Electronic Security Market - Growth, Trends and Forecast
The Electronic Security Market was valued at USD 40.93 billion in 2019 and is expected to reach USD 68.57 billion by 2025, at a CAGR of 8.98% over the forecast period 2020 - 2025. An electronic security system is any electronic system that performs security operations, like access control, alarming, surveillance, or an intrusion control, for a facility or an area that uses power from mains and also a power backup, like a battery, etc.
- The rising trend of smart cities in developing nations is contributing highly to the growth of the electronic security market. Several initiatives by governments are also leading to the growth of this market. For instance, China has taken up projects to develop smart cities with advanced security solutions in cities such as Hangzhou, Nanjing, Dalian, and Tianjin.
- The awareness about security is increasing and consumers have started adopting surveillance and alarming systems for residential purposes to prevent incidences like theft and fire. Also, the growing usage of electronic security systems in public places is driving the growth of the market.
- However, the high cost incorporated with the process of system installation and its maintenance and privacy issues are a few factors restricting the growth of the electronic security market.
The rise in the digitation of the overall commercial operations, the demand for electronic security systems is showing significant growth. The scope of the study is limited to the types of electronic systems offered and their applications throughout the end-user verticles, globally.
Government Sector to Witness Significant Growth
- The rising infrastructural development globally is driving the adoption of technology equipped systems for the working spaces as well as for residential purposes. Digital transformation enables the opportunity of improving efficiency by reducing human errors.
- Governments are investing in tackling the rising rate of crimes, globally. The implementation of mass surveillance systems has helped in tracking the suspects for crimes. The use of License Plate Reader (LRP) on the roads is rising in response to unsafe driving. According to NHTSA 2018 report, for more than two decades, speeding has been the reason for approximately one-third of all motor vehicle fatalities.
- In February 2019, the US government released a strategy for surveillance and control of travel. This strategy includes the surveillance of all movements of a person by collecting as much information as possible, especially biometric and biographic. The deployment of this act will increase the demand for electronic security market in the region.
- Moreover, according to Frontex, in 2018, Europe registered a record low illegal cross-border point entries. Therefore, the deployment of electronic security systems to improve the securities overall has become more significant.
Asia-Pacific to witness Fastest Growth
- Governments are spending on initiatives to make their respective countries more secure. Development of smart cities is one of the significant segments of infrastructural developments, with the application of more surveillance systems, alarming systems, and access controls. In India, the government has initiated the Smart City Mission for development of over 100 cities in the country is driving the market.
- China is investing billions of dollars in for mass surveillance project each year. This project is aimed at using advanced face detection technology and algorithms to track the 1.4 billion population with the help of 200 million surveillance cameras. These cameras will monitor the social behavior of the population and the government has planned to release a social credit score for every individual by the year 2020. This project is driving the growth of the electronic security market in the region.
- Due to the growing economies of Asia-Pacific countries, like India and China, the infrastructure is developing. Additionally, the awareness about the benefits of electronic security systems has increased the implementation of these systems for residential purposes. This trend is expected to continue in the forecast period. Hence, the demand for these systems will grow.
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