Physical Security revenue is expected to grow at 6.7% through 2025 to 2032, reaching nearly USD 220.52 Billion.

In the next decade, the future belongs to organizations that deploy AI, automation, and real-time visibility to protect people, assets, and critical infrastructure.”
— Navneet Kaur

WILMINGTON, DE, UNITED STATES, November 19, 2025 /EINPresswire.com/ -- The Physical Security Market was valued at USD 131.26 billion in 2024 and is expected to reach USD 220.52 billion by 2032, growing at a CAGR of 6.7%.

Physical Security Market Overview

Physical Security Market are typically best defined as a range of solutions providing protection of buildings, assets, and people from a range of threats, including unauthorized access, theft, and espionage. The physical security systems include CCTV, access control, perimeter intrusion, biometrics, security officers, and fire safety systems. In tandem with organizations renewing their security systems, which in itself is often a significant overhaul, the incorporation of physical security solutions has included new evolutions. The Market is evaluated based on the following components: a component of the market, organization size, vertical, and region.

Physical Security Market Dynamics

Factors Influencing Physical Security

An uptick in violent crime and security incidents: Rising crime in the US and abroad, as well as domestic terrorism, are pushing both public and private infrastructure to pursue stronger physical security measures.
Strengthening critical infrastructure: Government buildings, transportation hubs, and financial institutions will continue to refresh their access and surveillance systems, even at minimal risk levels.
The convergence of digital and the physical: Pairing physical security and IT infrastructure and automating access control procedures advances detection and assessment protocols.

Defining possible limits to Physical Security:

Costs of installation, followed by the operational burden that exceeds available resources: In addition to elevated hardware costs, an expanding array of installation and surveillance personnel with up-to-the-minute knowledge of the physical space leads to an extensive outlay of capital that SME may find onerous.
Privacy concerns related to surveillance: Continuous monitoring in both private and citizen spaces generates uncertainty about how data would be used if misused; the public needs more lifelike data governance, compliance, and transparency frameworks, for want of better accountability.
Physical Security Market Segment Analysis

Based on Organization Size Physical Security Market is segmented into SMEs and Large enterprises. The SMEs segment accounted for 47.5% of the market in 2024, and it is expected to grow at the highest rate, registering a 12.3% CAGR through 2032. SMEs often have little budget to operate with and are increasingly adopting budget-friendly physical security software solutions in an effort to lower risk, maintain compliance, and improve remote working security in the post-pandemic world. Increasing cyber-physical threats and constant labor shortages are also driving SMEs to speed up their adoption of modern physical security software.

Physical Security Market Regional Insights:

North America is the leading region in the global Physical Security Market due to the strong presence of security technologies, significant federal engagement of its telecom and infrastructure security, and the rapid adoption rate of Physical Security in commercial buildings and critical national infrastructure. The U.S. and Canada are reporting strong growth in video surveillance, cloud-based access systems, and perimeter security and protection, largely due to the obligated policy and compliance requirements.

Recent Development:

In March 2025, Quanergy entered into a partnership with Bosch to combine its 3D LiDAR platform (Q-Track) with Bosch's Video Management System to provide real-time 3D object tracking, automated PTZ camera control, and more intelligent alarm triggers for enhanced perimeter protection.
In April 2025, Hikvision unveiled an AI-enabled multi-sensor camera, PanoCam Pro, developed for deployment at an enterprise scale.
In June 2024, Honeywell launched the Pro-Watch Security Management System 8.0, an integrated cloud-based platform that centralizes access control, video surveillance, and intrusion detection to modernize security operations.

FAQs

What are the driving forces behind the growth of the Physical Security Market from 2025 to 2032?
A surge in thefts, vandalism, workplace violence, terrorism, and breaches in critical infrastructure is prompting entities to improve their overall security posture. Additionally, changes to the pace of digital transformation, the prevalence of smart buildings that rely on physical security, and increased compliance regulations will enhance the deployment of enhanced surveillance detection and response, access control, and perimeter protection.

Why are SMEs increasingly deploying physical security?
SMEs are experiencing increased risks from cyber-physical type threats, and usually do not have any dedicated IT or security staff, which means they accept low-cost, automated security environments in SMEs. These changes are to mitigate operational risk, ensure compliance with regulations, and ensure the safety of the hybrid and remote workforce post COVID-19.

What are the top barriers to market growth?
The top barriers have to do with the initial operational costs of deployment, as well as ongoing constraints with a budget for smaller companies, as well as privacy and data protection with widespread deployment of an AI-based surveillance system.

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