Grand View Research is predicting that the global physical security market will grow at a slow but steady rate for the next few years. The firm has released a new report that projects that the market will climb to $171 billion by 2027, albeit at a relatively modest CAGR of 6.5 percent for the entire forecast window.
Much of that growth can be attributed to the rising demand for video surveillance, which is becoming increasingly popular as a perimeter access control solution. Video surveillance accounted for $33.1 billion in 2019, empowering businesses to protect their existing assets and discourage theft with real-time security.
However, it is worth noting that the physical security market goes well beyond the corporate sector. The residential segment is expected to display the highest CAGR (7.0 percent), which reflects the fact that private citizens are now able to choose from an expanding array of affordable physical security products to protect their homes. Governments will also have a considerable appetite for physical security, thanks in part to the need to update existing infrastructure and in part to the desire to strengthen border checkpoints.
Of course, the demand for new security products will create a comparable demand for system integration services. Many organizations will need help installing their new technology, and system integration experts will be able to ensure that any solutions are cost-effective and compatible with the latest legal regulations.
Grand View identified Honeywell, ADT, and Hangzhou Hikvision Digital Technology as some of the key players in the space. The firm went on to explain that many of the top companies are currently pursuing strategic partnerships and acquisitions that will improve their product portfolios and solidify their positions in the market.
MarketsandMarkets previously predicted that the overall security market will reach $373 billion by 2022, though that report covered both physical and digital security.
March 9, 2020 – by Eric Weiss