by Brianna Crandall — September 12, 2016 — Market research company Technavio’s analysts predict the global market for physical security in the retail sector will grow at a compound annual growth rate (CAGR) of around 7% between 2016 and 2020. Falling prices of security products will fuel the increased adoption of such devices across the retail sector.
At present, several companies are cutting down on the number of security guards and are switching to security services, in which a third party is alerted whenever there is suspicious activity. This, in turn, cuts down on costs and false alarms. As vendors of security solutions come up with better surveillance technology and attract more customers, there will be a further decline in the prices of security solutions, according to the report.
Geography
During 2015, the global physical security market in the retail sector was dominated by the Americas, with a market share of around 47%. The rapid growth of the retail sector across several Asia-Pacific (APAC) countries will augment the demand for physical security in the region over the next four years.
Drivers and trends
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
Amrita Choudhury, lead analyst, ICT, Technavio Research, points out:
The integration of video and physical security in this market is currently on a rise. A growing trend in the retail industry, mainly in grocery stores, is the integration of video surveillance with other security systems, such as access control and fire detection. The integrated platform allows for the management of several facilities across different regions using one platform. It also provides real-time remote access that allows operators to troubleshoot and attend to situations from remote locations.
Technology
According to the report, the physical security market in the retail sector is undergoing rapid advances in technology. Furthermore, there is an ongoing convergence of various monitoring solutions. Convergence assists in the use of video surveillance over the existing corporate Internet protocol (IP) network without the need for switches, dedicated cables, and recording infrastructure.
Such security products are scalable, which enables their use even when the bandwidth requirements grow. Such advances in technology and products are expected to propel the growth of the market over the next four years.
Key vendors
The key vendors in the global physical security market in the retail sector include Axis Communications, Bosch, Checkpoint Systems, Crossmatch, Honeywell and Tyco Security. The major vendors in the market are acquiring small companies to strengthen their retail security solution offerings.
For instance, Axis Communications, which offers network cameras, video encoders, accessories, video management software, physical access control products and camera applications, announced in June 2016 the acquisition of Cognimatics, a company providing store optimization solutions used for people-counting, queue measurement, and occupancy calculation.
A more detailed analysis is available in the Technavio report, Global Physical Security Market in the Retail Sector 2016-2020, available from the company’s Web site. Technavio says it can customize reports by other regions and specific segments upon request.
