Commercial Security System Market Size, Share & Trends

Updated on : October 22, 2024

Commercial Security System Market Size

[210 Pages Report] The Global Commercial Security System Market Size is expected to reach USD 343.7 Billion by 2028 from USD 236.3 Billion in 2023, growing at a CAGR of 7.8% during the 2023–2028 period.

A commercial security system refers to a collection of security measures implemented in a commercial setting to safeguard individuals, communities, residences, personal belongings, or organizations from potential harm. To counteract such threats, a variety of security products are utilized. The demand for security systems has risen due to the need for protection against increasingly prevalent threats, heightened consumer awareness and concerns regarding security, and the willingness to invest in security measures. The report covers several security products, including fire protection systems, video surveillance, access control systems, entrance control systems, remote monitoring services, and security system integration services.

Within the commercial security system industry, video surveillance products are projected to dominate in terms of both market growth rate and market size. Video surveillance systems employ video cameras to remotely monitor individuals, facilities, or locations. This method is highly effective and cost-efficient in ensuring the safety of people, buildings, and valuable assets. Fire protection systems play a crucial role in preventing fire accidents and minimizing the resulting damages. They also help mitigate the impact of uncontrolled fires, thereby saving lives and property. Fire protection systems encompass various components, such as fire alarms and detection systems, fire sprinkler systems, and fire suppression systems.

Commercial Security System Market Forecast to 2028

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Commercial Security System Market Trends

Driver: Expanding construction industry has increased the utilization of Commercial security system

The construction industry is becoming larger and more complex. According to the Global Construction Perspective, the global construction market is expected to grow to USD 8 trillion by 2030. This growth will be driven by the US, China, and India. Growth in the construction industry in the US is attributed to the high demand for housing and commercial places. The construction sector uses expensive tools, materials, and equipment that are subject to theft and vandalism. On construction sites, commercial security solutions like alarms and surveillance cameras offer defense against unauthorized access and protect priceless assets. These initiatives serve as a deterrent and aid in preventing theft, hence minimizing financial losses for construction firms.

Safety remains of utmost importance since construction sites can prove to be hazardous locations. Commercial security systems are essential for reducing safety risks since they monitor and identify possible dangers. In order to intervene immediately and take appropriate action, surveillance cameras can assist in identifying harmful practices or behaviors. They can, for instance, keep an eye on employees' compliance with safety procedures, spot unauthorized people in restricted locations, and spot prospective accidents or risks. Commercial security systems now include functions like motion detection and video analytics. By using these tools, smash-and-grab crimes, vandalism, and other potentially hazardous situations may be identified and avoided. The large, open spaces, construction sites are vulnerable to trespassing and unauthorized intrusion. Commercial security systems, such as perimeter fence and access control systems, aid in controlling access and preventing unauthorized people from entering the property. The security of the entire site is increased through access control systems, such keycards, or biometric scanners, which make sure that only authorized individuals may enter restricted areas. Surveillance cameras can capture images or videos of specific areas, providing evidence of work completion, adherence to timelines, and potential issues that may arise during the construction process.

Restraint: Resistance to change hampers the adoption and effectiveness of commercial security systems

Resistance to change can be a restraint for the commercial security system. Due to concerns about cost, complexity, and operational interruption, some firms may be reluctant to invest in new security technology or upgrade their current systems. This unwillingness to change might restrict the market for commercial security systems' expansion and keep companies from using the most recent security tools and technology. Additionally, due to worries about data privacy and cybersecurity, some firms could be hesitant to implement new security measures. They could be reluctant to adopt cloud-based security solutions or to share critical information with outside security suppliers.

The security landscape is constantly evolving, with new threats and vulnerabilities emerging regularly. Resistance to change can result in delayed responses to these evolving security challenges. Businesses that are resistant to adopting new security technologies may be more susceptible to security breaches and attacks, compromising their assets and potentially impacting their reputation.

Opportunity: Artificial intelligence (AI) and Machine learning offer intelligent insights for proactive security measures

The use of artificial intelligence (AI) and machine learning presents a significant opportunity for the commercial security system Industry . AI and machine learning algorithms can analyze video footage in real-time, enabling automated video analytics for commercial security systems. This technology can detect and identify suspicious activities, objects, and behaviors, such as unauthorized access, loitering, or unusual movements. By automating video analysis, security personnel can focus their attention on critical events and respond more effectively.

Artificial intelligence-powered face recognition technology can improve business security systems' access control and identification verification. Individuals may be reliably identified by facial recognition algorithms, enabling quick and secure admission into restricted locations. By making it easier to identify people of interest, this technology also improves security and monitoring procedures.

Challenge: Integrating user interfaces with fire protection systems enhances monitoring and control

The integration of user interfaces with fire protection systems is a crucial aspect of ensuring effective monitoring and control of fire safety measures. Integrating user interfaces with fire protection systems can be complex due to the diverse range of fire protection components and protocols involved. Each system may have different communication protocols, data formats, and integration requirements. Ensuring seamless interoperability and communication between these systems can be challenging.

Access control systems and fire alarm systems can be integrated, however optimal integration calls for updated technologies. The fire alarm system poses inherent challenges for the engineering team and the contractor, and each fire alarm control unit must include a listed barrier gateway to keep other interfaced systems from interfering with or endangering the fire alarm system.

Commercial Security System Market Ecosystem

The prominent players in the commercial security system market are Fortive (US), National Instruments (US), Keysight Technologies (US), Teledyne Technologies (US), and Rohde & Schwarz (Germany). These companies not only boast a comprehensive product portfolio but also have a strong geographic footprint.

Commercial Security System Market Share

The fire protection system is holds the larger market share of the commercial security system market in 2023

Fire protection systems are designed to detect and suppress fires in order to protect people and property. These systems include a variety of hardware components that work together to detect and respond to fires. Fire protection systems can be divided into two main categories: passive fire protection and active fire protection. Passive fire protection involves the use of building components to control or limit a fire. Walls, floors, and ceilings can be designed and constructed to resist the passage of fire and smoke. Active fire protection, on the other hand, involves the installation and use of structural and operational systems to minimize the impact of fire on people and property. Some of the key components of active fire protection systems include fire alarm systems, smoke detectors, sprinkler systems, fire suppression systems, building exit systems, fire doors, fire dampers, fire extinguishers, and fireproofing materials. Fire alarm systems include circuits that connect initiating devices such as smoke detectors and heat detectors. When a fire is detected, the alarm system alerts building occupants and/or the fire department.

Video surveillance software is expected to grow at the highest CAGR in the commercial security system market during the forecast period

The global market for commercial security software is set to be dominated by video surveillance software, which is expected to experience rapid growth. This growth can be attributed to the widespread adoption of artificial intelligence (AI) technology in video surveillance systems. The integration of AI enables real-time analysis of images and audio from video surveillance feeds and recordings. Additionally, AI's advanced image recognition algorithms allow for the identification of faces, objects, events, and more. These factors collectively contribute to the global expansion of the video surveillance software market.

Commercial vertical is expected to hold the largest market share and grow at the highest CAGR in the commercial security system market during the forecast period

The commercial segment of the market experiences significant growth primarily due to the escalating incidents of theft and robbery in commercial buildings. To safeguard their assets, property owners are investing in security systems. Additionally, there is a growing concern regarding information security-related crimes and robberies. In response, corporations are allocating substantial financial resources to security technology in order to enhance security measures, ensure people's safety, and address security issues. Data companies, in particular, prioritize data and information protection, leading to the widespread adoption of access control systems for server rooms. Biometric security systems, such as fingerprint recognition, are employed by large corporations to prevent unauthorized access to data centers. Similarly, in the business process outsourcing (BPO) industry, finger vein-based access control systems are utilized to safeguard data and server rooms. Door access controls, which restrict access to authorized personnel only, are implemented as physical security measures to protect server rooms.

The advanced security requirements contribute to the growing demand for security systems in the commercial sector. The increased adoption of security products, including video surveillance systems, fire protection systems, and access control systems, is driven by their ability to protect assets and human lives. To ensure the optimal functioning of such systems, regular maintenance services are necessary, further fueling the global demand for commercial security services.

Commercial Security System Market Regional Analysis

Asia Pacific is expected to register the highest market share during the forecast period

Asia Pacific is experiencing rapid growth in the video surveillance market due to substantial investments in infrastructure and smart city initiatives. The region is projected to sustain a high growth rate for video surveillance systems and services in the near future. The rise in terrorist activities has compelled governments to adopt IP surveillance systems for heightened security in government buildings. Additionally, Asia Pacific has embraced video surveillance technology in the retail sector.

The increasing adoption of cloud-based services and cloud management software is expected to drive the demand for access control systems, ensuring data confidentiality and authentication. Consumers in Asia Pacific are particularly receptive to biometric technology, especially for financial transactions, as it provides an added layer of security. This is anticipated to eliminate the reliance on traditional security measures such as PINs, passwords, security questions, or various identification cards. Biometrics has also captured the interest of other industries, including healthcare and banking.

Commercial Security System Market Statistics by Region

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Top Commercial Security System Companies: Key players

The major players in the commercial security system companies include

• Johnson Controls (US),
• Hangzhou Hikvision Digital Technology Co., Ltd (China),
• Carrier (US),
• Honeywell International Inc. (US),
• Robert Bosch GmbH (Bosch Sicherheitssysteme GmbH) (Germany),
• Dahua Technology Inc. (China),
• dormakaba Group (Switzerland),
• ADT (US), Axis Communication AB. (Sweden),
• SECOM. CO. LTD, (Japan),
• ASSA ABLOY(Sweden),
• Siemens (Germany),
• Halma plc (US),
• Hochiki Corporation (Japan),
• Teledyne FLIR LLC(US),
• Allegion plc (Ireland),
• Nice S.p.A. (US),
• Alarm.com (Canada),
• Motorola Solutions, Inc. (Avigilon)(Canada),
• Dallmeier electronic (Germany),
• Securitas Technology (Canada),
• Gunnebo AB (Sweden),
• Control4 (US),
• Viking Group Inc. (US),
• Norden (UK),
• Vivint Inc (US). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the market.

Commercial Security System Market Report Scope:

Commercial Security System Market Highlights

The study segments the commercial security system market based on hardware, software, services, vertical, and region at the regional and global level.

Recent Developments in  Commercial Security System Industry

• In May 2023, Hangzhou Hikvision Digital Technology Co., Ltd launched 4G solar-powered camera kit, a wireless bridge, and mobile solar security tower solutions, it is common for remote locations and momentary standalone applications to lack internet access and energy. Hikvision is providing a range of solar solutions to assist maintain these locations secure in an easy, practical, and affordable manner.
• In May 2023, Carrier launched i-Vu Pro v8.5 software it is an i-Vu building automation system. A phased download procedure for more effective controller upgrades, an operator information report for improved security, and interaction with Message Queueing Telemetry Transport (MQTT) are all provided by the digital lifecycle solution.
• In March 2023, Johnson Controls launched new IQ Pro Hybrid Security Panel, it refines the commercial security sector with IQ Pro, delivering a modular architecture that allows for future hardware and software improvements and connections.
• In February 2023, Hangzhou Hikvision Digital Technology Co., Ltd partnered with Evercam Construction Cameras, in order to offer a collaborative solution that will assist construction businesses in maximising performance and reducing risk on their significant projects.
• In October 2022, Marioff, a subsidiary of Carrier extends its service agreement with BluEdge Elite to provide maintenance services for its Marioff HI-FOG systems. HI-FOG systems are currently installed aboard 46 cruise ships in Royal Caribbean Group’s fleet.

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