The global physical security market size is expected to reach USD 171.0 billion by 2027 and is anticipated to register a CAGR of 6.5% over the forecast period, according to a new report by Grand View Research, Inc.

Increasing awareness about securing the perimeter in developing economies has led to a rise in deployment of IP-based cameras in residential societies as well as commercial complexes and offices. Furthermore, the research analysts suggest that increasing terror threats, border disputes, and refugee crises are driving the adoption of stringent safety measures, thereby driving the physical security market growth.

Governments across different countries and regions are taking up smart city initiatives to enhance their infrastructure and are hence deploying improved security systems. Additionally, modernising the existing infrastructure with robust security measures and strengthening the security of government agencies have been some of the top priorities for governments across developed countries. Organisations are increasingly concerned about employee safety and are hence setting up systems to prevent unauthorized access, further driving the demand for physical security solutions.

Grand View finds that China accounted for the largest share of the Asia Pacific market in 2019. The market in China has been strongly supported by the growth in new construction projects and smart city initiatives. Furthermore, the presence of technology giants such as Hangzhou Hikvision Digital Technology Co., Ltd and Dahua Technology Co., Ltd is another factor contributing to the market growth. Companies in the market are focusing on strategic partnerships and acquisitions to enhance their product and service offerings. In August 2019, Dahua Technology Co., Ltd entered into a strategic alliance with Pepper to offer enhanced security to its video as well as non-video IoT services to protect against unauthorised access of data. The partnership, says the researchers, would allow the incorporation of Pepper’s intelligent solutions into Dahua Technology Co., Ltd’s hardware.

Further key findings from the study suggest that video surveillance dominates the physical security market with a value of USD 33.1 billion in 2019 as these systems enable real-time continuous monitoring and help lower chances of theft. Additionally, system integration is anticipated to dominate the market through the forecast period owing to factors such as stringent regulations and demand for cost-effective systems. The residential segment on the other hand is anticipated to register the highest CAGR of more than 7.0% over the forecast period due to growing numbers of consumers taking measures to protect their assets from potential threats.

Key companies cited as playing an active role in the market include, Hangzhou Hikvision Digital Technology Co., Ltd.; Honeywell International, Inc.; Johnson Controls; Robert Bosch GmbH; and ADT. These players focus on adopting strategies such as mergers and acquisitions to enhance their market presence.

ASSA ABLOY has acquired Biosite, a provider of biometric access control to the UK construction industry.

“I am very pleased to welcome Biosite and their employees into the ASSA ABLOY Group. Biosite is a strategic technological addition to the ASSA ABLOY Group. The company will reinforce our current offering within solutions for access control and will provide complementary growth opportunities,” says Nico Delvaux, President and CEO of ASSA ABLOY.

“Biosite offers biometric access- and workforce management solutions to the construction sector; maximizing security and safety whilst providing full visibility to material-, design plans- and people flow on the construction site. Combining hardware, software and services the company is a very good fit with ASSA ABLOY Global Solutions,” says Christophe Sut, Executive Vice President and Head of Global Technologies business unit Global Solutions.

Biosite was founded in 2010, has some 140 employees and the main office is located in Solihull, UK.

Sales in 2019 amounted to about GBP 14 million and the acquisition will be dilutive to EPS from start.

Border control deployments of biometric kiosks, e-gates, video surveillance cameras and fingerprint, iris and face recognition devices will combine to create total revenues of $3.5 billion by 2025, according to global tech market advisory firm, ABI Research.

The demands for higher levels of security, authentication and passenger processing speed in border control have caused identity management to evolve rapidly, forcing an influx of new biometric technologies.

“Not only are these new technologies bringing forth a wide spectrum of monetization strategies for service integrators and stakeholders, they also are creating a new set of challenges,” explains Dimitrios Pavlakis, an industry analyst at ABI Research.

Border control authorities are heavily investing in biometrically enhanced authentication and security measures. These investments are increasing return on investment (ROI) and helping stakeholders develop better-honed monetization strategies. These include streamlining identity management and passenger flow, decreasing processing time, automating passenger authentication, improving the overall experience, and developing new interoperable platforms and services.

New biometric hardware devices like handheld, immigration ID/authentication biometric device add-ons, access control and workforce management have also found their way into border control. Total revenues of biometric devices as well as e-gates, kiosks will reach $1.6 billion by 2025, including passenger registration and authentication, immigration, access control and workforce management.

Additionally, new biometric services allow governments and law enforcement to cooperate with international agencies through shared interoperable platforms and enhance their surveillance and counter-terrorism operation intelligence options across all land, air, and sea borders.

Global surveillance camera shipment revenues for border control will reach $1.9 billion by 2025 due to the push to strengthen border security via new video analytics, behavioral analytics, machine learning and machine vision technologies.

While biometric technologies are currently enjoying an increased penetration rate, border authorities and stakeholders must balance several conflicting variables. “These variables include supporting law enforcement, balancing biometric surveillance operations and interoperable services, decreasing operational latency, automating authentication, and streamlining passenger flow. All while complying with governmental mandates, regulations, data protection standards, and dealing with infrastructure upgrades and cybersecurity investments,” Pavlakis adds.

Biometric vendors and service integrators should take these challenges head-on, revisit the border control value chain, and customize their biometrics-as-a-service monetization strategies based on stakeholders’ ROI demands, expansion plans, and infrastructure requirements.

“Specialization is a key prerequisite, and innovative companies like Gemalto [Thales Group], IDEMIA, Collins Airspace, Gunnebo, Vision Box, Dermalog, HID Global and Aware each are developing their own unique market strategy by targeting different applications like e-gate and kiosk solutions, face/fingerprint/iris recognition hardware options, passenger management authentication, consumer and mobile biometric solutions, inter-agency data sharing, and interoperable service platforms,” Pavlakis concludes.

According to the latest information from Grand View Research, substantial growth in the hospitality sector is driving the need for enhanced security, which is expected to impel demand for smart locks between now and 2027.

The global smart lock market demand is expected to reach 34.9 million units by 2027, registering a CAGR of 21.6% from 2020 to 2027, according to a new report from the research company. Increasing consumer awareness regarding advanced and secure home solutions, along with steady rise in the adoption of connected devices, is cited as being a positive influence on the market.

Findings suggest that a growing number of residential and commercial projects, along with renovation of existing infrastructure, is expected to provide lucrative growth prospects for the industry. Smart locks can be integrated with several home automation devices, thereby providing security as well as convenience for users as they leave or arrive at home. With the growing prominence of smart locks across the residential sector, they are presumed to witness substantial demand, making mechanical locks a thing of the past.

Increased usage of smartphones globally has further paved opportunistic ways for industry participants, since they are continually launching apps to control locking/unlocking procedures. Regular innovations across the market for smart locks are increasingly driving investor interests with, say the analysts, remarkable funding contracts from key players. The industry has witnessed a considerable transformation over the past few years, with an influx of new startups, causing prominent vendors to form in-house hardware connectivity, software, and app development teams. The report suggests that this shift has resulted in market consolidation to a certain level due to numerous acquisitions across the marketplace.

Other key indicators showed that companies such as Airbnb Inc.; Couchsurfing International, Inc.; and other hospitality facilitators require homeowners to provide temporary access to guests, which has resulted in increased adoption of smart locks owing to provision of convenience to both customers and owners. In addition, the residential segment is expected to account for the largest revenue share of more than 65.0% by the end of 2027. Rising smart home penetration is resulting in a higher number of connected devices across the sector.

Geographically speaking, the smart lock market in the Asia Pacific region is expected to grow at the fastest rate over the next few years due to an increasing number of modernisation activities across the residential and hospitality sectors as well as construction of new infrastructure in emerging economies such as India.

Grand View Research analysts believe that the demand for Smart City solutions is anticipated to be on the rise, owing to a number of factors such as growing urban population and the need to better manage limited natural resources for environmental sustainability. Rapid urbanisation, ageing infrastructure, and adoption of new technology, coupled with the need for improved quality of life, are also cited as driving the market growth.

The latest study from the research company states that the global smart cities market size is expected to reach USD 463.9 billion by 2027, registering a CAGR of 24.7% from 2020 to 2027.

Smart cities address a diverse set of problems, such as efficient transportation, smart and enhanced buildings and homes, optimum energy utilisation, and better administrative services. The increasing adoption of novel technologies that complement the management of cities in the future is also a major catalyst for the market growth. The market would also benefit from initiatives taken by national and regional governments, residents, and local businesses to implement projects and tend toward cities’ problems.

The smart city market encompasses several sectors such as healthcare, transport, water, assisted living, security, and energy and their implementation varies from city to city due to the technological penetration in the region. The high amount of initial financial investments, need for the consolidation of different departments and sectors, and lack of a systemic approach may have a negative impact on the industry growth according to the analysts. Nevertheless, the market is anticipated to grow rapidly in the coming years, which would be driven by the availability of technology and an all-inclusive participation of industry stakeholders.

Other findings from the study suggest communication infrastructure and web-based services are anticipated to play a major role towards the global adoption of this type of solution. The inevitable consolidation of services, infrastructure, data, and sensors would significantly help adopt advanced solutions for these cities. The major hindrance in the adoption and implementation of these technologies include concerns regarding the privacy and security of data.

Attempts have also been made at developing consortia to support and standardise the market globally; however, this is limited to certain regions and application areas due to the lack of a systemic approach.

The smart cities market is dominated by major heavyweight companies such as ABB; Cisco; Schneider; Siemens; IBM; GEC; Microsoft; Hitachi; Honeywell; Intel; Oracle; Huawei; and Johnson Controls.