The global physical security market size is expected to reach USD 292.40 billion by 2025 growing at a CAGR of 9.4%, according to a new study by Grand View Research, Inc. Increased spending on security products, equipment, and services is one of the key factors driving the market. Moreover, rapid infrastructure development across major regions is anticipated to boost the demand for premises security, thereby propelling market growth.
Increasing convergence of IT and OT technologies has increased concerns about inbuilt security operations that are added into a network. As network video recorders (NVRs) and IP-based surveillance camera are network devices, they are vulnerable to becoming a target vector to get into a system. Furthermore, camera and biometrics offer robust physical security benefits. However, these devices are expected to evolve to enable safety for deployment in a critical infrastructure asset’s network. Thus, securing the converged IT & OT network is emerging as one of the top priorities for several companies.
Technological advancements in physical security systems, such as video analytics and machine learning, are also driving the market. Moreover, security hardware is also witnessing high demand on account of significant advancement in the legacy surveillance camera system. For instance, CCTV cameras that are often blurry and offer lesser features are increasingly replaced by ultra-high definition (UHD) cameras. The UHD cameras provide a range of advanced functionalities and features, such as 4K image resolutions, motion detection, and night vision modes, which broaden the scope of their abilities and application. Due to rising awareness about the advantages of multiple connected UHD cameras for security operation will fuel market growth.
Leveraging IoT technology to enhance physical security is anticipated to be a potential factor in driving market growth. IoT offers several ways to improve physical security and access control systems. Connected sensors and devices and automated alert systems enhance the effectiveness of security products and provide robust abilities, such as intelligence monitoring, tampering alert, perimeter protection, and automobile tracking. Thus, technological development and its exponential growth are anticipated to positively impact the market dynamics over the forecast period.
Further key findings from the Grand View Research study suggest that the services component segment is expected to continue its dominance registering the highest CAGR of 9.6% over the forecast period. Video surveillance is projected to be the largest hardware segment by 2025. However, access control is said to be the fastest-growing segment from 2019 to 2025; the system integration services segment led the global physical security market in 2018 and is likely to maintain the dominance throughout the forecast years. In terms of end-user, the Government sector was the largest end-user segment in 2018 and it has been projected to expand further at a healthy CAGR from 2019 to 2025.
Key companies cited in this report include major players such as, Hikvision, Honeywell, Johnson Controls; Bosch and ADT.