SecurityWorldMarket

26/01/2022

Research confirms Covid has accelerated cloud uptake

Stockholm, Sweden

Memoori analysis indicates that world sales in 2021 have bounced back strongly year-on-year versus 2020, growing to over $33.8 Bn.

New physical security trends over the past two years have rapidly accelerated cloud adoption. A new report from the research team at Memoori explains that for physical security systems the ability to be able to control cameras and access control systems remotely has proven particularly appealing during the pandemic.

The growth in demand for remote and managed as-a-service models for both access control and video surveillance (ACaaS & VSaaS) has outpaced the rest of the market over the course of the pandemic. in addition, according to Memoori, this helped to offset a slight decline in hardware sales over the course of 2020.  

The pandemic is helping to reshape the physical security industry, turbo-charging certain emerging business models, whilst it also continues to make our societies safer; not just from the pandemic but from crime and terrorism.

Security-as-a-Service

Covid has triggered a need for cloud for remote security, opening up the Security-as-a-Service market for a wide range of buildings. It can unlock a huge range of new services by giving customers greater access and exposure to the cloud ecosystem.

Memoori's latest analysis of world sales of physical security products at factory gate prices indicates that world sales in 2021 have bounced back strongly year-on-year versus 2020, growing to over $33.8 Bn, and the analysts predict that the market should maintain a robust growth of nearly 7.2% CAGR over the next 5 years to 2026.

Physical security bounces back

The findings also show that market for video surveillance products still makes up the largest proportion of physical security sales at 57%. The market has bounced back strongly, rising 14.5% year-on-year outperforming 2019 sales and hitting a projected $21.65 billion for 2021.

The researchers suggest that physical security vendors are finally getting the message that threats to cyber security are capable of causing serious harm to their business, although major breaches still persist. They claim that unless stakeholders invest in ensuring their products and systems are not vulnerable to cyber attack, they could face massive claims for damages and huge reputational harm. One of the critical buying propositions of physical security is now “What have you done to make this equipment less vulnerable to cyber attack and does it comply with current legislation?” The owners and operators of buildings, particularly those with large building estates, need to know that manufacturers and installers fully understand what needs to be done to reduce vulnerabilities.

The report covers an extensive alphabetical list of major players within the physical security industry, from companies such as Acre, ADT, Allegion, Assa Abloy, Axis, Bosch, Briefcam, Brivo, and Canon to Tdsi, TKH, UTC, Vanderbilt Verint, Vicon, Vivotek and Wavestore, to name just a few.

This report is the13th annual market analysis from Memoori, bringing together all the factors influencing the physical security industry’s future. The report assesses the structure and size of the combined physical security industry then breaks down the market by size of product type, sales by vertical sector and geographic region, and forecast sales to 2026.


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