Physical Security Market Size, Share, and COVID-19 Impact Analysis, by Component (System, Services), by Systems Type (Physical Access System, Video Surveillance System, Perimeter Intrusion and Detection, Physical Security Information Management, Others), by Service Type (Access Control as a Service, Video Surveillance as a Service, Remote Monitoring Services, Security Systems Integration Services, Others), by Enterprise Size (Large Enterprises, SMEs), by Industry Vertical (BFSI, Government, Retail, Transportation, Residential, IT and Telecom, Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The Global Physical Security Market is projected to grow from USD 102.7 billion in 2021 to USD 161.8 billion by 2030 at a CAGR of 6.4% during the forecast period.    

Physical security solutions are increasingly being used for numerous applications in industries such as BFSI, manufacturing, retail, and transportation. Furthermore, the increasing need to control the penetration of real-world threats like unauthorized access and natural disasters is likely to drive the adoption of physical security systems. Protection from fire, floods, natural catastrophes, theft, robbery, vandalism, and terrorism are all examples of physical security. While most of these are covered by insurance, prioritizing loss prevention through physical security protects time, money, and resources from being wasted as a result of these events. As a result, safeguarding the physical border as well as individual assets, such as pricey technology equipment, has become increasingly important. This increased need for physical security systems is resulting in attractive prospects for industry players all over the world, thereby contributing to the global physical security market during the forecast period.

COVID-19 ANALYSIS    

The physical security industry has risen dramatically in recent years, but due to the outbreak of the COVID-19 pandemic, market growth is likely to accelerate. While the US government has designated access control and security as part of the essential workforce in the event of a pandemic, many businesses are still figuring out how to secure their physical spaces and assets without having someone on site, as well as how to maintain daily operations as they transition to a remote working environment. According to the survey, the COVID-19 pandemic boosted the importance of physical security within their enterprises by 75%. 60 percent of those polled stated they either require immediate cloud-based technology changes or are exploring it in the near future.

LATEST TREND

Rising R&D in Physical Security System to Propel Market Growth

Key competitors in the physical security market are focusing on enhancing physical security systems through technological advances. The rapid expansion of the global physical security industry is due to the emergence of cloud computing and the Internet of Things. Increasing crime attacks and security breaches in developing countries provide incremental opportunities for physical security companies.

Unauthorized users are protected from data by physical security. Smartphones, RFID key card door locks, and video surveillance cameras are all Internet-connected physical security options. Physical security systems don't need a control box to run everything; instead, they employ a credential scanner to keep track of everything. This credential scanner is network-connected and provides security solutions for the IoT ecosystem. The IoT ecosystem could be severely harmed if physical security solutions are unavailable.

DRIVING FACTORS

Surge in the Incidents of Terror Attacks & Enforcement of Government Regulations and Compliance

Concerns about the safety and security of assets, people, and processes have grown as crime rates and terrorist activities have escalated. These rising attacks have resulted in the deaths of several people and significant infrastructure damage, emphasizing the necessity for physical security solutions. Terrorist operations have been on the rise around the world, according to the US Department of State. Despite the fact that the number of attacks in the United States has decreased since 9/11, they have increased dramatically since 2012. From 1995 to 2019, the table below displays attacks in the United States.

RESTRAINTS

Higher Installation Cost of Physical Security Hinder Market Growth

Physical security systems have a significant initial investment and maintenance cost due to the integration of high-quality hardware. Due to financial constraints, SMEs are hesitant to adopt newer technologies and prefer to stick with old security software. Furthermore, corporations emphasize the security of just key servers and pay little attention to the database's resting data. As a result, physical security professional’s inability to successfully carry out their IT security activities is still hampered by a lack of suitable money. 

SEGMENTATION

The Global Physical Security Market is segmented by Component, Systems Type, Service Type, Enterprise Size, Industry Vertical, and Region. Based on the Component, the market is categorized into System, and Services. Based on Systems Type, the market is categorized into Physical Access System, Video Surveillance System, Perimeter Intrusion and Detection, Physical Security Information Management, and Others. Based on Service Type, the market is categorized into Access Control as a Service, Video Surveillance as a Service, Remote Monitoring Services, Security Systems Integration Services, and Others. Based on the Enterprise Size, the market is categorized Large Enterprises, SMEs. Based on the Industry Vertical, the market is categorized into BFSI, Government, Retail, Transportation, Residential, IT and Telecom, and Others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.       

REGIONAL INSIGHTS

The Global Physical Security Market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.     

North America is the largest market for worldwide physical security due to the increasing usage of systems and services for assuring the protection of critical data and infrastructure. Due to increased usage of advanced technology and systems for greater security of businesses and public areas, the United States will be the leading market in the North America region by 2020. Integrated video and access management platforms, cameras with artificial intelligence (AI), video surveillance, biometric access control systems, access control cards, and other advanced technologies or tools are used in physical security. The significant increase in security breaches, fraud, and data identity theft in the United States is a major driver driving the region's growth.

Asia Pacific physical security market is projected to grow at the fastest CAGR during the forecast period, due to the increasing demand for smart security systems in India and China is responsible for this rise. The Chinese government is expected to make significant expenditures on the safe city program, which will primarily focus on city surveillance and traffic monitoring. China has created 500 smart cities around the country since the founding of the China Smart City Industry Alliance in 2010. China began encouraging the use of artificial intelligence and the Internet of Things for national smart city development in 2012, with the goal of improving urban planning and development. The Chinese government intends to build 100 new cities by the end of 2020.

KEY INDUSTRY PLAYERS

Hangzhou Hikvision Digital Technology Co., Ltd., Genetec Inc., Honeywell International Inc., Cisc Systems Inc., Axis Communications AB, Pelco, Robert Bosch GmbH, Johnson Controls., and ADT LLC are among the market's leading players. To gain a larger market share, market leaders focus on providing a variety of solutions to cater to various applications. To strengthen their product offers and market dominance, companies may focus on strategic alliances, mergers, and acquisitions. The Flir acquisition of Point Grey Research and the Johnson Controls-Tyco merger were two notable mergers and acquisitions that had an impact on overall market growth.

KEY INDUSTRY DEVELOPMENTS:

In November 2021, ADT entered the rooftop solar sector with the acquisition of SunPro solar. SunPro solar will be rebranded as 'ADT Solar,' and ADT clients will have access to safe and connected solar energy.

In November 2021, ADT purchased DoorDash. Millions of DoorDash users will benefit from ADT's mobile security products. Safe by ADT will power SafeDash, an in-app safety toolset. This will allow consumers to request emergency services and receive professional assistance by voice or text.

In November 2021, Cisco Systems, Inc. announced a partnership with AT&T to create a converged network and security management solution that uses software-defined wide-area networking (SD-WAN) technology and security capabilities to connect and secure businesses. 

LIST OF KEY COMPANIES PROFILED:

• Hangzhou Hikvision Digital Technology Co., Ltd.
• Genetec Inc.
• Honeywell International Inc.
• Cisc Systems Inc.
• Axis Communications AB.
• Pelco
• Robert Bosch GmbH
• Johnson Controls.
• ADT.

SEGMENTATION

By Component

• System
• Services

By Systems Type

• Physical Access System
• Video Surveillance System
• Perimeter Intrusion and Detection
• Physical Security Information Management
• Others

By Service Type

• Access Control as a Service
• Video Surveillance as a Service
• Remote Monitoring Services
• Security Systems Integration Services
• Others

By Enterprise Size

• Large Enterprises
• SMEs

By Industry Vertical

• BFSI
• Government
• Retail
• Transportation
• Residential
• IT and Telecom
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa