Physical Security Market size is expected to reach USD 150 billion by 2027, according to a new research report by Global Market Insights Inc.
The rise in the number of terrorist attacks in developed economies has stressed the need for the implementation of efficient physical security solutions. For instance, in May 2019, there was a shooting attack at a municipal building in Virginia, U.S. Similarly, in August 2019, there was a firing at a Walmart store in Texas, U.S. This has encouraged government authorities, large retailers, and commercial complex owners to strengthen their security systems for ensuring protection of assets, visitors, and staff. Government authorities are increasingly employing physical security solutions to protect the infrastructure, confidential documents, and employees. Large retailers adopting sophisticated safety measures will also propel the physical security market growth.
The ongoing coronavirus (COVID-19) pandemic had a negative impact on the industry in 2020. Government organizations across the globe imposed stringent lockdown to prevent the spread of the virus. Restrictions imposed on travel resulted in declined demand for physical security solutions from the transportation sector. The temporary closure of large shopping malls also hampered the physical security market statistics. However, the resumption of industrial activities after relaxations in lockdowns in the second half of 2020 is expected to support the industry outlook. Gradual increase in the number of domestic and international travelers is fueling the market in 2021.
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Increasing demand for high-quality services that ensure the optimum functioning of the systems
Services segment accounted for around 20% of the physical security market share in 2020 and is projected to grow at 13% CAGR through 2027. Physical security systems include the integration of several hardware and software components. This generates the need for high-quality system integration services that ensure the smooth implementation and deployment of complex physical security solutions. These services also enable large complexes to integrate new security solutions into the existing network infrastructure. There is an increasing demand for remote monitoring services that offer 24/7 technical support and assistance.
The involvement of hardware components, such as sensors and cameras, also drives the need for effective maintenance services. Players focusing on strengthening their service portfolio will boost the industry demand.
Browse key industry insights spread across 350 pages with 644 market data tables and 30 figures & charts from the report, “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” in detail along with the table of contents:
High demand from the modernizing BFSI sector is propelling physical security market
Security is of paramount importance to the banking industry. Anti-social elements target banks as they handle large amounts of cash and other valuables. High-end protection from thieves is extremely crucial for large banks with geographically dispersed branches. Video surveillance software enables authorities to monitor several branches from a single location. As pro-active security is vital, the BFSI sector employs a network of cameras for real-time monitoring of different departments.
With centralized video management platform and advanced network infrastructure, videos from several branches can be transmitted in real-time to a unified location, making the risk management more efficient. Market players in the BFSI sector also employ high performance access control solutions to restrict the entry of unauthorized personnel. The remodeling of the financial sector with the adoption of advanced security technologies will drive the market revenue.
Infrastructure development projects in Asia Pacific will boost the demand for physical security solutions from the transportation sector
The Asia Pacific physical security market held a share of more than USD 25 billion in 2020 and is anticipated to witness robust growth over 2021-2027. Transportation authorities in the region are implementing advanced security systems to enhance passenger safety. In November 2019, the Philippine Government introduced Safe Philippines, a combined program along with the Chinese Government that focuses on the use of technology to improve public safety.
Growing competition among players to offer innovative hardware and software solutions
The players operating in the market focus on expanding their offerings to strengthen their position. With the increasing demand for advanced physical security systems, companies are investing in R&D to introduce high-performance solutions. For instance, in November 2020, NEC Corporation developed a multimodal biometric authentication terminal integrating iris and face recognition technologies. With the launch, the company aims to offer high-quality access control system incorporating the latest biometric technology.
Industry participants are focusing on integrating latest technologies to offer high quality solutions for different end-users. Increasing competition to introduce advanced solutions will boost the industry expansion. Key players operating in the physical security market include Honeywell International Inc., Axis Communications AB, Hangzhou Hikvision Digital Technology Co., Ltd., ASSA Abloy, Johnson Controls, IDEMIA, Pelco, STANLEY Convergent Security Solutions, Inc., and NEC Corporation.