The global physical security market was valued at USD 127.01 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. Several factors are driving this growth, particularly the increasing need to protect physical environments from various threats, including crime, vandalism, burglaries, theft, and fire incidents. As organizations and individuals become more aware of the risks to their physical assets, the demand for robust security solutions continues to rise.

One of the key drivers behind the expansion of the physical security market is the heightened investment in securing critical assets. As businesses and governments seek to protect sensitive information, physical infrastructure, and personnel, the demand for comprehensive security systems is increasing. The growing reliance on cloud-based data storage and the integration of advanced analytics in security systems are also contributing to this trend. These technologies allow for better monitoring, real-time response, and improved overall security management.

Technological advancements in core physical security components, such as access control and video surveillance, are also playing a significant role in the market's growth. Innovations in these areas are enabling organizations to enhance security measures with greater precision and efficiency. For example, smart access control systems now use biometrics, facial recognition, and mobile apps, while advanced video surveillance systems incorporate artificial intelligence (AI) to analyze video feeds for suspicious activity. These developments not only improve safety but also help in automating security processes, reducing human error, and providing more detailed insights into security events.

Another trend fueling market growth is the shift from legacy security solutions—such as traditional badge readers, basic alarm systems, and mechanical door locks—to more advanced, logical security systems. These modern systems incorporate technologies that go beyond simple access control and monitoring. For instance, breach detection systems, threat management solutions, and intrusion prevention technologies are being integrated into security frameworks to detect and respond to potential threats more proactively and effectively. This shift is particularly important for organizations and government agencies, as it enhances their ability to deter criminal activity and prevent breaches with a higher success rate.

Gather more insights about the market drivers, restrains and growth of the Physical Security Market

Regional Insights

North America

North America dominated the physical security market in 2022, accounting for over 38.0% of the global revenue. This trend is expected to continue throughout the forecast period due to several factors, including a high rate of adoption of advanced physical security systems across the region. North America's market growth is fueled by strong economic performance, ongoing regulatory reforms, and increasing investments from small and medium enterprises (SMEs) in security solutions to safeguard their critical assets and infrastructure.

Moreover, public infrastructure and transportation systems, such as airports, seaports, railways, and bus stations, are placing a growing emphasis on enhancing security through multiple layers of protection. For example, in January 2022, Allied Universal, a U.S.-based security provider, acquired Norred & Associates Inc., a security firm. This strategic acquisition allows Allied Universal to offer a comprehensive range of security services to public transportation networks, including bus stations, railways, and airports in the region. The services offered include investigation, security consulting, manned guarding, and pre-employment screening, all of which enhance security measures across critical infrastructure.

Asia Pacific

Asia Pacific is expected to experience the highest compound annual growth rate (CAGR) during the forecast period, driven by a surge in demand for smart security solutions across rapidly growing economies like India and China. One of the key factors contributing to this growth is the significant investment made by the Chinese government in smart city initiatives, which focus on the integration of advanced surveillance technologies, traffic monitoring, and urban safety systems.

Since the establishment of the China Smart City Industry Alliance in 2010, China has rapidly developed 500 smart cities across the country. In 2012, the government began encouraging the use of technologies such as artificial intelligence (AI) and the Internet of Things (IoT) in national smart city projects to improve urban planning and management. By 2020, China had planned to develop an additional 100 smart cities, significantly boosting the demand for advanced physical security technologies in urban areas.

For example, in February 2022, Hangzhou Hikvision Digital Technology Co., Ltd., a leading provider of video surveillance equipment, launched the Hikvision AX PRO wireless external Tri-tech detector and a dedicated camera. This new product, designed for small businesses and home offices, offers precise detection, high-quality imaging, and a modular design to enhance alarm safety. The product is also expected to be deployed in smart cities across China, contributing to the growth of the country's smart security infrastructure.

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Key Companies & Market Share Insights

Leading companies in the physical security market are focusing on providing a wide range of solutions to address various applications and industries, allowing them to capture a larger share of the market. These companies are also actively pursuing strategic alliances, mergers and acquisitions (M&A), and partnerships to enhance their product portfolios and improve their competitive position.

For instance, in July 2021, Hexagon AB, a global provider of security systems, acquired Immersal, a company specializing in visual positioning and spatial mapping systems. This acquisition enables Hexagon AB to integrate augmented reality (AR) applications into its security offerings, enhancing the real-world experience for users. This strategic move is aimed at improving performance, increasing public safety, and enhancing security protocols, especially in critical infrastructure sectors.

In May 2021, Johnson Controls, a leader in building management and security solutions, partnered with DigiCert, Inc., a prominent provider of public key infrastructure (PKI) solutions. This partnership is focused on delivering advanced digital and physical security solutions for buildings, with the goal of providing trusted connectivity and cutting-edge security. By leveraging DigiCert's advanced PKI technology, Johnson Controls can offer its customers enhanced security features, such as secure identity management and encrypted communications, further strengthening their security infrastructure.

These strategic initiatives by leading players highlight the importance of technological innovation and collaboration in the physical security industry. By expanding their offerings and integrating new technologies, companies are better positioned to meet the growing demand for advanced security solutions across a wide range of industries, from smart cities to critical infrastructure and commercial buildings. As the market continues to evolve, these companies are likely to remain at the forefront of the industry, driving further growth and innovation in physical security solutions.

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

• ADT LLC

• Siemens

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