Physical Security Global Market Opportunities And Strategies To 2034

The physical security market is segmented by component into systems and services. The systems market was the largest segment of the physical security market segmented by component, accounting for 66.23% or $81.13 billion of the total in 2024. Going forward, the services segment is expected to be the fastest growing segment in the physical security market segmented by component, at a CAGR of 7.06% during 2024-2029.

The physical security market is segmented by organization size into small and medium-sized enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the physical security market segmented by organization size, accounting for 60.10% or $73.62 billion of the total in 2024. Going forward, the small and medium-sized enterprises (SMEs) segment is expected to be the fastest growing segment in the physical security market segmented by organization size, at a CAGR of 7.06% during 2024-2029.

The physical security market is segmented by end user into transportation, government, banking and finance, utility and energy, residential, industrial, retail, commercial, healthcare and other end users. The banking and finance market was the largest segment of the physical security market segmented by end user, accounting for 19.30% or $23.64 billion of the total in 2024. Going forward, the banking and finance segment is expected to be the fastest growing segment in the physical security market segmented by end user, at a CAGR of 7.58% during 2024-2029.

North America was the largest region in the physical security market, accounting for 34.76% or $42.57 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the physical security market will be Asia Pacific and Middle East where growth will be at CAGRs of 8.21% and 7.01% respectively. These will be followed by Eastern Europe and Western Europe where the markets are expected to grow at CAGRs of 6.78% and 6.53% respectively.

The global physical security market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 25.50% of the total market in 2023. Allied Universal Security Services LLC. was the largest competitor with a 4.38% share of the market, followed by the Hangzhou Hikvision Digital Technology Co. Ltd. with 3.87%, Secom Co. Ltd. with 3.64%, Securitas AB with 3.32%, Zhejiang Dahua Technology Co. Ltd. with 2.64%, Assa Abloy AB with 2.58%, Johnson Controls International plc with 1.47%, Cisco Systems Inc. with 1.34%, Honeywell International Inc. with 1.27% and Motorola Solutions Inc. with 0.98%.

The top opportunities in the physical security market segmented by type will arise in the systems segment, which will gain $32.54 billion of global annual sales by 2029. The top opportunities in the physical security market segmented by organization size will arise in the large enterprises segment, which will gain $29.48 billion of global annual sales by 2029. The top opportunities in the physical security market segmented by end user will arise in the banking and finance segment, which will gain $10.43 billion of global annual sales by 2029. The physical security market size will gain the most in the USA at $12.71 billion.

Market-trend-based strategies for the physical security market include focus on strategic investments to accelerate innovation, expand product portfolios and enter new geographic markets, focus on increasingly adopting cloud-based security solutions, focus on developing AI-powered solutions to enhance real-time threat detection, automate responses and improve system efficiency, focus on adopting strategic partnerships approach to develop advanced solutions, focus on prioritizing the development of innovative mobile app solutions, focus on developing innovative smart access and automation solutions to enhance user convenience, safety and system intelligence, focus on developing innovative enterprise-grade, unified Software-as-a-Service (SaaS) solutions, focus on emphasizing product innovation and the development of advanced solutions, particularly in touchless technology and access management and focus on advanced technologies such as advanced identity manager (AIM).

This report describes and explains the physical security market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global physical security market reached a value of nearly $122.5 billion in 2024, having grown at a compound annual growth rate (CAGR) of 4.93% since 2019. The market is expected to grow from $122.5 billion in 2024 to $171.85 billion in 2029 at a rate of 7.00%. The market is then expected to grow at a CAGR of 6.47% from 2029 and reach $235.12 billion in 2034.

Growth in the historic period resulted from the growth of smart cities, rising threat of terrorism and crime, commercial real estate boom and rapid infrastructure development. Factors that negatively affected growth in the historic period were complex regulatory and compliance requirements and privacy and data protection concerns.

Going forward, the favorable government support, rising natural disasters, growing need for safety in public places and high-value asset protection needs in banking and retail will drive the growth. Factor that could hinder the growth of the physical security market in the future include high initial investment and maintenance costs, skilled labor shortages and impact of trade war and tariff.

Player-adopted strategies in the physical security market include focus on expanding business capabilities through new partnerships and focus on expanding business capabilities through new launches.

To take advantage of the opportunities, the analyst recommends the physical security market companies to focus on strategic investments in AI-powered innovation, focus on expanding cloud-based security offerings, focus on advancing AI-driven physical security solutions, focus on expanding mobile app-based security solutions, focus on smart access and automation innovation, focus on unified SaaS solutions for scalable multi-site security, focus on advancing touchless and smart security innovations, focus on integrating advanced identity management systems, focus on services to capture the fastest growing segment, expand in emerging markets, continue to focus on developed markets, focus on expanding reach through strategic partnerships, focus on tiered pricing to capture value across segments, focus on digital outreach and solution awareness and focus on partnerships and thought leadership.

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