International. The intrusion alarm/perimeter protection (AI/PP) business is a mature market that depends on the fate of two vertical markets, the industrial sector and the public. When it comes to investing in modernizing the protection of these sites, only in recent years have new innovative systems and products been introduced.
For this reason, the growth rates of the AI/PP business have only been half that of access control and video surveillance and some established security vendors have not had the initiative to work harder to demonstrate the value of the most innovative AI/PP systems.
Some video surveillance manufacturers have seen the opportunity to take advantage of it. Axis Communications announced last year its Axis Perimeter Defender product, a video analytics application for intrusion detection. At the same time, radar technology has increased its penetration into perimeter security and advances in sensor, microwave, active infrared, passive infrared, fiber optic and acoustic sensor technologies are increasing their market penetration.
Consistent with this, radar technology is also used in smart buildings to help organizations explore options for moving staff safely to their buildings. The solutions focus on the key safety and security elements around COVID-19, including prevention, protection and response. Several companies, including Infineon Technologies and Texas Instruments, have been developing indoor radar technology for systems fighting COVID-19 by measuring room occupancy for social distancing and even monitoring people's heartbeat and temperature for infections.
The global intrusion alarm/perimeter protection (AI/PP) products market reached US$7 billion in 2019. In 2020, sales are estimated to have declined to $5.7 billion and are forecast to grow to $6.8 billion by 2025 at a CAGR of about 3.5%. AI/PP has become a much more important issue in critical infrastructures such as utilities, transportation, government, and defense establishments due to the increasing number of threats, which could disrupt the operations of these infrastructures and also lead to large losses across the economy.
More companies from the Access Control and CCTV businesses are taking an active role in this industry by offering new solutions and this will certainly bring a more competitive business that will expand the market. IP systems remain one of the main market trends and with it, Power over Ethernet (POE) is expected to become the standard communication system. These systems reduce wiring and conduit requirements, reduce installation time, minimize connectivity errors, and therefore overall costs.
The main driver of growth in the next 5 years will be increased investment in industrial complexes, especially in Asia and the BRIC countries. Advancements in wireless and sensor technologies and new radar detection products along with the integration of video surveillance, access and outdoor lighting are strengthening this market.
However, growth has increased marginally over the past 5 years and it is expected that when the physical security business "returns to normal" it will have the potential to generate 5% growth. For Western manufacturers, it is a more stable market than the video surveillance business, and at the moment, it is not threatened by low-cost Chinese products.
Source: Memoori.
