Physical Security Market Size By Component (System [Access Control System, Intrusion Detection & Prevention System, Video Surveillance, Security Scanning, Imaging & Metal Detection], Service [System Integration, Remote Monitoring, Maintenance & Support, Design & Consulting]), By Application (BFSI, Government, Hospitality, IT & Telecom, Oil, Gas & Energy, Manufacturing, Residential, Retail, Transportation & Logistics), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jan 2021  |  Report ID: GMI2022  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 350   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Physical Security Market size accounted for over USD 70 billion in 2020 and is set to grow at 11% CAGR from 2021 to 2027. High demand for physical security solutions from the transportation sector is expected to fuel the industry growth.

The rise in the number of international travelers over the recent years has encouraged government authorities to employ sophisticated physical security systems to ensure asset and passenger safety. For instance, in August 2019, the UK government mandated that all airports install 3D cabin baggage scanners. Similarly, body scanners are implemented at international airports in Australia to detect prohibited items carried or worn on the body. All travelers and baggage are scanned at the airports to eliminate the risks. Such initiatives from the government will encourage the installation of advanced security scanning, imaging & metal detection systems, in turn, propelling the market demand.

Physical Security Market
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The ongoing coronavirus (COVID-19) pandemic negatively impacted the industry in 2020. As several government organizations imposed stringent lockdowns, there was a sharp decline in the demand for physical security solutions from hospitality market. Restrictions imposed on international as well as domestic travels resulted in the downfall of the hospitality sector, in turn, hampering the physical security market growth.

Additionally, the market witnessed a decline due to the temporary closure of retail outlets and manufacturing industries. The temporary shutdown of malls and halts in the construction of new commercial development projects also contributed to the declining demand for physical security systems. However, with the resumption of industrial activities followed by relaxations in lockdowns, the market will regain traction.

Physical Security Market Report Coverage
Report Coverage Details
Base Year: 2020 Market Size in 2020: 70 Billion (USD)
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2027
Forecast Period 2021 to 2027 CAGR: 11% 2027 Value Projection: 150 Billion (USD)
Pages: 350 Tables, Charts & Figures: 674
Geographies covered (22): U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, South Korea, Australia, Singapore, Brazil, Mexico, Argentina, Chile, Colombia, Saudi Arabia, UAE, South Africa
Segments covered: Component, Application and Region
Companies covered (23): ADT LLC, Allegion PLC, ASSA ABLOY AB, Axis Communications AB, Bosch Security Systems Inc., Dormakaba Holding AG, Gemalto, Hanwha Techwin Co., Ltd., Honeywell International, Inc., IDEMIA, Identiv Inc., Johnson Controls, NEC Corporation, Panasonic Corporation, Sony Corporation, STANLEY Security, Thales Group, Tyco International Ltd., Analogic Corporation, Leidos Holdings, Inc., Tsinghua Tongfang Co., Ltd., OSI Systems, Inc., Smiths Detection Group Ltd (SMITHS GROUP PLC)
Growth Drivers:
  • Rising security threats in the U.S.
  • Evolution of manufacturing practices in the UK
  • Favourable infrastructure trends in Asia Pacific
  • Declining prices of security cameras in Taiwan and China
  • Increasing adoption of advanced security systems from the expanding transportation infrastructure
  • Increasing adoption of commercial security in the Middle East
  • Growing adoption of cloud-based systems globally
Pitfalls & Challenges:
  • Hardware failure resulting in system downtime
  • High cost of implementation

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High demand for video surveillance solutions for efficient monitoring of large areas

The U.S. video surveillance market is set to register growth at more than 10% through 2027. The expanding hospitality industry in the U.S. will offer strong growth opportunities to the physical security market. According to the U.S. Department of Commerce projection, the U.S. will host 95.5 million international visitors annually by 2023.

The physical security systems enable officials to monitor areas in a large hotel from a unified platform. The hotels employ an integrated video surveillance system by installing cameras at different locations. These cameras display the recording on large screens monitored by the concerned authorities. This enables security personnel to view different locations in real time from a single platform and take proactive measures whenever required. High demand for advanced video surveillance solutions will spur market growth.

The robust manufacturing market in Germany will offer growth opportunities to the physical security market revenue

Physical Security Market Size

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Germany physical security industry share valued at USD 4 billion in 2020 and the region is projected to observe strong growth through 2027. The manufacturing sector in the region employs physical security systems for improved safety at production facilities. The established automotive manufacturers in Germany, such as BMW AG, Mercedes-Benz, and Audi AG, are employing sophisticated physical security systems at manufacturing plants to ensure employee and facility safety. These manufacturers use efficient access control systems to ensure authorized entry at gates.

These systems are connected to alarms that alert authorities in case of unwanted intrusion. As these manufacturers employ expensive equipment and machines at facilities, there is a high demand for advanced physical security systems. Adoption of video cameras and access control solutions will drive the market outlook.

The growing retail industry in the Middle East & Africa is adopting advanced physical security solutions to ensure customer and employee safety

MEA Physical Security Market Share

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The Middle East & Africa physical security market demand is anticipated to expand at 11% CAGR over 2021 to 2027. Large malls and hypermarkets form a key part of the UAE retail market. In November 2019, Ajman mall upgraded from a community center to a regional shopping center comprising 130 international brands and a large hypermarket. Similarly, Abu Dhabi’s Reem Island has become one of the city’s largest shopping outlets called the Reem Mall.

Growth of the retail market will spur the demand for advanced physical security screening solutions. In Saudi Arabia, merchandizing market in Jeddah and Riyadh has witnessed growth, with overall retail space in the country’s capital estimated to attain 2.7 million square meters by 2021. Large retailers deploy physical security systems to track harmful objects and track intruders. Increasing adoption of metal detectors & scanners at stores is likely to fuel the market statistics.

Focus on introducing innovative solutions to capture larger market share forms a key trend among players

The players operating in the market are developing new solutions for catering to different end-use demands. The high adoption of physical security systems across several industry verticals is encouraging market players to launch innovative solutions that help to strengthen the safety system. Market players are also focusing on R&D activities associated with high performance access control solutions in response to the demand from the corporate sector. Increasing competition among established players will boost the market revenue.

Key players operating in the physical security market include Axis Communications AB, ASSA Abloy, Hangzhou Hikvision Digital Technology Co., Ltd., Honeywell International Inc., Johnson Controls, STANLEY Convergent Security Solutions, Inc.

This market research report on physical security includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:

Market, By Component

  • System
    • Access control system
    • Intrusion detection and prevention system
    • Video surveillance
    • Security scanning, imaging, and metal detection
    • Others
  • Service
    • System integration
    • Remote monitoring
    • Maintenance and support
    • Designing and consulting

Market, By Application

  • BFSI
  • Government
  • Hospitality
  • IT and Telecom
  • Oil, gas & energy
  • Manufacturing
  • Residential
  • Retail
  • Transportation & logistics
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Singapore
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Chile
    • Colombia
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa


Frequently Asked Questions (FAQ) :

The physical security industry size was valued at USD 70 billion in annual value in 2020 and is likely to rise at an 11% CAGR through 2027 owing to a growing demand from the transportation sector.
The U.S. industry share from the video surveillance segment is anticipated to grow at around 10% up to 2027 due to the expanding hospitality sector across the region.
The physical security industry size for the Germany region reached USD 4 billion in 2020 and will grow with increasing requirements from the manufacturing sector for improved safety at production facilities.
The MEA physical security industry share is pegged to record an 11% CAGR through 2027 driven by the growing retail sector, to ensure customer and employee safety across the region.
Axis Communications, ASSA Abloy, Hangzhou Hikvision Digital Technology, Honeywell International, Johnson Controls, and STANLEY Convergent Security Solutions are few prominent companies that offer physical security solutions.

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Premium Report Details

  • Published Date: Jan 2021
  • Pages: 350
  • Tables: 644
  • Charts / Figures: 30
  • Companies covered: 23
  • Countries covered: 22

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