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The Physical Security Business 2020 to 2025

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  • 324 Pages
  • November 2020
  • Region: Global
  • Memoori Business Intelligence Ltd
  • ID: 5229273


  • ACRE
  • BriefCam
  • Elkron
  • Identiv
  • Mirasys
  • Sony

This Report is the New 2020 Definitive Resource for Access Control, Video Surveillance & Intruder Alarm/Perimeter Protection Market Research.

In March 2020, The World Health Organization declared COVID-19 a global pandemic. Within a few weeks, it was clear that the pandemic was highly likely to cause the world’s worst recession in the last 100 years. In June 2020, the World Bank published a baseline forecast envisioning a 5.2% contraction in global GDP in 2020.

Against this backdrop, our report delivers the best estimate of the global market for physical security products going forward to 2025 based on two scenarios. At this time, COVID-19 has been having second spikes in Q3 / Q4 and several countries are experiencing rolling lockdowns. The publisher believes our 2nd scenario looks more feasible where global markets take around a year to return to some normality and mass global adoption of a vaccine is achieved within 18 months. The publisher believes this has a probability of 65%.

Despite all this, the publisher is still confident of the industry's robustness and prospects for growth over the medium to long term. Market drivers like the threat from terrorism and crime are unlikely to abate, whilst urbanization and smart infrastructure will further drive demand for more and better security systems.

This report is our 12th annual detailed analysis that brings together all the factors that influence this industry’s future. To do this the publisher assesses the structure and size of the combined physical security industry then breaks it down by size of the product, sales by major sector and geographic region, and forecast sales to 2025.

What Impact Has The Covid-19 Pandemic Had On This Business?

  • Above all the COVID-19 outbreak will force suppliers to radically rethink how they operate their business, in particular resilience to externalities. In parallel, there will be lessons to learn on having a more coordinated and resilient supply chain. The Video Surveillance business is too dependent on Chinese OEMs and component manufacturers. With many of these factories closed for the first two months of 2020, it caused temporary supply chain issues.
  • The pandemic has created a demand for new solutions to help control the spread of the virus. Physical security products have risen to the challenge, helping to implement social distancing protocols through existing access and video systems with AI-powered analytics. Thermal cameras have also been deployed to measure people’s temperature, with demand being strong. However, their usefulness has been questioned, with the World Health Organisation saying that on its own temperature screening “may not be very effective”.
  • The publisher estimates that the total value of world production of Physical Security products at factory gate prices in 2020 will be $31.7Bn, a decline of over 7.5% on 2019. Sales declined over the first 3 quarters of 2020 as a result of COVID-19. This has stopped 11 consecutive years of growth.

Forecast of the Physical Security Market 2020-2025 - The Impact of COVID-19

Based on our Scenario 2, growth will recover by Q3 2021, and by the end of that year it will have grown by nearly 3%, however, different rates of growth apply in each of the 3 businesses and geographic territories. The publisher forecasts the market will reach over $42Bn by the end of 2025 at a CAGR of 6% over the next 5 years.

China continues to increase its share of the physical security product market. The Chinese market has grown rapidly through a boom in new construction and ‘Sharp Eyes’ surveillance projects driven by the public sector. However very little of this vastly expanding market is accessible to overseas manufacturers, nor is it likely to be in the foreseeable future, with ongoing political and trade tensions between the US and China.

Within Its 324 Pages and 31 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:

  • As we move forward Post-COVID, vendors will need to investigate customer’s requirements thoroughly, particularly those businesses that have been severely damaged by COVID-19. It will be more difficult for these customers to find the budget to invest and therefore they have to be convinced of a return on their investment. ACaaS and VSaaS can provide a solution to this problem and there is evidence of significant accelerating growth in cloud services.
  • The software has always been an important factor in the development and growth of the Physical Security business. We are now entering a new epoch in the Video surveillance business driven by Artificial Intelligence (AI). AI Technology can and will make a direct and massive contribution to increasing the performance and value of video surveillance solutions However security systems are by no means an island and in many cases, they will ultimately need to be connected with the wider IoT if all the information is to be converted into actionable data.
  • The average annual value of M&A deals over the last 13 years is $6,717m. In 2020 the publisher identified 20 deals compared with 26 in the previous year. And in 2020 the value of mergers and acquisitions was $5,285m an increase in 2019 but still below the 13-year average. M&A measured by value is currently in a cycle of decline.
  • This report provides valuable information into how Physical Security companies can develop their business strategy through Merger, Acquisition, and Alliance.

Merger and Acquisition by Business Segment 2020

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 security technology companies (and their advisors) around the world. In particular, those wishing to acquire, merge or sell companies will find its contents particularly useful.


  • ACRE
  • BriefCam
  • Elkron
  • Identiv
  • Mirasys
  • Sony

1. Coping with COVID-19
1.1 COVID’s Impact on the Physical Security Business
1.2 Short Term Prospects for Physical Security Depend Upon Containing COVID-19
1.3 The Impact of COVID-19 on Market Demand 2020 to 2025
1.4 COVID-19, the World’s Biggest Remote Working Experiment is Underway

2. Structure, Shape & Size of the Physical Security Business
2.1 Structure of the Business
2.2 Trends in Market Share by Group 2012 - 2020
2.3 Sizing the Physical Security Business 2020 & Forecast to 2024
2.4 World Distribution of Security Products by Major Region
2.5 Market Size & Trends by Vertical Sector
2.6 Market Size by Region & Penetration
2.7 The Best Prospects for Regional Growth
2.8 Comparing & Sizing, Access - Intruder - Video 2020

3. The Video Surveillance Market 2020 - 2025
3.1 The World Market Video Surveillance 2020 & Forecast to 2025
3.2 The World Market for Video Cameras 2020 - 2025
3.3 The World Market for Video Management Software 2020 -2025
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 Major Factors that Determine Video Surveillance Strategy
3.8 Technology that Drives Demand for Video Surveillance
3.9 The Market for Video Surveillance as a Service (VSaaS)
3.10 Video Camera Technology
3.11 Body Worn Cameras
3.12 Video Surveillance Storage Recorders
3.13 Video Management Software (VMS)
3.14 New Chip Technology & AI Video Analytics

4. The Access Control Market 2020 to 2025
4.1 Market Size 2020 & Forecast to 2025
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
4.5 The Impact of Technologies from Outside the Access Control Business
4.6 Access Control as a Service (ACaaS)

5. Intruder Alarms / Perimeter Protection (IA/PP) Market 2020 to 2025
5.1 Market Size 2020 & Forecast to 2025
5.2 Demand Drivers & Technology Trends
5.3 Identifying & Measuring the Performance of Leading Suppliers

6. Wireless Technology
6.1 Wireless in the Video Surveillance Market
6.2 Will 5G be the Optimum Solution for Connecting Video Cameras Outdoors?
6.3 Wireless in the Access Control Market
6.4 Wireless in the Intruder Alarm Market
6.5 IoT Needs Wireless Technology

7. Standards, Cyber Security & Privacy
7.1 ONVIF for Physical Security Products
7.2 Cyber Security
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 - A Vital Part in Integrating IoT Systems

9. The Impact of Open Systems - Integration - BAS Services & IoT & Real Estate Platforms
9.1 Growth Through “Open Systems”
9.2 Growth Through Integration of BAS Services & IT Convergence
9.3 Growth Through IoT & the Building Internet of Things (BIoT)
9.3 Real Estate Platforms Manage Buildings

10. Growth Though New Business Opportunities
10.1 New Industry Verticals & Market Segments
10.2 Shared Services, Smart & Safe Cities
10.3 Solutions Vs Products
10.4 Business Models Focused on Product Specialization, Brand, & Scale
10.5 Maintaining a Viable Business in the IP Camera Market is a Real Challenge
10.6 The Video Surveillance Supply Structure Is Unbalanced & Unhealthy
10.7 VSaaS / ACaaS Services Have at Last Taken Off

11. M&A Performance by Sector - Valuation and Outlook 2020 to 2025
11.1 M&A Performance 2000 - 2020
11.2 M&A Performance in 2020
11.3 M&A Forecast 2020 - 2025
11.4 M&A Analyzed by Business Segment 2020
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 Prospects in High Growth Sectors

13. The Boom in VC Investment to 2020 is now Under Review
13.1 The Impact of Venture Capital on the Physical Security Business Pre-COVID-19
13.2 COVID-19 Changes the Game?

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 2020
A2 - Acquisitions Announcements in 2019 to 2020
A3 - Potential Acquisition Targets 2020
A4 - Directory of AI Video Analytic Suppliers

List of Charts and Figures
Fig 1.1 - Forecast of the Physical Security Market 2020 to 2025: The Impact of COVID-19
Fig 2.1 - Distribution of Sales by Major Grouping by Value 2020
Fig 2.2 - Distribution of Sales by Major Grouping by Number of Companies 2020
Fig 2.3 - Average Revenue for Group A, B, C, & D Companies 2012 - 2020 ($bn)
Fig 2.4 - World Sales of Security Products 2008 - 2025
Fig 2.5 - World Distribution of Security Products by Major Regions 2020
Fig 2.6 - Distribution of Security by Building Type, 2006 compared with 2020
Fig 2.7 - Comparison of Physical Security Penetration by Major Region 2020
Fig 2.8 - World Sales of Security Products by Type 2020 ($bn)
Fig 3.1 - World Sales of Video Surveillance Products 2017 to 2025 ($bn)
Fig 3.2 - World Sales of Video Surveillance Cameras 2017 to 2025 ($bn)
Fig 3.3 - World VMS Market for Video Surveillance 2017 to 2025 ($m)
Fig 3.4 - Relative Performance of Vendors in the Video Surveillance Camera Market 2020
Fig 3.5 - Relative Performance of Vendors in the VMS Market 2020
Fig 3.6 - Distribution Channels of Video Surveillance 2020
Fig 4.1 - World Sales of Access Control Products 2017 to 2025 ($Bn)
Fig 4.2 - Relative Performance of Vendors in the Access Control Market 2020
Fig 4.3 - Distribution Channels of Access Control Systems 2020
Fig 5.1 - World Sales of Intruder Alarm & Perimeter Protection Products 2017 to 2025 ($Bn)
Fig 5.2 - Relative Performance of Vendors in the Intruder Alarm Market 2020
Fig 7.1 - Building Elements perceived to be at High Risk
Fig 8.1 - PSIM Software Landscape
Fig 11.1 - Security Deals Completed from 2000 to 2020
Fig 11.2 - Forecast of Deals 2021 to 2025
Fig 11.3 - Merger & Acquisition by Business Segment 2020
Fig 11.4 - Acquisition Valuation Benchmarks 2005 to 2020
Fig 14.1 - Strategic Alliances 2008 to 2020


A selection of companies mentioned in this report includes:

  • ACRE
  • ACTi Corporation
  • ADT
  • Agent Vi
  • Aimetis
  • Alcatraz AI
  • Allegion
  • Amazon
  • AnyVision
  • Arcules 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
  • 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
  • Tiandy
  • TKH
  • Ubiquiti
  • Uniview
  • UTC
  • Vanderbilt
  • Verint
  • Verkada
  • Vicon
  • VideoIQ
  • Vidsys
  • Vivotek
  • Waltz
  • Wavesight
  • Wavestore
  • Zicom