Commercial Security System Market

Global Commercial Security System Market Size (2024 to 2029)

The size of the global commercial security system market is anticipated to register a CAGR of 8.14% from 2024 to 2029 and be worth USD 391.5 billion by 2029 from USD 264.7 billion in 2024.

Commercial security systems offer a range of solutions and are majorly used to safeguard businesses, properties and assets from various security threats. Commercial security systems incorporate surveillance cameras, access control, intrusion detection sensors, alarms and monitoring services to deter criminal activity and ensure the safety of personnel and assets. The growing need for risk mitigation, regulatory compliance, technological advancements and remote monitoring capabilities has fuelled the awareness of security risks and resulted in the adoption of commercial security systems. With the evolution of security technology and the increasing prevalence of high-profile security breaches, businesses are increasingly prioritizing robust security measures.

The global market for commercial security systems is experiencing steady growth. The emergence of trends such as AI-powered surveillance and integrated security platforms further contributes to market expansion. As businesses continue to prioritize safety and security in an increasingly complex threat landscape, the demand for comprehensive commercial security systems is expected to persist and evolve in the coming years.

Global Commercial Security System Market Drivers:

The growing incidents of theft and burglary and regulatory compliance requirements are majorly propelling the growth of the commercial security systems market. The number of instances of theft and burglary has been growing significantly worldwide and businesses have been increasingly investing in robust security solutions to protect their assets, inventory and premises to stay secured from such incidents. According to the FBI's Uniform Crime Reporting Program, property crime rates, including burglary and theft have been consistently high in recent years, which is resulting in the increased need for enhanced security measures. On the other hand, organized retail crime including activities such as shoplifting and organized theft rings have been costing the retail industry billions of dollars annually and causing significant negative impacts financially to businesses. Various industries are subject to regulatory mandates and standards regarding security and surveillance and businesses must implement comprehensive security systems to ensure compliance. For instance, the Health Insurance Portability and Accountability Act (HIPAA) in the healthcare sector and the Payment Card Industry Data Security Standard (PCI DSS) in the retail sector mandate strict security measures to protect sensitive data and assets.

Technological advancements in security systems are boosting the commercial security systems market growth.  Technological advancements continuously upgrade the capabilities, effectiveness and versatility of security solutions and aid businesses to better protect their assets and personnel. Advancements in camera technology such as higher resolution, wider field of view and enhanced low-light performance have been favoring businesses to capture clearer and more detailed video footage for surveillance purposes, which allows for better monitoring of premises, identification of security threats, and gathering of evidence in case of incidents. The integration of AI in commercial security systems has significantly enhanced the capabilities of these systems and helped businesses in a variety of ways.

The rising awareness of security risks and remote monitoring capabilities are further propelling the global market growth. Companies have become more conscious of the need to invest in robust security measures due to the growing number of incidents of theft, vandalism, and cyberattacks and this growing awareness of security risks is driving demand for comprehensive security solutions that can effectively deter and mitigate various threats. Remote monitoring capabilities have become crucial to businesses as these solutions help proactive threat detection, rapid response to security incidents and improved overall situational awareness. According to a survey conducted by Security Magazine, an estimated 68% of companies prioritize remote monitoring capabilities when selecting commercial security systems.

Factors such as rapid integration of commercial security systems with smart building systems, increasing adoption of cloud-based solutions and rising need for access control in sensitive areas are contributing to the global market growth. The rise in demand for video surveillance for evidence gathering, increasing concerns about workplace violence, increased urbanization and urban crime rates and growing need for perimeter security solutions are promoting the growth of the commercial security system market.

Global Commercial Security System Market Restraints:

The high initial investment costs associated with implementing comprehensive security solutions, regulatory complexity and the need to comply with stringent security standards and concerns about data privacy and the potential for security breaches are majorly hampering the growth of the commercial security system market. Limited adoption of commercial security systems, resistance to technological change and difficulties in integrating different security components and the shortage of skilled professionals capable of managing and maintaining complex security systems are some of the significant restraints to the growth of the commercial security system market.

REPORT COVERAGE:

This research report on the global commercial security system market has been segmented and sub-segmented based on hardware, software, service, vertical and region.

Global Commercial Security System Market - By Hardware:

• Fire Protection
• Video Surveillance
• Access Control
• Entrance Control

Based on hardware, the video surveillance segment dominated the market in 2023, holding a global market share of 39.7% and is expected to grow at a promising pace of 8.1% CAGR during the forecast period. The growth of the video surveillance segment is majorly driven by factors such as the growing concerns about security and safety in commercial spaces and the increasing demand for advanced analytics and remote monitoring capabilities. Rapid adoption of AI-powered video analytics, increasing demand for cloud-based video surveillance solutions, integration of video surveillance with IoT devices and rising demand for thermal cameras in video surveillance are further fuelling the growth rate of the video surveillance segment in the global market.

The fire protection segment is another lucrative segment and is anticipated to account for a substantial share of the global market during the forecast period.

Global Commercial Security System Market - By Software:

• Fire Analysis
• Video Surveillance
• Access Control

Based on software, the video surveillance software segment held 41.4% of the global market share in 2023 and is anticipated to register a healthy CAGR during the forecast period. An increase in the number of initiatives from the governments of several countries for city surveillance projects and rising demand for high-resolution and 360-degree cameras are driving the growth of the video surveillance segment in the global market.

Global Commercial Security System Market - By Services:

• Security System Integration Services
• Remote Monitoring Services
• Fire Protection Services
• Video Surveillance Services
• Access Control Services

Global Commercial Security System Market - By Vertical:

• Commercial
• Government
• Transportation
• Retail
• Banking & Finance
• Education
• Industrial
• Energy & Utility
• Sports & Leisure
• Healthcare
• Military & Defense

Based on vertical, the banking and finance segment accounted for a global market share of 18.8% in 2023 and emerged as the leading segment and is expected to grow at a steady CAGR during the forecast period. The growing focus on securing financial institutions against cyber threats and physical breaches is one of the major factors contributing to the segmental growth.

The commercial segment is expected to hold a considerable share of the global market during the forecast period owing to the rising demand for access control and video surveillance solutions in office buildings and commercial complexes.

The government segment is predicted to witness a CAGR of 7.4% during the forecast period. The growing concerns about national security and the need for surveillance and access control systems are propelling the growth of the government segment in the global market.

Global Commercial Security System Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America led the commercial security system market worldwide in 2023, holding 36.1% of the global market share and is predicted to grow at a CAGR of 5.4% during the forecast period. The dominance of the North American region in the global market can be credited to stringent security regulations, high adoption of advanced technologies and increasing concerns about public safety and terrorism. The growing investments in cybersecurity following major cyberattacks on critical infrastructure are driving demand for advanced cybersecurity solutions and further fuelling the growth rate of the North American market. For instance, 60% of businesses in North America have increased spending on security systems in recent times. The U.S. followed by Canada dominated the commercial security system market in North America in 2023 and the trend is likely to be continued throughout the forecast period. Factors such as the rising adoption of AI-driven surveillance systems in response to rising security threats, the presence of several market participants in the U.S. and the increasing number of initiatives from the U.S. government to enhance public safety are driving the U.S. market growth. For instance, an estimated 65% of the security solution providers are based in the U.S.

The Asia-Pacific is estimated to register the highest CAGR of 8.28% among all the regions in the global market during the forecast period and will be the largest regional segment for commercial security systems worldwide by the end of the forecast period. The surge in investment in smart city projects, increasing adoption of AI-powered analytics for video surveillance systems, growing instances of cyber-attacks and increased spending on cybersecurity infrastructure are driving the growth of the commercial security system market in the Asia-Pacific region. For instance, an estimated 50% of global video surveillance camera shipments are to Asia Pacific.

Europe held 25.9% of the global market share in 2023 and is projected to account for a substantial share of the global market during the forecast period. Growing concerns over terrorist threats and organized crime, rising adoption of smart city initiatives, increasing demand for cloud-based security solutions, rising incidents of cyber-attacks targeting European businesses, implementation of GDPR and the expansion of smart city projects are majorly driving the growth of the European market.

KEY MARKET PLAYERS:

Companies playing a major role in the global commercial security system market include Johnson Controls, Hangzhou Hikvision Digital Technology Co., Ltd, Carrier, Honeywell International Inc., Robert Bosch GmbH (Bosch Sicherheitssysteme GmbH), Dahua Technology Inc., dormakaba Group, ADT, Axis Communication AB, SECOM. CO. LTD, ASSA ABLOY, Siemens, Halma plc, Hochiki Corporation, Teledyne FLIR LLC, Allegion plc, Nice S.p.A., Alarm.com, Motorola Solutions, Inc. (Avigilon), Dallmeier electronic, Securitas Technology, Gunnebo AB, Control4, Viking Group Inc., Norden, and Vivint Inc.