ALBANY, N.Y. – The global physical security market is forecast to be worth more than $125 billion by 2019, according to a report by Transparency Market Research. The firm projects the market is expanding at a compound annual growth rate (CAGR) of 14.9% during its forecast period from 2013 to 2019.
In 2012, the global physical security market was valued at more than $48 billion, according to the research firm.
Component-wise, the global physical security market is divided into hardware and software. The key hardware segments are intrusion detection and prevention, access control and others. Among components, the video surveillance segment led the global physical security market in 2012 with a market share of 72%. In addition, the video surveillance segment is projected to expand at the highest CAGR during the forecast period. In the access control market, the biometric access control segment held the largest market share of nearly 38% in 2012.
Software-wise, the global physical security market is classified into management analysis and modeling software and physical security information management (PSIM). Service-wise, the global physical security market is segmented into public alert and warning system, security consulting, public safety answering point (PSAP), technical support, remote management services, video surveillance as a service (VSaaS) and others. The VSaaS market is projected to expand at a marked CAGR of 18.1% till 2020.
Application-wise, the global physical security market is divided into transportation and logistics, hospitality and casinos, business organizations, retail, industrial, chemical facilities, utilities/energy, control centers, government and public sector and others. The transportation and logistics segment dominated the global physical security market in 2012.
North America dominated the global physical security market in 2012. Conversely, Asia Pacific is projected to experience the highest growth at a CAGR of 17% during the forecast period. The growing support from police forces and the government sector to advance security and prevent the frequent incidents of crime and terror attacks will fuel this regional market.
The global physical security market is driven by the growing security concerns around the world and the accelerating budget allocation for physical security by governments. Moreover, factors such as rising adoption of physical security systems in business organizations and growing demand for complex and effective security management products and solutions will also drive the global physical security market. Conversely, the global physical security market will be restrained by device interoperability issues related to physical security systems.
Players in the global physical security market will tap into market opportunities such as growing awareness regarding smart cities, utilizing smart security and emerging technologies such as cloud.
Another prominent trend shaping the global physical security market is convergence. In the future, almost all physical security systems will rely on IT systems and networking protocols to support their operations. This growing convergence will bring flexibility in deployment of physical security and drive the global physical security market in the years to come.
