$31.55Bn worth of security products in 2018
According to Memoori’s latest research for 2018, the total value of world production of Physical Security products at factory gate prices in 2018 was $31.55Bn, an increase of 8% on 2017. This is an increase of approx. 1% over the Compound Annual Growth Rate (CAGR) of 6.87% during the last 4 years. Memoori is forecasting the market will reach $51.38Bn by 2023.
Of this, the world market for Video Surveillance products should grow at a CAGR of 13.43% to 2023. The reason for this is the demand for AI Video Analytics that should gradually be taken up over the next 5 years having the potential to add a further $2.3Bn to the video surveillance market in 2023. AI Video Analytics will be the number one game changer over the next 10 years in the video surveillance business, influencing the growth of most products that make up this business.
The developed markets of North America and Europe are losing global market share to Asia and particularly China. This is expected to continue to at least the end of the decade which is bad news for western manufacturers of Video surveillance products because they have failed to establish a solid business base and significant share in China; whilst 2 Chinese manufacturers have sales of more than $5 billion between them and now have the kind of scale that allows them to reduce prices to the levels that most western manufacturers can’t compete against.
There are 4 regions in the world that make up over 80% of the world’s physical security business. Of these Memoori estimates that China accounts for approximately 31%. It estimates China is now the biggest single country market for physical security products having increased its share by almost 50% in the last 7 years. Video surveillance equipment has been the major contributor here. The Chinese market has grown rapidly through a boom in new construction and Safe City projects in the public sector.