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Global Physical Security Market: Snapshot

The global physical security market is expected to rise significantly owing to the rising terror activities and crimes that have increased the demand for these solutions. The major concern of the physical security is to protect and prevent unforeseen incidence and provide better security to the people and property.

Globally, the demand for physical security has grown due to the emerging trend of convergence of physical and logical security. Rising demands for integrated physical security solutions will further trigger growth for the physical security market. Moreover, different regulations imposed by various governments to increase security levels will flourish in the global market for physical security.

As per the analysis in the report, there are certain valuations that will help the players to involve in the global physical security market. The market value for physical security is expected to reach US$ 125.03 bn by the end of 2019. During the forecast period between 2013 and 2019, this market is projected to expand at 14.9% of CAGR.

Video Surveillance to Trigger Demand for Physical Security Solutions

The global physical security market has different components that include software, hardware, and services. On the basis of hardware, the market is further divided into intrusion detection, access control systems, prevention systems, and others (visitor management, fire and life safety, and backup power). Among the intrusion detection and prevention systems, video surveillance dominates the market as compared to the other segments under this category. In the access control segment, biometric access control is leading and hold the largest number of shares under this category.

The physical security software market is bifurcated into physical security information management (PSIM) and management, analysis, and modeling software. Out of these two, PSIM is having high demand in the physical security market. Reduced cost, increased sophistication, and raising awareness among the end users have increased the demand for PSIM.

The global physical security market based on services is segmented into video surveillance as a service (VSaaS), public alert and warning system, remote management services, technical support, security consulting, public safety answering point (PSAP), and others (data source, hosted access control, managed access control, alert notification, mobile security management). Under this segment, VSaaS is projected to lead the market. Moreover, VSaaS offers remote access and help in saving cost.

The application of physical security is vastly seen in government and public sector, transportation and logistics, oil and gas facilities, utilities/energy markets, industrial (manufacturing sector excluding chemical facilities), control centers, retail, fossil generation facilities, chemical facilities, hospitality and casinos, business organizations,  and others (stadiums, educational and religious infrastructure, healthcare organizations). Out of these transportation and logistics sectors dominates them all. Transportation industry that includes rail, ports, aviation, road, and city traffic and new start projects (including metro rail, light rail, rapid rail, commuter rail, ferries and bus rapid transit) where the need for physical security is important.

Increasing Incidence of Terrorism in North America to Surge Demand 

The growth of the international physical security market is high in North America owing to the rising incidence of terrorism in the region. Governments in this region are making continuous efforts to increase security and surveillance to ensure the security of the people. The Asia Pacific is also considered a lucrative market for the growth of physical security.

The report has also analyzed various key players in the market such as Bosch Security Systems Inc, Hikvision Digital Technology, Axis Communication AB, Tyco International Ltd, Morpho SA (Safran), and other. Honeywell Security Group leads the market by holding a marginal number of shares in the global market.

Physical security refers to the protection of data, networks, software, hardware, and personnel from various physical events and actions that is lead to some grave damage or loss to an institution, agency, or enterprise. Such protection could be from terrorism, vandalism, theft, burglary, natural disasters, flood, and fire. The global physical security market is expected to be driven by the rising incidences of terrorism, vandalism, theft and all such events.

When it comes to technical threats such as cyber-espionage, malware, and hacking, it gains more importance than physical ones, which is often overlooked. Rising incidences of crimes all over the world is expected to bolster the need for physical security.

Physical security comes with three important components:

  • testing
  • surveillance
  • access control

There is a need for obstacles to be placed in the way of potential physical sites of attack and attackers. These obstacles need to be hardened against environmental disasters, attacks, or accidents. Rising significance of physical security has led to several enterprises identifying potential threats and then opting for appropriate security solutions. This factor is likely to work in favor of the expansion of the global physical security market over the years of assessment.

Various end use sectors such as media houses, banks, transportation, hospitality, and retail sector are increasingly deploying security personnel, thereby boosting the global physical security market in the years to come.

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 Pided 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:

By Components

By Hardware

  • Intrusion detection and prevention

    • Video surveillance

      • Analog Cameras
      • IP Cameras
      • Digital video recorders (DVRs)
      • Close circuit television (CCTV)
      • Encoders
      • Storage
      • Network video recorders (NVRs)
    • Intrusion detection

      • Panels
      • Detectors
      • Keypads
      • Accessories
    • Intruder alarms and locks
  • Access control

    • Biometrics

      • Fingerprint recognition
      • Facial recognition
      • Iris recognition
      • Others (voice, signature, hand geometry, so on)
    • RFID

      • Active RFID
      • Passive RFID
      • Interrogators
    • Card based access control

      • Smart cards and readers
      • Proximity cards and readers
      • Controllers
      • Others (touch screens and keypads, barcodes, magnetic stripes, so on)
  • Others

    • Fire and life safety
    • Visitor management
    • Backup power

By Software

  • Physical security information management (PSIM)
  • Management analysis and modeling software

By Services

  • 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)

By Applications

  • Transportation and logistics

    • Aviation
    • Rail
    • Ports
    • 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
    • Solar
    • Wind
    • Hydro electric
  • Chemical facilities
  • Industrial (manufacturing sector excluding chemical facilities)
  • Retail
  • Business organizations (including IT sector)
  • Hospitality and casinos
  • Others (stadiums, educational and religious infrastructure, healthcare organizations)

By Geography

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)

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Physical Security Market

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