Physical Security Market Size, Share & Trends Report

Physical Security Market Size, Share & Trends Analysis Report By Hardware (Access Control, Video Surveillance), By End User (Govt., Residential), By Component (Services, Hardware), By Services, And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-293-8
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 145

Industry Insights

The global physical security market size was valued at USD 157.24 billion in 2018 and is expected to register a CAGR of 9.4% over the forecast period. Rising need for physical security is one of the crucial factors expected to drive the market. Factors, such as increased spending on security to protect critical assets of organizations and rapid adoption of cloud-based data storages and advanced analytics, and technological developments in access control and video surveillance, are also projected to boost the market growth.

In addition, shifting focus from traditional, such as badge readers, alarm systems, and door locks, to advanced logical security solutions, which include breach detection, threat management, and intrusion prevention, of different organizations and government agencies will support the growth. Physical security environment continues to evolve globally, making it prone to cyber crime. Over the past few years, different industries and sectors, such as BFSI, residential, government, and transportation, have witnessed several cases of security breaches. These factors are expetced tp drive the demand further.

U.S. physical security market

Governments across major regions are continuously 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 that shall create awareness regarding the importance of security amongst NIST employees.

While technologies, such as Internet-of-Things (IoT), play a key role, they have also created vulnerabilities that could be potentially exploited. Moroever, 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 opportunities for consumers by enabling data protection through advanced connected networks of the physical security system. Furthermore, innovations and technology advancements in integrated sensors, videos, and access systems for IoT-enabled devices are anticipated to boost market growth.

Component Insights

Services is estimated to be the dominant component segment over the forecast period. Rpaid infrastructure development in emerging economies along with the advent of technologies, such as Ultra High Definition (UHD) surveillance, has led to an increased demand for additional security services. Moreover, rise in terrorist activities along with the growing number of crimes has created a need for robust security services. Technological advancements, such as IoT-enabled physical security, have also gained prominence in the market, thereby increasing the demand for services.

The hardware component segment is expected to register at a CAGR of 8.7% over the forecast period. Consumer and commercial video surveillance products are rapidly gaining market traction as they help address the organizational and personal security needs. Furthermore, advancements, such as live home monitoring feed on personal devices inclduing smartphones make hardware a smart security solution. Increasing demand for HD video monitoring across multiple domains is projected to drive the segment in the years to come.

Hardware Insights

The video surveillance hardware segment led the market in 2018 and is projected to expand further at a CAGR of 8.5% over the forecast period. Hardware included in video surveillance systems are analog cameras, axis network cameras, video encoders, monitors, and storage solutions. Technological advancements, such as UHD coupled with decreasing cost of equipment, have led to the increased adoption of video surveillance systems to enhance remote monitoring and security. Increasing security & safety concerns and stringent regulatory compliances are some of the potential factors driving the segment. Furthermore, rapid development of commercial and institutional infrastructure across several regions has propelled the demand for video surveillance, thereby boosting the segment growth.

The access control hardware segment is anticipated to register the highest CAGR over the forecast period. Implementation of mobile access control with readers is likely to improve access control security, thereby enhancing the security architecture. Rapid market growth of access control hardware is directly related to the growth of industrialization and automation, as well as increasing threats and attacks across the globe.

Services Insights

System integration segment led the global market in 2018 and is expected to maintain its dominance over the forecast period. The segment is driven by factors, such as new technologies, changing approach of customers toward security operations, demand for cost-effective security services, 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 encourage the implementation of integrated solutions.

For instance, the emergence of smartphone-enabled door locks developed on the IoT platform helps improve the effectiveness of physical security. Thus, security application services 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 User Insights

Residential is projected to be the fastest-growing segment at a CAGR of 10.3% from 2019 to 2025 due to the high number of damages caused to assets and resources during thefts and other attacks. Advancements in security technology, such as IoT, coupled with the growing awareness about cyber-attacks among consumers will also boost the segment growth.

Moreover, remote monitoring through cloud-based services has made it easier to supervise and control the physical environment. Application in residential properties has enhanced user experience along with the necessary safety of assets from any potential risks. Safety is managed by the integration of comprehensive video surveillance system, smart access control, and rapid intrusion detection system.

Global physical security market

Transportation is projected to be the second fastest-growing application 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 an increased spending on safety and security.

In an attempt to address such issues, U.S. and several emerging countries in Asia Pacific have been engaged in deploying security solutions to monitor traffic as well as crowds. Many public facilities and transportation system, such as airports, seaports, railways, and bus stations, are focusing on safeguarding the infrastructure through security layers. This is estimated to drive the transportation segment over the forecast period.

Regional Insights

North America was the largest regional market in 2018. It is expected to maintain the dominance throughout the estimate period as managed security services are enabling organizations to outsource security services, allowing them to reduce operational costs associated with maintaining in-house security measures. Moreover, presence of prominent companies in North America is contributing to its high share in the market. Asia Pacific will witness the maximum CAGR of 11.6% from 2019 to 2025. The region offers potential growth opportunities for the market due to the factors, such as rapid economic growth, regulatory reforms, and rising investments by SMEs and large enterprises in security solutions.

Physical Security Market Share Insights

Some of the key companies in this market include Hangzhou Hikvision Digital Technology Co., Ltd.; Honeywell International, Inc.; Johnson Control International Plc; Robert Bosch GmbH; and ADT LLC. In October 2017, Hangzhou Hikvision Digital Technology Co. launched a new range of fixed and portable Under-Vehicle Surveillance Systems (UVSS). This helps end users in establishing a high level of safety at airports, hotels, etc.

In November 2017, Honeywell International Inc. introduced Smart Home Security System, a self-installed, all-in-one security solution. It also features Alexa, an Artificial Intelligence (AI) personal assistance developed by Amazon Inc. Thus, new product development has emerged as a key strategy for companies to strengthen their position in the global market.

Report Scope



Base year for estimation


Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Country scope

U.S., Canada, U.K., Germany, France, China, India, Japan, Brazil, and 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 and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 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, 2015 - 2025)

    • Hardware

    • Software

    • Services

  • Hardware Outlook (Revenue, USD Billion, 2015 - 2025)

    • Video Surveillance

    • Intrusion Detection

    • Access Control

    • Others

  • Services Outlook (Revenue, USD Billion, 2015 - 2025)

    • System Integration

    • Remote Monitoring

    • Others

  • End User Outlook (Revenue, USD Billion, 2015 - 2025)

    • Transportation

    • Government

    • Banking & Finance

    • Utility & Energy

    • Residential

    • Manufacturing & Industrial

    • Retail

    • Commercial

    • Hospitality

    • Others

  • Regional Outlook (Revenue, USD Billion, 2015 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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