Physical Security Market Statistics, 2030
The global physical security market size was valued at $104.6 billion in 2020, and is projected to reach $192.9 billion by 2030, growing at a CAGR of 6.5% from 2021 to 2030.
Growth in the number in terror attacks and rise in awareness boost the growth of the global physical security market. In addition, growth in technological advancements also positively impacts the growth of the physical security industry. However, privacy concerns and lack of physical and logical security integration hamper the market growth. On the contrary, increase in demand for physical security in smart cities is expected to offer remunerative opportunities for expansion of the market during the forecast period.
Physical security measures are designed to protect buildings and safeguard the equipment inside. In short, they keep unwanted people out and give access to authorized individuals. While network and cybersecurity are important, preventing physical security breaches and threats is the key to keeping the technology and data safe, as well as any staff or faculty that have access to the building. It provides safety from natural disasters, fire, theft, vandalism, and terrorism. It includes multiple layers containing interdependent systems, including security guards, CCTV surveillance, locks, protective barriers, access control protocols, and other similar techniques.
Segment Review
The physical security market is segmented on the basis of component, system type, service type, enterprise size, industry vertical, and geography. On the basis of component, it is classified into system, and services. On the basis of systems type, it is bifurcated into physical access system, video surveillance system, perimeter intrusion and detection, physical security information management, and others. On the basis of service type, it is segregated into access control as a service, video surveillance as a service, remote monitoring services, security system integration services, and others. On the basis of enterprise size, it is categorized into large enterprises, and SMEs. On the basis of industry vertical, it is divided into BFSI, government, retail, transportation, residential, IT and Telecom, and others. On the basis of region, the physical security market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the physical security industry are ADT Inc., BAE Systems, Cisco system Inc., Genetec Inc., HONEYWELL INTERNATIONAL, INC., Johnson Controls, PELCO Corporation, Robert Bosch GmbH, STANLEY CONVERGENT SECURITY SOLUTIONS, INC., and Senstar Corporation.
On the basis of component, the service segment holds the largest physical security market share and is expected to grow at the highest rate during the forecast period, owing to the rise in awareness of automated security solutions, such as door locking, intrusion detection, and fire detection systems by households and organizations had a huge positive impact on the physical security services market.
Region-wise, the physical security industry was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to rise in adoption of physical security solutions in critical infrastructures, such as chemical industries, nuclear plants, and oil & gas facilities across North America. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to high demand for physical security solutions and growth incidences of terror attacks, particularly in Iraq, Pakistan, Afghanistan, India, and others have necessitated the heavy adoption of physical security solutions in the region. These factors are expected to drive the physical security market growth in the Asia-Pacific region.
Top Impacting Factors
Surge in Terror Attacks
Governments of various countries have increased their spendings on physical security due to rise in terrorism and increase in security concerns, globally. Key government institutions, such as embassies, parliaments, courts, and government offices focus on installing advanced video surveillance and access control systems. Newer technologies, such as drones, smart fence sensors, and mass notification systems (MNS) are used for surveillance at major events or assemblies in tier I cities.
Moreover, several government agencies have implemented strict policies and guidelines for the installation of physical security systems. For instance, the U.S. Government enacted various laws, regulations, and industry guidelines, such as Federal Information Security Act of 2002, Payment Card Industry Data Security Standard (PCI DSS), Privacy Act (5 U.S.C. 552a), and Integrated Physical Security Standards & Procedures (IPSSP) for security requirements. This helps to boost the physical security software market towards growth.
Increase in Awareness for Physical Security
The household and organizational awareness about physical security solutions has increased over the years, owing to increase in theft and robberies. Automated home security solutions for door locking, intruder detection, fire detection, and LPG gas leakage detection witnessed a significant growth. This is due to quick adoption of security systems in the premises of stakeholders to protect their assets, belongings, and human capital from any kind of threat or unauthorized access. These factors are anticipated to fuel the physical security market growth during the forecast period.
Regional Insights
The physical security market is expanding globally due to the increasing need for protecting assets, infrastructure, and people from security threats. This growth is fueled by rising concerns over terrorism, theft, and other criminal activities, as well as advancements in security technologies. The major regions influencing the market include North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
North America leads the global physical security market, driven by significant investments in security solutions for public safety and critical infrastructure. The U.S. dominates the region, with a focus on advanced security systems for government buildings, airports, and data centers. Increasing incidents of workplace violence and school shootings have also led to higher demand for physical security solutions, such as surveillance systems and access control technologies. Additionally, Canada contributes to market growth with its emphasis on securing transportation and energy infrastructure.
Europe is another key region for the physical security market, with countries like the UK, Germany, and France at the forefront. The rising number of terrorist attacks in the past decade has driven European governments to invest heavily in security measures for public spaces, transportation hubs, and critical infrastructure. Moreover, the increasing adoption of smart city initiatives and urban surveillance systems is boosting the demand for advanced physical security solutions in the region.
Asia-Pacific is witnessing significant growth in the physical security market, driven by rapid urbanization, infrastructure development, and increasing concerns over crime and terrorism. Countries like China, India, and Japan are key contributors. China, in particular, has invested heavily in large-scale surveillance systems and facial recognition technologies to monitor public spaces and reduce crime rates. India is also adopting physical security technologies for its smart city projects and critical infrastructure protection.
Latin America and the Middle East & Africa are gradually adopting advanced physical security solutions. In Latin America, Brazil and Mexico are seeing rising demand due to increasing crime rates and the need to secure public spaces. In the Middle East, the UAE and Saudi Arabia are investing in physical security systems to protect vital assets such as airports, oil and gas infrastructure, and commercial buildings, driven by both security concerns and the ongoing push toward modernization.
Key Industry Developments
- August 2023: The U.S. Department of Homeland Security announced new investments in physical security measures at major airports, including advanced screening systems and facial recognition technology for passenger safety.
- July 2023: Axis Communications, a leader in network video, launched new high-resolution thermal cameras to enhance perimeter protection for critical infrastructure, targeting markets in North America and Europe.
- June 2023: Hikvision, a leading global provider of security products, announced the introduction of AI-powered surveillance systems in India, aimed at improving public safety and supporting the country’s smart city initiatives.
- April 2023: Bosch Security Systems expanded its portfolio in Europe by launching an intelligent video surveillance solution equipped with machine learning to optimize security in crowded public areas like train stations and airports.
COVID-19 Impact Analysis
The physical security market size has grown significantly in recent years; but, due to the outbreak of the COVID-19 pandemic, the market is expected to experience surge in market growth. While the U.S. government has identified access control and security as part of the essential workforce during the pandemic, many businesses are still trying to navigate how to ensure the security of their physical spaces and assets without having someone on site, and how to pivketot daily operations as they shift to a remote working environment. In the report, 75% of respondents said the COVID-19 pandemic increased the importance of physical security within their organizations. 60% respondents said they either need immediate cloud-based technology upgrades or are considering the tech in the near term. These factors enhance the growth of the physical security market during the pandemic crisis.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global physical security market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global physical security market trends, physical security market analysis is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2021 to 2030 is provided to determine the physical security software market potential.
Physical Security Market Report Highlights
| Aspects | Details |
 By Component |
|
 By Systems Type |
|
 By Service Type |
|
 By Enterprise Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Cisco system Inc., PELCO Corporation, Senstar Corporation, Robert Bosch GmbH, Johnson Controls, ADT CORPORATION, HONEYWELL INTERNATIONAL, INC., STANLEY CONVERGENT SECURITY SOLUTIONS, INC., BAE Systems plc, Genetec Inc. |
Analyst Review
The advent of Internet of Things (IOT) has transformed the outlook of the global physical security market. Physical security comprises three essential elements, such as access control, surveillance, and testing. The physical sites are secured against attacks, accidents, or environmental disasters using locks, fencing, biometric access control systems, access control cards, and fire suppression systems. Physical locations are monitored by surveillance cameras and notification systems, including heat sensors, intrusion detection sensors, and smoke detectors. Disaster recovery procedures and policies require periodic scrutiny to ensure better safety and reduce the time taken for recovering from disasters.
Key providers of the physical security market, such as Robert Bosch GmbH, Cisco system Inc. and Honeywell International, Inc. account for a significant share in the market. With the growing requirement for edge analytical software, various companies invest in the R&D initiatives to enhance their capabilities. For instance, in September 2021, Robert Bosch GmbH and Capgemini entered into a strategic collaboration to focus on the consistent expansion of Bosch Connected Industry’s Nexeed Industrial Application System and strengthen client activities. The collaboration between two leading providers of Industry 4.0 software and services helps to create a broad range of offerings, from which industrial companies in particular are expected to benefit in the digitization and sustainability of their production plants.
In addition, in October 2021, Cisco System Inc. announced its partnership with COP26. With the goal of increasing inclusivity and supporting resilience, Cisco is expected to provide the technology to securely connect both, those on-site and permitted registered delegates who are unable to be onsite, through Webex. By partnering with the UK Government, legislate for Webex is expected to support COP26 as crucial negotiations take place between world leaders.
Furthermore, with further growing in investment globally, looking at the increase in demand for physical security, various companies are expanding their current capabilities by adopting the product launch strategy with increasing diversification among customers. For instance, in November 2021, Honeywell International, Inc. launched a Pro-Watch 5.5, the latest iteration of its Pro-Watch Integrated Security Suite. The Honeywell Pro-Watch Integrated Security Suite is a software platform designed for enterprise and critical infrastructure markets to help protect people and property, optimize productivity, and ensure compliance with industry regulations, all while helping to reduce operational costs.
Growth in the number in terror attacks and rise in awareness boost the growth of the global physical security market. In addition, growth in technological advancements also positively impacts the growth of the physical security market.
Region-wise, the physical security industry was dominated by North America in 2020, and is expected to retain its position during the forecast period, owing to rise in adoption of physical security solutions in critical infrastructures, such as chemical industries, nuclear plants, and oil & gas facilities across North America.
The global physical security market size was valued at $104.56 billion in 2020, and is projected to reach $192.89 billion by 2030, registering a CAGR of 6.5% from 2021 to 2030.
The key players that operate in the physical security industry are ADT Inc., BAE Systems, Cisco system Inc., Genetec Inc., HONEYWELL INTERNATIONAL, INC., Johnson Controls, PELCO Corporation, Robert Bosch GmbH, STANLEY CONVERGENT SECURITY SOLUTIONS, INC., and Senstar Corporation.
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