The worldwide market for physical security was valued at USD 48.05 billion in 2012 and is projected to reach the market size of USD 125.03 billion by 2019, growing at a CAGR of 14.9% during the period from 2013 to 2019. Some of the major factors driving the demand for physical security include rising global security concerns and increasing budget allocations for physical security by governments to prevent terrorism and crime activities. In addition, regulations imposed by governments of different countries demanding increased security levels is driving the adoption of physical security in several end-user sectors including industrial and business organizations. Continued investments in infrastructure worldwide, especially, in Asia Pacific region is expected to emerge as a significant factor behind the growth of physical security market in coming years.
The primary concern in physical security is the protection and prevention in order to serve security interests of people, equipment, and property. The increase in incidences of terror activities and crime has resulted in escalated demand for physical security solutions. It is expected that internet protocol (IP) video, sophisticated access control systems and biometric solutions would drive the demand for physical security solutions. Further, the emerging trend of convergence of logical and physical security and increased demand for integrated physical security solutions are expected to boost the growth of physical security market.
The different components of physical security include hardware, software and services. The market for physical security hardware has been further segmented into intrusion detection and prevention systems, access control systems and others (fire and life safety, visitor management and backup power). Among intrusion detection and prevention hardware products, video surveillance was the largest market and held around 72% share in 2012 and is expected to be the fastest growing segment throughout the forecast period. In access control segment, biometric access control held the largest market share of around 38% of total access control market in 2012. Physical security software market has been segmented into physical security information management (PSIM) and management, analysis and modeling software. PSIM is fast gaining market demand, driven by declining costs, increased sophistication and increasing awareness among end-users. Physical security services market has been segmented into video surveillance as a service (VSaaS), remote management services, technical support, public safety answering point (PSAP), security consulting, public alert, customer information and warning systems and others (data source, hosted access control, managed access control, alert notification, mobile security management). Among the services segments, VSaaS is expected to be the fastest growing market driven by benefits such as cost savings, simplicity, and remote access.
End-user segments of physical security include transportation and logistics, government and public sector, control centers, utilities/energy markets, fossil generation facilities, oil and gas facilities, chemical facilities, industrial (manufacturing sector excluding chemical facilities), retail, business organizations, hospitality and casinos and others (stadiums, educational and religious infrastructure, healthcare organizations). Transportation industry which includes aviation, rail, ports, road and city traffic and new start projects (including light rail, rapid rail, metro rail, commuter rail, bus rapid transit, and ferries) in transportation and logistics sector was the largest end-user of physical security in 2012. North America emerged as the largest regional market for physical security in 2012. In view of high terrorism incidences, the region has been increasing security measures across all end-use verticals. Moreover, governments in North America have significantly increased the regulatory measures for adoption of physical security. Asia Pacific is one of the fastest emerging markets for physical security, growing at a CAGR of around 17% owing to significant push from governments and the police to enhance security in view of increasing crime and terror in the region.
The market for physical security was highly fragmented in 2012 and no single player was dominant; however, Honeywell Security Group emerged as the market leader, accounting for around 5% share in 2012. Honeywell Security group was followed by Bosch Security Systems Inc, Morpho SA (Safran), Hikvision Digital Technology, Assa Abloy AB, Axis Communication AB, Pelco Inc, Tyco International Ltd, NICE Systems Ltd, and others.
Physical security refers to the physical and electronic measures designed to monitor people and objects, and control access and intrusion to property and information. Physical security services are the services that aid and facilitate physical security measures. Physical security systems are powerful tools to prevent and investigate crimes when installed in public places such as multiplexes, shopping malls, automated teller machines (ATMs), airports, banks, casinos, and others. Rising incidences of terrorism and concerns about safety and security are some important reasons driving the demand for physical security systems, globally. With the increasing demand for physical security products due to increased criminal activities, security solutions have become more sophisticated and complicated. This has led to the emergence of services industry in physical security.
This research report provides in-depth analysis of the global physical security market based on product types, services and end-user applications. In terms of geographical regions, the report segments the global physical security market into North America, Europe, Asia Pacific, and Rest of the World (RoW), analyzed in terms of revenue generation. The report provides a value chain and Porter’s five forces model to identify the ecosystem and analyze the factors that drive and restrain the growth of the market. The report also identifies prospective growth opportunities, prevailing market trends and major strategies enhancing the popularity of physical security products and services. It also provides market estimates and forecast for all the segments of the physical security market in terms of revenue.
The global physical security market is categorized based on component types as hardware, software, and services. The hardware segment comprises intrusion detection and prevention, access control systems, and other products which include visitor management and fire and life safety among others. The intrusion detection and prevention segment is further divided into video surveillance, intruder alarms and locks, and intrusion detection systems. Access control segment comprise radio frequency identification (RFID), biometrics, and card based access control. Physical security software segment includes PSIM (physical security information management) and management analysis and modeling software. The report also segments physical security services as VSaaS (video surveillance as a service), remote management services, technical support, public safety answering point (PSAP), security consulting, public alert and warning systems, and other services.
The research report provides complete insights on different application areas of physical security including transportation and logistics, government and public sector, control centers, utilities/energy markets, chemical facilities, industrial (manufacturing sector excluding chemical facilities), retail, business organizations (including banks and financial institutions and IT sector), hospitality and casinos and others (stadiums, educational and religious infrastructure, healthcare organizations).
The report also includes competitive profiling of major players engaged in manufacturing physical security products and providing physical security services. Major business strategies adopted by them, their market positioning, and various recent developments have also been identified in the research report. This report also provides market share analysis of major players in the physical security market based on their 2012 revenue. Some of the major players profiled in the report include Axis Communications, Bosch Security Systems, Morpho SA, Genetec, Hikvision Digital Technology, Cisco Systems, Pelco, Honeywell Security Group, Assa Abloy, Tyco International Ltd, EMC Corporation, MacAfee, IBM, CSC, Nice Systems, Vidsys and Siemens, among others.
The global physical security market is segmented as below:
Intrusion detection and prevention
- Analog Cameras
- IP Cameras
- Digital video recorders (DVRs)
- Close circuit television (CCTV)
- Network video recorders (NVRs)
- Intruder alarms and locks
- Fingerprint recognition
- Facial recognition
- Iris recognition
- Others (voice, signature, hand geometry, so on)
- Active RFID
- Passive RFID
Card based access control
- Smart cards and readers
- Proximity cards and readers
- Others (touch screens and keypads, barcodes, magnetic stripes, so on)
- Fire and life safety
- Visitor management
- Backup power
- Physical security information management (PSIM)
- Management analysis and modeling software
- Video surveillance as a service (VSaaS)
- Remote management services
- Technical support
- Public safety answering point (PSAP)
- Security consulting
- Public alert and warning system
- Others (data source, hosted access control, managed access control, alert notification, mobile security management)
Transportation and logistics
- Road and city traffic
- New starts
- Government and public sector
- Control centers
Utilities/ energy markets
- Fossil generation facilities
Oil and gas facilities
- Liquid natural gas facilities (import and export regulations and market analysis)
- Nuclear power
- Hydro electric
- Chemical facilities
- Industrial (manufacturing sector excluding chemical facilities)
- Business organizations (including IT sector)
- Hospitality and casinos
- Others (stadiums, educational and religious infrastructure, healthcare organizations)
- North America
- Asia Pacific
- Rest of the World (RoW)