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The Physical Security Business 2017 to 2022

The Physical Security Business 2017 to 2022

The total value of Physical Security products at factory gate prices in 2017 was $29.2Bn, an increase of approximately 5% on 2016. This is a decline in growth from its peak in 2014 but an increase on the last 2 years. Over the last 8 years the market has grown by a compound annual growth rate of 6.41% and Memoori forecasts the market will reach $41.27Bn in 2022 at a CAGR of 7.2%.

Of the three, still largely independent businesses, Access Control has maintained its average growth of approximately 7% over the last three years, and takes a share of 23.5%.

Why Do You Need This Report?

2017 has delivered an improved and more stable performance and all the main drivers for growth are now firmly ready to match the performance realized in the Halcyon days of profitable growth between 2010 and 2014.

However there are major technical and commercial challenges ahead that will stress the supply side and the shape and structure of the business will change significantly over the next 5 years. The challenge that currently preoccupies most companies is how they can operate profitably during the “race to the bottom” and survive. The gap between the major suppliers and the many hundreds of smaller suppliers gets wider every year, whilst at the same time profit margins are falling increasing the minimum economic size to operate profitably in this industry.


1. Introduction
2. Structure, Size & Shape of the Physical Security Business
2.1 Structure of the Business
2.2 Trends in Market Share by Group 2012 – 2017
2.3 Sizing the Physical Security Business 2017 & Forecast to 2022
2.4 World Distribution of Security Products by Major Regions
2.4.1 The Status in 2017
2.4.2 Market Size & Trends by Vertical Sectors
2.4.3 Market Size by Region & Penetration
2.4.4 China & the Rest of Asia Offer the Best Prospect For Growth
2.5 Comparing & Sizing, Access – Intruder – Video 2017
3. The Video Surveillance Market 2017 – 2022
3.1 Market Size 2017 & Forecast to 2022
3.2 Market Size of Cameras
3.3 Market Size of Video Management Software Systems
3.4 Identifying & Measuring the Performance of Leading Camera Suppliers
3.5 Identifying & Measuring the Performance of Leading VMS Suppliers
3.6 Channels of Distribution & Trends
3.7 Business Strategies for Ensuring Success in the Video Camera Market
3.7.1 Scale / Economics Vs Technology / Performance
3.7.2 Commoditization Has Taken Hold in the SMB Market
3.8 Technology that Drives Demand for Video Surveillance
3.8.1 IP Network Cameras
3.8.2 Compression & Video Analytics
3.8.3 Integration within Physical Security & Other BAS Services
3.9 The Market for Video Surveillance as a Service (VSaaS) 2017
3.9.1 Drivers & Road Blocks to VSaaS
3.9.2 Suppliers & Operators of MVaaS & VSaaS
3.9.3 Acquisitions in MVaaS – VSaaS – ACaaS
3.10 Video Technology – IP Cameras – HD Analog CCTV – Thermal Cameras
3.10.1 IP Network Cameras
3.10.2 The Future – IP Network – HDCCTV – Analogue
3.10.3 Video Compression Technologies H264 Vs H265
3.10.4 Thermal Cameras
3.11 Body Worn Cameras
3.12 Storage Recorders
3.13 Mobile Apps
3.14 Video Management Software (VMS)
3.15 Video Surveillance Analytics
3.15.1 Overview
3.15.2 Demand for Analytics
3.15.3 Deep Learning & Machine Learning
3.16 New Applications for Specialist Cameras
4. The Access Control Market 2017 to 2022
4.1 Market Size 2017 & Forecast to 2022
4.2 Identifying Measuring the Performance of Leading Access Control Suppliers
4.3 Channels of Distribution for Access Control Systems
4.4 Major Demand Drivers for Access Control
4.4.1 IP Network Systems
4.4.2 Integration within Physical Security and other BAS Services
4.4.3 Connecting Physical & Logical Security
4.4.4 PACS – Strategic Acquisitions
4.4.5 Demand for Biometric Readers
4.4.6 Personal Identity Verification Card (PIV Card)
4.4.7 Near Field Communications (NFC) for Access Control
4.4.8 Systems Integrators Preference to push Access Control
4.5 Access Control as a Service & Managed Access Control
4.5.1 Growth Through Access Control as Service & Cloud Based Systems
5. Intruder Alarms / Perimeter Protection Market 2017 to 2022
5.1 Market Size 2017 & Forecast to 2022
5.2 Demand Drivers
5.3 Identifying & Measuring the Performance of Leading Suppliers
6. Wireless Technology
6.1 Wireless in the Video Surveillance Market
6.2 Wireless in the Access Control Market
6.3 Wireless in the Intruder Alarm Market
6.4 Wireless Will be Driven by IoT
7. Standards & Cyber Security
7.1 ONVIF for Video Surveillance
7.2 ONVIF for Access Control
7.3 PSIA
7.4 Cyber Security
7.4.1 The Most Serious Threat to Physical Security Stakeholders & Emerging BIoT
7.4.2 The Cyber Risk Threat Landscape
7.4.3 The Physical Security Industry is the Weakest Link in the BIoT Chain
8. Software Markets in the Physical Security Business
8.1 Physical Security & Information Management (PSIM)
8.2 Physical Identity and Access Management (PIAM)
8.3 Situational Awareness
9. Business Development Opportunities Through Integration, IT Convergence & IoT Require New Business Models
9.1 Growth Through Integration & IT Convergence
9.2 The Physical Security Business Needs “Open” Systems & Structural Changes if Integration is to Deliver its Full Potential
9.3 Growth Through Integration, IT Convergence within BAS Services
9.4 Growth Through IoT & the Building Internet of Things (BIoT)
9.4.1 The Impact of BIoT on Physical Security
9.5 Business Opportunities Focused on New Verticals – Shared Intelligence & Systems Integration
9.5.1 New Industry Verticals & Market Segments
9.5.2 Shared Services, Smart / Safe Cities & BIoT System Integration
9.5.3 Shared Intelligence in the Private Sector
9.5.4 Total Solutions versus Product Manufacture
9.6 Business Models Focused on Product Specialization, Brand & Commoditization
9.6.1 Product Specialization
9.6.2 Commoditization
9.6.3 Brand
9.7 Business Models Built Around Security as a Service & VSaaS
9.8 Do Chinese Manufacturers Dominate the Video Surveillance Business?
10. M&A Performance by Sector – Valuation and Outlook 2000 to 2022
10.1 M&A Performance 2000 – 2017
10.2 M&A Performance in 2017
10.3 M&A Outlook 2017 – 2022
10.4 M&A Analyzed by Business Segment 2017
10.5 M&A Valuation – Exit Multiple Benchmarks
10.6 M&A Activity by Country
10.7 Strategic Buys Dominate M&A Activity but Private Equity Abstains
11. Identifying Potential Acquisition Targets & High Growth Sectors
11.1 Potential Acquisition Targets
11.2 Acquisition in Physical Security Defined by Sector and Type
11.2.1 The IP Video Surveillance Industry
11.2.2 Security Management Software
11.2.3 Video Surveillance as a Service (VSaaS)
11.2.4 Access Control, Biometrics & Identity Authorization
12. Investment & its Impact on the Security Industry
12.1 The State of Venture Capital in the USA
12.2 Impact of Venture Capital on the Security Industry
12.3 Investors in the Security Industry & Recipients
13. Strategic Alliance – Partnerships – Investments in Startups
13.1 Strategic Alliances
13.2 Partnerships & Investments in Startups Gain Momentum

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