Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se
Issue link: https://ssn.epubxp.com/i/891322
www.securitysystemsnews.com November 2017 S e CU r ITY SYST em S N e WS Security Stat S 2 By Spencer Ives PUNE, India—The global perime- ter security market will grow from $96.25 billion in 2016 to $196.60 billion by 2022, MarketsandMar- kets predicts, and at a CAGR of 12.2 percent between 2017 and 2022. "The market size of the perim- eter security market in North America in 2016 was $31.53 bil- lion," Niket Choudhary, research analyst—security practice at Mar- ketsandMarkets, told Security Sys- tems News in an email interview. "The region is expected to reach $58.10 billion by 2022, growing at a CAGR of 10.3 percent," he continued. "North America is the largest market for perimeter security sys- tems and services," Choudhary noted. "The region's high defense budget and expenditure, and the increasing need for security against terrorist attacks are among the major factors responsible for North America's largest market size in the perimeter security market." The Asia Pacific region is the second largest contributor to the global perimeter security mar- ket, Choudhary said, followed by Europe as the third largest. When asked about potential inhibitors to the market, Choud- hary said, "High initial deployment cost and lack of technical expertise are restraining the growth of the perimeter security market." Choudhary identified indus- trial manufacturing, military and defense, and government as the three vertical markets with "the top three industry verticals with the highest adoption of perimeter security solutions. In North Amer- ica, the residential, educational, and religious buildings vertical [are] expected to witness [a] high adoption rate of perimeter security solutions." He highlighted video sur- veillance as a main technologi- cal component for the market. "North America is considered the pioneer in adopting video surveil- lance systems for public safety. In the region, video surveillance and Video Surveillance-as-a-Service (VSaaS) solution providers are looking toward the implementa- tion of IP-enabled video surveil- lance systems," Choudhary said. He continued, "The 9/11 ter- ror attacks, and the increasing need for security and safety in the region have forced VSaaS vendors to design a smart surveillance net- work that makes use of IP-enabled video surveillance solutions. This is also acting as a major driving factor for the video surveillance systems segment in the region." MarketsandMarkets' report breaks perimeter security into two components: systems and services. "The systems and services seg- ments are estimated to contribute approximately 63 percent and 37 percent, respectively, in 2017," Choudhary said. "The services segment is expected to witness a minor increase in its market share by 2022, due to the need for post- sale services, such as maintenance and support." The research firm expects video surveillance systems will lead the market as the component with the highest growth rate. "The advance- ments in video surveillance appli- cations, such as cloud services, network cameras, and video ana- lytics, have increased the scope of the video surveillance systems seg- ment for wider applications, across different sectors," Choudhary said. System integration and consult- ing is the segment that generates the most revenue among services. "This service enables the actual deployment of perimeter secu- rity solutions, comprising vari- ous security products, to fulfill the diverse requirements of end- users," said Choudhary. "Honeywell, Bosch Security Sys- tems, Dahua Technology, Hikvi- sion, United Technologies, Axis Communications, Fiber SenSys, Johnson Controls, Schneider Electric, Panasonic, FLIR Systems, and Senstar Corporation are rec- ognized as the major vendors in the perimeter security market," he said. SSN Global perimeter security market to near $200 billion by 2022