Perimeter security is increasingly about proactivity. Fences and guards take all the glory, but it is with the rapid development of technology that 24/7 monitoring can become a reality. So how big is the market for perimeter security technology and how fast is it growing?
It can be assumed that the technology’s improved capacity in combination with a favourable cost development on the products are strong contributory reasons why the perimeter security sub-sector has had a steady and high growth rate in recent years. But how is it then with the size of the market and the rate of growth?
According to a new report by Marketsandmarkets, the global perimeter security market is projected to grow from $70.8 billion in 2022 to $100.2 billion in 2027 at a CAGR of 7.2 percent during the forecast period.
Grand View Research has the year 2021 as its starting point, when it is estimated that the perimeter security market had a turnover of $59.21 billion. The average annual growth is estimated at 9.4 percent during the period 2022 to 2030. With that growth rate in 2021, Grandview Research’s estimate of the market’s total turnover landed at around $65 billion.
It can be said that the two market research companies are quite close in their assessment of the market, despite that the parameters they use to define the market – in some cases – differ.
Grandview Research claims that the increasing threat of terrorism and governments’ need for effective security around their national borders are growth driving factors. Government investments in security also include government support for implementing various security systems in critical locations. As growth factors, Grandview Research also cites technological advances in the field of automation and the receptivity to new technologies, such as video analytics and drones to give better results.
Marketsandmarkets believes that a global increase in crime is a significant factor, not least for the retail sector. Shopping centres and larger stores (especially in home electronics and car retail) see a need for enhanced perimeter security. But above all, it is airports, border controls and facilities for energy and water supply as well as other important infrastructure that account for the large investments in perimeter security.
Another growth factor is the increasing demand for video surveillance, access control systems and other technology solutions that can streamline perimeter surveillance. Not least the increasing use of intelligent technology linked to artificial intelligence, such as Machine Learning (ML) and Deep Learning (DL), are strongly influencing growth factors.
Intelligent video surveillance is considered to provide robust security against both conventional criminal attacks and terrorist attacks, which explains why video surveillance systems are predicted to continue having the largest share of the perimeter security market.
Grand View Research highlights that the growing security concerns have led to new multi-layer solutions for perimeter protection. Some of the technologies gaining popularity are electric fences with sensors and integrated fibre optic intrusion detection systems.
The fact that digital technology has had a major impact on the market for perimeter security is confirmed by the fact that software based video surveillance systems dominated the industry, accounting for the highest market share – more than 45.5 percent of global revenue in 2021.
Grand View Research believes – as does Marketandmarkets – that video surveillance systems are the fastest growing segment on the market. Easy installation and countless application possibilities are factors that have resulted in the increased use of video surveillance systems.
According to Marketsansmarkets, Asia and the Pacific (APAC) has the highest growth as a result of escalating criminality and growing public anxiety, but also major investments in smart cities and infrastructure in the region are growth driving factors for perimeter security solutions in the APAC. The APAC-countries with the fastest economic growth include China, Japan, India, Singapore, Australia and New Zealand.
