International. By 2030, the global physical security market would reach US$203 billion, with a compound annual growth of 6.1%. The protection of the physical perimeter and individual assets, including technological equipment, has gained importance and are driving the growth of the market, a study by Grand View Research revealed.
Increased awareness of perimeter security in developing economies has led to an increase in the deployment of IP-based cameras in residential societies, as well as in commercial complexes and offices. In addition, increasing terrorist threats, border disputes, and refugee crises drive the adoption of strict security measures, driving the growth of the physical security market.
Security Ecosystem
The growing convergence of IT and OT technologies has potentially increased concern about built-in security operations being added to a network. As network video recorders (NVRs) and IP-based surveillance cameras are network devices, they are vulnerable to becoming a target vector to enter a system. In addition, the camera and biometrics offer robust physical security benefits. However, in a growing threat ecosystem, these devices are expected to evolve to enable security for network deployment of a critical infrastructure asset. Therefore, securing the converged IT and OT network is becoming one of the top priorities for several companies.
Video analytics and machine learning
Technological advancement in physical security systems such as video analytics and machine learning is expected to drive the overall market. In addition, the hardware is also gaining a lot of traction, which is attributed to a significant improvement in the legacy surveillance camera system.
Axis Communications serves in the report as an example of the trend: in March 2022, the company launched a lightweight bullet camera: Axis M2036-LE that offers quad HD 1440p and around 129° horizontal view, which supports machine learning and deep learning. These offerings have attracted customers and businesses to witness the advantages of multiple connected cameras for security operations, thereby driving market growth.
IoT offers advantages
Leveraging IoT technology to improve physical security is anticipated to be a potential factor driving the growth of the market. The IoT offers several ways to improve physical security and the access control system. Connected sensors and devices and automated alert system enhance the effectiveness of security products and provide robust capabilities such as intelligence monitoring, tampering alert, perimeter protection, and car tracking, among others.
Thus, technological development and its exponential growth are anticipated to have a positive impact on the dynamics of the physical security market during the forecast period.
Other key findings of the research include that video surveillance is the dominant subsector, registering USD 39.04 billion in 2021; system integration is anticipated to dominate the market during the forecast period; the residential segment is forecast to record the highest CAGR of over 6.9% during the forecast period.
