The global market for physical security products (access control, video surveillance, burglar alarms and perimeter protection) has demonstrated both resilience and adaptability in the face of growing geopolitical tensions and the impending economic recession.
The market for physical security products has demonstrated a remarkable degree of resilience and adaptability during the COVID-19 pandemic, while in 2021 the recovery for most major market players was particularly strong.
Annual revenue from sales of physical security products should increase to $42.3 billion (by 9.13%) in 2022, and in the period from 2023 to 2027, growth will average about 6.5% per year.
Video surveillance accounted for almost 58% of the market in 2022, while China continues to dominate sales in this sector: it accounts for just under one third of the entire global market.
The Chinese video surveillance market continues to dominate global sales, accounting for just under one-third of the total global market, followed by North America with just over a quarter. Within the framework of the Chinese project "Sharp Eyes", 100% surveillance of public areas and key industries was provided by the end of 2020. This program (part of the 13th five-year plan) started in 2016 . The end of its implementation may indicate a decrease in future public investment in this area. However, analysts suggest that high levels of public investment and support for innovation in this sector will continue, as public investment in smart cities continues, as well as programs such as the Safe China initiative should continue to stimulate sales of security products in China.
Trade tensions between China and the United States have led to a number of legislative steps that have disrupted the flow of physical security products and their key components. This tension extends to Europe as well. If additional trade barriers are installed, the global physical security market may be polarized.
The security and access control market, and especially video analytics, generates the lion's share of total AI revenue in smart buildings, which is just under 50% of total sales in 2020 at $558 million.
Huge investments have been made in the development and deployment of the latest generation broadband cellular technology, known as 5G. Many analysts and industry observers claim that the spread of 5G will have a serious impact on the video surveillance market, arguing that in the coming years we will see the proliferation of large networks of wireless cameras streaming ultra-high definition video in real time. Over the past 20 years, the average annual amount of all acquisitions has exceeded $ 6.7 billion.
