Physical Security Market

Rising concerns towards resource safety and technological update to boost market growth

With the help of these innovative technologies, Johnson Controls can provide total building physical security for commercial and residential properties, allowing customers to use their systems for purposes beyond simple access control and video surveillance.  Governments in the world's major regions consistently enhance their physical security systems to combat the escalating risks.  For instance, the body-worn camera for the personal protection of government officials was introduced by Axis Communications, AB, in December 2021.  

Axis Communications, AB is a Swedish firm that offers services to commercial sectors and governments worldwide.  Body-worn cameras offer numerous advantages for liability protection, personal safety, and operational effectiveness.  Therefore, the adoption of such growth strategies in physical security has enhanced the Physical Security market CAGR across the globe in recent years.

Furthermore, Physical Security market revenue is also expected to increase due to innovations and technological advancements in integrated sensors, video, and access systems for IoT-enabled devices.  For instance, Intel Corp. announced in September 2021 that it manages its physical security & virtual device access via a software-based IoT platform.  Using keys or access credentials assures that only authorized employees have direct physical security access to the equipment.

Regulatory frameworks and compliance requirements are increasingly influencing the Global Global Physical Security Market Industry. Governments worldwide are implementing stringent regulations to ensure the safety and security of public spaces and critical infrastructure. Organizations must adhere to these regulations, which often necessitate investments in physical security measures. As a result, the demand for security solutions that meet compliance standards is on the rise. This trend is expected to contribute to a compound annual growth rate of 7.84% from 2025 to 2035, as businesses prioritize compliance alongside security enhancements.

The Global Global Physical Security Market Industry experiences heightened demand due to increasing security concerns across various sectors. Organizations are increasingly investing in physical security measures to protect their assets, employees, and sensitive information. For instance, the rise in theft and vandalism incidents has prompted businesses to enhance their security protocols. In 2024, the market is projected to reach 235.94 USD Billion, reflecting a growing recognition of the importance of robust physical security solutions. This trend is likely to continue as threats evolve, necessitating ongoing investment in advanced security technologies.

The Global Global Physical Security Market Industry is poised for substantial growth, with projections indicating a market value of 235.94 USD Billion in 2024 and an anticipated increase to 541.32 USD Billion by 2035. This trajectory suggests a compound annual growth rate of 7.84% from 2025 to 2035, reflecting the increasing emphasis on security across various sectors. The growth is driven by factors such as rising security concerns, technological advancements, and regulatory compliance, all of which contribute to the evolving landscape of physical security solutions.

Technological innovations play a pivotal role in shaping the Global Global Physical Security Market Industry. The integration of advanced technologies such as artificial intelligence, biometrics, and IoT devices enhances security capabilities. For example, AI-powered surveillance systems can analyze vast amounts of data in real-time, identifying potential threats more effectively. As organizations seek to leverage these technologies, the market is expected to grow significantly, with projections indicating a value of 541.32 USD Billion by 2035. This growth underscores the necessity for businesses to adopt cutting-edge solutions to stay ahead of emerging security challenges.

The ongoing trends of globalization and urbanization significantly impact the Global Global Physical Security Market Industry. As businesses expand their operations internationally and urban areas grow, the need for comprehensive security solutions becomes more pronounced. Urban centers often face unique security challenges, including increased crime rates and the need for crowd management. Consequently, organizations are compelled to invest in tailored security strategies that address these challenges. This shift is likely to drive market growth, as companies seek to protect their assets and personnel in diverse environments.

The Global Physical Security Market Industry is witnessing increased investment in infrastructure projects, which inherently require robust security measures. Governments and private entities are allocating substantial resources to develop and maintain infrastructure, including transportation, energy, and communication systems. These projects necessitate comprehensive security strategies to safeguard against potential threats, such as terrorism or sabotage. As infrastructure investment continues to rise, so too does the demand for physical security solutions, further propelling market growth. This trend aligns with the broader economic development goals of nations, emphasizing the importance of security in sustaining progress.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Physical Security market accounted for USD 50.9684 billion in 2021 and is expected to exhibit a 43.60% CAGR growth during the study period.  The majority of cutting-edge physical security systems are used in North America.  Strong economic growth, legal changes, and growing SMEs' investments in physical security solutions are some of the drivers driving the regional industry.  

Additionally, a number of public facilities and transportation networks, including airports, seaports, trains, and bus terminals, are putting a strong emphasis on securing their infrastructure through security layers.  For instance, in January 2022, the security company Norred & Associates Inc. (Allied Universal), a U.S.-based security provider, was purchased by Allied Universal.

During the anticipated time, Asia Pacific Physical Security market would likewise present a lucrative opportunity for international players.  The rising demand for smart security systems in China and India is to blame for this expansion.  Market expansion is predicted to be fueled by significant Chinese government investments in safe city initiatives, which largely concentrate on city surveillance and traffic monitoring.  The country has created 500 smart cities since founding the China Smart City Industry Alliance in 2010.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  PHYSICAL SECURITYMARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

China Physical Security market held the largest share in the APAC region during the projected period, it is expected to grow sustainably.  In order to improve urban planning and development, China began to promote the use of technologies like artificial intelligence (AI) and the internet of things (IoT) in 2012.  The Chinese government intends to build 100 additional cities by the end of 2020.  For instance, the manufacturer of video surveillance equipment, Hangzhou Hikvision Digital Technology Co., Ltd., introduced the Hikvision AX PRO wireless external Tri-tech detector with a dedicated camera in February 2022.  Additionally, the India Physical Security market is anticipated to expand in future.

Furthermore, the Europe Physical Security market is predicted to benefit from the increasing adoption of internet and rising cybersecurity issues.

Major market players are investing a lot of capitals on R&D to enhance their grade lines, which will aid the Physical Security market expand. Market players are also taking a range of strategic measures to expand their worldwide footprint, with prime market developments such as new grade innovations & launches, contracts & agreements, mergers and acquisitions, better investments, and collaboration & strategic partnerships with other organizations in the Physical Security market. Competitors in the Physical Security industry must offer cost-effective items to extend and survive in an increasingly high competitive and expanding market environment.

One of the primary business strategies adopted by manufacturers in the  Physical Security industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, Physical Security industry has provided medicine with some of the most significant benefits. The Physical Security market major player such as Cisco (US), Johnson Controls (US), Genetec (Canada), and others are working to drive the market growth via investing heavily in research and development activities.

Genetec (Canada) creates open-platform software, hardware, and cloud-based services for the public safety and physical security sectors.  Internet protocol (IP)-based video surveillance, access management, and automatic licence plate recognition are all combined into one platform by the company's product, Security Center.  In January 2023, Genetec Inc. offered data protection best practises in honour of International Data Privacy Day to assist physical security leaders in preserving privacy, safeguarding data, and fostering trust without jeopardising security.

Also, Johnson Controls (US), offers a variety of sturdy barricades and other security measures for customers' buildings, plants, facilities, and campuses as part of their physical access control solutions.  In November 2022, A collaborative partnership between Dedrone and Johnson Controls has been launched to address the security risks caused by unauthorised drone use.  As part of the partnership, Dedrone's cutting-edge counter-drone technology will be incorporated into Johnson Controls' product line via an open Application Programming Interface (API), giving customers everywhere access to cloud-based airspace security as a service.