Physical Security Market Size, Share & Trends Analysis Report By Type, By Application, By Region Forecast to 2028

Physical Security Market Trends, outlook - 2028

The global Physical Security market size is projected to reach USD 102470 million by 2028, from USD 74850 million in 2021, at a CAGR of 4.1% during 2022-2028. 

Key drivers of the physical security market include the rising need for securing areas around government buildings, offices, and the defense sector.

Transportation and logistics systems are the prime targets for carrying out terrorism, vandalism, or shipping illegal goods. This will boost the need for physical security thereby driving the growth of the market during the forecast period.  The expanding telecommunication industry will positively impact the physical security market trends in the coming years.The growing incidences of bank robberies, security breaches, and cyber-attacks potentially harm the critical assets of financial institutions. This will spur market expansion in the future. Physical security systems are paramount for schools, and colleges to enhance the safety of their working staff, teachers, and students. This increases the demand for the physical security system market. The rapidly changing retail landscape will witness significant adoption of physical security systems thereby spurring the market ahead in the upcoming years. Geopolitical issues and high-risk locations provide a real threat to the oil, gas, and energy industry. This will augment the growth of the market in the coming years. There are several security challenges in the residential and hospitality industry that will fuel the demand for the market during the forecast period. 

Trends Influencing Physical Security Market 

Public, defense, and government sector

Government agencies have properties of their own. There is an urgent need to protect the premises and crucial assets inside these buildings. Integration of video surveillance, and access control systems enable 360-degree monitoring from a wide range of cameras. The video feeds are shared from doors and gate controllers, biometrics systems, card, and fob readers.  Video analytics can be converted into software footage for strong evidence of a person leaving or entering the building. It is extremely helpful in perimeter security detection, loitering, unknown object identification, and motion sensing. Video management systems can be easily stored in the cloud and can lead to faster retrieval of videos during forensic searches. This is extremely beneficial in the defense space as well. These factors will augment the growth of the physical security market in the near future. 

Transportation industry and logistical issues

Many transport hubs, terminals, maritime ports, and freight shipping trucks are investing heavily into physical security solutions as they are the centers for terrorist attacks, cargo thefts, and smuggling of illegal items like drugs, contraband, precious antiques, piracy, etc. Stringent access controls like CCTV cameras at crucial checkpoints, and loading and unloading sites can help reduce the number of break-ins. Airports and railway stations require robust screening processes to manage the huge inflow of crowds every day. Moreover, event-based monitoring filters out the extra noise in screen footage thereby eliminating the need for security personnel to watch live feeds all day. This provides actionable intelligence. This is going to drive the growth of the physical security market during the forecast period.

Need for securing telecom sector 

On-site cell tower threats and copper cable thefts are recurring issues faced by mobile operators.  Smart access management controls are put in place to protect the shared network access of cell stations. A smart key is created which is tough to duplicate and is reprogrammable. It can be locked, unlocked, and quickly disabled in case of any unknown intrusion or vandalism. There is no requirement for any power, cables, or battery. The advanced software provides key analysis on authorization and auditing practices. This proves highly effective for telecom operators to monitor their cell tower infrastructure. Such factors will augment the growth of the physical security market in the subsequent years.  

BFSI sector

Banks and credit unions are seeking to minimize the losses incurred due to robberies, thefts, larceny, burglaries, etc. Online security measures are equally important as important customer data is stored in the banking networks for seamless mobile banking transactions. Employee training, security checks, and automated access controls are put into place to protect critical assets. Auto relocking devices, video surveillance like CCTV cameras, security scanning, and metal detectors are some of the measures undertaken to prepare for the worst-case scenarios. This is going to surge the growth of the physical security market in the forthcoming years. 

Security measures in the education industry

Educational institutions like schools and colleges are prime locations for cases of victimization, bullying, gang violence, and shooting incidences, especially in developed countries. This requires a security audit assessment. Furthermore, CCTV cameras have become a common thing in many schools to monitor the in-house property, staff, and students. Cameras are placed in strategic locations like dumpsters, parking areas, main perimeter, playground, lobby, hallways, corridors, classrooms, libraries, staff offices, intersections, cafe registers, bus pickup, etc. Additionally, motion sensing, card access, security alarm systems, and metal detectors are deployed. These factors will surge the demand for the physical security market in the subsequent years. 

Retail

As businesses transition to the digital world cases of cyberattacks and ransomware are increasing relentlessly. The consequences are reduced downtime and frequent interruptions in online service delivery to consumers. Physical threats and shoplifting cases are on a rise across the globe. Measures such as AI-powered video analytics analyze a huge amount of data to detect any unwanted patterns and along with remote monitoring help in intruder identification, people counting and sharing images of the entire perimeter, and fence lines without the need for on-site presence. Remote sensing will allow retailers to maintain round-the-clock surveillance. This in turn will propel the physical security market forward during the forecast period. 

Oil and gas industry

There are a host of challenges in the oil and gas industry as the onsite drilling and extraction plants are situated in faraway remote locations. These places are usually inaccessible and present several workplace hazards. Apart from the accidental risks, there is loss of physical equipment, financial loss, increasing geopolitical tension, strikes, or terrorist attacks that hamper a country’s financial and environmental capacity. Cybercrimes can lead to a complete shut down of the plant or trigger a full-blown explosion. There are solutions like full-time network monitoring, on-time alert systems for cyber attacks, etc. These factors will propel the growth of the physical security market in the forthcoming years. 

Hospitality sector

The hotel industry is prone to major terrorist attacks, thefts, and unauthorized access of people with potential risk. As the industry is always open to people from all over the world it becomes essential to provide complete security, comfort, and convenience to your guests. Crowd management is necessary. There are a couple of tools to handle these situations like installing CCTV cameras, fire and life safety systems, smoke detectors, access controls through smart cards and intrusion alarms, etc. All these factors will boost the growth prospects of the physical security market in the upcoming years. 

Physical Security

Physical security is the protection of software, personnel, hardware, data, and networks from events that can cause damage to an organization. It helps enterprises by safeguarding them against fire, terrorism, vandalism, and theft. It can be done by using various physical security devices such as CCTV surveillance, access control protocols, intruder alarms, Video Surveillance as a Service (VSaaS), Access Control as a Service (ACaaS), and other similar techniques.

Physical Security Market Size and Share

Based on type, the video surveillance segment will grow the highest in the physical security market share as high definition CCTVs, and IP cameras are installed in crucial infrastructural facilities such as government offices, retail stores, commercial spaces, banks, etc to prevent security threats and monitor any illegal activities. 

Based on application, the government and defense segments will maintain dominance in the physical security market share owing to a rising need for securing government facilities from security intrusion and cyber threats, etc. Authorities around the world are deploying security measures to protect their crucial infrastructure. 

Based on region, North America will provide lucrative opportunities for growth in the physical security market share due to technological advancements, strict regulatory compliance, and the increasing need to counter cases of terrorism, illegal immigration, cybersecurity threats, etc. 

Physical Security Market Segments

Physical Security market is segmented by players, region (country), by Type and by Application. Players, stakeholders, and other participants in the global Physical Security market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on revenue and forecast by Type and by Application for the period 2017-2028.

Physical Security Market Segment by Type

• Access Control System
• Video Surveillance
• Physical Security Information Management
• Perimeter Intrusion Detection & Prevention
• Security Scanning, Imaging & Metal Detection
• Fire & Life Safety

Physical Security Market Segment by Application

• Government, Defense & Public Sector
• Transportation & Logistics
• Telecom & IT
• BFSI
• Education
• Retail
• Oil, Gas & Energy
• Hospitality & Residential
• Others

By Company

• ADT
• Hangzhou Hikvision Digital Technology
• SECOM
• Johnson Controls (Tyco)
• Anixter
• Cisco
• Genetec
• Honeywell
• Bosch Security
• Stanley
• Senstar

By Region

• North America
• United States
• Canada
• Europe
• Germany
• France
• UK
• Italy
• Russia
• Nordic Countries
• Rest of Europe
• Asia-Pacific
• China
• Japan
• South Korea
• Southeast Asia
• India
• Australia
• Rest of Asia
• Latin America
• Mexico
• Brazil
• Rest of Latin America
• Middle East & Africa
• Turkey
• Saudi Arabia
• UAE
• Rest of MEA