Physical Security Market Overview
Physical Security is defined as the protection of information-related assets, personnel devices, hard-drives, computers, organization’s assets, and property from physical actions that could cause damage. Physical security describes the measures to protect the assets from real-world threats and crimes. Physical Security includes access control, video surveillance system and testing. These systems include hardware, software and services. In our scope, we have considered manned guarding as a part of security system and not as a part of Physical Security Systems. The numbers for Manned Guarding are calculated separately.
The widening scope of IoT in enabling data protection through innovative connected networks of physical security system is expected to provide huge growth opportunities to the growth of the global physical security market. Moreover, innovative technological advancements in access system, integrated sensors and others for IoT enabled devices, technological advancements in the wireless technology and the convergence of physical and electronic spaces, integration of smart technologies such as cloud in physical security system for applications in intelligent monitoring, fingerprint scanning, iris recognition and others, along with the growing privacy concerns in banking, financial services and insurance (BFSI) vertical and the increasing spending by government bodies worldwide on installation of new physical security systems, such as video surveillance, access control & others in government offices & public facilities is anticipated to provide growth opportunities to the global physical security market.
The global physical security market reached a value of USD 98410 million in the year 2018 and is expected to garner a value of USD 210893.7 million by the end of 2028 by registering a CAGR of 8.03% across the globe over the forecast period, i.e. 2020-2028. Moreover, the market is anticipated to gain an incremental $ opportunity of USD 7549.1 million in the year 2020 as compared to 2019. On the other hand, the market is anticipated to achieve an absolute $ opportunity USD 97170.1 million between 2020-2028 and grow by 1.85x during the forecast period. Additionally, the market is also anticipated to achieve a Y-o-Y growth rate of 7.1% in the year 2020 as compared to the previous year.
Growth Highlights based on Region during 2018-2028
The global physical security market is segmented by regions into North America, Latin America, Europe, Asia Pacific and Middle East & Africa. Among these regions, the market of North America physical security market held the largest market share of 39.69% in the year 2018 and is driven by U.S. and Canada, where U.S. held the dominant market value of USD 26872.5 million in the year 2018 and is anticipated to register a CAGR of 7.16% during the forecast period. On the other hand, the market in North America is anticipated to achieve an incremental $ opportunity of USD 2763.4 million in the year 2020 as compared to the previous year. Moreover, the market is anticipated to achieve absolute $ opportunity of USD 34954.3 million throughout the forecast period.
On the other hand, the market in Europe is anticipated to grow by 1.80x during the forecast period and reach a value of USD 53335.0 million by the end of 2028 by registering a CAGR of 7.66% during the forecast period.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
By Vertical
The global physical security market has been segmented on the basis of vertical into government & defense, BFSI, retail, residential, transportation, IT and others. The government & defense segment with 23.38% market share in the year 2018 held the dominant market share in the global physical security market. Moreover, the segment is anticipated to attain an incremental $ opportunity of USD 435.8 million in the year 2020 as compared to the previous year. On the other hand, the segment is expected to grow by a CAGR of 7.28% during the forecast period.
Market Drivers and Challenges
Growth Indicators
Increasing Focus on Smart Cities Projects
Smart cities use different kinds of Internet of Things (IoT)-based sensors to collect data for the efficient management of assets, resources and services. IoT technology allows for advanced intelligence and mobility that will make cities more effective in using resources to improve everything including security and surveillance, air quality, water quality, transport, power and communication system. Security and surveillance is one of the main sectors of the smart cities projects which involves a significant amount of investment. There are several smart cities projects going on across the globe which is addressing the need for the installation of physical security solutions for enhancing the security and surveillance of the area. The increasing number of smart cities projects across the globe is one of the major driving factors for the growth of physical security market.
Increasing Adoption of Fire Safety Kits in Residential and Commercial Settings
Backed by the increasing stringent regulations imposed by the government of nations around the world to safeguard human lives, several nations worldwide, such as the US and several European and Asian countries have implemented such laws mandating the installation of fire alarms and smoke detectors in residential and commercial settings. Such a factor is anticipated to drive the growth of the global physical security market in the coming years.
Barriers
Fear of Product Exploitation Through Hacking
There is a rising fear for the security of security products such as CCTVs, which work over the internet and are severely prone to hackers. Several number of incidences observed over the years for theft of data by hackers, coupled with factors such as the products being prone to single point of failure and concerns for data privacy are some of the factors anticipated to restrict the growth of the global physical security market.
Top Featured Companies Dominating In The Market
Some of the affluent industry leaders in the global physical security market are Bosch Sicherheitssysteme Gmbh, Axis Communications AB, Honeywell International Inc., Cisco Systems, Inc., Johnson Controls International PLC, Secom Co., Ltd., Genetec Inc., Zhejiang Dahua Technology Co., Ltd., Securitas AB and Prosegur Compania De Seguridad, SA.
