Physical security market to reach US$119.4B by 2023
According to the latest research from Marketsandmarkets, the physical security market is expected to grow from USD 84.1 billion in 2018 to USD 119.4 billion by 2023, at a CAGR of 7.3% during the forecast period, with the major drivers being the rise in incidents of terror attacks, technological advancements and deployment of wireless technology in security systems, increasing use of Internet Protocol (IP)-based cameras for video surveillance, implementation of mobile-based access control, and adoption of Internet of Things (IoT)-based security systems with cloud computing platforms.
Within the services segment of the market security systems integration is expected to lead the physical security market in 2018. Security systems integration is an important service in the implementation of a physical security strategy, as it involves the collective use of a variety of components or subsystems as one large system. System integrators provide solutions based on the size and complexity of the security to be provided. The demand for integrators of security systems is growing rapidly, owing to the deployment of diverse security strategies in organizations of all sizes across the globe.
The large enterprises segment is expected to hold the highest market share. These enterprises were the early adopters of physical security solutions and services, as they have a larger revenue pool to spend and a larger infrastructure to be protected. Large enterprises need complex and highly scalable security systems and services in comparison to small and medium-sized enterprises (SMEs). These customers operate across multiple locations in different geographies, hence they require a solution, which offers elevated integration capabilities and is capable of large-scale seamless integration of security operations. In addition to the complexity and requirements, large enterprises are at high risk for breaches and other cyber and physical crimes. The combination of the complexity and high risks require large systems that are fully integrated and can utilise the best and the most reliable technology.
As per the geographic analysis, the researchers expect the APAC region to grow with the fastest CAGR during the forecast period. Security systems are expected to witness increasing adoption in APAC as the countries in the region are emerging economies with a growing number of manufacturing bases, and there is also a constant risk of terror threats in the region. The market in APAC has high growth potential, owing to the increased security concerns, especially in India and China, and governments in these countries have started investing heavily in security. Furthermore, emerging economies are working toward improving their infrastructure, which is further expected to lead to the high growth of the physical security market. The rising adoption of access control systems in SMEs, hospitality businesses, airports, ATMs, banks, residential buildings, and religious places, among others are expected to drive the physical security market.
The major vendors named in the physical security market analysis include ADT Inc, Bosch, Cisco, Honeywell, Johnson Controls, Anixter, Genetec, Secom, G4S, Pelco by Schneider Electric, Dahua, Kastle, Hikvision, Stanley, and Axis Communications.