PUBLISHER: The Business Research Company | PRODUCT CODE: 1769586
PUBLISHER: The Business Research Company | PRODUCT CODE: 1769586
Physical security refers to the protection of people, hardware, software, networks, and data from physical actions and events that could cause serious loss or damage to an organization. This includes protection from intrusions, theft, vandalism, natural disasters, and other physical threats. The primary purpose of physical security is to safeguard people and physical assets (like buildings, equipment, and data centers) from physical threats such as unauthorized access or entry, theft or burglary, vandalism or sabotage, fire, flood,
and other natural disasters, terrorist or violent attacks.
The physical security market consists of sales by entities (organizations, sole traders and partnerships) of physical security systems and services that are utilized continuously, with heightened emphasis during periods of increased risk or vulnerability. These measures are employed across various sectors, including government, transportation, banking, utilities, residential, industrial, retail, commercial, and hospitality, to ensure the safety and security of facilities and individuals.
The global physical security market was valued at $96,316.92 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 4.00%.
Growth Of Smart Cities
During the historic period, the growth of smart cities supported the growth of the physical security market. Smart cities depend on a vast network of connected infrastructure-including IoT (internet of things) devices, sensors, and communication systems-that require robust protection against theft, vandalism, and damage through advanced security solutions such as surveillance cameras and access control systems. With growing urban populations, the demand for enhanced public safety intensifies. Physical security technologies play a critical role in monitoring public areas, deterring criminal activity, and safeguarding citizens, thereby driving increased investment in security solutions. For instance, in December 2023, according to the National Institute of Standards and Technology, a US-based national metrology institute, the NIST Global Community Technology Challenge (GCTC) presented three innovative smart city projects at the Smart Cities Connect conference in Washington, D.C. These projects demonstrated efforts by cities to enhance transparency and improve access to information between local governments and residents, positioning them as models for other communities. Additionally, in April 2023, according to the IMD Smart City Index Report, a Switzerland-based business school, the number of smart cities worldwide increased from 118 cities in 2021 to 141 cities in 2023. Therefore, the growth of smart cities drove the growth of the physical security market.
Strategic Investments Driving Innovation In Physical Security
Major companies operating in the physical security market are focusing on strategic investments to accelerate innovation, expand product portfolios and enter new geographic markets. These investments support the adoption of emerging technologies like AI, IoT and cloud computing. For example, in March 2025, Hakimo, a US-based leader in AI-powered physical security monitoring has secured $10.5 million in Series A funding to advance its AI-powered physical security platform featuring a human-like autonomous security agent called the AI Operator. This innovative system uses computer vision and generative AI to monitor existing security devices such as cameras and badge readers, allowing it to detect and respond to threats with human-like judgment. Unlike traditional security setups that depend heavily on human operators, Hakimo's AI Operator can issue real-time warnings and follow standard procedures autonomously, involving humans only when necessary. This technology aims to reduce reliance on security personnel, cut operational costs and improve response times. The funding round, led by Vertex Ventures, a US-based investment firm and Zigg Capital, a US-based venture capital firm investing in real estate and construction technology will support scaling the platform and expanding the team.
The global physical security market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 25.50% of the total market in 2023.
Physical Security Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global physical security market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for physical security? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The physical security market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider physical security market; and compares it with other markets.