Physical Security Market In 2029
Physical Security Market Report
Physical Security Market Report
Physical Security Market Trends
The Business Research Company’s Physical Security Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035
LONDON, GREATER LONDON, UNITED KINGDOM, January 6, 2026 /EINPresswire.com/ -- Physical Security Market to Surpass $172 billion in 2029. In comparison, the Software Services market, which is considered as its parent market, is expected to be approximately $2,407 billion by 2029, with Physical Security to represent around 7% of the parent market. Within the broader Information Technology industry, which is expected to be $12,711 billion by 2029, the Physical Security market is estimated to account for nearly 1% of the total market value.
Which Will Be the Biggest Region in the Physical Security Market in 2029
North America will be the largest region in the physical security market in 2029, valued at $57,857 million. The market is expected to grow from $42,576 million in 2024 at a compound annual growth rate (CAGR) of 6%. The strong growth can be attributed to the high-value asset protection needs in banking and retail and favorable government support.
Which Will Be The Largest Country In The Global Physical Security Market In 2029?
The USA will be the largest country in the physical security market in 2029, valued at $48,701 million. The market is expected to grow from $35,986 million in 2024 at a compound annual growth rate (CAGR) of 6%. The strong growth can be attributed to the increasing security concerns in residential complexes and favorable government initiatives.
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What will be Largest Segment in the Physical Security Market in 2029?
The physical security market is segmented by component into systems and services. The systems market will be the largest segment of the physical security market segmented by component, accounting for 66% or $113,675 million of the total in 2029. The systems market will be supported by the increasing integration of AI and IoT in surveillance hardware, the growing need for real-time threat detection and response systems, the demand for advanced access control solutions, rising infrastructure developments with embedded security technologies, government initiatives for national security, the emergence of smart city projects requiring robust surveillance frameworks and the expansion of high-security zones such as data centers and defense establishments.
The physical security market is segmented by organization size into small and medium-sized enterprises (SMEs) and large enterprises. The large enterprises market will be the largest segment of the physical security market segmented by organization size, accounting for 60% or $103,109 million of the total in 2029. The large enterprises market will be supported by the need to protect expansive infrastructure and complex operations, compliance requirements with stringent regulatory standards, increasing investment in cutting-edge security solutions such as biometric access and facial recognition systems, demand for centralized security management across multiple locations, threats of corporate espionage and terrorism, integration of physical and cyber security strategies and the availability of higher budgets enabling large-scale deployment of advanced technologies.
The physical security market is segmented by end user into transportation, government, banking and finance, utility and energy, residential, industrial, retail, commercial, healthcare and other end users. The banking and finance market will be the largest segment of the physical security market segmented by end user, accounting for 20% or $34,080 million of the total in 2029. The banking and finance market will be supported by the high need to safeguard cash handling and ATM operations, compliance with strict regulatory and security norms, increased risk of armed robberies and fraud in physical branches, deployment of vault and alarm systems in financial institutions, growing use of access control systems to limit internal threats, rising investment in video analytics for forensic investigations and integration of physical and cybersecurity for holistic risk management.
What is the expected CAGR for the Physical Security Market leading up to 2029?
The expected CAGR for the physical security market leading up to 2029 is 7%.
What Will Be The Growth Driving Factors In The Global Physical Security Market In The Forecast Period?
The rapid growth of the global physical security market leading up to 2029 will be driven by the following key factors that are expected to reshape security operations, risk management, and compliance frameworks worldwide.
Favorable Government Support - The favorable government support will become a key driver of growth in the physical security market by 2029. Government funding through budgets and grants supports the extensive deployment of advanced physical security systems across public spaces and critical infrastructure. Regulatory requirements drive organizations to adopt these measures, fueling demand across industries. Public-private partnerships further stimulate investment and innovation by leveraging combined resources and expertise. Additionally, government-led smart city initiatives integrate security technologies, enhancing urban safety and accelerating market growth through increased adoption of surveillance, access control, and emergency response solutions. As a result, the favorable government support is anticipated to contributing to a 2.0% annual growth in the market.
Growing Need For Safety In Public Places - The growing need for safety in public places will emerge as a major factor driving the expansion of the physical security market by 2029. Increasing safety concerns in densely populated areas such as parks, shopping centers, and transit hubs are driving the adoption of surveillance cameras and monitoring systems. These technologies play a critical role in crime deterrence and enable rapid incident response, thereby strengthening public trust and security. This trend is fuelling demand for sophisticated CCTV and video analytics solutions. Advanced physical security technologies also facilitate efficient crowd management during large-scale events and daily transit, employing access control and real-time monitoring to mitigate overcrowding and detect suspicious activities. Effective crowd management minimizes the risk of accidents and security incidents, further stimulating investment in security infrastructure. Consequently, the growing need for safety in public places is projected to contributing to a 1.8% annual growth in the market.
High-Value Asset Protection Needs In Banking And Retail - The high-value asset protection needs in banking and retail will serve as a key growth catalyst for the physical security market by 2029, Banks and retail stores manage significant volumes of cash, jewellery, and high-value merchandise, necessitating comprehensive security measures. Advanced physical security systems, including surveillance cameras and alarm systems, are essential to safeguarding these assets and ensuring uninterrupted business operations. To mitigate risks, stringent access control measures—such as biometric scanners, card readers, and video monitoring—are implemented to restrict entry to sensitive areas like vaults and stockrooms exclusively to authorized personnel. These technologies play a crucial role in minimizing insider threats and maintaining secure environments. Therefore, this high-value asset protection needs in banking and retail operations is projected to supporting to a 1.0% annual growth in the market.
Rising Natural Disasters - The rising natural disasters will become a significant driver contributing to the growth of the physical security market by 2029 Rising natural disasters such as floods, earthquakes, hurricanes, and wildfires are increasing the need for effective physical security systems to protect lives, infrastructure, and assets. These disasters expose weaknesses in current safety measures, pushing governments, businesses, and critical facilities to invest in surveillance cameras, access control systems, perimeter barriers, and emergency communication networks. Physical security solutions help in monitoring risk zones, managing evacuations, and ensuring rapid response during emergencies. They also play a crucial role in post-disaster recovery by preventing looting and securing affected areas. As these events become more frequent and severe due to climate change, the demand for robust and resilient physical security infrastructure is expected to grow significantly. Consequently, the rising natural disasters strategies is projected to contributing to a 0.8% annual growth in the market.
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What Are The Key Growth Opportunities In The Physical Security Market in 2029?
The most significant growth opportunities are anticipated in the physical security systems market, the physical security for large enterprise market, and the physical security for banking and finance market. Collectively, these segments are projected to contribute over $72 billion in market value by 2029, driven by rising demand for advanced surveillance technologies, rapid adoption of AI-enabled threat detection, and the growing need for integrated access control and perimeter protection across high-risk environments. This surge reflects the widespread shift toward intelligent, real-time security ecosystems that enhance situational awareness and operational resilience, fuelling transformative growth within the broader physical security industry.
The physical security systems market is projected to grow by $32,541 million, the physical security for large enterprise market by $29,486 million, and the physical security for banking and finance market by $10,434 million over the next five years from 2024 to 2029.
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