Physical Security Market Size, Share, & Trends Report

Physical Security Market Size, Share, & Trends Analysis Report By Component, By Hardware, By Services, By End-use (Energy, Utility, Retail, Commercial), And Segment Forecasts, 2018 - 2025

  • Published Date: Jan, 2018
  • Base Year for Estimate: 2016
  • Report ID: 978-1-68038-293-8
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 151

Industry Insights

The global physical security market size was valued at USD 133.94 billion in 2016, registering a CAGR of 9.1% over the forecast period. The need of physical safety to an environment aimed to mitigate or reduce crime or vandalism through theft, burglaries and fire are anticipated to be the key trends driving the market. 

U.S. physical security market

Factors such as increasing expenditure on the security of critical infrastructure by organizations, adoption of Internet of Things (IoT) & cloud-based data storages and technological developments in video surveillance are expected to contribute to the physical security market growth. The shifting focus from traditional solutions such as alarm systems, badge readers and door locks to logical security which includes threat management, breach detection, and intrusion prevention, among others, are helping to deter breach and crime incidence at a higher rate.

Over the past few years, leading industries and sectors such as transportation, commercial, and banking & finance, among others have witnessed a steady increase in the number of physical incident and breaches. The physical security to an environment thus continues to evolve globally. Rising threat incidents have surged the need to reinvigorate efforts towards maintaining a high physical saftey infrastructure to business as well as residential premises.

Component Insights

The services segment is estimated to dominate the industry and it was valued at USD 107.37 billion in 2016. The advent of technological as well as infrastructural upgradations in emerging economies has raised the demand for additional security services. This is due to the growing number of criminal activties, along with an increase in terrorism breaches. However, technological advancements such as the Internet of Things (IoT) have also increased the demand for the market.  

For instance, the emergence of automated drone for security patrolling will likely interact with the IoT sensor and improve the effectiveness of that aspect of advanced physical security. The significant adoption of cloud-based services and solutions have gained attention as they help in eliminating the risks of data theft and ensure data saftey.

The hardware segment was valued at USD 24.14 billion in 2016, growing at a CAGR of 8.9%. Consumer video surveillance equipment consisting of both in-store or online is a widely used security solution for personal and organizational security. It is also used for live home monitoring through mobile devices and in smart home solutions. The growing demand for HD video surveillance across various verticals is driving the market for high megapixel network cameras and HD CCTV cameras.

Hardware Insights

The video surveillance hardware segment was valued at USD 10.04 billion in 2016 and is estimated to grow at a CAGR of 8.9% over the forecast period. The hardware included in video surveillance systems are cameras, monitors, and storage devices. The need of safety has become vital across all verticals thereby fueling market growth.

The demand for 180/360o camera, thermal camera and stereoscopic cameras are anticipated to grow in border protection and city surveillance owing to the increased spending for counter terrorism initiative. The growing threats & attacks, safety concerns and regulatory compliances are some of the potential factors further driving the growth of the segment.

Video surveillance is used across all applications such as commercial, institutional, and infrastructure. The adoption of video surveillance has enabled safer zone to deter and reduce the incidence of criminal activity as well monitor inventory and property across the retail, franchise store, and the mall, resulting in high security and safety. In the financial and commercial sector, buildings, banks, ATMs and other asset need high-security posture. This is expected to fuel demand for the requirement of video surveillance equipment aimed to provide robust safety features to the physical environment.

Access control is estimated to be the fastest growing segment with a CAGR of 9.9% over the forecast period. The implementation of mobile access control with readers is anticipated to enhance the growth of access control market over the forecast period.  The rising demand for access control hardware can be attributed to rapid industrialization & automation, and increasing physical breaches and attacks across the world.

Service Insights

System integration segment was valued at USD 51.32 billion in 2016, growing at a CAGR of 9.4% by 2025. The market is driven by several factors ranging from new technologies changing customers approach towards security operations, organizations looking for cost effective security services, regulatory compliance, growth of enterprises and on-going security threats. The growing adoption of cloud computing solutions in organizations, increasing automation, integrated approach in business process is projected to trigger the implementation of system integration solutions.

End-use Insights

Residential segment is projected to drive the market growth, witnessing a CAGR of 9.9% from 2017 to 2025. This is owing to increasing damage or harm to the asset and resources caused by theft, espionage and other attacks. The growth of physical security in residential segment is also accredited to the advancement in technology. The emergence of IoT significantly increases the effectiveness through intelligence monitoring and advances the market.

Global physical security market

Moreover, remote monitoring through cloud-based services has made easier operations for controlling the environment. The application of physical security to residential properties is to provide safety to the assets from potential risks. This is managed by integrating comprehensive video surveillance, smart access control, and rapid intrusion detection system.

Transportation segment was valued at USD 15.30 billion in 2016 and is estimated to grow at a CAGR of 9.8% over the forecast period. There is a high demand for equipment for surveillance options, monitoring arterial traffic conditions and the public. Growing incident such as terror attack and accidents have increased in the recent past across various geographies.

In light to the growing incidents, the U.S. and the emerging countries within the Asia Pacific region have been engaged in deploying security solution to monitor traffic as well as public, aimed to ensure the safety of its citizen. Increased measures through security layers are being adopted at several public facilities and transportation system such as the airport, seaport and railways and bus station. Thus, physical security in transportation is anticipated to witness high demand over the forecast period.

Regional Insights

North America was valued at USD 53.17 billion in 2016 and is expected to grow at a CAGR of 8.7% from 2017 to 2025. The market services in North America are prevailing hardware as an outsourcing activity, aimed to gain high physical security infrastructure. Moreover, physical security services are proving to be efficient and reliable in monitoring, faster response to intrusion and surveillance activates. The presence of prominent participants in North America is further escalating the regional share.

Asia Pacific is estimated to grow at the fastest rate at a CAGR of 10.4% over the forecast period. Asia Pacific offers potential growth opportunities for the market to grow mainly due to key factors such as rapid economic growth in the developing countries, regulatory reforms by government and rising investments by SMEs and large enterprises in security solutions.

Physical Security Market Share Insights

The key industry competitors include Hangzhou Hikvision Digital Technology Co., Ltd., Honeywell International Inc., Johnson Control International Plc, Robert Bosch GmbH, and ADT LLC Corporation, among others. In October 2017, Hangzhou Hikvision Digital Technology Co launched a new range of fixed and portable Under-Vehicle Surveillance Systems (UVSS). This helps to establish high level of safety for end-users such as airports, hotels, and high security facilities, among others.

In November 2017, Honeywell International Inc introduced smart home security system, a self-installed, all-in-one security solution to safeguard and secure user home. It also features Alexa, an artificial intelligence personal assistance developed by Amazon Inc.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                  

Revenue in USD Billion and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Germany, U.K., Japan, China, India, Brazil, Mexico.

Report coverage              

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

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global physical security market report on the basis of component, hardware, services, end-user and region.

  • Component Outlook (Revenue, USD Billion, 2014 - 2025)

    • Hardware

    • Software

    • Services

  • Hardware Outlook (Revenue, USD Billion, 2014 - 2025)

    • Video Surveillance

    • Intrusion Detection

    • Access Control

    • Others

  • Service Outlook (Revenue, USD Billion, 2014 - 2025)

    • System Integration

    • Remote Monitoring

    • Others

  • End-User Outlook (Revenue, USD Billion, 2014 - 2025)

    • Transportation

    • Government 

    • Banking & Finance

    • Utility & Energy

    • Residential

    • Industrial

    • Retail

    • Commercial

    • Hospitality

    • Others

  • Regional Outlook (Revenue, USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

Key questions answered by the report
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