| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 123.18 Billion |
| Market Size (2030) | USD 157.96 Billion |
| CAGR (2025 - 2030) | 5.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Physical Security Market Analysis
The Physical Security Market size is estimated at USD 123.18 billion in 2025, and is expected to reach USD 157.96 billion by 2030, at a CAGR of 5.1% during the forecast period (2025-2030).
Physical security safeguards individuals, properties, and tangible assets against threats like unauthorized access, theft, vandalism, and natural calamities. It encompasses various methods and technologies, including locks, fences, surveillance cameras, access control systems, security personnel, and environmental design. Adequate physical security aims to deter potential attackers, detect breaches, and respond swiftly to mitigate risks and losses. As a vital element of a comprehensive security strategy, it ensures that physical locations remain safe and secure for their designated purposes.
- Recent advancements include integrating artificial intelligence and machine learning for predictive analytics, deploying drones for surveillance, and developing smart buildings with embedded security systems. These innovations herald the emergence of robust, proactive security frameworks adept at addressing evolving threats.
- One of the primary drivers of the market is the imperative to safeguard physical environments from threats like crime, vandalism, burglaries, theft, and fire incidents. Additionally, heightened investments in security to shield an organization's vital assets, the shift towards cloud-based data storage, advanced analytics, and technological advancements in access control and video surveillance are pivotal trends propelling market growth.
- Rising crime rates and domestic terrorism concerns have heightened the focus on safeguarding assets, individuals, and systems. These escalating attacks have not only claimed numerous lives but also caused substantial damage to infrastructure, underscoring the urgent need for enhanced physical security measures.
- The global landscape is becoming more interconnected with the rise of the Internet of Things (IoT) and Industrial Internet of Things (IIoT) devices. However, this intricate web of cyber-physical systems (CPS) also broadens the potential for cyber threats, underscoring the critical need for robust physical and digital security measures. Cyber-physical attacks target physical infrastructures, including video management systems, access control devices, and industrial control systems.
- The adoption of new technologies has expanded cybercriminals' attack surface. Physical security equipment, which relies on a networking mesh to communicate with control rooms, becomes a vulnerable target for cyber breaches, potentially leading to severe consequences. For example, smart metering and intelligent traffic control utilize wireless networking among surveillance devices in smart cities. A lapse in network security could result in security intrusions, jeopardizing national security. Consequently, these security breach threats are hindering the growth of the market.
Physical Security Market Trends
Healthcare Segment is Expected to Hold Significant Market Share
- Healthcare physical security involves measures to protect patients, staff, visitors, and medical assets. This includes video surveillance, access control systems, intercoms, and security devices. The goals are to prevent unauthorized access, safeguard sensitive information, and ensure safety.
- Physical security is crucial in healthcare, ensuring the safety of patients and staff and protecting sensitive medical data and resources. Healthcare facilities, housing valuable equipment and medications, are targets for theft and tampering. They must adopt stringent security measures to comply with privacy regulations. Effective physical security prevents unauthorized access, reduces risks of violence or theft, and fosters a secure environment for quality care.
- The Internet of Things (IoT) is poised to transform physical security in the healthcare sector. IoT solutions enable real-time monitoring, management, and automation of security devices from a single dashboard. This centralized oversight allows for rapid detection and response to device malfunctions or security breaches. IoT simplifies routine maintenance tasks, ensuring security systems function optimally and minimize vulnerabilities.
- According to Ericsson, in 2024, global short-range Internet of Things (IoT) devices totaled 12.1 billion, with projections estimating a rise to 32 billion by 2029. Meanwhile, wide-area IoT devices, standing at 3.6 billion in 2024, are anticipated to double to 7.2 billion by 2029.
- Implementing a robust physical security system in healthcare offers numerous advantages. Foremost, it enhances the safety of patients, staff, and visitors by preventing unauthorized access and reducing the chances of violence or theft. Additionally, these systems safeguard sensitive medical data and resources, ensuring compliance with privacy regulations and maintaining the integrity of healthcare operations.
- Furthermore, an effectively implemented security system can significantly reduce costs, lessening the dependence on manual upkeep and on-site security staff. Automated monitoring and management can quickly identify and resolve issues, resulting in minimized downtime and improved operational efficiency. A strengthened physical security system builds trust and confidence among patients and staff, promoting a safer healthcare setting.
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Asia Pacific Expected to Witness Significant Growth in the Market
- As the Asia Pacific smart city infrastructure expands, the adoption of smart security measures is on the rise. The integration of advanced security technologies is proving vital in curbing crime rates. Technological innovations enabling cloud-based data storage and real-time analytics are propelling the growth of physical security systems. This market is further fueled by increasing government regulations and mandates on physical security and a rising inclination towards cloud-based solutions.
- By integrating artificial intelligence and machine learning for predictive analytics, utilizing drones for surveillance, and designing smart buildings with embedded security systems, the Asia Pacific physical security market is paving the way for robust and proactive security frameworks. These advancements are poised to address and manage evolving threats adeptly.
- The market organizations are also expanding their footprint in the Asia Pacific region. In October 2024, Verkada is witnessing swift growth and expansion across Japan and the broader Asia-Pacific region. Esteemed entities such as City Beach, the Chiba Lotte Marines, Brighton Grammar School, and Heinemann Australia have chosen Verkada as their trusted physical security solution. Furthermore, Verkada has forged significant partnerships with regional integrators and installers, including Focus Digital Security Solutions, Field Solutions Holdings, LG CNS, and Takachiho Koheki.
- Indian Railways (IR) is taking significant steps to bolster the safety and security of its regular passengers and prevent criminal activities on its premises. With an investment of INR 150 billion (USD 1.78 billion), IR has set an ambitious plan to deploy 7.5 million AI-enabled CCTV cameras across its vast network. These cameras are slated for installation on 40,000 coaches, 14,000 locomotives, and 6,000 electric multiple units (EMUs). A central data center will also be established to archive footage from these cameras. Reports suggest that tenders for this deployment will be invited in the next three months.
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Physical Security Industry Overview
The Physical Security market is highly fragmented, with global and local conglomerates and specialized players operating across various segments. While several large multinational companies dominate specific high-value segments, numerous regional and niche players contribute to the overall competition, making the market highly diverse. This fragmentation is driven by the demand for the physical security market across a wide range of end-user verticals, allowing both large and small companies to coexist and thrive in the market.
Leading companies in the physical security market include Cisco Systems, Inc., Honeywell International Inc., Johnson Controls, TELUS, and Genetec Inc. These companies have established strong brand recognition and extensive global operations, enabling them to command significant market share. Their strengths lie in innovation, broad product portfolios, and strong distribution networks. These leaders often engage in strategic acquisitions and partnerships to maintain their competitive edge and expand their market reach.
In the emerging physical security market, vendors are channeling significant investments into research and development (R&D). These leaders expand their operations through strategies such as product launches, mergers, acquisitions, collaborations, and partnerships. Their goal is to enhance the efficiency and practicality of physical security harvesting technologies. As the market is still in its infancy, this emphasis on innovation is vital for vendors aiming to secure a competitive advantage. Furthermore, these vendors are prioritizing the use of AI, IoT technlogies and IP-based Cameras.
Physical Security Market Leaders
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Cisco Systems, Inc.
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Honeywell International Inc.
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Johnson Controls
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TELUS
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Genetec Inc.
- *Disclaimer: Major Players sorted in no particular order
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Physical Security Market News
- October 2024: Evolv Technology unveiled two new products at the Global Security Exchange (GSX) conference. Evolv eXpedite, and Evolv Eva offers an AI-driven autonomous weapons detection system for bags and a personal safety app, respectively. Together with products like Evolv Express and Evolv Visual Gun Detection, these innovations form integrated layers of a cohesive Evolv Safer Experience System.
- September 2024: Alcatel-Lucent Enterprise, a provider of secure networking and communication solutions that help organizations boost operational efficiency and competitiveness, announces its partnership with Stone Security. Stone Security is an integrator that delivers professional, enterprise-class physical security products and services.
Physical Security Industry Segmentation
Physical security protects individuals, property, and tangible assets from potential damage or loss. While these systems share similarities with logical access control, their primary focus is protecting information and physical spaces.
The study tracks the revenue accrued through the sale of physical security solutions by various players across the globe. it also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
Physical Security market is segmented by type system type (video surveillance system [IP surveillance, analog surveillance, and hybrid surveillance], physical access control system (PACS), biometric system, perimeter security, and intrusion detection), by service type (Access Control-as-a-Service (ACaaS) and Video Surveillance-as-a-Service (VSaaS)), by type of deployment (on-premises and cloud), organization size (SMEs and large enterprises), by end-user industry (government services, banking and financial services, IT and telecommunications, transportation and logistics, retail, healthcare, residential, and other end-user industries), by Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By System Type | Video Surveillance System | IP Surveillance |
| Analog Surveillance | ||
| Hybrid Surveillance | ||
| Physical Access Control System (PACS) | ||
| Biometric System | ||
| Perimeter Security | ||
| Intrusion Detection | ||
| By Service Type | Access Control as a Service (ACaaS) | |
| Video Surveillance as a Service (VSaaS) | ||
| By Type of Deployment | On-Premises | |
| Cloud | ||
| By Organization Size | SMEs | |
| Large Enterprises | ||
| By End User Industry | Government Services | |
| Banking and Financial Services | ||
| IT and Telecommunications | ||
| Transportation and Logistics | ||
| Retail | ||
| Healthcare | ||
| Residential | ||
| Other End User Industries | ||
| By Geography*** | North America | |
| Europe | ||
| Asia | ||
| Australia and New Zealand | ||
| Latin America | ||
| Middle East and Africa |
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Physical Security Market Research FAQs
How big is the Physical Security Market?
The Physical Security Market size is expected to reach USD 123.18 billion in 2025 and grow at a CAGR of 5.10% to reach USD 157.96 billion by 2030.
What is the current Physical Security Market size?
In 2025, the Physical Security Market size is expected to reach USD 123.18 billion.
Who are the key players in Physical Security Market?
Cisco Systems, Inc., Honeywell International Inc., Johnson Controls, TELUS and Genetec Inc. are the major companies operating in the Physical Security Market.
Which is the fastest growing region in Physical Security Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Physical Security Market?
In 2025, the North America accounts for the largest market share in Physical Security Market.
What years does this Physical Security Market cover, and what was the market size in 2024?
In 2024, the Physical Security Market size was estimated at USD 116.90 billion. The report covers the Physical Security Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Physical Security Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Physical Security Industry Report
Statistics for the 2025 Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Physical Security analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
