Global Commercial Security System Market Size, Share & Industry Trends Analysis Report By Vertical, By Offering, By Regional Outlook and Forecast, 2023 - 2030

Market Report Description

The Global Commercial Security System Market size is expected to reach $371.1 billion by 2030, rising at a market growth of 7.5% CAGR during the forecast period.

Banking & Finance utilizes these systems due to the rise of mobile and other online facilities with constant connectivity. Hence, Banking & Finance generated $14,878.5 million revenue in the market in 2022. The popularity of data security solutions such as access control in financial institutions has increased due to the rising use of mobile technology. Also, financial institutions are implementing rules to guarantee secure external networks, expanding commercial options, thereby boosting the segment’s growth in the forecasted period.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2023, Hikvision announced the launch of the 4G solar-powered camera kit, a portfolio of wireless bridge and mobile solar security tower solutions for temporary sites and isolated areas, where internet connectivity and electricity are not available. The system includes a solar panel, a battery module, a mounting bracket, and the camera itself, which are available in two storage options 1 TB and 256 GB. Additionally, In March, 2023, Johnson Controls unveiled C-Cure IQ Security Client, a security operations solution. The new solution integrates access control and video surveillance, thereby creating a full-fledged enterprise security system.

KBV Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the Cardinal matrix, Honeywell International, Inc. is the major forerunner in the Market. In May, 2023, Honeywell launched the Honeywell Forge Cybersecurity+ | Cyber Insights, the operational technology cybersecurity solution, for assisting customers in enhancing the reliability, availability, and safety of their industrial control systems and operations. Cyber Insights is built to integrate data from various OT data sources to give a customer actionable insight into the cybersecurity threats and vulnerabilities facing their facility. This allows the customer to manage their compliance strategy, lowering their overall cybersecurity risks. Companies such as Johnson Controls International PLC, Bosch Security Systems GmbH, Canon, Inc. are some of the key innovators in the Market.

Market Growth Factors

Growth of construction industry

The construction sector is expanding and becoming more complicated. The US, China, and India will be the main drivers of this expansion. The US construction sector is expanding due to the increased demand for housing and commercial places. The theft and vandalism of expensive tools, materials, and equipment are a problem in the construction industry. Commercial security measures like alarms and surveillance cameras provide resistance against unwanted access and safeguard priceless assets on building sites. These initiatives serve as a deterrent and help to reduce theft, helping construction firms to suffer fewer financial losses. Hence, their demand is growing rapidly in the market, due to the growing construction industry.

Increase in the use of IP cameras and video surveillance services

An internet connection or other network link is used by an Internet Protocol (IP) camera, a networked digital video camera, to transmit signals to the main server or computer screen. An IP camera can easily be installed and connected to the existing data network using a single coaxial connection for each camera. In addition, due to their high resolution, IP cameras may produce high-quality and highly detailed pictures. In the event of suspicious activity, they also permit two-way contact and send tailored notifications. All these variables will boost the expansion of the market over the course of projection period.

Market Restraining Factors

Resistance to change may hinder adoption and effectiveness

The commercial security system may be constrained by resistance to change. Some firms can be hesitant to invest in new security technologies or improve their current systems due to cost, complexity, and operational interruption concerns. The expansion of the market may be constrained by the unwillingness to change, and companies may restrict themselves from using the most recent security tools and technologies. In addition, due to concerns regarding data privacy and cybersecurity, some firms may be hesitant to implement new security measures. They could be hesitant to use cloud-based security solutions or to share critical information with outside security suppliers. As a result, the resistance to change may decline the adoption of commercial security system, thereby hindering the market’s expansion.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.

Hardware Outlook

By hardware, the market is divided into fire protection system, video surveillance, access control system, and others. In 2022, the fire protection system segment held the highest revenue share in the market. Systems for fire suppression and detection are created to safeguard people and property. To detect and react to fires, these systems have a range of hardware parts that work together. Fire protection systems are vital in preventing fire accidents and minimizing damage. They also help lessen the effects of uncontrolled fires and save lives & property.

Offering Outlook

On the basis of Offering, the market is classified into Hardware, software and services. The hardware segment garnered the highest revenue share in the market in 2022. A device that monitors employee endpoints or monitors network traffic, such as a hardware proxy server or firewall, is a common illustration of hardware security. Hardware security modules (HSMs), devices that produce and assist in managing cryptographic keys for encrypting and authenticating business systems, are another method for achieving device-based hardware security. The segment is growing due to the various advantages and widespread use of hardware in commercial security systems.

Software Outlook

On the basis of Software, the market is classified into fire analysis, video surveillance software, and access control software. In 2022, the video surveillance software segment witnessed the largest revenue share in the market. The extensive use of artificial intelligence (AI) technologies in video surveillance systems is responsible for this growth. Real-time analysis of visual and aural data from video surveillance recordings and feeds is made possible by the incorporation of AI. The identification of persons, objects, events, and more is possible because to AI's sophisticated image recognition algorithms. All of these elements help the demand for video surveillance software to grow globally.

Services Outlook

Based on services type, the market is segmented into security system integration services, remote monitoring services, fire protection services, video surveillance services, and access control services. The security system integration services segment registered the maximum revenue share in the market in 2022. Over the past few years, cyberattack risk and intensity have both increased significantly. In truth, mankind has recently witnessed some of the most terrible instances of cybercrime related to significant data breaches, microchip defects, crypto-jacking, and many other things. Attackers are becoming more sophisticated every day because of technological advancements and the widespread use of digital media.

Vertical Outlook

By Vertical, the market is bifurcated into commercial, government, transportation, retail, banking & finance, education, industrial, energy & utility, sports & leisure, healthcare, and military & defense. In 2022, the government segment procured a promising growth rate in the market. When a terrorist attack or criminal activity occurs, access control systems enable quick and efficient real-time responses. Enhancing the security and safety of the government sector and also greatly benefits from using smart cards, biometric devices, and electronic gadgets for greater security and authentication.

Commercial Security System Market Report Coverage

Report Attribute	Details
Market size value in 2022	USD 209 Billion
Market size forecast in 2030	USD 371.1 Billion
Base Year	2022
Historical Period	2019 to 2021
Forecast Period	2023 to 2030
Revenue Growth Rate	CAGR of 7.5% from 2023 to 2030
Number of Pages	419
Number of Table	634
Report coverage	Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Companies Strategic Developments, Company Profiling
Segments covered	Offering, Vertical, Region
Country scope	US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria
Growth Drivers	Growth of construction industry Increase in the use of IP cameras and video surveillance services
Restraints	Resistance to change may hinder adoption and effectiveness

Regional Outlook

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, LAMEA. The North America region led the market by generating the largest revenue share in 2022. Since it is the region with the most developed nations, North America has actively invested in developing and refurbishing public structures. For instance, the US adoption of the Infrastructure Investment and Jobs Act in November 2021 will allow for the building of utility, telecommunications, and transportation facilities across the country. Similar to the United States, Canada is likewise making substantial investments in a range of infrastructure projects, including the creation of airports, community centers, and several other public structures.

Free Valuable Insights: Global Commercial Security System Market size to reach USD 371.1 Billion by 2030

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Johnson Controls International PLC, Hangzhou Hikvision Digital Technology Co., Ltd., Honeywell International, Inc., Zhejiang Dahua Technology Co., Ltd., Dormakaba Holding AG, Bosch Security Systems GmbH (Robert Bosch GmbH), Canon, Inc. (Axis Communications, AB), Secom Co. Ltd., Assa Abloy AB and ADT, Inc.

Strategies deployed in the Market

» Partnerships, Collaborations and Agreements:

• Feb-2023: Axis Communications teamed up with Genetec following which the companies are transforming physical access controls by launching Axis Powered by Genetec. The device is the first enterprise-level access control solution in the market that integrates Genetec access control software and Axis network door controllers into a single, quickly deployable package. The AXIS A1210 and AXIS A1610 network door controllers will only be accessible through Genetec's network of authorized partners.
• Dec-2022: Hikvision announced a distribution agreement with Visiontech under which the latter company would distribute Hikvision PRO to the new markets. This agreement aimed to expand both companies' markets, combining their commercial and technical strengths to maintain the steady growth that distinguishes both businesses.
• Nov-2022: Axis Communications signed a partnership agreement with Dedrone, one of the leading companies in smart airspace security for incorporating Axis network cameras into Dedrone's counterdrone command and control platform, DedroneTracker. Dedrone is the first counter-UAS (cUAS) startup to offer a tested multi-sensor fusion driven by artificial intelligence (AI) and machine learning (ML) to automatically detect, track, and identify drones (DTI) with multi-target and multi-camera capacity with the integration of Axis cameras. This airspace security system has previously undergone successful testing at several places, including the energy plants owned by Consolidated Edison in New York City.
• Nov-2022: Johnson Controls collaborated with Dedrone, the company engaged in smart airspace security. The collaboration aimed to address the security challenges posed by unauthorized drone activity. Following this collaboration, Dedrone's cutting-edge counter-drone technology has been incorporated into Johnson Controls' product line via an open Application Programming Interface (API), giving customers everywhere access to cloud-based airspace security as a service.
• Jul-2022: Dahua Technology UK & Ireland partnered with UK Turnstiles to further reinforce the quality and footprint for specialized Dahua'a products to UK-based system integrators and installers.
• Jan-2022: ADT signed an agreement with Ford following which the companies have established a joint venture, Canopy, that integrates Ford’s AI-driven video camera technology and ADT’S professional security monitoring for helping the customers in strengthening the security of existing and new vehicles across the brands. Canopy intends to provide multi-sensor security systems that are a first for the industry. Customers will be able to quickly and easily install the first products, which will be made and sold in the U.S. and the U.K. for the most popular commercial and retail pickups and vans in the market, such as the Ford F-150, F-150 Lightning, Transit vans, and E-Transit.

» Product Launch and Product Expansion:

• May-2023: Assa Abloy announced the launch of the PE80 Series and the PED4000/PED5000 Series, two new next-generation exit devices. These devices are provided by SARGENT and Corbin Russwin, who ASSA ABLOY identified as longtime market leaders in the premium exit device market. They include first-in-industry features intended to increase convenience, safety, and security.
• May-2023: Honeywell launched the Honeywell Forge Cybersecurity+ | Cyber Insights, the operational technology cybersecurity solution, for assisting customers in enhancing the reliability, availability, and safety of their industrial control systems and operations. Cyber Insights is built to integrate data from various OT data sources to give a customer actionable insight into the cybersecurity threats and vulnerabilities facing their facility. This allows the customer to manage their compliance strategy, lowering their overall cybersecurity risks.
• May-2023: Hikvision announced the launch of the 4G solar-powered camera kit, a portfolio of wireless bridge and mobile solar security tower solutions for temporary sites and isolated areas, where internet connectivity and electricity are not available. The system includes a solar panel, a battery module, a mounting bracket, and the camera itself, which are available in two storage options 1 TB and 256 GB. It is perfect for locations with a 4G connection but no cable internet, such as farms, fishponds, motorways, urban rivers, and others. This technology is most suited for use in distant areas, such as mountainous regions and natural reserves, where the 4G signal is poor and data transfer costs are high.
• Apr-2023: Hikvision India introduced AX PRO Series wireless intrusion alarm system that provides more reliable intrusion detection with home automation features. The company has created this system with long-range detection utilizing Tri-X and Cam-X transmission technology. The range could be extended further through utilizing a range extender to cover a larger area via a single solution.
• Apr-2023: Johnson Controls launched IQ Remote PowerG Security Panel, a secondary control panel that provides the power to customers to control their security and smart home system with the enhanced reliability and range of PowerG technology. Customers may upgrade each system with up to eight IQ Remote PowerG panels. In addition to offering the same chimes, voices, and alarm sounds as IQ Panel 4, IQ Remote PowerG also offers the Live Monitor, Live Answer feature, which lets users monitor video streams from cameras and doorbells.
• Mar-2023: Johnson Controls unveiled C-Cure IQ Security Client, a security operations solution. The new solution integrates access control and video surveillance, thereby creating a full-fledged enterprise security system.
• Mar-2023: Johnson Controls released the IQ Pro Hybrid Security Panel that assists PowerG's advanced sensor technology with a wireless range and extensive portfolio of security and life safety devices. This panel has been built purposedly for intrusion protection in large residential facilities, commercial buildings, K-12 markets, and campuses. Installers can connect via Ethernet or Wi-Fi while also conversing via LTE with the help of IQ Pro.
• Oct-2022: Hikvision launched Hik-Partner Pro, a one-stop security management platform for security partners. Hik-ProConnect and Hik-ePartner have been combined into one software platform called Hik-Partner Pro, which has versions for both PCs and mobile devices as the most recent innovation to do this. Customers who currently use Hik-ProConnect or Hik-ePartner can sign into the new system using their current credentials. When customers access Hik-ProConnect or Hik-ePartner, a pop-up window will alert them to migrate and provide further directions to upgrade to or download Hik-Partner Pro.
• Sep-2022: Dahua Technology USA announced the launch of the VU-MORE Color camera, a new camera in their Lite Series that offers more options to customers for nighttime illumination. The twin IR and white-light illuminators on the VU-MORE Colour camera are intelligently deployed dependent on the illumination and motion in the scene. VU-MORE Colour is made to provide users with more control over the illumination on their security cameras. Together with Smart Dual Illumination, the Smart Motion Detection+ function enables the camera to detect motion in the environment and distinguish between human forms and animal forms or movements brought on by the weather.
• Jul-2022: Bosch Security unveiled Access Management System 4.0. The new system is equipped with various integration options and is more secure than the previous versions. Moreover, Access Management System 4.0 is equipped with additional features including an elevator dispatch system, biometric verification, key management systems, etc.
• Jul-2022: Dahua Technology released the AirShield Wireless Security System comprising PIR Detector, Alarm Hub, Smoke Detector, PIR cam, Keyfob, Door Detector, Input Expander, Repeater, Internal & External Siren, etc. The system offers contemporary households and commercial buildings with physical protection through invisible connection and boasts simple installation, dependable connectivity, user-friendly mobile management, and other innovative functionalities.
• Jan-2022: Honeywell unveiled the Honeywell Threat Defense Platform (HTDP), a new cybersecurity solution for operational technology in commercial buildings. The new system is the result of a partnership between Honeywell Building Technologies and Acalvio Technologies, a cybersecurity company with headquarters in Silicon Valley, and funding from Honeywell Ventures. To find both known and unidentified threats, HTDP makes use of autonomous deception technology from Acalvio. The software is made to make it more challenging for attackers to recognize genuine systems while directing them to decoy assets that imitate valuable IT and OT devices.

» Acquisitions and Mergers:

• Dec-2022: Johnson Controls completed the acquisition of CDS Integrated Security Systems and Gem Security Services, a pioneer system integrator providing Intelligent Business Protection Solutions. The acquisition further reinforced the former company's portfolio of interconnected and innovative electronic security solutions created for protecting people, property, and assets.
• Oct-2022: Assa Abloy completed the acquisition of Bird Home Automation GmbH, the makers of the popular DoorBird video Doorbell. The acquisition would expand and scale the former company's business with the addition of an IP door intercom and offers complementary growth opportunities.
• Aug-2022: Assa Abloy acquired Alcea, a France-based company, primarily into manufacturing and developing supervision, security systems solutions, and access control hardware. The acquisition will boost Assa's market position as a comprehensive solutions provider and further fortifies its critical infrastructure offerings.
• May-2022: ADT Commercial announced the acquisition of Key-Rite Security for expanding its footprints nationwide. The acquisition helped ADT to expand its service coverage and portfolio throughout Colorado state.
• Apr-2022: Johnson Controls took over Security Enhancement Systems, a provider of mobile-based, keyless access control solutions. Following the acquisition, SES has been integrated into Johnson Controls’ complete portfolio of security and access control technology available comprising security and access controls, video management, security as a service, IP cameras, door controllers, and card readers.

Scope of the Study

Market Segments Covered in the Report:

By Vertical

• Commercial
• Retail
• Government & Defense
• Healthcare & Lifesciences
• Banking & Finance
• Energy & Power
• Transportation & Logistics
• Industrial
• Education
• Others

By Offering

• Hardware
  • Fire Protection System
  • Video Surveillance
  • Access Control System
  • Others
• Software
  • Video Surveillance Software
  • Fire Analysis Software
  • Access Control Software
• Services
  • Security System Integration Services
  • Remote Monitoring Services
  • Fire Protection Services
  • Video Surveillance Services
  • Access Control Services

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Johnson Controls International PLC
• Hangzhou Hikvision Digital Technology Co., Ltd.
• Honeywell International, Inc.
• Zhejiang Dahua Technology Co., Ltd.
• Dormakaba Holding AG
• Bosch Security Systems GmbH (Robert Bosch GmbH)
• Canon, Inc. (Axis Communications, AB)
• Secom Co. Ltd.
• Assa Abloy AB
• ADT, Inc.