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.