Physical security in the retail sector: Key market research findings
- The Americas dominate the market geographically
- Ongoing integration of video and physical security
- Key vendors – Axis Communications, Bosch, Checkpoint Systems, Crossmatch, Honeywell, and Tyco Security
Technavio’s market research analysts predict the global market for physical security in the retail sector to grow at a 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 such 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. 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 APAC countries will augment the demand for physical security in the region over the next four years.
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.
“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,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
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 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 will propel the growth of the market over the next four years.
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 physical security 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 the acquisition of Cognimatics, a company of store optimization solutions in the retail sector, in June 2016. Cognimatics’s technology is used for people counting, queue measurement, and occupancy calculation. The acquisition of Cognimatics’s knowledge and technology strengthens Axis’s solution offering in the fast-growing retail market segment.
A more detailed analysis is available in the Technavio report, Global Physical Security Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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