Perimeter Security Market Size - By Component (System, Services), By End Use (Government, Military & Defense, Transportation, Commercial, Industrial, Others) & Forecast, 2024 - 2032

Perimeter Security Market Size

Perimeter Security Market size was valued at USD 79.8 billion in 2023 and is anticipated to register a CAGR of over 7% between 2024 and 2032.

The increasing incidences of security threats drive the market, as governments and organizations worldwide strive to protect people, property, and critical infrastructure. According to the Global Terrorism Database, there has been a noticeable increase in the number of terrorist attacks worldwide over the past decade.

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For instance, between 2010 and 2020, the number of terrorist incidents increased from 4,540 to over 8,000 annually. This rising terrorism compels governments to invest in sophisticated perimeter security measures to prevent and mitigate attacks. In response to terrorist threats, many countries have increased their security budgets. For example, the U.S. Department of Homeland Security's budget has steadily increased, with significant allocations for infrastructure protection. In 2023, the DHS budget was USD 97.29 billion, highlighting a strong emphasis on security initiatives.

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Incidents of mass shootings in public areas, such as schools, shopping malls, and places of worship, have raised public safety concerns significantly. In the US, Education Week reported 38 school shootings in 2023 that resulted in injuries or deaths, prompting schools, businesses, and other organizations to invest heavily in perimeter security solutions such as access control, surveillance, and emergency response systems. In response to these threats, many governments have initiated grant programs to help institutions improve their security measures. For example, the U.S. Department of Justice’s School Violence Prevention Program (SVPP) provides funding to schools to enhance their security infrastructure including perimeter security systems.
 

The deployment of advanced perimeter security solutions often involves substantial initial investment and ongoing maintenance costs. Small & Medium-sized Enterprises (SMEs), as well as some public sector entities, may find it challenging to allocate a sufficient budget for these high-cost systems, limiting market growth. Beyond the initial investment, perimeter security systems require ongoing maintenance, upgrades, and operational expenses. This includes costs associated with equipment maintenance, software updates, monitoring services, and personnel training. The cumulative expenses over time can be significant, particularly for large-scale installations or complex integrated systems.

Perimeter Security Market Trends

Thermal imaging and Infrared (IR) technologies are gaining traction in perimeter security due to their effectiveness in low-light conditions and their ability to detect heat signatures. Governments and manufacturers are investing in thermal cameras and sensors to enhance situational awareness and perimeter monitoring capabilities. Thermal imaging and IR technologies are used in perimeter security owing to their unique capabilities to enhance surveillance, detection, and threat assessment in various environments and conditions.

For example, in May 2024, Rostec, a Russian state-owned corporation, developed an advanced thermal imaging system for driving in zero visibility conditions. This system is intended to enhance safety and visibility for drivers in low-light or foggy environments where traditional sensors may struggle to function effectively.

Rapid urbanization is fueling the construction of new infrastructure projects such as residential complexes, commercial buildings, transportation hubs, and public facilities. This expansion creates a greater need for perimeter security solutions to protect these assets from various security threats. Critical infrastructure sectors, such as energy, water, telecommunications, and healthcare, are vital for the functioning of society and the economy. With increasing threats of cyber-attacks, physical intrusions, and natural disasters, securing these facilities with perimeter security solutions becomes imperative.

Perimeter Security Market Analysis

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Based on components, the market is segmented into systems and services. In 2023, the services segment accounted for the largest market share of over 55%.

• The complexity and diversity of perimeter security systems require specialized expertise for installation, integration, and maintenance. Service providers offer a range of professional services including consultancy, design, implementation, and training to assist organizations in deploying effective perimeter security solutions tailored to their specific needs. These services ensure the seamless operation and optimization of security systems, maximizing their effectiveness in mitigating security threats.
• For instance, in April 2024, the Indian Air Force announced plans to upgrade 30 air bases' ground perimeter security, highlighting the importance of comprehensive security solutions. This involves deploying advanced surveillance systems and expert services for installation, integration, and maintenance, and outsourcing these services to maximize the effectiveness of perimeter security measures while minimizing operational risks and resource burdens.
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Based on end use, the perimeter security market is divided into government, military & defense, transportation, commercial, industrial, and others. The commercial segment was the fastest-growing, at a CAGR of over 7% in 2023. The market value of commercial is expected to reach over USD 40 billion by 2032 due to this significant growth rate.

• Commercial entities including businesses, retail establishments, educational institutions, and healthcare facilities are increasingly recognizing the importance of robust perimeter security measures to protect their assets, employees, and customers. Factors, such as rising concerns about theft, vandalism, and workplace violence, coupled with regulatory requirements and insurance mandates, are driving businesses to invest in comprehensive security solutions.
• Furthermore, the proliferation of smart technologies and IoT integration in commercial environments is fueling the demand for advanced perimeter security systems that offer enhanced visibility, automation, and integration capabilities. As commercial entities seek to safeguard their premises and operations against evolving security threats, the demand for perimeter security solutions tailored to their specific needs is expected to drive significant growth in this segment.
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North America perimeter security market held the largest share of over 35% in 2023. North America's robust economy and infrastructure drive significant investments in security measures to protect critical assets and public safety. The region's diverse industries present a vast market for perimeter security solutions. Geopolitical tensions, terrorism threats, cyber-attacks, and organized crime have compelled governments, businesses, and organizations to prioritize security investments. Regulatory requirements, compliance mandates, and industry standards further compel entities to deploy advanced perimeter security systems.

North American companies, with cutting-edge technologies, R&D capabilities, and a skilled workforce, are well-positioned to meet customer demands for sophisticated perimeter security solutions. North America is expected to maintain its dominant position in the global market due to continuous advancements in security technologies and investments in critical infrastructure protection.

China's rapid economic growth, infrastructure development, and increasing security concerns have led to significant investment in perimeter security solutions. The Belt and Road Initiative, smart cities, and digital transformation initiatives are driving demand for advanced security technologies. Chinese manufacturers are innovating and expanding their offerings to meet the evolving security needs of domestic and international markets, focusing on cybersecurity and national defense.

Germany, Europe's largest economy, is a key player in the perimeter security market due to its engineering prowess, technological innovation, and stringent regulatory standards. Its commitment to sustainability influences the development of eco-friendly and energy-efficient solutions. German manufacturers offer high-quality products and expertise in integrated security systems, catering to diverse end-user requirements across the government, military, commercial, and industrial sectors. Germany's strategic location drives collaboration and partnerships within the region's security ecosystem.

Japan's importance in the perimeter security market is due to its advanced technology, strict safety standards, and commitment to innovation. The country's aging population and labor shortages drive the adoption of automation and AI-driven security solutions. Japanese manufacturers are known for reliability and quality assurance, making them preferred partners for perimeter security projects. Strategic alliances with neighboring countries contribute to knowledge sharing and technology transfer in the Asia Pacific region.

South Korea, a highly industrialized country with a dynamic economy, is a key player in the perimeter security market due to its technological innovation, strategic location, and geopolitical challenges. It heavily invests in security solutions to protect its infrastructure and national borders. South Korean manufacturers offer advanced surveillance technologies, catering to various sectors. The country's export-oriented economy and global supply chain presence further contribute to its influence in the international market.

Perimeter Security Market Share

Honeywell International Inc. and Johnson Controls International plc hold a share of over 10% in the market. Both companies offer a range of security solutions including access control systems, video surveillance, intrusion detection systems, and integrated security management platforms. Honeywell focuses on innovation and customer-centric approaches, while Johnson Controls provides customized solutions that enhance safety, efficiency, and operational resilience for customers in diverse industries. Both companies invest in R&D to deliver cutting-edge perimeter security solutions.

Hikvision, Dahua Technology, Bosch Security Systems, FLIR Systems, and Hanwha Techwin are major players in the video surveillance industry. Hikvision offers IP cameras, DVRs, NVRs, and video management software, while Dahua Technology focuses on advanced surveillance cameras and AI-powered analytics. Bosch Security Systems provides intrusion detection systems, access control solutions, and integrated security management platforms. FLIR Systems specializes in thermal imaging technology and offers unique nighttime surveillance and threat detection solutions. Hanwha Techwin is a key player in the competitive landscape

Perimeter Security Market Companies

Major players operating in the perimeter security industry are

• Hikvision
• Dahua Technology
• Honeywell International Inc.
• Bosch Security Systems
• FLIR Systems
• Hanwha Techwin
• Johnson Controls International plc

Perimeter Security Industry News

• In April 2024, Hikvision launched the AX HOME series, a wireless alarm system designed to enhance home security. The system features a user-friendly sliding design for easy installation, low maintenance costs, and energy efficiency. It also supports the Open Things Access Protocol (OTAP) for seamless integration with third-party devices and systems, ensuring robust protection for homeowners.
• In February 2023, Axis Communications and Genetec Inc. partnered to introduce an industry-first, enterprise-level access control solution. This partnership combines Axis network door controllers with Genetec's powerful IP-based Synergis access control software, offering an all-in-one solution that enhances security and business performance.

The perimeter security market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

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Market, By Component

• System
  • Access control systems
  • Alarms & notification systems
  • Intrusion detection systems
  • Video surveillance systems
  • Barrier systems
  • Others
• Service
  • System integration & consulting
  • Risk assessment & analysis
  • Managed services
  • Maintenance & support

Market, By End Use

• Government
• Military & defense
• Transportation
• Commercial
• Industrial
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA