GVR Report cover Physical Security Market Size, Share & Trends Report

Physical Security Market Size, Share & Trends Analysis Report By Component, By Systems (Video Surveillance, Access Control, Intrusion Detection), By Services, By End Use, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-293-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 145

Report Overview

The global physical security market size was valued at USD 102.9 billion in 2019 and is expected to register a CAGR of 6.5% over the forecast period. Increasing importance of improving physical security for organizations and identifying potential threats are the key drivers for market growth.

U.S. physical security market

Several end-use industries such as retail, banks, transportation, and hospitality, have a different set of security challenges, wherein traditional security systems at times fail to reduce the risk of resource theft and destruction. Budgetary constraint is one of the crucial hurdles which slows down the adoption of advanced physical security systems. In addition, availability of counterfeit hardware products compromises the growth of the manufacturers.

Governments across major regions are continually working toward strengthening their physical security infrastructure to curb threats. For instance, in October 2017, undercover federal auditors from the U.S. Government Accountability Office (GAO) gained unauthorized access to secured areas in the Colorado and Maryland campuses of the National Institute of Standards and Technology (NIST). Such incidents have triggered the need to take improved measures to secure NIST’s buildings or other federal buildings. Additionally, the institute has also created a security advisory board to increase awareness regarding the importance of physical security amongst NIST employees.

Entry points into the data systems of an IoT-connected ecosystem have widened the scope of cyberattacks. However, IoT security has also widened the scope of enabling data protection through advanced connected networks of physical security systems. Furthermore, innovations and technological advancements in integrated sensors, videos, and access systems for IoT-enabled devices are anticipated to boost physical security market growth. In addition, shifting focus from traditional solutions such as badge readers, alarm systems, and door locks to advanced physical security solutions, which include breach detection, threat management, and intrusion prevention, of several organizations and government agencies would support market growth.

Component Insights

Based on component, the market has been segmented into systems and services. The systems segment is anticipated to hold the largest share of the market through the forecast period. The growth is primarily attributed to an increase in adoption of video surveillance systems within the residential sector. Video surveillance products assist organizations and individual consumers in gathering evidence in case of a security breach event and helps them monitor their surroundings. Furthermore, advancements such as live home monitoring feed on personal devices such as smartphones and increasing demand for HD video monitoring across multiple domains are projected to drive the segment growth. Video surveillance systems are widely adopted by the retail and banking sectors as it enables them to monitor their assets as well as staff activities.

The services segment is expected to register a CAGR of over 6.5% from 2020 to 2027. Services comprise deployment, maintenance, and updating of equipment as well as software, which further improves performance by providing the user with optimum control of the complete security infrastructure. Rapid infrastructure development in emerging economies and advancements in technology, such as Ultra High Definition (UHD) surveillance, have led to an increased demand for additional physical security services. Moreover, a rise in terrorist activities and increased crime rates have created the need for robust physical security services. Technological advancements such as IoT-enabled physical security have also gained prominence in the market, thereby driving the demand for services.

Systems Insights

On the basis of systems, the market has been classified into video surveillance, intrusion detection, access control, and exterior security systems. Video surveillance system dominated the market in 2019 with a share of more than 45.0%. Technological advancements such as UHD, coupled with decreasing cost of equipment, have led to increased adoption of video surveillance systems to enhance remote monitoring and physical security. Increasing physical security and safety concerns and stringent regulatory compliances are some of the potential factors driving the segment growth. Furthermore, rapid development of commercial and institutional infrastructure across several regions has driven the demand for video surveillance, thereby boosting the segment growth.

The access control hardware segment is anticipated to witness the highest growth rate over the forecast period. Implementation of mobile access control with readers is likely to improve access control security, thereby enhancing security architecture. Increased demand for access control systems is directly related to the growth of industrialization and automation, as well as the rise in threats and attacks across the globe. High security awareness in developed regions such North America would also drive the demand for these systems. Middle East and Africa are expected to exhibit a high growth rate owing to increasing investments in infrastructure and development of data centers by prominent IT companies.

Services Insights

Based on services, the market has been segmented into system integration, remote monitoring, and others. The system integration segment accounted for a share of more than 48.0% of the physical security market. The segment is driven by factors such as new technologies, changing approach of customers toward security operations, demand for cost-effective physical security hardware, stringent regulatory compliance, and rapid growth of enterprises.

Wide usage of cloud computing solutions in organizations, increasing automation, and an integrated approach in business processes are projected to drive the implementation of integrated solutions. For instance, the emergence of smartphone-enabled door locks developed on an IoT platform helps improve the effectiveness of physical security. Thus, security application software including smartphone credentialing with the use of Near Field Communication (NFC) and Bluetooth technology combined with IoT are likely to become a key aspect of advanced physical security.

End-use Insights

Based on end use, the market has been classified into transportation, government, banking and finance, utility and energy, residential, manufacturing and industrial, retail, commercial, hospitality, and others. Residential is projected to register the highest CAGR of 7.4% from 2020 to 2027 due to the high number of damages caused to assets and resources during thefts and other attacks. Application in residential properties has enhanced user experience along with protecting assets from any potential risks. Safety is achieved by the integration of comprehensive video surveillance systems, smart access control, and rapid intrusion detection system. Globally, the U.S. is currently the largest market for physical security equipment for the residential sector. The growth is attributed to the development of smart homes coupled with the increased use of advanced video surveillance and access control systems.

Global physical security market

Advancements in physical security technology such as IoT, coupled with growing awareness about cyber-attacks among consumers, drives the demand for physical security systems for protecting government and banking institutions. Moreover, remote monitoring through cloud-based services has made it easier to supervise and control the physical environment. Transportation is projected to be the second fastest-growing end use segment over the forecast period. There is a high demand for equipment used in surveillance, overseeing traffic congestions, and monitoring crowds. Rising number of incidents such as accidents and terror attacks across the globe has led to increased spending on safety and physical security. Physical security environment continues to evolve globally, making it prone to cyber-crime. Over the past few years, several industries and sectors, such as BFSI, residential, government, and transportation, have witnessed several cases of security breaches. These factors are expected to further drive the demand for physical security systems.

Regional Insights

North America dominated the global market in 2019 and this trend is expected to continue through the forecast period. North America accounts for the highest adoption of advanced physical security systems. The regional market is driven by factors such as strong economic growth, regulatory reforms, and rising investments by SMEs in physical security solutions. Moreover, several public facilities and transportation systems, such as airports, seaports, railways, and bus stations, are focusing on safeguarding their infrastructure through security layers.

The Asia Pacific market is expected to register the highest CAGR over the forecast period. This growth can be attributed to the increasing demand for smart security solutions across India and China. Significant investments by the Chinese government in safe city projects which primarily focus on city surveillance and traffic monitoring are anticipated to drive market growth. Since the establishment of China Smart City Industry Alliance in 2010, the country has developed 500 smart cities throughout the country. In 2012, China started to encourage the implementation of technologies such as artificial intelligence and IoT for national smart city development to enhance urban planning and development. By the end of 2020, the Chinese government plans to develop 100 more cities.

Key Companies & Market Share Insights

Prominent participants in the market include Hangzhou Hikvision Digital Technology Co., Ltd., Honeywell International, Inc.; Genetec Inc.; Cisc Systems Inc.; Axis Communications AB; Pelco; Robert Bosch GmbH; Johnson Control International Plc; and ADT LLC. Market leaders focus on providing diverse solutions to cater to various applications so as to gain a higher market share. Companies also focus on strategic alliances, mergers, and acquisitions to enhance their product offerings and improve their market share. Prominent mergers and acquisitions which impacted the overall market growth are Flir’s acquisition of Point Grey Research and the Johnson Controls-Tyco merger.

Companies are aggressively involved in R&D and new product development. They provide a variety of systems and services and have gained attraction from several end-use industries. For instance, in 2017, Johnson Controls launched CEM Systems AC2000 v8.0 Feature Pack 1. The system offers improved performance for the AC2000 access control system suite from CEM Systems. Pelco by Schneider Electric launched several new surveillance and security products and software such as VideoXpert Video Management System (VMS). The company has also launched Sarix Professional IP cameras.

Physical Security Market Report Scope

Report Attribute


Market size value in 2020

USD 110.3 billion

Revenue forecast in 2027

USD 171.0 billion

Growth Rate

CAGR of 6.5% from 2019 to 2027

Base year for estimation


Historical data

2016 - 2018

Forecast period

2019 - 2027

Quantitative units

Revenue in USD million/billion and CAGR from 2019 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, systems, services, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; China; India; Japan; Brazil; Mexico

Key companies profiled

Hangzhou Hikvision Digital Technology Co., Ltd.; Honeywell International, Inc.; Genetec Inc.; Cisc Systems Inc.; Axis Communications AB; Pelco; Robert Bosch GmbH; Johnson Control International Plc; ADT LLC

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global physical security market report on the basis of component, systems, services, end use, and region:

  • Component Outlook (Revenue, USD Billion, 2016 - 2027)

    • Systems

    • Services

  • Systems Outlook (Revenue, USD Billion, 2016 - 2027)

    • Video Surveillance

    • Intrusion Detection

    • Access Control

    • Exterior Security Systems

  • Services Outlook (Revenue, USD Billion, 2016 - 2027)

    • System Integration

    • Remote Monitoring

    • Others

  • End-use Outlook (Revenue, USD Billion, 2016 - 2027)

    • Transportation

    • Government

    • Banking & Finance

    • Utility & Energy

    • Residential

    • Manufacturing & Industrial

    • Industrial

    • Retail

    • Commercial

    • Hospitality

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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