KSA Commercial Security Systems Market Outlook to 2028

KSA Commercial Security Systems Market Overview

The KSA Commercial Security Systems market has experienced notable growth, this is reflected by Global Commercial Security Systems market reaching a valuation of USD 236 billion in 2023. This growth is driven primarily by the increasing need for enhanced security measures across commercial establishments.

Key players in the KSA commercial security systems market include Honeywell International Inc., Johnson Controls, Bosch Security Systems, Hikvision Digital Technology Co., Ltd., and Dahua Technology Co., Ltd. These companies have a strong presence in the region and offer a wide range of security products and solutions, including surveillance cameras, access control systems, and alarm systems

In April 2024, Johnson Controls announced the launch of its Security Operations Centers (SOC) service offering. This initiative is designed to enhance security management for businesses in Saudi Arabia, providing advanced monitoring and response capabilities to address the growing security needs in the region.

Riyadh, Jeddah, and Dammam dominate the KSA commercial security systems market due to their high concentration of commercial establishments and ongoing urban development projects. Riyadh, being the capital city, has the largest share, driven by extensive smart city initiatives and a high demand for security solutions in corporate offices and government buildings.

KSA Commercial Security Systems Market Segmentation

KSA Commercial Security Systems Market is segmented into following segments:

By Product Type: The KSA commercial security systems market is segmented by product type into surveillance cameras, access control systems, and alarm systems. In 2023, surveillance cameras hold a dominant market share due to their widespread use in monitoring and crime prevention across commercial establishments. Advanced features such as high-definition video, night vision, and remote monitoring have increased the adoption of surveillance cameras.

By Application: The market is also segmented by application into retail, banking, hospitality, and transportation. In 2023, the retail sector leads the market, driven by the need to prevent theft and ensure the safety of employees and customers. Retailers are increasingly adopting integrated security solutions that combine video surveillance, access control, and alarm systems to enhance security and operational efficiency.

By Region: The third segment is by region, including North, South, East, and West. In 2023, the Central region, which includes Riyadh, holds the largest market share due to the concentration of commercial establishments and government initiatives promoting smart city projects. The Central region’s dominance is attributed to the high demand for advanced security solutions in corporate offices, government buildings, and retail centers.

 KSA Commercial Security Systems Market Competitive Landscape

Company

Establishment Year

Headquarters

Honeywell International Inc.

1906

Charlotte, USA

Johnson Controls

1885

Cork, Ireland

Bosch Security Systems

1886

Stuttgart, Germany

Hikvision Digital Technology Co., Ltd.

2001

Hangzhou, China

Dahua Technology Co., Ltd.

2001

Hangzhou, China

Honeywell International Inc.: In 2023, Honeywell introduced an advanced AI-powered surveillance camera system tailored for the Middle East market. This system offers enhanced facial recognition and real-time threat detection, significantly improving security measures in commercial establishments.

Hikvision Digital Technology Co., Ltd.: Hikvision and alfanar have established a state-of-the-art local manufacturing facility in Riyadh aimed at producing high-quality security products. The launch of this partnership was marked by an official ceremony on May 29, 2024, which showcased the advanced manufacturing processes and technology that will be utilized in the facility.

KSA Commercial Security Systems Industry Analysis

KSA Commercial Security Systems Market Growth Drivers

Rising Security Threats: An increase in security threats, including theft, vandalism, and terrorism, has heightened the need for robust security systems. Businesses are increasingly investing in advanced security technologies to protect their assets and ensure the safety of their premises.

Increasing Awareness and Consumer Demand: There is a growing awareness among consumers and businesses regarding the importance of security, leading to a willingness to invest in comprehensive security solutions. This trend is reflected in the calculated compound annual growth rate (CAGR) of 7.7% from 2023 to 2028 for the commercial security systems market in KSA.

Economic Diversification Efforts: As part of its economic diversification efforts, KSA is witnessing a shift from oil dependency to a more varied economy, which includes substantial investments in tourism and entertainment. This shift further drives the demand for enhanced security measures in new sectors.

KSA Commercial Security Systems Market Challenges

Branding and content sensitivity: The Saudi market can be very sensitive to branding and materials content. Global companies are encouraged to familiarize themselves with Saudi traditions, customs, and strict observances of the Islamic faith to ensure that branding and marketing materials are culturally appropriate.

Commercial dispute settlements: The enforcement of foreign arbitration awards in Saudi Arabia for private-sector disputes remains problematic. Government agencies require express approval from the Council of Ministers to agree to international arbitration, which is seldom granted. While unopposed awards can be enforced within 3 to 6 months, contested cases often take much longer due to their complexities.

KSA Commercial Security Systems Market Government Initiative

Smart City Projects: Saudi Arabia is investing $500 billion in NEOM, a futuristic, zero-carbon smart city powered entirely by renewable energy. This project aims to integrate advanced security technologies, including AI, drones, and biometric systems, into its infrastructure. As of 2023, Riyadh ranks 30th globally and is the third smartest city in the Arab world on the IMD Smart City Index, reflecting the kingdom's commitment to smart urban development.

Cybersecurity Focus: The establishment of the National Cybersecurity Authority (NCA) emphasizes the government's commitment to cybersecurity, mandating compliance with essential cybersecurity controls across government entities and critical infrastructure. The cybersecurity market in Saudi Arabia is projected to grow from USD 0.63 billion in 2024 to USD 1.19 billion by 2029, driven by the digital transformation under Vision 2030.

KSA Commercial Security Systems Market Future Outlook

The commercial security systems market in Saudi Arabia is set for an advanced growth, fueled by increasing security needs, technological advancements, and supportive. This growth will be driven by the increasing demand for advanced security solutions in various commercial sectors, including retail, banking, hospitality, and transportation.

Future Market Trends

Expansion of Smart City Projects: Over the next five years, the continued expansion of smart city projects under the Vision 2030 initiative will significantly boost the demand for advanced security systems. By 2028, integration of cutting-edge security technologies into urban infrastructure will create substantial opportunities for security system providers to deploy their solutions in these projects.

Increasing Adoption of AI and Io T: By 2028, the adoption of AI and Io T in security systems will continue to grow, with more businesses leveraging these technologies for enhanced security. These technologies will provide real-time monitoring, predictive analytics, and automated threat response, evidently improving the effectiveness of security measures.
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