Report predicts $62.75 billion growth for physical security over next four years

NEW YORK – The growth of the physical security market is picking up speed thanks to global concerns about crime and terrorism.

Global market research firm Technavio has released its 2022-2026 forecast and analysis for the physical security market, with a forecast estimating an increase of $62.75 billion over the next four years.

Driving factors in this market growth are driven by global concerns about crime and terrorism, Technavio said. The report cites major contributing factors such as growing populations in modern cities and unemployment among youth.

The firm also said that the incidents of crime and terrorism are not only a concern for developing nations.

“Terrorism and crime incidents are not limited to developing economies; the number of such incidents is also rising in developed economies,” Technavio noted. “Hence, businesses, as well as commercial and residential complexes, are employing physical security solutions, which involve video surveillance, access control, and others.”

Technavio has estimated that 33 percent of this future growth will originate in the Europe, with the UK and Germany being the key markets. “Market growth in this region will be faster than the growth of the market in the North American, MEA [Middle East and Africa], and South American regions. The rise in the crime rate in the country will facilitate the physical security market growth in Europe over the forecast period,” the firm noted.

The UK’s Office for National Statistics (ONS) recorded an 18 percent total increase in the UK and Wales, according to its 2021 report. Despite that, the driving causes of the crime rate increase were fraud and computer-based crimes, the ONS said.

Meanwhile, overall crime rate in Germany has fallen for the sixth year in a row, about 6,070 crimes per 100,000 people, according to market and consumer data provider Statista. The end of COVID-19 lockdowns worldwide is seen as a key predictor in the forecasted increase in crime rates over the next four years.

For the full physical security forecast and analysis report, visit www.technavio.com/.