Physical Security Market Trends

Global Physical Security Market Overview:

Physical Security market size was valued at USD 116.9 billion in 2021. The Physical Security market industry is projected to grow from USD 124.7323 billion in 2022 to USD 196.3947466 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.70% during the forecast period (2024 - 2032). 

Rising adoption of IP based cameras and physical security solutions are the key market drivers enhancing the Physical Security market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Physical Security Market Trends

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  Rising concerns towards resource safety and technological update to boost market growth

  
  

The requirement for a strong security environment is expected to be significantly influenced by growing concerns about protecting people, resources, and essential assets from physical threats and specific vulnerabilities.  Additionally, escalating threat incidences have increased the requirement for intensifying maintenance efforts to have a highly guarded physical infrastructure at home and commercial premises.  For instance, Johnson Controls, a pioneer in building security solutions, debuted its autonomous robots and body-worn cameras for its physical security and screening technology in September 2021.

With the help of these innovative technologies, Johnson Controls can provide total building physical security for commercial and residential properties, allowing customers to use their systems for purposes beyond simple access control and video surveillance.  Governments in the world's major regions consistently enhance their physical security systems to combat the escalating risks.  For instance, the body-worn camera for the personal protection of government officials was introduced by Axis Communications, AB, in December 2021.  

Axis Communications, AB is a Swedish firm that offers services to commercial sectors and governments worldwide.  Body-worn cameras offer numerous advantages for liability protection, personal safety, and operational effectiveness.  Therefore, the adoption of such growth strategies in physical security has enhanced the Physical Security market CAGR across the globe in recent years.

Furthermore, Physical Security market revenue is also expected to increase due to innovations and technological advancements in integrated sensors, video, and access systems for IoT-enabled devices.  For instance, Intel Corp. announced in September 2021 that it manages its physical security & virtual device access via a software-based IoT platform.  Using keys or access credentials assures that only authorized employees have direct physical security access to the equipment.

Physical Security Market Segment Insights:

Physical Security Type Insights

The  Physical Security market segmentation based on type, includes system and service. The system segment held the majority share in 2021, contributing to the  Physical Security market revenue. The segment includes physical access control systems (PACS), security camera systems, perimeter intrusion detection and prevention, physical security information management (PSIM), physical identity and access management (PIAM), and fire and life safety.  Axis network cameras, analog cameras, video encoders, displays, and storage solutions are part of a video surveillance system.

Service is the second fastest-growing segment, which accounts for a considerable share of the Physical Security market.  The segment for physical security services has greatly benefited from people's increased knowledge of automated security solutions like door locking, intruder detection, and fire detection systems.

October 2021: In order to provide visibility and intelligence on supply chain disruption, significant events, and public safety incidents that may have an impact on workplaces, locations, employees, clients, and the general public, ZeroFox, the industry leader in external cybersecurity, has introduced a new Physical Security Intelligence solution.

Figure 2:  Physical Security Market, by Type, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Physical Security Industry Insights

The Physical Security market segmentation based on industry, includes Education, Oil & Gas, Government, Retail, Hospitality, BFSI, and Retail.  The BFSI segment held the majority share in 2021, contributing to the Physical Security market revenue. There has been a rise in cybersecurity issues across financial institutions which requires them to install physical security systems to ensure data security and to prevent data loss.

Retail is the second fastest-growing segment, which accounts for a considerable share of the physical security market. With the COVID epidemic as a challenge, physical security in the retail sector assumed a completely new dimension in 2020.  Governments around the world labelled some retailers as "essential" and others as "nonessential" during the early stages of strict lockdowns to slow the spread of the coronavirus.  This caused a transfer of $285 billion from nonessential retailers to essential retailers and a transfer of $250 billion from small retailers to larger companies.

Physical Security Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Physical Security market accounted for USD 50.9684 billion in 2021 and is expected to exhibit a 43.60% CAGR growth during the study period.  The majority of cutting-edge physical security systems are used in North America.  Strong economic growth, legal changes, and growing SMEs' investments in physical security solutions are some of the drivers driving the regional industry.  

Additionally, a number of public facilities and transportation networks, including airports, seaports, trains, and bus terminals, are putting a strong emphasis on securing their infrastructure through security layers.  For instance, in January 2022, the security company Norred & Associates Inc. (Allied Universal), a U.S.-based security provider, was purchased by Allied Universal.

During the anticipated time, Asia Pacific Physical Security market would likewise present a lucrative opportunity for international players.  The rising demand for smart security systems in China and India is to blame for this expansion.  Market expansion is predicted to be fueled by significant Chinese government investments in safe city initiatives, which largely concentrate on city surveillance and traffic monitoring.  The country has created 500 smart cities since founding the China Smart City Industry Alliance in 2010.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  PHYSICAL SECURITYMARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

China Physical Security market held the largest share in the APAC region during the projected period, it is expected to grow sustainably.  In order to improve urban planning and development, China began to promote the use of technologies like artificial intelligence (AI) and the internet of things (IoT) in 2012.  The Chinese government intends to build 100 additional cities by the end of 2020.  For instance, the manufacturer of video surveillance equipment, Hangzhou Hikvision Digital Technology Co., Ltd., introduced the Hikvision AX PRO wireless external Tri-tech detector with a dedicated camera in February 2022.  Additionally, the India Physical Security market is anticipated to expand in future.

Furthermore, the Europe Physical Security market is predicted to benefit from the increasing adoption of internet and rising cybersecurity issues.

Physical Security Key Market Players & Competitive Insights

Major market players are investing a lot of capitals on R&D to enhance their grade lines, which will aid the Physical Security market expand. Market players are also taking a range of strategic measures to expand their worldwide footprint, with prime market developments such as new grade innovations & launches, contracts & agreements, mergers and acquisitions, better investments, and collaboration & strategic partnerships with other organizations in the Physical Security market. Competitors in the Physical Security industry must offer cost-effective items to extend and survive in an increasingly high competitive and expanding market environment.

One of the primary business strategies adopted by manufacturers in the  Physical Security industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Physical Security industry has provided medicine with some of the most significant benefits. The Physical Security market major player such as Cisco (US), Johnson Controls (US), Genetec (Canada), and others are working to drive the market growth via investing heavily in research and development activities.

Genetec (Canada) creates open-platform software, hardware, and cloud-based services for the public safety and physical security sectors.  Internet protocol (IP)-based video surveillance, access management, and automatic licence plate recognition are all combined into one platform by the company's product, Security Center.  In January 2023, Genetec Inc. offered data protection best practises in honour of International Data Privacy Day to assist physical security leaders in preserving privacy, safeguarding data, and fostering trust without jeopardising security.

Also, Johnson Controls (US), offers a variety of sturdy barricades and other security measures for customers' buildings, plants, facilities, and campuses as part of their physical access control solutions.  In November 2022, A collaborative partnership between Dedrone and Johnson Controls has been launched to address the security risks caused by unauthorised drone use.  As part of the partnership, Dedrone's cutting-edge counter-drone technology will be incorporated into Johnson Controls' product line via an open Application Programming Interface (API), giving customers everywhere access to cloud-based airspace security as a service.

Key Companies in the Physical Security market includes

• Cisco (US)


• Johnson Controls (US)


• Genetec (Canada)


• Axis Communications (Sweden)


• ADT (US)


• Hikvision (China)


• Pelco (US)


• SECOM (Japan)


• Bosch Building Technologies (Germany)


• Honeywell (US)


• Anixter (US)


• G4S (UK)


• Dahua Technology (US)


• STANLEY (US)


• Kastle Systems (US), among others

Physical Security Industry Developments

January 2023: Updates for iOS 16 and macOS Venture were made available by Apple on Monday. With the changes, iOS is now available in version 16.3, while Ventura 13.2 is now the most recent version of macOS. The addition of Security Keys for Apple ID, which allows users to increase the security of their accounts by requiring a physical key as part of the two-factor authentication sign-in process on new devices, is one of the updates in iOS 16.3. Another update is the activation of advanced data protection with end-to-end encryption for iCloud data.

April 2021: A professional football team from Florida named the Jacksonville Jaguars and Honeywell partnered. In accordance with the contract, Honeywell will provide PPE kits for the Jaguars players and staff in addition to stadium air quality monitoring services.

Physical Security Market Segmentation:

Physical Security Type Outlook

• System


• Service

Physical Security Industry Outlook

• Education


• Oil & Gas


• Government


• Retail


• Hospitality


• BFSI


• Retail

Physical Security Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America