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

Physical Security Market Size, Share & Trends Analysis Report By Component (Systems, Services), By Organization Size (Large, SMEs), By End-user (Government, Residential), By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: 978-1-68038-293-8
  • Number of Pages: 150
  • Format: Electronic (PDF)

Report Overview

The global physical security market size was valued at USD 116.91 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.1% during the forecast period. The need to secure the physical environment from activities, such as crime, vandalism, potential burglaries, theft, and fire incidences, is one of the crucial factors expected to drive the market. Moreover, factors, such as increased spending on the security to protect an organization’s critical assets, adoption of cloud-based data storage, advanced analytics, as well as technological developments in access control and video surveillance are some of the key trends expected to drive the market growth.

Asia Pacific physical security market size, by component, 2020 - 2030 (USD Billion)

In addition, the shifting focus from legacy solutions, such as badge readers, alarm systems, and door locks to advanced logical security, which encompasses breach detection, threat management, and intrusion prevention among others, has helped organizations and government agencies to deter crime incidences and breaches at a higher success rate. For instance, in December 2021, Honeywell International Inc., a control system and automation company acquired U.S. Digital, an engineering firm that designs and develops alerting stations and dispatches communication solution providers.

This acquisition will be incorporated into Honeywell International Inc.’s life safety systems and fire division, expanding their range of public safety solutions, and giving first responders increased awareness of building crises and improved life safety. This will help securely communicate precise information about the emergency, such as the kind of danger, severity, and position within the affected building, all before the first rescuers arrive. Governments across different countries and regions are taking up smart city initiatives to enhance their infrastructure and are hence deploying improved security systems.

In addition, modernizing the existing infrastructure with robust security measures and strengthening the security of government agencies have been some of the top priorities for governments across developed countries. Organizations are increasingly concerned about employee safety and are hence setting up systems to prevent unauthorized access, further driving the demand for physical security solutions. The physical security environment continues to evolve globally. Over the past few years, numerous sectors and leading industries, such as BFSI, residential, government, and transport, among others have witnessed a swift growth in the number of security breaches.

Furthermore, growing concerns regarding ensuring the safety of resources, people, and vital assets, against physical threats and unique vulnerabilities are anticipated to become major factors driving the need for a robust security environment. Moreover, rising threat incidents have augmented the need to strengthen efforts to maintain a highly secured physical infrastructure at residential as well as business premises. For instance, in September 2021, Johnson Controls, a leading company in security solutions for buildings, launched its autonomous robots and body-worn cameras for its physical security and screening technology.

These smart technologies add to Johnson Controls’ complete building security offering business and residential premises, allowing clients to extend the power of their systems well beyond video surveillance capabilities and typical access control. Governments across major regions are continuously involved in strengthening their physical security infrastructure to curb the growing threats. For instance, in December 2021, Axis Communications, AB, a Sweden-based company that provides services to private sectors and governments around the world, launched its body-worn camera for the private security of government officials. The body-worn cameras have advantages of multiple benefits for liability protection, personal safety, and operational efficiency.

The advent of technology, such as the Internet of Things (IoT), has potentially created vulnerabilities with additional entry points into the data systems through the connectivity of physical objects. However, IoT has also widened the scope of opportunities for the consumer by enabling data protection through the advanced connected networks of the physical security system. Furthermore, innovations and technological advancements in integrated sensors, video, and access systems for IoT-enabled devices are anticipated to spur market growth. For instance, in September 2021, Intel Corp. stated that it uses a software-based IoT platform to manage its physical security & virtual device access. Furthermore, this also ensures that only authorized workers have physical access to the devices through keys or access credentials.

Component Insights

Based on the components, the market has been segmented into systems and services. The systems segment led the market in 2021 and accounted for a share of over 65.00% of the global revenue. The segment is further categorized into Physical Access Control Systems (PACS), video surveillance systems, perimeter intrusion detection and prevention, Physical Security Information Management (PSIM), Physical Identity And Access Management (PIAM), and fire & life safety. The video surveillance system sub-segment dominated the systems market in 2021. The system included in video surveillance systems is 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 increased adoption of video surveillance systems to enhance remote monitoring and physical security. Increasing physical security & safety concerns and stringent regulatory compliances are some of the potential factors driving the segment growth. Furthermore, the rapid development of commercial and institutional infrastructure across several regions has driven the demand for video surveillance, thereby boosting the segment growth. For instance, in March 2022, Ouster Inc. and Hexagon AB, which produces and manufactures security systems, launched a joint security solution, Ouster×Accur8vision, a video surveillance software for protecting and monitoring critical infrastructures.

Some of these include residential properties, airports, commercial buildings, or crowded settings. This would improve existing security systems by adding a layer of awareness to detect future threats ahead of time. The services component segment is expected to grow at the fastest CAGR over the forecast period. 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 UHD surveillance, have led to an increased demand for additional physical security services.

The sub-segments of services include system integration, remote monitoring, and others. Driven by factors, such as changing approach of customers toward security operations, demand for cost-effective physical security systems, stringent regulatory compliance, and rapid growth of enterprises, system integration led the services segment in 2021. Wide usage of cloud computing solutions in organizations, rapid automation, and an integrated approach to business processes are projected to drive the implementation of integrated solutions. For instance, in February 2022, TUCHWARE, a provider of IoT-based services and products in physical security & surveillance, launched its new smart lock series XS, an advanced technology lock with cloud computing solutions.

The smart lock has the features of Bluetooth, physical security, unlocking or locking the door remotely, sharing access with family or friends, and remote checking on who is coming and going.

Organization Size Insights

The SMEs segment is anticipated to witness the fastest CAGR of 8.2% over the forecast period. The segment growth can be attributed to theft, environmental dangers, and intruders, as small businesses also have a lot of resources and people to protect. For instance, in February 2022, U.S. Small Business Administration (SBA), a U.S. state government agency that helps small businesses and entrepreneurs, provided USD 3 million in funding to help SMEs across the U.S. to develop a physical security infrastructure. As there is an increase in the number of threats and fraudsters evolving around small businesses, this funding would help them secure their premises by physical security and protecting their resources and people.

The large enterprise segment is also anticipated to register a significant CAGR over the forecast period. The segment is driven by the factors, such as more significant infrastructure to safeguard, highly critical information to protect, and greater revenue to spend. Thus, they are the early adopters of physical security. Furthermore, protecting their data from thefts, cyberattacks, and unauthorized access lets the segment shift towards physical security solutions. Cyber threats are most likely to target businesses that store essential personal and sensitive information. These threats further result in financial losses, information security, and data breaches.

For instance, in October 2021, AlertEnterprise Inc., a cyber-physical security provider and a software development company partnered with BioConnect Inc., a prominent provider of biometric devices and technologies. In this partnership, the companies would invest in launching a cloud service Policy-Based Access Control (PBAC) to provide a physical security solution for large enterprises. The PBAC connects to a cloud authorization service and enables businesses to quickly develop dynamic permission for employees to access facilities and protect their highly critical information from cyber-attacks or thefts.

End-user Insights

Based on end-users, the market has been classified into transportation, government, banking and finance, utility, and energy, residential, manufacturing and industrial, retail, commercial, hospitality, and others. The residential segment is projected to register the highest CAGR of 6.9% over the forecast period 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.

Global physical security market share, by end user, 2021 (%)

The growth is attributed to the development of smart homes coupled with the increased use of advanced video surveillance and access control systems. For instance, in April 2022, Knightscope, Inc., a U.S.-based robotics and physical security camera company, launched Knightscope K5 Autonomous Security Robot (ASR). Various companies in the U.S. have already started implementing K5 ASR in their outdoor space of residential and business premises for a rigorous security program and enabling a safer environment for their employees and customers. Advancements in physical security technology, such as IoT, coupled with the growing awareness about cyber-attacks among consumers, drive 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-user segment over the forecast period. There is a high demand for equipment used in surveillance, overseeing traffic congestions, and monitoring crowds. The rising number of incidents, such as accidents and terror attacks, across the globe has led to increased spending on safety and physical security. The physical security environment continues to evolve globally, making it prone to cyber-crime.

Over the past few years, several industries & sectors, such as BFSI, residential, government, and transportation, have witnessed several cases of security breaches. These factors are expected to drive the demand for physical security systems. For instance, in March 2022, Edge360, a security solutions provider, partnered with Quanergy Systems, Inc., an AI-driven LiDAR platform. This partnership would let Edge360 provide LiDAR-based video surveillance to support business intelligence and physical security in residential buildings and financial sectors. It would also offer unique features, such as personnel in a real-world 3D representation, active tracking of objects, analytical data, and high-definition IP video.

Regional Insights

North America accounted for the largest market share of more than 38.5% in 2021 and is estimated to remain dominant throughout 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. For instance, in January 2022, Allied Universal, a U.S.-based security provider company, acquired Norred & Associates Inc., (Allied Universal) a security firm.

This acquisition would let Allied Universal provide a full range of security services to bus stations, railways, and airports in the region, including investigation, security consulting, manned guarding, and pre-employment screening. The Asia Pacific market is expected to register the fastest 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 the China Smart City Industry Alliance in 2010, the country has developed 500 smart cities.

In 2012, China started to encourage the implementation of technologies, such as Artificial Intelligence (AI) 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. For instance, in February 2022, Hangzhou Hikvision Digital Technology Co., Ltd., a video surveillance equipment provider, launched a new product Hikvision AX PRO wireless external Tri-tech detector and a dedicated camera. The newly launched product provides precise detection, a clear image, and a modular design, increasing alarm safety for small businesses and homeworkers. The Hikvision AX PRO wireless external Tri-tech detector and a dedicated camera would be used in the smart city for smart security across China.

Key Companies & Market Share Insights

Market leaders focus on providing diverse solutions to cater to various applications 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. Hence, they pursue various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/technology development. They provide a variety of systems and services and have demand from several end-use industries. For instance, in July 2021, Hexagon AB., which produces and manufactures security systems, acquired Immersal-Part of Hexagon., a visual positioning and spatial mapping systems company.

This acquisition would let Hexagon AB use AR applications to have a real-world experience, further improving performance, saving time and public safety, and improving safety protocols and physical security. In May 2021, Johnson Controls partnered with DigiCert, Inc., a leading service provider of PKI solutions, to bring advanced digital, physical security solutions to buildings. This partnership would enable Johnson Control to offer its customers trusted connectivity and advanced security with the advanced PKI technology from DigiCert, Inc. Some of the prominent players in the global physical security market include:

  • Hangzhou Hikvision Digital Technology Co., Ltd.

  • Honeywell International, Inc.

  • Genetec, Inc.

  • Cisco Systems, Inc.

  • Axis Communications AB

  • Pelco

  • Robert Bosch GmbH

  • Johnson Controls


Physical Security Market Report Scope

Report Attribute


Market size value in 2022

USD 126.12 billion

Revenue forecast in 2030

USD 203.05 billion

Growth rate

CAGR of 6.1% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

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

Segments covered

Component, system, service, organization size, end-user, region

Regional scope

North America; Europe; Asia Pacific; South America; MEA

Country scope

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

Key companies profiled

Hangzhou Hikvision Digital Technology Co., Ltd.; Honeywell International, Inc.; Genetec Inc.; Cisco 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.

Pricing and purchase options

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 the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global physical security market report on the basis of component, organization size, end-user, and region:

  • Component Outlook (Revenue, USD Billion, 2017 - 2030)

    • Systems

      • Physical Access Control System (PACS)

      • Video Surveillance System

      • Perimeter Intrusion Detection and Prevention

      • Physical Security Information Management (PSIM)

      • Physical Identity & Access Management (PIAM)

      • Fire and Life Safety

    • Services

      • System Integration

      • Remote Monitoring

      • Others

  • Organization Size Outlook (Revenue, USD Billion, 2017 - 2030)

    • SMEs

    • Large Enterprises

  • End-user Outlook (Revenue, USD Billion, 2017 - 2030)

    • Transportation

    • Government

    • Banking & Finance

    • Utility & Energy

    • Residential

    • Industrial

    • Retail

    • Commercial

    • Hospitality

    • Others

  • Regional Outlook (Revenue, USD Billion 2017 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East & Africa

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