Physical Security Market Size, Share & Trends Report

Physical Security Market Size, Share & Trends Analysis Report By Component (Systems, Services), By Organization Size, By End-user (Residential, Commercial, Retail, Utility & Energy), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: 978-1-68038-293-8
  • Number of Report Pages: 150
  • Format: PDF, Horizon Databook

Research Methodology

A three-pronged approach was followed for deducing the physical security market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for physical security market to gather the most reliable and current information possible.

  • We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
  • We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
  • We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
  • We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
  • We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of physical security market data depending on the type of information we’re trying to uncover in our research.

  • Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

  • Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

  • Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

  • Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

  • Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

  • Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

  • This step also entails the finalization of the report scope and data representation pattern.

  • Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Physical Security Market Categorization:

The physical security market was categorized into four segments, namely component (Systems, Services), organization size (Large Enterprises, SMEs), end-user (Transportation, Government, Banking & Finance, Utility & Energy, Residential, Industrial, Retail, Commercial, Hospitality), and region (North America, Europe, Asia Pacific, South America, and Middle East & Africa).

Segment Market Methodology:

The physical security market was segmented into component, organization size, end-user, and region. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

  • Demand estimation of each product across countries/regions summed up to from the total market.

  • Variable analysis for demand forecast.

  • Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

  • Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

  • Used extensively for new product forecasting or analyzing penetration levels.

  • Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

  • Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

  • This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The physical security market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into ten countries, namely, the U.S.; Canada; Mexico; Germany; the UK; France; China; India; Japan; Brazil.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Physical Security market companies & financials:

The physical security market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

  • Axis Communications AB - Axis Communications AB, founded in 1984, is a Swedish manufacturer of network cameras. The company is engaged in developing and selling video surveillance and access control solutions. It offers various products for end-to-end solutions for small, medium, and large-scale systems aimed at physical security and video surveillance. The company also offers security-as-a-service hosted on a cloud platform that enables hassle-free surveillance, which is ideal for small-scale businesses. It offers a broad range of network cameras that form robust outdoor applications for discreet surveillance. The products offered are energy-efficient as they minimize the bandwidth and storage capacity while monitoring. Moreover, they also provide learning and support to professionals in the industry.

  • Assa Abloy Group - Assa Abloy Group is a Swedish manufacturer and a global leader in door-opening solutions. The group and its subsidiaries develope, design, and manufacture a complete range of door security solutions. It offers entrance automation, access control, mechanical and electromechanical locking, identification management, security doors, hotel security, and mobile access. It also provides other related products and services. Its access control system enables administrators to control access aimed at secure areas. This includes security through physical, electronic, logical, online, offline, and wireless system. It offers users control through smart cards, smartphones, and wearables. It is leading in most of Europe, North and South America, Asia, and Oceania.

  • Cisco Systems Inc. - Cisco Systems Inc. Is a U.S.-based IT company, and engages in design, manufacturing, and marketing of Internet Protocol based networking and other related products. The company offers an array of products for transferring voice, data and video across campuses, within buildings and around the world. It offers products and associated services to telecommunications companies and other service providers, enterprise businesses, commercial businesses, public institutions and personal residences. The company’s security product and services portfolio provide network, identity and content security solutions.

  • Genetec Inc. - Genetec Inc., established 1997, is a Canada-based provider of IP video surveillance, access control, and license plate recognition solutions. Its security offering includes unified security platform that blends all the physical security solution in a single platform. It also offers access control through Synergis, an IP access control system. It manages visitor & cardholders, secures restricted and high-priority access points. The company also provides technical support, customized consulting & engineering, custom solutions development, training, and technical support services. It offers solutions with numerous partners across six continents aimed to provide safer and more secure environments.

  • ADT LLC - ADT LLC, founded in 1874, is a U.S.-based provider of interactive business & home automation monitored security, and related monitoring services. It currently serves approximately 8 million residential and business customers in the U.S. and Canada. It offers business security & automation for retail, manufacturing facilities, corporate offices and restaurants serving the small and medium enterprises. It provides comprehensive product portfolio for discreet monitoring and control over business through video surveillance, burglary monitoring, access control, and fire alarm monitoring, among others. It continues to increase penetration of security and automation services in the U.S. and Canada.

  • Hangzhou Hikvision Digital Technology Co., Ltd. - Hangzhou Hikvision Digital Technology Co., Ltd., engages in electronic equipment manufacturing business mainly including development, production, and sales of electronic products. This includes communications equipment, explosionproof electrical products, and its ancillary equipment, multimedia equipment. It offers a wide range of video surveillance products and solutions for physical and discreet monitoring. It advances the core technologies of video and audio encoding, video image processing and related data storage. It also promotes technologies such as big data, cloud computing, and deep learning in its solutions.

  • Honeywell International Inc. - Honeywell International Inc. is a manufacturer and supplier of consumer electronics and building products. It operates under following segments namely aerospace, home and building technologies, performance materials & technologies, and safety & productivity solutions. Its home and building technologies operating segment offer software, product, technologies, and solutions aimed to help owners of homes stay connected and in control of their security and comfort, among others. Its security product offering includes access control and video surveillance. For these products, it also offers installations, maintenance, and upgrades to systems that keep buildings safe, comfortable and productive.

  • Johnson Controls - Johnson Controls, established in 1885 is an Ireland-based multinational conglomerate. It engages in HVAC equipment & control, and battery manufacturing, among others. It operating segments include building technologies & solutions and power solutions. Within its building segment, it offers security and fire safety systems. Its solution offering provides access control, fire detection & alarm system, and video surveillance, among others. It delivers these solutions on a global stage which is a result of the merger between Johnson Controls and Tyco International Ltd. The synergies between both the companies bring together best-in-class products, technology, and services across all security and fires safety systems.

  • IDEMIA - IDEMIA is a global leader in trusted identity. The company is a result of the merger of Safran Identity & Security (Morpho), and Oberthur Technologies (OT). The company offers digital security & identification technologies such as digital security, data and video analytics, authentication, and biometrics. It delivers a safer, more streamline identification process to pay, travel, open bank account, and seek medical care, among others. Its serves client in 180 countries and has major presences across the North America and European region.

  • Pelco - Pelco, established in 1957 is a U.S.-based security and surveillance technologies company and subsidiary to Schneider Electric SE. The company engages in design and manufacturing of video surveillance systems and IP-based video security system, software, and services. Its product offering includes Fixed IP, PTZ IP, Panoramic IP and Specialty IP camera for robust security surveillance. It also offers video management platform that has IT-friendly windows and menus, coupled with a “plug & play” installation for its operating system. It serves and distributes its product globally to malls, airport, factories, office building, and campus/universities, among others that provide real-time video surveillance and security solutions.

  • Robert Bosh GmbH - Robert Bosh GmbH is a German-based multinational engineering and electronics company. Its Security Systems division engages in security equipment, solutions, and its related services offering. Its product portfolio includes intrusion detection, fire detection & voice evacuation systems, video surveillance, and access control & management systems. Its solutions cater to the security needs of banking, retail stores, government agencies, entertainment facilities, residential, commercial and industrial environments. Its solutions and services are served through an extensive network of dealers and integrators. The distribution partners are spread in more than 150 countries. The Security Systems division has its presences in France, Italy, the UK, the U.S., Hongkong, and Tokyo.

Value chain-based sizing & forecasting

Supply Side Estimates

  • Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

  • Segment revenue determination via variable analysis and penetration modeling.

  • Competitive benchmarking to identify market leaders and their collective revenue shares.

  • Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

  • Identifying parent markets and ancillary markets

  • Segment penetration analysis to obtain pertinent

  • revenue/volume

  • Heuristic forecasting with the help of subject matter experts

  • Forecasting via variable analysis

Physical Security Market Report Objectives:

  • Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

  • Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

  • Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Physical Security Market Report Assumptions:

  • The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

  • The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

  • We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

  • All market estimates and forecasts have been validated through primary interviews with the key industry participants.

  • Inflation has not been accounted for to estimate and forecast the market.

  • Numbers may not add up due to rounding off.

  • Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

  • Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

  • Latin America includes Central American countries and the South American continent

  • Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

  • Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

  • Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.

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