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

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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.

US intrusion detection systems revenue to hit $8.27m by 2023

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The revenue generated by Intrusion Detection and Alarms systems in the US is expected to reach $8.27 million by 2023, which would represent an expansion of 91.43% in the next three years.

That’s according to a report from PreciseSecurity, which says the sector posted revenues of $4.32 million in 2019. 

The report asserts that the growth that the Smart Home Market will experience on its income is related to the expansion of the industry and the Internet of Things (IoT). 

The most important markets for Intrusion Detection and Alarms would be closely related to those with higher crime rates. Some urban conglomerations in the United States could be hubs for this industry to expand in the market. 

The full report, statistics and information can be found here: https://www.precisesecurity.com/home-security

‘Servistisation models’ becoming commonplace in security industries

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Niche security solutions, rapid advancements in technology and budget pressures are all reasons driving the security industry to explore innovative ‘as-a-service’ business models.

That’s according to analysis from Frost & Sullivan, which asserts that in the end-user space, new business models such as Screening-as-a-Service, Biometrics-as-a-service, ISR-as-a-Service, and Infrastructure-as-a-Service are all gaining traction.

“The ‘servistization’ of the security market is paving the way for the network effect and hybrid business models, not necessarily based on cloud applications, but offering a mix of hardware scalability, limited cost of ownership and controls to clients, such as pay-as-you-grow,” said Aravind Srimoolanathan, Research Analyst, Security, Frost & Sullivan. 

“Incumbents providing solutions through conventional means will face competitive pressures from innovative substitutes, which will lead to merger and acquisition ventures and market consolidation.”

While end-user security strategies are evolving, the report says suppliers are increasingly focused on providing solutions that unify and secure processes throughout various applications.

However, given the complexity of the ecosystem and the number of processes involved, Srimoolanathan predicts customers are likely to continue using multiple vendors for different solutions.

To capitalise on further developments, Frost & Sullivan says players should focus on:

  • High-interest end-user business models such as Security-as-a-Service, which solves long-pending issues like affordability, ease of operations, and significant aftersales maintenance costs.
  • Developing niche AI cloud security solutions through hyper-configurable business models.
  • Security data analytics, which is important among end users (private and government) to understand the return on investment of security investments.
  • Lucrative cybersecurity service sectors like banking, oil and gas, and ports.
  • Niche technologies that are key growth areas, including Identity Management-as-a-Service, Video Analytics-as-a-Service, Electronic Surveillance-as-a-Service, and Cyber-as-a-Service.

“Although as-a-service solutions offer a more customer-centric approach to security, challenges still exist relating to measurement criteria and pricing,” concluded Srimoolanathan.

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Global physical security demand to reach $153 billion by 2026

960 639 Stuart O'Brien

The global physical security market has been pegged at $78 billion in 2018, and is projected to reach $153 billion by 2026, equivalent to a CAGR of 11% between 2019 an d the end of the forecast period.

The study, conducted by Report Consultant, cites increasing demand for security measures against terrorist attacks and for controlling the business assets.

Secondary factors include increasing usage of IoT and the development of smart transportation systems to track the location of automobiles.

For the purposes of the research, Report Consultant describes physical security as measures designed to protect the property from any attacks and to cease unauthorised access – it’s clearly a broad term which includes CCTV surveillance, security guards, protective barriers, locks, access control protocols, security scanning, metal detection, etc, hence the large forecasted value.

Key global players highlighted in the report include Anixter International Inc. (U.S.), Cisco Systems, Inc. (U.S.), Tyco International PLC (Ireland), Bosch Security Systems, Inc. (Germany), ADT Corporation (U.S.), Genetec Inc. (Canada), Honeywell International, Inc. (U.S.), Pelco (U.S.), Stanley Security (U.S.) and Senstar Corporation (Canada).

Younger workers most lax on cyber security best practice

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Employees over the age of 30 are more likely to adopt cyber security best practice than younger colleagues.

That’s according to a new report published by the security division of NTT, ‘Meeting the expectations of a new generation. How the under 30s expect new approaches to cybersecurity’, which also reveals that the younger generation is more anxious about cybersecurity and their company’s ability to tackle the number of security threats.

The findings, part of NTT’s Risk:Value 2019 report, scored across 17 key criteria. It found that, on average, under-30s score 2.3 in terms of cybersecurity best practice, compared to 3.0 for over-30s. In the UK, under-30s (4.3) and over-30s (5.5) are among the highest scores globally.

The data suggests that employees who have spent longer in the workplace gaining knowledge and skills and have acquired ‘digital DNA’ during that time, sometimes have an advantage over younger workers.

Overall, under-30s expect to be productive, flexible and agile at work using their own tools and devices, but half of respondents think responsibility for security rests solely with the IT department. This is 6 percent higher than respondents in the older age categories.

General attitudes to cybersecurity in the UK found that: 

  • Younger workers are risk takers, with over half (52 percent) saying they would consider paying a ransom demand to a hacker, compared to just 26% of over-30s
  • Over half (58 percent) of under-30s believe their company does not have adequate skills and resources in-house to cope with the number of security threats. This compares to quarter (26 percent) of over-30s, and may be the result of growing up in a technology skills crisis
  • Under-30s estimate that it would take around three months (97 days) to recover from a cybersecurity breach – six days more than the time estimated by older respondents
  • 82 percent believe that cybersecurity should be a regular item on the boardroom agenda, compared to 90 percent of over-30s
  • More accepting of new tools and devices at work, younger workers consider the Internet of Things (IoT) as more of a security risk (69 percent) than older colleagues (65 percent)

Azeem Aleem, VP Consulting (UK&I) Security, NTT, said: “It’s clear from our research that a multi-generational workforce leads to very different attitudes to cybersecurity. This is a challenge when organisations need to engage across all age groups, from the oldest employee to the youngest. With technology constantly evolving and workers wanting to bring in and use their own devices, apps and tools, business leaders must ensure that security is an enabler and not a barrier to a productive workplace.

“Our advice for managing security within a multi-generational workforce is to set expectations with young people and make security awareness training mandatory. Then execute this training to test your defences with all company employees involved in simulation exercises. Finally, team work is key. The corporate security team is not one person, but the whole company, so cultural change is important to get right.”

Adam Joinson, Professor of Information Systems, University of Bath, an expert on the intersection between technology and behaviour, said: “There is no ‘one size fits all’ approach to cybersecurity. The insights from the NTT study demonstrate that treating all employees as posing the same risk, or having the same skills, is problematic for organisations. We do need to be careful not to assume that the under-30s simply don’t care so much about cybersecurity. While this may be true in some cases, in others it is more likely that existing security policies and practices don’t meet their expectations about ‘stuff just working’.

“If we want to harness the fantastic creativity and energy of younger workers, we need to think about security as something that enables their work, not something that blocks them from achieving their tasks. This is likely to mean security practitioners having to fundamentally rethink the way security policies operate, and finding ways to improve the fit between security and the tasks employees are required to undertake as part of their core work.”

NTT’s six cybersecurity best practice tips for a multi-generational workforce:

  • Security culture must include all generations and be supported by a diverse range of employee champions, which includes age
  • Build a panel of younger employees and listen to their views on cybersecurity
  • Younger employees can be at their best and most motivated in an agile, productive, flexible workplace environment, where they are most likely to buy into the desired culture and behaviours. Security should be designed to enable the business
  • Make cybersecurity everyone’s business. Security leaders should be approachable to employees, through one-to-one interaction and more formal company events
  • Where skills shortages are most acute, support learning programmes, mentoring and consider external support
  • Education is vital. Gamify security learning and make it fun for all

Councils not sufficiently protected from cyber crime

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Nearly half (49%) of the UK’s local councils have been targeted by a cyber attack since the start of 2017.

That’s according to research from insurance broker Gallagher, which says councils where hit by more than 263 million cyber-attacks in the first half of 2019, averaging 800 attacks per hour.

The average successful cyber-attack on a council results in costs of £430,000, a bill ultimately paid by taxpayers.

Furthermore, just 13% of councils hold a standalone cyber insurance policy meaning that the vast majority of UK authorities are underprepared for the financial deficit caused by a cyberattack, which could set them back millions of pounds.

Freedom of information (FOI) requests by Gallagher found that out of the 203 councils that responded, 101 had experienced an attempted cyber-attack on their IT systems since 2017. More than a third (37%) of these local authorities had experienced cyber-attacks in the first half of this year.

The councils admitted to experiencing 263 million attacks in the first six months of 2019, equating to almost 800 attacks every hour. A further 204 councils either declined the information request over security concerns, or failed to respond, suggesting the true number of attacks across all councils could be more than double this and exceed 500 million in the first half of this yeariv .

Since the beginning of 2017, 17 attacks were reported to have resulted in a loss of data or money. The financial impact of such attacks can be extensive, with one council reporting a loss of over £2 million.

Gallagher says councils could represent prime targets for cyber-attacks due to their holding significant amounts of personal data, warning that the threat of a big fine from the Information Commissioner’s Office (ICO) is also potentially looming.

Tim Devine, Managing Director of Public Sector & Education at Gallagher, said: “Our research illustrates the scale of the challenge facing local authorities in the UK. Councils are facing an unprecedented number of cyber-attacks on daily basis. While the majority of these are fended off, it only takes one to get through to cause a significant financial deficit, a cost which the tax payer will ultimately foot. Costs and reputational damage at this scale can be devastating for public authorities, many of which are already facing stretched budgets. In many scenarios, the people responsible for purchasing cyber insurance products need decisions to be made at member, or management level. The cyber threat and the need for cover needs to be high on every local authority’s agenda.”

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Value of CCTV market to hit $23.3bn by 2025

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The global CCTV camera market is expected to expand at robust 12.7% CAGR in the years to 2025 to be worth $23.32bn.

That’s according to a report from Transparency Market Research, which says that the global CCTV camera market is seeing consolidation on account of players banking upon mergers and acquisitions to bolster their positions.

It says competition in the market is stiff on account of numerous hardware and software providers. Most of the prominent players are concentrating on unveiling upgraded and sophisticated systems.

The mushrooming modern retail outlets and a booming hospitality industry are also serving to provide a major impetus to the global market, in addition to continued progress in technology.

The research says the global CCTV camera market can be segmented depending upon the type of model, i.e. PTZ camera, box camera, dome camera, bullet camera, etc.

The dome camera leads the market and in 2016 its leading share came to about 45%. The segment is expected to grow at a healthy clip in the years ahead on account of further investments and technological progress.

Depending upon the type of technology, analog CCTV camera systems accounted for maximum market share in 2016. The other types of technology leveraged in the making of CCTV cameras are wireless CCTV systems, IP-based CCTV systems, and hybrid CCTV systems.

From a geographical standpoint, the global CCTV camera market is dominated by North America and Asia Pacific. Currently, the Asia Pacific market is being powered by China, which manufactures cheaper varieties of the product that are seeing widespread uptake.

India is another key market in the region vis-à-vis demand. As per the TMR report, the market in Asia Pacific will likely outpace all other regions in terms of growth rate by registering a CAGR of 14.6% from 2017 to 2025 to become worth $9.554bn by 2025.

North America is another prominent market which has been seeing soaring sales of CCTV cameras on account of a major thrust on public security. Terrorist attacks in the past and other security issues has resulted in enormous adoption of CCTV cameras for surveillance.

Other factors serving to boost the market in the region is the investments into research and development of better products with more sophisticated technologies. Regulatory policies too have supported the sales of CCTV cameras in the region. The market in North America is projected to clock a 10.2% CAGR in the forecast period.

Employees responsible for half of industrial networks cybersecurity incidents

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52% of incidents affecting operational technology and industrial control system (OT/ICS) networks last year were caused by employee errors or unintentional actions.

A Kaspersky report, State of Industrial Cybersecurity 2019, found this issue to be the result of the growing complexity of industrial infrastructures and a shortage of professionals who understand how to detect new threats as well as low awareness among existing employees.

According to the survey, digitalization of industrial networks and adoption of Industry 4.0 standards are a priority for many industrial companies. Four out of five organizations (81%) consider operational network digitalization to be an important or very important task for this year.

A majority (87%) of respondents confirmed that OT/ICS cybersecurity is becoming a top priority for industrial companies. However, to achieve the necessary level of protection, they need to invest in dedicated measures and have highly qualified professionals to make them work effectively. Despite stating it as a priority, only just over half of companies (57%) have allocated budget for industrial cybersecurity.

In addition to budget constraints, there is also a question over skilled staff. Organizations are not only experiencing a lack of cybersecurity experts with the right skills to manage protection for industrial networks, but also are worried that their OT/ICS network operators are not fully aware of the behavior that can cause cybersecurity breaches.

These challenges make up the top two major concerns relating to cybersecurity management and directly correlates as to why employee errors cause half of all ICS incidents such as malware infections and more serious targeted attacks.

In almost half of the companies (45%) surveyed, the employees responsible for IT infrastructure security also oversee the security of OT/ ICS networks. Although operational and corporate networks are becoming increasingly connected, OT and ICS specialists can often have different approaches (37%) and goals (18%) when it comes to cybersecurity.

“This year’s study shows that companies are seeking to improve protection for industrial networks. However, this can only be achieved if they address the risks related to the lack of qualified staff and employee errors,” said Georgy Shebuldaev, brand manager for Kaspersky Industrial Cybersecurity. “Taking a comprehensive, multi-layered approach that combines technical protection with regular training of IT security specialists and industrial network operators will ensure networks remain protected from threats and skills stay up to date.”

In addition to a technical and awareness boost for industrial cybersecurity, organizations must consider specific protection for Industrial IoT which can become highly connected externally. Almost half of companies (41%) are ready to connect their OT/ICS network to the cloud using preventive maintenance or digital twins.

“As this ARC Advisory Group survey conducted on behalf of Kaspersky reflects, the growing interconnection between IIoT edge devices and cloud services continues to stand as a security challenge,” said Dr. Jesus Molina, chair, IIC Security Working Group and director of business development, Waterfall Security Solutions. “It was a major driver for the creation of the IIC Industrial Internet of Things Security Framework as well as the subsequent best practices documents and recent IoT Security Maturity Model.”

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Physical security equipment market to hit $64bn

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The global physical security equipment market will be worth nearly $64bn in revenue in 2022, equivalent to a staggering expansion at over 10% CAGR.

That’s according to a report from Future Market Insights (FMI), which pinpoints demand for surveillance equipment a sa key driver of the growth.

FMI says a major trend in the market is the emergence of thermal cameras, which it says are quickly becoming an indispensable part of physical security equipment in monitoring unique/large-scale outdoor environments.

The firm points out that several institutions and critical infrastructures are being offered grants by governments for purchasing efficient surveillance equipment.

In addition, the requirement for sophisticated security systems that help in ensuring safety of data has led the organisations to adopt data analytics, along with cloud-based data storages.

The report points out that the nature of the global physical security equipment market is highly fragmented, with presence of various large- as well as small-scale vendors competing for market share.

These vendors, it says, are concentrating on providing innovative and highly-efficient security solutions coupled with customised security services. In addition, they are also providing integrated systems – Global leaders in the market are adopting strategies such as M&A, and are acquiring niche players, in a bid to enhance their product portfolio.

Other key factors from the FMI report include:

  • Asia-Pacific excluding Japan (APEJ) is anticipated to remain the fastest-growing market for physical security equipment. By the end of forecast period, APEJ will become the second most lucrative region for growth of the market. Government agencies in APEJ are increasingly deploying physical security equipment in public and transportation security, especially in China and India. In addition, a soaring IT sector, coupled with rapid industrialisation in APEJ countries will further drive the market growth.
  • Sales of physical security equipment in the government vertical segment are projected to register the highest CAGR through 2022. In addition, although the healthcare vertical currently accounts for relatively lower revenue share of the market, it will exhibit an impressive expansion over the forecast period. BFSI is expected to remain the second largest vertical in the global physical security equipment market.
  • Consumer video surveillance will continue to be the most attractive physical security equipment, followed by thermal cameras and wireless infrastructure. Revenues from consumer video surveillance, thermal cameras and wireless infrastructure will collectively account for nearly two-thirds of the market throughout the forecast period.

Security demands on SMEs ‘increasingly a barrier to success’

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UK SMEs are potentially losing out on a third of all enterprise contracts due to cyber fraud and cyber security credentials not being to a recognised standard.

That’s according to research from cyber security awareness platform, CyberSafe, which revealed 37 per cent of organisations have been required to achieve a recognised cyber security standard over the past 12 months by their enterprise customers before successfully securing contracts.

That’s a rise of 9 per cent from 2017’s study results, when only 28 per cent were obliged to prove their proficiency in cyber security.

The research also highlights an increasing scrutiny of cyber security in supply chain organisations by enterprise customers who, due to increases in regulations and high-profile data breaches, are more concerned than ever about protecting their data.

Forty per cent of respondents have been asked by an enterprise customer to add cyber security precautions to contracts or RFP processes in order to win contracts in the past year.

Oz Alashe, CEO and founder of CybSafe, said: “The study has revealed how enterprise customers are increasingly prioritising cyber security when tendering for supply chain businesses. While lax cyber security precautions may have gone relatively unnoticed a few years ago, businesses are now losing out on lucrative deals with their biggest customers because of them. Due to tighter regulations and an abundance of high-profile breaches, organisations have had to re-review and reinforce their entire IT estate, including third party suppliers.

“The study demonstrates that SMEs are actively taking measures to make themselves cyber secure to meet the terms of new contracts. This is because it is no longer enough for an enterprise organisation to ensure that its own network is secure, any supplier must also demonstrate it’s cyber secure too.” 

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