International. A report by Marketsandmarkets predicts that the global physical security market size through 2025 will grow from US$93.5 billion in 2020 to US$120.3 billion in 2025, at a CAGR of 5.2% during the forecast period.
Major market drivers cited by the research firm include the risk of terrorist attacks, technological advancements and deployment of wireless technology in security systems, increasing use of Internet Protocol (IP)-based cameras for video surveillance, implementation of mobile-based access control, and adoption of Internet of Things (IoT)-based security systems with cloud computing platforms.
Integration services, stronger subsector
The security systems integration services sector is expected to be the strongest subsector during the forecast period. The demand for security system integrators is growing rapidly, due to the deployment of various security strategies in organizations of all sizes around the world.
Large companies have a larger infrastructure to secure
The large enterprise segment is expected to have the largest market share. These companies were the first to adopt physical security solutions and services, as they have a greater source of revenue to spend and a larger infrastructure to protect. Large enterprises need complex and highly scalable security systems and services compared to small and medium-sized enterprises (SMEs).
These customers operate in multiple locations in different geographies, so they require a solution that offers high integration capabilities and is capable of seamless large-scale integration of security operations. In addition to complexity and requirements, large enterprises are at high risk of breaches and other physical and cybercrimes. The combination of complexity and high risks requires large systems that are fully integrated and can use the best and most reliable technology.
Retail to lead the vertical sector
In the retail sector, it is critical to ensure safety in the workplace, prevent business disruption and avoid financial losses. The number of retail stores and malls in urban areas has increased dramatically in recent years. Investing in access control systems as a solution for security needs provides numerous long-term benefits, such as reduced retail losses, maximized in-store profits, reduced insurance rates, and most importantly, decreased number of theft cases.
Highest CAGR in Asia Pacific
According to the geographical analysis, APAC (Asia – Pacific) will grow with the fastest CAGR during the forecast period. Security systems are expected to witness increasing adoption in APAC, as countries in the region are emerging economies with a growing number of manufacturing bases and there is also a constant risk of terrorist threats in the region.
The APAC market has high growth potential, due to increasing security concerns, especially in India and China, and the governments of these countries have begun to invest heavily in security. In addition, emerging economies are working to improve their infrastructure, which is expected to lead to high growth of the physical security market. The increasing adoption of access control systems in SMEs, hospitality companies, airports, ATMs, banks, residential buildings, and religious venues, among others, is expected to drive the physical security market.
