Physical Security Market Analysis By Component (Hardware, Software, Services), By Application (Transportation, Government, Corporate, Hospitality, Energy, Retail, Industrial, Control Centers, Chemical Facilities), And Segment Forecasts To 2020

Published: December 2014 | ISBN Code: 978-1-68038-293-8 | Report Format: PDF

Industry Insights

The global physical security market size was valued at USD 51.94 Billion in 2013. The demand for high-tech security devices will be driven by the rising adoption of firewalls and security systems by business organizations, banks, and government agencies. The increasing threat of terrorism, as well as cyber security, has driven organizations to improve the safety standards, thus promoting industry growth.

The demand will also be fueled by increasing spending on the security of critical infrastructures such as banks, airports, trade centers, data centers, government headquarters, and enterprise facilities. Furthermore, the growth of physical security systems industry will be driven by the increasing adoption of cloud–based data storages and data analytics employed by the organizations which need sophisticated security systems to ensure the safety of the data. 

Global Physical Security Market, By Application, 2012 - 2020 (USD Billion)

Global Physical Security Market

Application Insights

Transportation physical security systems were valued at over USD 10.0 billion in 2013, and this segment is expected to witness similar trend by 2020 growing at a CAGR of 10.9% from 2014 to 2020. This growth is anticipated to be driven by increased spending by the government agencies to improve security for public transport facilities. The increase in online ticket booking services also warrants the need for a secure transaction processing system, which is further expected to augment the demand for security systems over the forecast period.

The government segment accounted for a market share of 16.0% in 2013 which is projected to grow at a 12.7% CAGR over the forecast period. The increasing threat of terrorism and protection against systems hackers has driven the governments to increase the spending on the security of their critical information assets. Furthermore, the industry is expected to grow on account of growing demand for security systems by the corporate segment.

The growth of the global market is expected to be driven by the demand from the retail sector which was estimated at USD 4.0 billion in 2013. The demand is fueled by the need for physical security systems in retail stores that offer the benefits of IP surveillance, the point of sale integration, access control systems, and video analytics. Furthermore, an increase in the number of retail stores in developing countries is expected to drive the demand.

Component Insights

The global physical security industry has been segmented by components into hardware, software, and services. The industry is dominated by the hardware segment, which accounted for over 75.0% of the market share in 2013. The hardware system includes RFIDs, card-based access systems, biometrics and, video surveillance devices such as CCTVs. Increasing spending on automated surveillance systems in industries that make use of the aforementioned hardware devices is expected to bolster demand over the projected period.

Increasing government spending in developing countries such as India, China, and Brazil to monitor security at airports, railway stations and on streets by installing services such as public safety answering point (PSAP) and video surveillance as a service (VSaaS) is expected to drive the growth of this segment over the forecast period.

Services segment is estimated to be the fastest-growing segment, with a CAGR of over 11.0% from 2014 to 2020. Rising system integration coupled with increased designing and consulting services for the deployment of physical security systems in an organization is expected to impact positively growth.

Regional Insights

Asia Pacific is expected to account for a major market share of the physical security industry due to increasing deployment of security systems by government agencies in transportation and public security in emerging economies such as India and China. In addition, increasing IT sector in India and rapid industrialization in India and China is expected to account for the growth of the global market.

North America is estimated to grow at a CAGR of over 9.0% from 2014 to 2020. This growth will be driven by the use of surveillance systems in banking, government and industrial sectors. Furthermore, maintenance and support activities for the existing security systems is expected to drive the growth of the market in the region.

Competitive Insights

Key market players include McAfee Inc. NICE Systems Ltd., Honeywell Security Group, Genetec Inc., EMC Corporation, Axis Communications, Cisco Systems Inc. AB, Tyco International Ltd, Bosch Security Systems, and Morpho S.A.

Key question answered by the report
  • What was the market size from 2013 to 2015?
  • What will be the market growth till 2024 and what will be the resultant market forecast in the year?
  • How will the market drivers, retraints and future opportunieties affect the market dynamics and a subsequent analysis of the associated trends?
  • What segment and region will drive or lead market growth and why?
  • A comprehensive mapping of the competitive landscape and the market participants behavior.
  • What are the key sustainability strategies adopted by market players? An in-depth analysis of these strategies and their impact on competition and growth.
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