Opportunity

Technological Innovation is Expected to Create Many Opportunities in the Physical Security Market.

As security threats change from physical thefts to attacks via digital means, it is important to update physical security measures in light of increasing automation and digitalization. Technological innovation has made it possible to improve surveillance, monitoring, defense systems, and gadgets.

Artificial intelligence is combined with existing physical security measures to improve asset safety and security. They can also reduce long-term costs and the need to employ staff to operate or manage them. IoT innovations in access control systems, surveillance cameras, and other security devices provide greater and more complete security control. Market participants will have attractive prospects for the future because of the increased need for security measures.

Trends

The market is seeing a positive outlook due to increased security concerns and an increase in terrorist attacks around the world. Different governments are investing in advanced access control and video surveillance systems to protect citizens and prevent terrorist attacks and other serious incidents.

The market is also booming due to the increasing use of smart fence sensors, drones, and mass notification systems (MNS), for surveillance at major events or assemblies. The market is also gaining momentum due to the use of artificial intelligence (AI), which can be used to detect potential areas of compromise and analyze images, videos, or other data to distinguish threats from normal activities.

Another factor driving growth is the growing awareness of physical security solutions for residential spaces, owing to increasing instances of theft, criminal activities, and robbery. This key trend is also being positively influenced by the introduction of home security systems for intruder, fire, and LPG gas leakage detections. The market growth is also supported by other factors such as increasing digitization and the widespread adoption of cloud-based storage. Also, there is a growing demand for video surveillance solutions that allow for efficient monitoring of large areas.

Many governments around the world have been eager to implement PSIM solutions in order to enhance their security systems beyond video surveillance. Governments are being pressured to adopt more physical security management systems in order to protect their citizens from the threat of terrorist attacks. Major industries trust that PSIM solutions will improve employee behavior and yield better results.

The United States federal government recognized the need to improve the security of its facilities as well as integrate with logical networks. Federal agencies discovered that their existing video surveillance systems were not adequate to protect their facilities due to a lack of facial recognition and video analytics support. They also are not compatible with federal enterprise IT architecture.

Emerging countries, like the Indian government, are pushing for public projects. This includes installing video surveillance equipment for traffic monitoring, city surveillance, education, and railway surveillance. The market growth is expected to be driven by the increasing investments in greenfield foreign direct investment.

Regional Analysis

North America Dominates the Physical Security Market with a Major Market Share of 36.4%.

North America held more than 36.4% of the largest share in the market and will continue to dominate the market for the forecast period. This region is a leader in the adoption of advanced physical security systems. The regional market is driven by a number of factors including regulatory reforms, economic growth, and SMEs investing in physical security solutions. Many public places such as bus stations, airports, railways, and seaports have security measures in place to protect their infrastructure.

The market in North America is heavily influenced by increasing security concerns due to domestic crime, theft, terrorist attacks, and other factors. The country’s increasing number of bank robberies is also driving the need for video analytics solutions. This will drive market growth during the forecast period.

Protecting sensitive customer data can be done by organizations following PCI DSS, GLBA, and HIPAA guidelines. North America is home to the largest number of service providers and solutions for physical security. This is because it’s one of the most susceptible regions to cyberattacks, particularly identity theft. North American organizations are using physical security solutions because of changing work situations, COVID-19, IoT and BYOD trends, compliance and regulations, as well as increasing threats such as BEC and malware. Because of specific budgetary allocations, and physical security policies North America is expected to dominate during the forecast period.

The Asia Pacific market is forecast to grow at the fastest pace during the forecast period. The region will experience a 5.2% CAGR between 2023 and 2032. This growth is largely due to rising demand in India and China for smart security solutions. The Chinese government’s investments in safe city projects that mainly focus on traffic surveillance and monitoring are expected to drive market growth. Since 2010, the China Smart City Industry Alliance was established, and 500 smart cities have been built in China.