The global physical security market size is expected to reach USD 216.43 billion by 2030, registering CAGR of 6.8% from 2023 to 2030, according to a new report by Grand View Research, Inc. Lack of physical security leads to higher rates of burglaries and thefts. Therefore, safeguarding the physical perimeter and individual assets, including expensive technological equipment, has gained importance and is driving the market growth.
Increasing awareness about securing the perimeter in developing economies has led to a rise in deployment of IP-based cameras in residential societies as well as commercial complexes and offices. Furthermore, increasing terror threats, border disputes, and refugee crises drive the adoption of stringent safety measures, thereby driving the market growth.
For instance, in February 2022, the researchers found, by way of an example, that Hangzhou Hikvision Digital Technology Co., Ltd, one of the world’s prominent manufacturers of innovative video surveillance systems and solutions, introduced the Tandemvu PTZ camera line, which combines PTZ and bullet camera capabilities into a single unit. These cameras can monitor broad regions and zoom in on individual security incidents while simultaneously maintaining attention on both viewpoints. Further, this camera would be deployed in commercial complexes and residential societies to reduce terror threats and adopt more physical security on the premises.
Concerns for cyber vulnerability
However, analysts say that the increasing convergence of IT and OT technologies have potentially increased concern towards in-built security operations that are added into a network. As network video recorders (NVRs) and IP-based surveillance camera are network devices, they are vulnerable to become a target vector to get into a system. Furthermore, camera & biometrics offer robust physical security benefits. However, in a growing threat ecosystem, these devices are expected to evolve in order to enable safety for deployment in a critical infrastructure asset’s network.
Thus, securing the converged IT & OT network is emerging as one of the top priorities for several companies. For instance, in November 2021, Insightcyber Group, Inc., a company that offers physical, cyber systems to protect businesses, built an AI-driven physical security device for various industries such as transportation, manufacturing supply chain, and others. The physical security device has a wide range of OT machines and IT hardware technologies which would provide safety and protection to all customers, employees, and assets of the company with more security.
Video analytics and machine learning
The technological advancement in physical security systems such as video analytics and machine learning are expected to drive the overall market. Moreover, the hardware is also gaining high traction which attributes to significant enhancement to the legacy surveillance camera system. For instance, in April 2022, Matrix Comsec., a prominent security solutions provider, launched a new 8MP dome IP camera, designed for the benefit of large organisations and project environments. The cameras are suitable for outdoor and indoor monitoring needs, making them ideal for the modern businesses.
Additioally, in March 2022, Grand View Research cites Axis Communications, as an example of a company that launched a lightweight bullet camera- the Axis M2036-LE which offers quad HD 1440p and around 129° horizontal view, which supports machine learning and deep learning. These offerings have enticed customers and enterprises to witness the advantages of multiple connected cameras for security operations, thereby fuelling the market growth.
IoT a driving factor for growth
Leveraging IoT technology to enhance physical security is anticipated to be a potential factor driving the market growth. The IoT offers several ways to improve physical security and access control system. The connected sensors and devices, and automated alert system enhance the effectiveness of the security products and provide robust abilities such as intelligence monitoring, tampering alert, perimeter protection, and automobile tracking among others.
Thus, technological development and its exponential growth are anticipated to positively impact the market dynamics of the physical security market during the forecast period. For instance, in October 2022, Viakoo Inc., an American cyber security company, launched Action Platform, an automated IoT device management platform for managing, securing, and updating firmware, ensuring device password compliance, and providing IoT device certificates. The platform enables organisations to identify and resolve security flaws on connected systems and secure these devices’ safety and security. Such innovative solutions and their deployment in the region are propelling the growth of the physical security market forward.
Physical security market report highlights
- Video surveillance system led the market in 2022, as these systems enable real-time continuous monitoring and help lower chances of theft
- System integration is anticipated to dominate the market through the forecast period owing to the factors such as stringent regulations and demand for the cost-effective systems
- The residential segment is predicted to register the highest CAGR during the forecast period owing to the measures taken by the consumers to protect their assets from potential threats
- North America dominated the market in 2022 and is estimated to remain dominant throughout the forecast period. The presence of key physical security market vendors such as Cisco Systems, Inc., Honeywell International, Inc., and Pelco is primarily responsible for the region’s market growth. Businesses across the region are increasingly deploying physical security solutions to prevent identity theft, cyber-attacks, and commercial espionage, as well as to ensure data security and privacy to facilitate business continuity.
Major players
Key players mentioned in the report include Hikvision, Honeywell, Genetec, Cisco, Axis Communications, Pelco, Bosch, Johnson Controls, ADT and Siemens.
