Global Physical Security Market is estimated to be valued at US$ 103.42 Bn in 2024, exhibiting a CAGR of 4.6% over the forecast period 2024-2031. Growing need for cybersecurity across enterprises can drive the market growth.
Market Dynamics:
Global physical security market growth is driven by increasing infrastructure development and growing adoption of internet of things (IoT)-based security solutions across various industry verticals. Rapid urbanization has led to growth in industrial, commercial and residential infrastructure that boosts demand for physical security systems. Furthermore, integration of IoT and wireless technologies in physical security systems has provided advantages like real-time monitoring, remote management, and analytics. This has encouraged adoption of advanced IP-based video surveillance systems, access control systems and perimeter intrusion detection systems. Growing concerns regarding security among enterprises and individuals can drive the market growth. However, high initial installation and maintenance costs associated with physical security systems can hamper the market growth over the forecast period. Ongoing research & development to introduce more cost-effective and advanced solutions can offer new opportunities in the near future.
Growing Threat of Terrorism and Crime Boosts Demand for Advanced Physical Security Solutions
The threat of terrorism and crime has increased substantially across the globe in the recent years. Many countries are experiencing heightened security risks due to factors such as political instability, religious extremism and economic difficulties. This has increased terrorist attacks, organized crime and petty theft in both developed and developing nations. Organizations of all types are recognizing the need to boost security measures to protect employees, customers and assets. The physical security market witness strong growth as businesses and governments invest heavily in video surveillance systems, access control solutions, intrusion alarms and perimeter protection products. Advanced technologies like AI-powered video analytics, IoT-enabled sensors and biometrics are being adopted at a rapid pace to detect and deter security breaches effectively.
Rising Construction of Smart Buildings Boosts Need for Integrated Physical Security Platforms
With smart city initiatives gaining popularity worldwide, there has been increase in construction of smart commercial and residential buildings. These next-generation buildings leverage the latest digital technologies and infrastructure to provide enhanced user experiences. Physical security is a core component of smart building design and operations. Integrating security systems with other building management functions allows for centralized monitoring and control. It also helps automate security responses. Leading physical security solution providers are offering converged platforms that unify video surveillance, access control, identity management, cybersecurity and more. This allows smart buildings to attain seamless security that is scalable, reliable and easy to manage remotely. Integrated systems witness huge demand globally as smart construction spending increases.
High Initial Installation and Maintenance Costs Can Hamper Wider Adoption
Video surveillance, access control, intrusion detection and other systems involve expensive hardware, software licenses and extensive customized installation work. Maintaining these solutions and keeping technology updated can strain budgets for both large and small organizations. The need for frequent replacement of components like cameras further raises long-term expenditure. These costs present a notable barrier especially for budget-constrained businesses and industrial sites in developing nations. The high total cost of ownership (TCO) deters some potential customers and limits the volumes achieved by physical security vendors. However, costs are gradually decreasing as technologies mature and new pricing models emerge.
Lack of Standardization Hinders Interoperability Between Products
There has been lack of harmonization between physical security product offerings from different manufacturers. Proprietary protocols, software APIs and data formats create interoperability issues that present an integration challenge. Security systems from one vendor may not always interconnect seamlessly with complementary solutions from others. This prevents organizations from leveraging best-of-breed components that could optimize their security architecture. It also reduces flexibility to change certain elements over time. The lack of uniform standards hampers the development of fully integrated, end-to-end security ecosystems. It poses a key barrier for organizations seeking tightly converged solutions that unify physical and IT/cybersecurity domains under a common operating framework.
Demand for Cloud-Based and AI-Powered Solutions Create Lucrative Opportunities
Cloud platforms are increasingly becoming the preferred deployment model for advanced security systems. Cloud-enabled solutions offer significant advantages in terms of scalability, centralized management, automatic updates and lower upfront costs. Physical security providers have accelerated their transition to cloud-delivered offerings including video surveillance as a service (VSaaS) and access control as a service (ACaaS). AI and machine learning technologies are used within physical security domains for tasks such as accurate people counting, mask detection, automated license plate reading and facial recognition-based access decisions. Solution providers are ramping up their AI capabilities to capture the immense latent demand from security-conscious organizations trying to gain meaningful insights from physical sites.
Emerging Smart City Programs Point to Major Business Potential Ahead
National and local smart city projects are booming globally to enhance urban infrastructure and public services. Physical security plays a pivotal role in the smart city vision to create safer, more livable communities through connected technologies. Governments worldwide have earmarked large investments towards deploying advanced surveillance networks, access controls at transportation hubs and identity management across utilities under ambitious smart city blueprints. This offer opportunities for physical security providers capable of delivering cost-effective, scalable solutions tailored for urban infrastructure modernization programs.
Link - https://www.coherentmarketinsights.com/market-insight/physical-security-market-4180
Key Developments:
- In August 2022, Uber collaborated with ADT to integrate ADT's mobile safety solutions into the Uber app, enabling U.S. users to connect directly with ADT's monitoring specialists via phone or text for immediate assistance. This collaboration, incorporating ADT's 24/7 professional monitoring through Safe by ADT, boosts security measures for countless gig economy workers and customers.
- In March 2022, Ouster Inc., a company specializing in advanced sensor technology, partnered with Hexagon AB, a leader in security systems, to launch its collaborative security solution, Ouster×Accur8vision. This cutting-edge video surveillance software elevates security for vital infrastructures like residential areas, airports, and commercial buildings, augmenting current systems with enhanced threat detection features.
- In February 2022, TUCHWARE, a top IoT-based solutions provider in physical security and surveillance, launched its newest advancement: the XS series smart lock. This state-of-the-art lock incorporates cloud computing solutions to elevate both security measures and user convenience.
- In December 2021, Axis Communications, AB, a Sweden-based company that is renowned for its global service to private sectors and governments, unveiled a body-worn camera aimed at bolstering the security of government officials. These cameras provide numerous advantages such as liability protection, personal safety, and operational efficiency.
- In September 2021, Intel Corporation revealed its implementation of a software-based IoT platform designed to oversee both physical security and virtual device access. This platform ensures that only authorized personnel can utilize keys or access credentials to access devices.
Key Players:
ADT Inc., Axis Communications AB, BAE Systems, Bosch Sicherheitssysteme GmbH, Cisco Systems Inc., Gallagher Group Limited, Genetec Inc., General Dynamics, Hanwha Vision America, Hexagon AB, Hikvision, Honeywell International Inc., Johnson Controls, Pelco Corporation, Robert Bosch GmbH
