Asia-Pacific Physical Security Market Insights and Forecast - 2027
The Asia-Pacific physical security market size was valued at $28,809 million in 2019 and is estimated to reach a value of $90,954 million by 2027, registering a CAGR of 15.3% from 2020 to 2027. Physical security is defined as protection of personnel, hardware, software, networks, and data from physical actions and events that could cause serious loss or damage to an enterprise, agency, or institution. It comprises access control, surveillance, and testing. Physical locations are monitored by installing surveillance cameras and notification systems, including heat sensors, intrusion detection sensors, and smoke detectors. Modern security systems can take advantage of multiple types of sensors, including those that detect motion, heat, and smoke for protection against intrusion and accidents. Rise in importance for physical security for organizations and identifying potential threats are the key drivers for market growth. Rapid adoption of contact less biometric systems in the pandemic and high demand for video surveillance solutions, specifically for remote monitoring activities are the major factors that propel the market growth. However, rise in issue of data privacy is expected to restrain the market growth. In addition, rapid growth of IoT network and emergence of advanced technologies such as AI and security analytics is estimated to be a game changer for the market.
Industry wise, the BFSI segment is estimated to gain a higher CAGR, backed by integration of AI-based surveillance system within the banking sector, which is set to create a lucrative growth scenario for the overall industry. These video solutions provide remote monitoring and advanced AI capabilities.
China holds a significant place within the market, mainly backed by rise in smart city project initiatives, which has mandated adoption of technology and measures to reduce adverse impacts of growing urbanization. For instance, in Hangzhou, a city with a population of greater than 9.47 million, is a smart technological initiative designed by Alibaba, a Chinese tech giant. This city primarily operates through artificial intelligence that uses big data and big computing power to improve and fix traffic problems. Thus, by monitoring every vehicle within the city, it has become possible to reduce traffic jams by 15%. Thus, such tech initiatives taken by China has led to an immense adoption of physical security devices, creating a lucrative opportunity for the overall market growth during the forecast period.
The report focuses on growth prospects, restraints, and market analysis. The study of physical security provides Porter’s five forces analysis of the internet advertising industry to understand impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the physical security market trends in Asia-Pacific.
Segment review
The Asia-Pacific physical security market is primarily segmented on the basis of component, enterprise size, industry verticals, and country. On the basis of component, the market is bifurcated into system and services. The system segment is further divided into physical access system, video surveillance system, perimeter intrusion & detection, physical security information management, and others. In addition, the services segment is divided into access control-as-a-service, video surveillance-as-a-service, remote monitoring services, security systems integration services and others. On the basis of enterprise size, it is divided into large enterprises and small & medium enterprises. on the basis of industry vertical, it is divided into (BFSI, government, retail, transportation, residential, IT & telecom, and others.
Impact of COVID-19 on Physical Security Market in Asia-Pacific:
Post COVID-19, size of the Asia-Pacific physical security market is estimated to grow from 33,596 million in 2020 and projected to reach $90,954 million by 2027, at a CAGR of 15.3%. The current estimation of 2027 is projected to be higher than pre-COVID-19 estimates. COVID-19 pandemic has bought a positive impact on the physical security market, achieving a growth rate of 5-10% in the year 2020. Physical security market, primarily encompasses study of physical access system, video surveillance system, perimeter intrusion & detection, physical security information management, and physical identity access management. Before the pandemic, there was a significant demand for contact-based biometric and access control systems. However, owing to the COVID-19 crisis, there is a strong traction for contactless access control and biometric systems, owing to increase in awareness among people to avoid any contacts at public places. In August 2020, the government of China introduced contactless biometric technology at the Beijing Capital International Airport (BCIA) to ensure safe air travel.
Top impacting factors
Factors such as colossal demand for contactless biometric system, specifically owing to the pandemic and high demand for video surveillance solutions for remote monitoring activities are some of the major factors that are estimated to create a positive growth effect on the market. Furthermore, rapid growth within the IoT network is anticipated to create lucrative opportunities during the forecast period. However, rise in data privacy issues is estimated to restrain the overall market.
High demand for video surveillance solution
Demand for video surveillance products has increased, especially in the COVID-19 pandemic scenario, where remote monitoring and surveillance measures have a great importance for patient tracking and preventing spread of the disease. Asia-Pacific dominated the video surveillance market, with China holding a significantly higher share. China mobilized its mass surveillance tools, from drones to CCTV cameras, to monitor quarantined people and track spread of the coronavirus. As per the data released by CNBC, there are estimated 770 million surveillance cameras installed around the world, with more than 50% installed only in China. In addition, China is home to some of the world’s largest makers of video surveillance products, such as Division, Huawei, and Dahua. Furthermore, governments of countries such as China and South Korea are adopting surveillance technologies to keep a track of the coronavirus spread.
By Component
System segment is projected as one of the most lucrative segments.
Growth in adoption of AI and security analytics
AI technology is gaining a massive demand in both commercial and business sectors. These sectors are adopting AI technology to improve overall analytic processing of data right from text-based information to audio & video to gain meaningful business insights. It has also changed operational behavior of video surveillance technology by easing the process of monitoring and tracking. As per data published by Carnegie Endowment for International Peace in 2018, AI surveillance technology is spreading at a faster rate to a wide range of countries than experts have commonly understood. At least 75 out of 176 countries, globally are actively using AI technologies for surveillance purposes. This includes smart city/safe city platforms (56 countries), facial recognition systems (64 countries), and smart policing (52 countries). Out of which, China is gaining dominance within AI based surveillance. Companies such as Huawei, Hikvision, Dahua, and ZTE are some of the major companies involved in the supply of AI-based surveillance technologies.
Therefore, with such rapid developments and advancement strategies adopted by these companies, the market is expected to gain a higher growth rate during the forecast period.
By Industry Vertical
BFSI is projected as one of the most lucrative segments.
Key Benefits For Stakeholders
- This study includes the physical security market analysis, trends, and future estimations in Asia-Pacific to determine imminent investment pockets.
- The report presents information related to key drivers, restraints, and Asia-Pacific physical security market opportunity.
- The physical security market size in Asia-Pacific is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in Asia-Pacific physical security industry.
Asia-Pacific Physical Security Market Report Highlights
| Aspects | Details |
 By Component |
|
 By System Type |
|
| By Access Control As A Service |
|
 By Enterprise Size |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Axis Communication AB, Bosch Security, Johnson Controls, Honeywell International, Cisco Systems, Anixter, Genetec, Computer Sciences Corporations, NEC Corporation, Huawei, ADT Corporation, DELL EMC Corporation |
Analyst Review
According to CXOs of the major companies, the physical security market is experiencing a rapid growth, owing to rapid adoption of contact less biometric systems in the pandemic and high demand for video surveillance solutions, specifically for remote monitoring activities are the major factors that propel the market growth. In addition, rapid growth of IoT network and emergence of advanced technologies such as AI and security analytics is estimated to be a game changer for the market.
According to CXOs of leading companies, the physical security market is experiencing a colossal shift and growth, as biometric systems have gained a strong demand in both business and government organizations for unique body measurements or calculations that can act as a form of identification. However, with the outbreak of the COVID-19 pandemic, there is a significant demand for contactless biometric solutions, owing to fear of touching contaminated surfaces. Contactless biometric solutions including facial recognition or retinal scanning have become prominent, while fingerprint scanning, which was widely used for identification purposes, has witnessed a downward trend. In April 2020, hotels in Singapore announced their decision of rolling out contactless biometric systems to keep people interested in the hospitality sector. As a result, heavy investments were made for contactless AI systems such as self-check-in kiosks, mobile check-ins, chatbots, direct booking applications, contactless payments, as well as digital in-room dining services.
Similar trends and adoption behavior is being observed within the corporate sector in Japan. With growth in awareness regarding transmission of the coronavirus through contaminated public places, companies in Japan have actively started researching and developing new biometric products aligned with current needs. Various companies are integrating advanced sensor technologies to enable a touchless economy. For instance, NEC has developed security gates that identify people even though they have masks on, while Fujitec and Optex has introduced hand signals in elevators to open doors. Thus, elevating demand for such products is set to drive the market growth, thereby increasing profit margins for companies.
AI technology is gaining a massive demand in both commercial and business sectors. These sectors are adopting AI technology to improve overall analytic processing of data right from text-based information to audio & video to gain meaningful business insights. It has also changed operational behavior of video surveillance technology by easing the process of monitoring and tracking. As per data published by Carnegie Endowment for International Peace in 2018, AI surveillance technology is spreading at a faster rate to a wide range of countries than experts have commonly understood. At least 75 out of 176 countries, globally are actively using AI technologies for surveillance purposes. This includes smart city/safe city platforms (56 countries), facial recognition systems (64 countries), and smart policing (52 countries). Out of which, China is gaining dominance within AI based surveillance. Companies such as Huawei, Hikvision, Dahua, and ZTE are some of the major companies involved in the supply of AI-based surveillance technologies. Therefore, with such rapid developments and advancement strategies adopted by these companies, the market is expected to gain a higher growth rate during the forecast period.
The physical security market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of products, and support services. The market is concentrated with major players consuming 45-50% of the share. The degree of concentration is expected to remain same during the forecast period. On the other hand, rapid growth of IoT network has caused a spike in the sale of sensors, cameras and integration services, which is estimated to have a positive impact on the market.
Loading Table Of Content...
