The global physical security market size was valued at USD 127.01 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. The need to secure the physical environment from activities such as crime, vandalism, potential burglaries, theft, and fire incidences is one of the crucial factors expected to drive the market. Moreover, factors such as increased spending on the security to protect organization’s critical asset, adoption of cloud-based data storages, advanced analytics, as well as technological developments in access control and video surveillance are some of the key trends expected to drive the market growth.
In addition, the shifting focus from legacy solutions such as badge readers, alarm systems, and door locks to advanced logical security which encompasses breach detection, threat management, and intrusion prevention, among others, has helped the organization and government agencies to deter crime incidence and breach at a higher success rate.
Gather more insights about the market drivers, restrains and growth of the Physical Security Market
Detailed Segmenattaion
Component Insights
The system segment led the market in 2022, accounting for more than 65.0% share of the global revenue. Further, the sub-segments of systems include physical access control systems (PACS), video surveillance systems, perimeter intrusion detection and prevention, physical security information management(PSIM), physical identity and access management (PIAM), plus fire and life safety.
Organization Size
The large enterprise segment led the market in 2022, accounting for above 60% share of the global revenue. The segment is driven by the factors such as more significant infrastructure to safeguard, highly critical information to protect, and greater revenue to spend. So, they are the early adopters of physical security. Further, protecting their data from thefts, cyberattacks, and unauthorized access lets the segment shift toward physical security solutions.
End-user Insights
The government segment led the market in 2022, accounting for more than 18% of the revenue share in 2022. In this rapidly changing and complex environment, government agencies must figure out how to upgrade their security defenses while working with legacy equipment and staying within budget. For instance, in July 2022, The European Parliament, the European Commission, and the European Union (EU) agreed on a European guideline on critical entity resilience. This directive aims to safeguard essential providers of the process by enhancing their stability and resilience, hence more efficiently guaranteeing the consistency of such operations.
Regional Insights
North America dominated the market in 2022, accounting for more than 38.0% share of the global revenue. This trend is expected to continue through the forecast period. North America accounts for the highest adoption of advanced physical security systems. The regional market is driven by the factors such as strong economic growth, regulatory reforms, and rising investments by SMEs in physical security solutions.
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