Despite the ongoing macroeconomic crisis, the physical security industry continues to flourish as homeowners and corporate decision-makers around the world recognize the importance of keeping property safe from malicious individuals. This was highlighted in a new report by research firm Memoori, which revealed the value for the global security equipment market is worth more than $20.5 billion in 2012.
"I would attribute the security industries resilience over the last four years to two main factors. First, the continued growth in demand from developing markets in Asia, Latin America and Eastern Europe," said Memoori Director Jim McHale, according to SecurityInfoWatch. "Second, the industry's ability to continue to provide innovative products and systems that fulfills the end-users' requirements and help to drive down their costs."
Memoori noted that the demand for advanced security systems has primarily been driven by a product's ability to provide a positive return on investment and reduce total cost of ownership, while simultaneously enhancing productivity. As a result, physical security spending has transformed from a cost center to a profit generator.
Which solutions are gaining the most traction?
Unsurprisingly, video surveillance systems accounted for the majority of the expanding security market, accounting for 49 percent and generating roughly $10 billion in revenue alone, Memoori said. Advanced intruder alarms, on the other hand, were attributed to slightly more than 27 percent, generating more than $5.7 billion in revenue, while access control systems made up 23 percent with $4.8 billion.
Overall, the physical security market is estimated to expand at a compound annual growth rate of 5 percent during the next five years, Memoori noted.
"The security industry is now in a much healthier state with a product portfolio that can deliver more attractive opportunities for their clients to improve security and at the same time profit from it," McHale said, according to SecurityInfoWatch. "This together with the unstoppable growth of IP video network and access control coupled with management identification and verification will drive the market forward."
A separate report by Frost & Sullivan also said the adoption of integrated security systems will help the overall market forward, especially as video and access control tools tie up with information management systems. In fact, the research firm noted that the worldwide market for physical security information management (PSIM) will generate nearly $2.8 billion in revenue by 2021, up from roughly $143 million in 2011.
As the demand for advanced security tools continues to grow in and outside the private sector, the market for said solutions will expand, despite ongoing economic uncertainty.