+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)


The Physical Security Business 2019 to 2024: Access Control, Intruder Alarm/Perimeter Protection & Video Surveillance

  • PDF Icon


  • 350 Pages
  • October 2019
  • Region: Global
  • Memoori Business Intelligence Ltd
  • ID: 4858655
The Total Value of World Production of Physical Security Products at Factory Gate Prices in 2019 was $34.3Bn


  • ACTi Corporation
  • Brivo
  • Elkron
  • Identiv
  • Mirasys
  • Sony

This Report is the New 2019 Definitive Resource for Access Control, Intruder Alarm / Perimeter Protection & Video Surveillance Market Research.

The total value of world production of Physical Security products at factory gate prices in 2019 was $34.3Bn, an increase of 8.5% on 2018 whist the compound annual growth rate (CAGR) over the last 5 years has been 7.24%.

Over the last 10 years, the market has grown by a CAGR of 6.27%, however, different rates of growth apply in each of the 3 businesses (Access Control, Video Surveillance, Intruder Alarm / Perimeter Protection) and geographic territories. We forecast the market will reach $56.76Bn in 2024.

This report is a detailed analysis that brings together all the factors that influence this industry’s future. To do this we assess the structure and size of the combined physical security industry then break down by size of product, sales by major sector and geographic region and forecast sales to 2024.

What is Included in this Report?

  • China has increased its market share this year but still has a market penetration of 50% less than North America, based on sales per capita. The Chinese market has grown rapidly through a boom in new construction and Safe City projects in the public sector. However very little of this vast expanding market has been of benefit to overseas manufacturers. We show in this report that the problem for overseas manufacturers getting a piece of the China market is not about technology or performance, at its core it is a geopolitical challenge.
  • In 2019, AI Technology applied to Video Surveillance has convinced the market that by 2020 it will become mainstream. Significant improvements in AI Video Analytics software is making this possible and over the next 10 years it will become a standard requirement across Video Surveillance solutions. There is a critical need to make full use of the massive amounts of data being generated by video surveillance cameras and AI-based solutions are the only practical answer. Modern chip architecture with AI software can comb through vast volumes of data and boost security and safety. Granted, there is a lot of development in this field that we are yet to see, but the path towards AI seems quite clear.
  • The supply structure and the competitive landscape will continue to change over the next few years and the main driver for this is the Internet of Things (IoT). Physical Security systems generate vast amounts of information that when analyzed together with data from other Building Automation Systems can deliver intelligence that will improve the security, safety and performance of buildings and the business enterprise within.

Demand structure in the video surveillance business is unbalanced because of the Chinese market. The main reason is that the communist government has some control over even private video surveillance manufacturing companies. If these companies want public sector business (which today accounts for more than 50% of the Chinese’s video surveillance market) and support with long term cheap loans, then they must comply with the states requirements.

For this the government ensures that foreign equipment will not be used on public sector projects. Not surprisingly this arrangement has distorted any possibility of “open trade” and further has allowed the 2 major Chinese manufactures to build up a market share of 40% of the worlds video camera business; in part by operating a “race to the bottom” by lowering prices that no other manufacturers could sustain because they don’t have the same volume of production.

However on the horizon are other Chinese companies that want a part of the massive investment in the public sector Safe City projects. Huawei, one of the world’s largest communication companies, have announced a major push into video cameras and an AI video analytics startup Megvii intends to offer complete video surveillance solutions. They will eventually get established in the public sector market and take share from the 2 present incumbents, and this could at least reduce the pressure on non-Chinese manufacturers operating in the more open world market.

Within its 350 Pages and 29 Charts and Tables, The Report Presents All the Key Facts and Draws Conclusions, so you can Understand what is Shaping the Future of the Physical Security Industry;

  • Access control was expected to deliver a slightly higher growth than the 8.2% we have estimated, as it further expanded the IP network business, advancing deeper into biometric, identity management, wireless locking systems and ACaaS. This would have been the 3rd consecutive year that it turned in the highest rate of growth of the 3 businesses, but price pressures are starting to bite, partially through consolidation and weaknesses in the supply chain. This has reduced growth when measured by value.
  • M&A data collected by the publisher over the last 18 years shows that the Physical Security industry, has gone through 4 cycles of increase and decline in the value of activity, sometimes exaggerated by a number of billion dollar deals in one year. In 2019 the value of mergers and acquisitions fell to $2.913Bn a reduction of approximately 12% on the 2018 adjusted value.
  • Since January 2018, about 75 new entrants have gained VC Investment of approx. $900 million for Physical Security solutions in commercial and industrial buildings. This excludes 2 of the major investments made in Megvii and OpenAI claiming $1.75 billion.

Who Should Buy This Report?

The information contained in this report will be of value to all those engaged in managing, operating and investing in physical security companies (and their advisors) around the world. In particular those wishing to acquire, merge or sell companies will find its contents particularly useful.


  • ACTi Corporation
  • Brivo
  • Elkron
  • Identiv
  • Mirasys
  • Sony

1. Introduction
2. Structure, Shape & Size of the Physical Security Business
2.1 Structure of the Business
2.2 Trends in Market Share by Group 2012 - 2019
2.3 Sizing the Physical Security Business 2019 & Forecast to 2024
2.4 World Distribution of Security Products by Major Regions
2.4.1 The Status in 2019
2.4.2 Market Size & Trends by Vertical Sectors
2.4.3 Market Size by Region & Penetration
2.4.4 The Best Prospect For Regional Growth
2.5 Comparing & Sizing, Access - Intruder - Video 2019
3. The Video Surveillance Market 2019 - 2024
3.1 The World Market Video Surveillance 2019 & Forecast to 2024
3.2 The World Market for Video Cameras 2019 - 2024
3.3 The World Market for Video Management Software 2019 -2024
3.4 Identifying & Measuring the Performance of Leading Camera Suppliers
3.5 Identifying & Measuring the Performance of Leading VMS Suppliers
3.6 Channels of Distribution & Trends
3.7 The Video Camera Market is Skewed by China
3.7.1 Building a Viable Strategy on Scale / Economics
3.7.2 Building a Strategy on Innovative Technology / Performance
3.8 Technology that Drives Demand for Video Surveillance
3.8.1 Storage at the Edge or Cloud services
3.8.2 Compression
3.8.3 Video Analytics Software - Deep Learning
3.8.4 Cognitive Systems & it’s Demand for Surveillance Storage
3.8.5 Integration within Physical Security & other BIoT Sensors & Services
3.9 The Market for Video Surveillance as a Service (VSaaS) 2019
3.9.1 2019 The Year VSaaS Delivered
3.9.2 Drivers & Road Blocks to VSaaS
3.9.3 Suppliers & Operators of MVaaS & VSaaS
3.9.4 Acquisitions in MVaaS - VSaaS - ACaaS
3.10 Video Technology - IP Cameras, HD Analog CCTV, Thermal Cameras
3.10.1 IP Network Cameras
3.10.2 The Future - IP Network, HDCCTV, Analogue
3.10.3 Video Compression Technologies H264 Vs H265
3.10.4 Thermal Cameras
3.11 Body Worn Cameras
3.12 Video Surveillance Storage Recorders
3.13 Video Management Software (VMS)
3.14 AI Video Analytics
3.14.1 AI Video Analytics Becomes Mainstream in 2020
3.14.2 AI Chip Technologies Diversify & Open up New Applications
3.14.3 The Development of AI Chip Technology - Machine Learning & Deep Learning
3.14.4 The Advantages of Deep Learning and its Algorithms
3.14.5 There is a Growing Demand for AI Video Analytics
3.14.6 The World Market for AI Video Analytics
3.15 Specialist Cameras & New Applications
3.15.1 New Video Camera Designs & New Applications
4. The Access Control Market 2019 to 2024
4.1 Market Size 2019 & Forecast to 2024
4.2 Identifying & Measuring the Performance of Leading Access Control Suppliers
4.3 Channels of Distribution for Access Control Systems
4.4 Major Technology & Commercial Demand Drivers for Access Control
4.4.1 IP Network Systems & the Move to “Open”
4.4.2 Integration within Physical Security, Building Occupancy Management and other BAS Services
4.4.3 Connecting PACS - IAM & Logical Security
4.4.4 Personal Identity Verification Card (PIV Card)
4.4.5 Mechanical Locks & Wireless Open New Opportunities
4.4.6 Systems Integrators Prefer Access Control Business
4.4.7 PACS - Strategic Acquisitions
4.5 The Impact of Technologies from Outside the Access Control Business
4.5.1 Demand for Biometric Readers
4.5.2 Near Field Communications (NFC) for Access Control Mobile Apps
4.6 Access Control as a Service (ACaaS)
4.6.1 Growth Through ACaaS & Cloud Based Systems
5. Intruder Alarms / Perimeter Protection (IA/PP) Market 2019 to 2024
5.1 Market Size 2019 & Forecast to 2024
5.2 Demand Drivers & Technology Trends
5.2.1 Demand Drivers
5.2.2 Technology Trends
5.3 Identifying & Measuring the Performance of Leading Suppliers
6. Wireless Technology
6.1 Wireless in the Video Surveillance Market
6.2 Wireless in the Access Control Market
6.3 Wireless in the Intruder Alarm Market
6.4 Wireless Will be Driven by IoT
7. Standards, Cyber Security & Privacy
7.1 ONVIF for Physical Security Products
7.1.1 ONVIF for Video Surveillance
7.1.2 ONVIF for Access Control
7.1.3 PSIA
7.1.4 OSSA
7.2 Cyber Security
7.2.1 The Most Serious Threat to Physical Security Stakeholders & Emerging BIoT
7.2.2 Is Physical Security Industry the Weakest Link in the BIoT Chain?
7.2.3 EU Cyber Security Act
7.3 GDPR - Privacy & Ethics
8. Software Markets in the Physical Security Business
8.1 Physical Security & Information Management (PSIM)
8.2 Physical Identity and Access Management (PIAM)
8.3 Will Virtual Assistants Migrate to Physical Security
8.4 Blockchain Refines Physical Security
9. Growth Through “Open Systems”- Integration - IT Convergence - BAS Services & IoT
9.1 Growth Through “Open Systems”
9.2 Growth Through Integration of BAS Services & IT Convergence
9.3 Real Estate Platforms Manage Buildings
9.4 Growth Through Integration, IT Convergence within BAS Services
9.5 Growth Through IoT & the Building Internet of Things (BIoT)
9.5.1 The Impact of BIoT on Physical Security
10. Business Opportunities that Offer Growth Today
10.1 New Industry Verticals & Market Segments
10.2 Shared Services, Smart / Safe Cities
10.3 Shared Intelligence in the Private Sector
10.4 Total Solutions versus Product Manufacture
10.5 Business Models Focused on Product Specialization, Brand & Scale
10.5.1 Product Specialization
10.5.2 Brand
10.5.3 Scale / Commoditization
10.6 Maintaining a Viable Business in the IP Camera Market
10.7 Big Tech & Security Companies Offer VSaaS / ACaaS in the Cloud
10.8 The Video Demand Structure Is Unbalanced & Unhealthy
11. M&A Performance by Sector - Valuation and Outlook 2019 to 2024
11.1 M&A Performance 2000 - 2019
11.2 M&A Performance in 2019
11.3 M&A Forecast 2019 - 2024
11.4 M&A Analyzed by Business Segment 2019
11.5 M&A Valuation - Exit Multiple Benchmarks
11.6 M&A Activity by Country
11.7 Strategic Buys Dominate M&A Activity but Private Equity Contributes
12. Identifying Potential Acquisition Targets & High Growth Sectors
12.1 Potential Acquisition Targets
12.2 Identifying Acquisition Prospects in High Growth Sectors
12.2.1 The IP Video Surveillance Industry
12.2.2 Security Management Software
12.2.3 Video Surveillance as a Service (VSaaS)
12.2.4 Access Control as a Service (ACaaS)
13. Investment & its Impact on the Physical Security Industry
13.1 The Impact of Venture Capital on the Physical Security Business
14. Strategic Alliances - Partnerships & Investments in Startups
14.1 Strategic Alliances
14.2 Partnerships & Investments in Startups Gain Momentum
A1 - The World’s Major Physical Security Companies 2019
A2 - Acquisitions Announcements in 2018 to 2019
A3 - Potential Acquisition Targets 2019 / 2020
A4 - Directory of AI Video Analytic Suppliers
List of Charts and Figures
Fig 2.1 - Distribution of Sales by Major Grouping by Value 2019
Fig 2.2 - Distribution of Sales by Major Grouping by Number of Companies 2019
Fig 2.3 - Average Revenue for Group A, B, C, & D Companies 2012 - 2019 ($bn)
Fig 2.4 - World Sales of Security Products 2008 - 2024
Fig 2.5 - World Distribution of Security Products by Major Regions 2019
Fig 2.6 - Distribution of Security by Building Type, 2006 compared with 2019
Fig 2.7 - Comparison of Physical Security Penetration by Major Region 2019
Fig 2.8 - World Sales of Security Products by Type 2019 ($bn)
Fig 3.1 - World Sales of Video Surveillance Products 2017 to 2024 ($bn)
Fig 3.2 - World Sales of Video Surveillance Cameras 2017 to 2024 ($bn)
Fig 3.3 - World VMS Market for Video Surveillance 2017 to 2024 ($m)
Fig 3.4 - Performance of Established Players / New Ventures / Challengers / Leaders in the Video Surveillance Camera Market 2019
Fig 3.5 - Performance of Established Players / New Ventures / Challengers / Leaders in the VMS Market 2019
Fig 3.6 - Distribution Channels of Video Surveillance 2019
Fig 4.1 - World Sales of Access Control Products 2017 to 2024 ($bn)
Fig 4.2 - Performance of Established Players / New Ventures / Challengers / Leaders in the Access Control Market 2019
Fig 4.3 - Model of Routes to Market for Access Control Systems 2019
Fig 5.1 - World Sales of Intruder Alarm & Perimeter Protection Products 2017 to 2024 ($bn)
Fig 5.2 - Performance of Established Players / New Ventures / Challengers / Leaders in the Intruder Alarm Market 2019
Fig 8.1 - PSIM Software Landscape
Fig 11.1 - Security Deals Completed from 2006 to 2019
Fig 11.2 - Forecast of Deals 2017 to 2024
Fig 11.3 - Merger & Acquisition by Business Segment 2019
Fig 11.4 - Acquisition Valuation Benchmarks 2005 to 2019
Fig 14.1 - Strategic Alliances 2008 to 2019


A selection of companies mentioned in this report includes:

  • ACTi Corporation
  • ADT
  • Agent Vi
  • Aimetis
  • Alcatraz AI
  • Allegion
  • Amazon
  • AnyVision
  • Arcus Global
  • Arecont Vision
  • Assa Abloy
  • Avigilon
  • Axis Communications
  • Axsys Technologies
  • AxxonSoft
  • Basler
  • Blighter Surveillance
  • Bosch
  • BriefCam
  • Brivo
  • Calipsa
  • Canon
  • CDVI
  • CheckPoint Systems
  • CIAS
  • Cisco
  • Civic Technologies
  • CNB Technology
  • CNL Software
  • CRE
  • CSST
  • Dahua
  • Dallmeier
  • Deep Sentinel
  • Digital Barriers
  • Dormakaba
  • DVTel
  • Eagle Eye Networks
  • Elkron
  • Envysion
  • Firetide
  • Flir
  • FluidMesh
  • G4S
  • Gallagher
  • Genetec
  • Geutebruck
  • Google
  • Gunnebo
  • Halma
  • Hanwha Techwin
  • HID Global
  • Hikvision
  • Hitachi
  • Hitron
  • Honeywell
  • Huawei
  • Identiv
  • IDIS
  • iLoq
  • Indigovision
  • Invinova
  • Isonas
  • Jablotron
  • Johnson Controls
  • JVC
  • Keri Systems
  • Legic Identsystems
  • LG
  • Magal Security Group
  • Mango DSP
  • March Networks
  • Megvii
  • Mercury Security
  • Microsoft
  • Milestone Systems
  • Mirasys
  • Mitsubishi
  • Napco Security
  • Nedap
  • Nuuo
  • Object Video
  • Openpath
  • Optex
  • Panasonic
  • Paxton
  • Pivot3
  • Primion Technology AG
  • Pyronix
  • Qognify incl Nice Systems Security
  • Risco Group
  • Salto
  • Schneider Electric
  • SeeTec Communications GmbH
  • Senstar Stellar
  • SimonVoss
  • Smartvue
  • Sony
  • Stanley Black & Decker
  • Suprema
  • Sureview
  • Synectics
  • Tamron
  • TDSi
  • Teleste
  • TKH
  • Ubiquiti
  • Uniview
  • UTC
  • Vanderbilt
  • Verint
  • Verkada
  • Vicon
  • VideoIQ
  • Vidsys
  • Vivotek
  • Waltz
  • Wavesight
  • Wavestore
  • WeWork
  • Zicom