International. The total value of global production of factory-priced physical security products in 2019 was US$34.3 billion, an increase of 8.5% in 2018, while the compound annual growth rate (CAGR) over the past 5 years has been 7.24%, according to the most recent report by analyst firm memoori.
In the last 10 years, the market has grown a CAGR of 6.27%, however, different growth rates apply in each of the 3 companies (Access Control, Video Surviellance, Intrusion Alarm / Perimeter Protection) and geographical territories. The analysis forecasts that the market will reach US$56.76 billion by 2024.
This report is a detailed analysis that brings together all the factors influencing the future of this industry. To do this, they evaluated the structure and size of the combined physical security industry, then broke down by product size, sales by major sector and geographic region and forecast sales for 2024.
On the other hand, the study presented an analysis of segmented companies:
A total of 16 Group A companies (those they believe have a physical security business of more than US$1 billion in sales) account for 67% of sales in 2019, and continue to increase their share at the expense of smaller companies.
In Group B, they identified 42 companies (3 more than last year) that had sales of more than US$100 million but less than US$1 trillion and took a 19.5% share of the business but 4.2% of the company population.
Access control was expected to produce slightly higher growth than the 8.2% they have estimated in 2019. It now accounts for 24% of global sales. It continues to expand the IP network business, advancing further in biometrics, identity management, wireless locking systems, and ACaaS.
The report also discusses that the problem for Western manufacturers of getting a share of the Chinese market is not about technology or performance, in essence it is a geopolitical challenge. The structure of demand in the video surveillance business is not balanced due to the Chinese market. The main reason is that the communist government has some control even over private video surveillance manufacturing companies.
Source: memoori.
