operations that are added into a network. As network video recorders (NVRs) and IP-based surveillance camera are network devices, they are vulnerable to become a target vector to get into a system.

Furthermore, camera & biometrics offer robust physical security benefits. However, in a growing threat ecosystem, these devices are expected to evolve in order to enable safety for deployment in a critical infrastructure asset’s network.

Thus, securing the converged IT & OT network is emerging as one of the top priorities for several companies. For instance, in November 2021, InsightCyber Group, Inc., a company that offers physical, cyber systems to protect businesses, built an AI-driven physical security device for various industries such as transportation, manufacturing supply chain, and others.

Key highlights from the report include:-

  • Video surveillance system led the market in 2022.
  • System integration is anticipated to dominate the market through the forecast period owing to the factors such as stringent regulations and demand for the cost-effective systems
  • The residential segment is predicted to register the highest CAGR during the forecast period owing to the measures taken by the consumers to protect their assets from potential threats
  • North America dominated the market in 2022 and is estimated to remain dominant throughout the forecast period. The presence of key physical security market vendors such as Cisco Systems, Inc., Honeywell International, Inc., and Pelco is primarily responsible for the region’s market growth. Businesses across the region are increasingly deploying physical security solutions to prevent identity theft, cyber-attacks, and commercial spying, as well as to ensure data security and privacy to facilitate business continuity

Boom predicted for perimeter security

960 640 Stuart O'Brien

The Global Perimeter Security Market size has been estimated at $49.81 billion for 2021, $54.82 billion in 2022, and is projected to grow at a CAGR of 10.32% to reach $89.82 billion by 2027.

A new analysis by boffins at ResearchAndMarkets has produced the following key takeaways:-

Drivers

  • Growing Adoption of Latest Techniques Such as Ip Based Video Surveillance Cameras for Remote Monitoring
  • Increasing Concern of Theft in Banks, Offices, and Warehouses
  • Rising Demand Across Verticals Such as Military Sites to Prevent and Detect Intrusion

Restraints

  • Lack of Technical Expertise, and the Need for Security Training and Awareness

Opportunities

  • Emergence of Ai, Facial Recognition, Computer Vision and Big Data Analytics in Perimeter Security Systems
  • Rising New Product Launches by Major Players

Challenges

  • Integration of Logical and Physical Components of Security Systems

The report also addresses the influence of COVID-19 and the cumulative impact of the 2022 Russia-Ukraine conflict.

Data centre physical security set for boom

960 640 Stuart O'Brien

The data centre physical security market is poised to grow by $1.73bn between 2021-2025, progressing at a CAGR of 8.41%, driven by the need to comply with regulations and the growing threat of cyberattacks.

The report, from ResearchandMarkets, on the data centre physical security market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.

It offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment.

The study identifies the growth of hyperscale data centers as one of the prime reasons driving the data center physical security market growth during the next few years.

The robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading data center physical security market vendors that include Check Point Software Technologies Ltd., Cisco Systems Inc., Fortinet Inc., Hewlett Packard Enterprise Co., Honeywell International Inc., Johnson Controls International Plc, Robert Bosch GmbH, Schneider Electric SE, Siemens AG, and Trend Micro Inc.

Also, the  market analysis report includes information on upcoming trends and challenges that will influence market growth, conducted using an objective combination of primary and secondary information including inputs from key participants in the industry.

The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors.

Physical security market to grow 6.5% by 2027

960 640 Stuart O'Brien

The Global Physical Security Market size was estimated at $78.23 billion in 2020 and expected to reach $83.87 billion this year, followed by a Compound Annual Growth Rate (CAGR) of 7.54% from 2020 to 2026 to reach $121.01 billion.

A new report published by ResearchandMarkets, analyses the competitive landscape in terms of markets, applications and geographies, describing the optimal or favourable fit for vendors to adopt successive merger and acquisition strategies, geography expansion, research & development, and new product introduction strategies.

The report identifies the following market dynamics:

Drivers

  • Increasing instances of terror attacks
  • Shifting focus from traditional solutions
  • Protection to business assets, employee, and customer
  • Adoption of IoT and cloud-based data storage
  • Ongoing developed of smart cities
  • Enforcement of government regulations and compliance

Restraints

  • Limited use of advanced technologies
  • Integration issue among security solutions

Opportunities

  • Collaboration between contract security provider and physical security vendors
  • Technological development in video surveillance
  • Use of IP-based HD video for video surveillance
  • Emergence of automated drones for security patrolling

Challenges

  • Integration of logical and physical components
  • Device vulnerability and chances of system being hacked

Impact of COVID-19 on physical security market revealed

960 640 Stuart O'Brien

A new report delivers what it calls the best estimate of the global market for physical security products going forward to 2025, based on two scenarios.

In March 2020, The World Health Organization declared COVID-19 a global pandemic. Within a few weeks, it was clear that the pandemic was highly likely to cause the world’s worst recession in the last 100 years. In June 2020, the World Bank published a baseline forecast envisioning a 5.2% contraction in global GDP in 2020.

The report from ResearchandMarkets says that, at this time, COVID-19 has been having second spikes in Q3 / Q4 and several countries are experiencing rolling lockdowns and believes its 2nd scenario looks more feasible where global markets take around a year to return to some normality and mass global adoption of a vaccine is achieved within 18 months. The publisher believes this has a probability of 65%.

Based on its Scenario 2, growth will recover by Q3 2021, and by the end of that year it will have grown by nearly 3%. However, different rates of growth apply in each of the 3 businesses and geographic territories. The analyst forecasts the market will reach over $42Bn by the end of 2025 at a CAGR of 6% over the next 5 years.

China continues to increase its share of the physical security product market. The Chinese market has grown rapidly through a boom in new construction and ‘Sharp Eyes’ surveillance projects driven by the public sector. However very little of this vastly expanding market is accessible to overseas manufacturers, nor is it likely to be in the foreseeable future, with ongoing political and trade tensions between the US and China.

Key Impacts of Covid-19 Pandemic on Physical Security:

  • Above all the COVID-19 outbreak will force suppliers to radically rethink how they operate their business, in particular resilience to externalities. In parallel, there will be lessons to learn on having a more coordinated and resilient supply chain. The Video Surveillance business is too dependent on Chinese OEMs and component manufacturers. With many of these factories closed for the first two months of 2020, it caused temporary supply chain issues.
  • The pandemic has created a demand for new solutions to help control the spread of the virus. Physical security products have risen to the challenge, helping to implement social distancing protocols through existing access and video systems with AI-powered analytics. Thermal cameras have also been deployed to measure people’s temperature, with demand being strong. However, their usefulness has been questioned, with the World Health Organisation saying that on its own temperature screening “may not be very effective”.
  • The report estimates that the total value of world production of Physical Security products at factory gate prices in 2020 will be $31.7Bn, a decline of over 7.5% on 2019. Sales declined over the first 3 quarters of 2020 as a result of COVID-19. This has stopped 11 consecutive years of growth.

Global physical security market to hit $120.3bn by 2025

960 640 Stuart O'Brien

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.

Global physical security demand to reach $56.7bn by 2024, driven by AI

960 640 Stuart O'Brien

The total value of world production of Physical Security products at factory gate prices in 2019 was $34.3Bn, an increase of 8.5% on 2018 and equivalent to a compound annual growth rate (CAGR) over the last 5 years of 7.24%.

According to a report from ResearchandMarkets, over the last 10 years, the market has grown by a CAGR of 6.27%. However, different rates of growth apply in each of the three key segments (Access Control, Video Surveillance, Intruder Alarm / Perimeter Protection) and geographic territories. It forecasts the total market will reach $56.76Bn in 2024.

Key report findings include:-

  • China has increased its market share this year but still has a market penetration of 50% less than North America, based on sales per capita. The Chinese market has grown rapidly through a boom in new construction and Safe City projects in the public sector. However very little of this vast expanding market has been of benefit to overseas manufacturers. The report shows that the problem for overseas manufacturers getting a piece of the China market is not about technology or performance, at its core it is a geopolitical challenge.
  • In 2019, AI Technology applied to Video Surveillance has convinced the market that by 2020 it will become mainstream. Significant improvements in AI Video Analytics software is making this possible and over the next 10 years it will become a standard requirement across Video Surveillance solutions. There is a critical need to make full use of the massive amounts of data being generated by video surveillance cameras and AI-based solutions are the only practical answer. Modern chip architecture with AI software can comb through vast volumes of data and boost security and safety. Th reports says there is a lot of development in this field that we are yet to see, but the path towards AI seems quite clear.
  • The supply structure and the competitive landscape will continue to change over the next few years and the main driver for this is the Internet of Things (IoT). Physical Security systems generate vast amounts of information that when analyzed together with data from other Building Automation Systems can deliver intelligence that will improve the security, safety and performance of buildings and the business enterprise within.

Demand structure in the video surveillance business is unbalanced because of the Chinese market. The main reason is that the government has some control over even private video surveillance manufacturing companies. If these companies want public sector business (which today accounts for more than 50% of the Chinese’s video surveillance market) and support with long term cheap loans, then they must comply with the states requirements.

For this the Chinese government ensures that foreign equipment will not be used on public sector projects. Not surprisingly this arrangement has distorted any possibility of open trade and further has allowed the two major Chinese manufactures to build up a market share of 40% of the worlds video camera business; in part by operating a race to the bottom by lowering prices that no other manufacturers could sustain because they don’t have the same volume of production.

However on the horizon are other Chinese companies that want a part of the massive investment in the public sector Safe City projects. Huawei, one of the world’s largest communication companies, has announced a major push into video cameras and an AI video analytics startup Megvii intends to offer complete video surveillance solutions. They will eventually get established in the public sector market and take share from the present incumbents, and this could at least reduce the pressure on non-Chinese manufacturers operating in the more open world market.

In terms of macro trends:-

  • Access control is expected to deliver a slightly higher growth than the 8.2% report has estimated, as it further expanded the IP network business, advancing deeper into biometric, identity management, wireless locking systems and ACaaS. This would have been the 3rd consecutive year that it turned in the highest rate of growth of the 3 businesses, but price pressures are starting to bite, partially through consolidation and weaknesses in the supply chain. This has reduced growth when measured by value.
  • M&A data collected over the last 18 years shows that the Physical Security industry, has gone through 4 cycles of increase and decline in the value of activity, sometimes exaggerated by a number of billion dollar deals in one year. In 2019 the value of mergers and acquisitions fell to $2.913Bn a reduction of approximately 12% on the 2018 adjusted value.
  • Since January 2018, about 75 new entrants have gained VC Investment of approx. $900 million for Physical Security solutions in commercial and industrial buildings. This excludes 2 of the major investments made in Megvii and OpenAI claiming $1.75 billion.

Value of Physical Security products at factory gate prices reached $34.3Bn in 2019

960 640 Stuart O'Brien

The total value of world production of Physical Security products at factory gate prices in 2019 was $34.3Bn, an increase of 8.5% on 2018 whist the compound annual growth rate (CAGR) over the last 5 years has been 7.24%.

Over the last 10 years, the market has grown by a CAGR of 6.27%, however, different rates of growth apply in each of the 3 businesses (Access Control, Video Surveillance, Intruder Alarm / Perimeter Protection) and geographic territories.

A new new report from ResearchAndMarkets also forecasts the market will reach $56.76Bn in 2024.

Other key findings include:-

  • China has increased its market share this year but still has a market penetration of 50% less than North America, based on sales per capita. The Chinese market has grown rapidly through a boom in new construction and Safe City projects in the public sector. However, very little of this vast expanding market has been of benefit to overseas manufacturers. The report shows that the problem for overseas manufacturers getting a piece of the China market is not about technology or performance, at its core it is a geopolitical challenge. 
  • In 2019, AI Technology applied to Video Surveillance has convinced the market that by 2020 it will become mainstream. Significant improvements in AI Video Analytics software is making this possible and over the next 10 years it will become a standard requirement across Video Surveillance solutions. There is a critical need to make full use of the massive amounts of data being generated by video surveillance cameras and AI-based solutions are the only practical answer. Modern chip architecture with AI software can comb through vast volumes of data and boost security and safety. Granted, there is a lot of development in this field that we are yet to see, but the path towards AI seems quite clear. 
  • The supply structure and the competitive landscape will continue to change over the next few years and the main driver for this is the Internet of Things (IoT). Physical Security systems generate vast amounts of information that when analyzed together with data from other Building Automation Systems can deliver intelligence that will improve the security, safety and performance of buildings and the business enterprise within.

In addition, ResearchAndMarkets says demand structure in the video surveillance business is unbalanced because of the Chinese market. The main reason is that the government has some control over even private video surveillance manufacturing companies. If these companies want public sector business (which today accounts for more than 50% of the Chinese’s video surveillance market) and support with long term cheap loans, then they must comply with the states requirements.

For this the government ensures that foreign equipment will not be used on public sector projects. Not surprisingly this arrangement has distorted any possibility of open trade and further has allowed the two major Chinese manufactures to build up a market share of 40% of the world’s video camera business; in part by operating a race to the bottom by lowering prices that no other manufacturers could sustain because they don’t have the same volume of production.

However, on the horizon are other Chinese companies that want a part of the massive investment in the public sector Safe City projects. Huawei, one of the world’s largest communication companies, have announced a major push into video cameras and an AI video analytics startup, Megvii, intends to offer complete video surveillance solutions.

The reports says they will eventually get established in the public sector market and take share from the two present incumbents, and this could at least reduce the pressure on non-Chinese manufacturers operating in the more open world market.

Video surveillance system market to hit $96bn by 2024

960 640 Stuart O'Brien

The global video surveillance system market has been valued at $40.37bn in 2018, and is expected to reach a value of $95.98 billion by 2024, equivalent to a CAGR of 15.53% over the forecast period.

A new report by ResearchandMarkets says use of video surveillance in business is growing significantly, owing to the increasing need for physical security, coupled with the use of cloud-based services for centralised data.

The firm says video surveillance is primarily adopted in manufacturing, banking & financial services, and transportation and retail industries.

This incorporation is higher in countries, such as the United States, the United Kingdom, China, and Brazil, owing to the large size of the concerned industries and higher awareness among consumers.

Globally, the drive to enhance the safety and security across different industries is adding to the market growth. With rapid developments in cloud computing and video surveillance software, the surveillance market has transformed, in comparison to the previous decade.

VSaaS has been increasing over the recent years, owing to the market penetration of IP camera sales. Significant factors, such as IT cost containment by major IT organizations, the emergence of data centers, and improving functionalities associated with centralized data, are aiding the VSaaS segment.

ResearchandMarkets say the growth of the video surveillance market is expected to be fueled by the introduction of new IP-based digital technologies, to detect and prevent undesirable behaviours, such as shoplifting, thefts, vandalism, and terror attacks.

Image by Peggy und Marco Lachmann-Anke from Pixabay 

Physical security demand to hit $119bn by 2023

960 640 Stuart O'Brien

It’s been predicted that the global physical security market will to grow in value from $84.1 billion last year to $119.4 billion by 2023.

That’s equivalent to a Compound Annual Growth Rate (CAGR) of 7.3%, according to analysis from ResearchandMarkets.

Its report, The ‘Physical Security Market by Component and Services, Organisation Size, Vertical and Region – Global Forecast to 2023’ found that (deep breath) rising incidents of terror attacks, technological advancements and deployment of wireless technology in security systems, increasing use of IP-based cameras for video surveillance, implementation of mobile-based access control, and adoption of Internet of Things (IoT)-based security systems with cloud computing platforms are projected to drive the growth of the market across the globe.

However, violation of privacy related to physical security systems and services is expected to restrict the growth of the market across the globe in some instances.

The Services segment is projected to lead the physical security market during the forecast period. The report 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) solution, which need proper monitoring.

The Large Enterprises segment is expected to lead the physical security market in 2018. These enterprises were the early adopters of physical security solutions and services, as they have 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.

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. Residential properties are increasingly adopting electronic lock-based access control systems. The demand for electronic products is growing with the increased home automation trend.

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.