AI-powered systems, access control and integrated platforms drive growth across infrastructure and enterprise sectors
The global physical security market is expected to reach USD 108.4 billion by 2025, driven by a rising need for advanced surveillance, integrated access control, and AI-enhanced monitoring systems. The forecast, published by Coherent Market Insights, points to a compound annual growth rate (CAGR) of 4.8 per cent through to 2032, reflecting growing concerns around safety, crime prevention and critical infrastructure protection.
Industry analysts say the sector is undergoing a rapid shift from traditional systems to intelligent, connected platforms. The adoption of IP-based video surveillance, biometric access controls, and cloud-enabled infrastructure is enabling real-time threat detection and situational awareness, particularly in sectors such as transport, public safety, commercial estates and government facilities.
North America continues to dominate the global market, but the Asia–Pacific region is set to register the fastest growth. This is attributed to expanding urbanisation, large-scale smart city projects, and increasing security investments in countries like India, China and Japan.
Meanwhile, other projections suggest an even more accelerated trajectory. Grand View Research estimates the market will reach USD 158.1 billion in 2025, growing at a CAGR of 6.5 per cent, with total revenue expected to cross USD 216.4 billion by 2030. The Business Research Company offers a similar outlook, placing the 2025 figure at USD 129.4 billion, up from USD 122.5 billion in 2024.
Growth is being fuelled by several key factors:
The integration of artificial intelligence in surveillance systems, including facial recognition, behaviour analytics and automated alerts.
A shift towards unified platforms that combine physical and cyber security under one operational umbrella.
Rising regulatory and compliance requirements, along with public–private partnerships in securing critical infrastructure.
Major global players such as ADT, Bosch, Honeywell, Axis Communications, Genetec and Hikvision are leading innovation in the space, investing in hybrid systems that merge software and hardware capabilities for smarter, more scalable security.
The outlook highlights how physical security—once viewed largely as a hardware-driven sector—is evolving into a data-driven, tech-enabled pillar of enterprise and public safety strategy.
