The global physical security market size is expected to reach USD 171.0 billion by 2027 and is anticipated to register a CAGR of 6.5% over the forecast period, according to a new report by Grand View Research, Inc.
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, the research analysts suggest that increasing terror threats, border disputes, and refugee crises are driving the adoption of stringent safety measures, thereby driving the physical security market growth.
Governments across different countries and regions are taking up smart city initiatives to enhance their infrastructure and are hence deploying improved security systems. Additionally, modernising the existing infrastructure with robust security measures and strengthening the security of government agencies have been some of the top priorities for governments across developed countries. Organisations are increasingly concerned about employee safety and are hence setting up systems to prevent unauthorized access, further driving the demand for physical security solutions.
Grand View finds that China accounted for the largest share of the Asia Pacific market in 2019. The market in China has been strongly supported by the growth in new construction projects and smart city initiatives. Furthermore, the presence of technology giants such as Hangzhou Hikvision Digital Technology Co., Ltd and Dahua Technology Co., Ltd is another factor contributing to the market growth. Companies in the market are focusing on strategic partnerships and acquisitions to enhance their product and service offerings. In August 2019, Dahua Technology Co., Ltd entered into a strategic alliance with Pepper to offer enhanced security to its video as well as non-video IoT services to protect against unauthorised access of data. The partnership, say the researchers, would allow the incorporation of Pepper’s intelligent solutions into Dahua Technology Co., Ltd’s hardware.
Further, key findings from the study suggest that video surveillance dominates the physical security market with a value of USD 33.1 billion in 2019 as these systems enable real-time continuous monitoring and help lower chances of theft. Additionally, system integration is anticipated to dominate the market through the forecast period owing to factors such as stringent regulations and demand for cost-effective systems. The residential segment, on the other hand, is anticipated to register the highest CAGR of more than 7.0% over the forecast period due to growing numbers of consumers taking measures to protect their assets from potential threats
