The global physical security market is expected to grow during the 2020s, potentially reaching a value of $171 billion by 2027, according to several reports.
At its peak, Grand View Research estimates that the sector could reach a Compound Annual Growth Rate (CAGR) of 6.5%. This valuation of the market is arguably reduced from what a report by IHS Predicted Several Years Ago, but it represents a boost for the physical security industry nonetheless.
Possible causes
Much of this growth appears to be fuelled by several factors, mainly because physical security itself represents a range of products and services. These include anything defined as the protection of property (including digital information) from physical dangers that could result in loss or damage to an individual or entity. Typically, it covers CCTV systems, access control, and other components of modern security systems.
With this in mind, a possible cause is that governments across the globe are taking up smart city initiatives which involve purchasing new security systems or upgrading current facilities. With many of these projects being long-term, this could result in sustained growth for physical security products and services moving forward.
More recently, the COVID-19 pandemic has seemingly pushed demand for other items. These include contactless access control equipment and video surveillance solutions. Indeed, the last 18 months have increased the need both for more touch-minimising physical security options as well as increased monitoring of business properties whilst they were left unused throughout lockdowns.
Where is the growth most prominent?
Worldwide data suggests that the global market for physical security solutions will grow over the next 5 or 6 years. But a report by Allied Market Research estimated that the Asia-Pacific market could reach a net worth of almost $91 billion by 2027, which would be a CAGR of over 15%. Within this, it is China that holds a significant influence, as it has supported several smart city initiatives and has increased security investment in recent years.
You can find more on the Latest Security Industry News Here.
