Industrial Security Systems Market Size, Share, Trends, Growth 2030

Industrial Security Systems Industry Prospective:

The global industrial security systems market size was worth around USD 51.52 Billion in 2022 and is predicted to grow to around USD 91.71 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.512% between 2023 and 2030.

The report analyzes the global industrial security systems market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the industrial security systems industry.

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Industrial Security Systems Market: Overview

Industrial security systems are a set of processes, technologies, and policies that are designed to ensure the protection of the safety of physical and digital assets of an industrial facility. The main goal of these systems and tools is to safeguard assets against different types of security threats including theft, sabotage, espionage, and terrorism.

The industrial security system market refers to the production and distribution of several products or services associated with these systems. It includes various technologies, such as access control systems, surveillance cameras, intrusion detection systems, fire and smoke detectors, and alarm systems. It also consists of associated services such as consulting, design, installation, maintenance, and training. As companies and industrial units are working toward ensuring the safety of their products, data, and physical assets, the demand for such industrial security systems has been on the rise in recent times. During the forecast period, the market is projected to grow at a steady rate.

Key Insights:

• As per the analysis shared by our research analyst, the global industrial security systems market is estimated to grow annually at a CAGR of around 7.512% over the forecast period (2023-2030)
• In terms of revenue, the global industrial security systems market size was valued at around USD 51.52 billion in 2022 and is projected to reach USD 91.71 billion, by 2030.
• The industrial security systems market is projected to grow at a significant rate due to the rising cases of a security breach
• Based on technology segmentation, scanning was predicted to show maximum market share in the year 2022
• Based on end-user segmentation, the defense was the leading user in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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Industrial Security Systems Market: Growth Drivers

Rising cases of security breaches to propel market growth

The global industrial security systems market is expected to grow owing to the increasing incidents of security breaches across the globe and in all industry verticals. In current times, security concerns are not limited to one particular sector anymore as every company including small firms and large corporations are prone to several types of security attack including cyber-crimes and other events that may occur in the vicinity of the industrial facility.

This has led to companies and business leaders seeking advanced tools, systems, software programs, surveillance cameras, and every other measure possible to improve the overall security of the company. For instance, as per IBM’s Data Breach Report published in 2021, the total cost of a data breach in 2020 was close to USD 4.24 million. In 2017, India lost close to 11.7 lakh man-days due to manpower strikes. Some of these events are known to be more aggressive causing loss of life and other assets of the companies.

Industrial Security Systems Market: Restraints

High cost of the systems to restrict the market growth

One of the key restraints in the global industrial security systems market is the high cost associated with the implementation and use of industrial security systems. While some of the tools may be accessible to some segments of potential customers, some of the tools are expensive since they require extensive digital infrastructure to support the smooth functioning of the tools. This could greatly restrict smaller companies that work on tighter budgets or may lead to slower adoption of the systems. In addition to this, such technologies are complex to manage and may not be cost-effective for companies with restricted resources.

Industrial Security Systems Market: Opportunities

Growing adoption of cloud-based solutions to provide growth opportunities

As the world is slowly moving toward cloud-based solutions, the industrial security systems industry may also witness higher growth opportunities. This is especially applicable to companies that work as third-party vendors as more companies are likely to outsource services related to industrial security systems. By undertaking assistance from third-party vendors, companies can focus on their primary operations and leave the additional tasks with the service providers.

Industrial Security Systems Market: Challenges

Skill shortage to challenge market growth

In the coming years, the demand in the industrial security systems industry is expected to continue rising. However, the industry expansion faces a challenging situation in terms of a severe lack of sufficient skilled professionals that can manage cybersecurity issues, especially events that are more intense or serious than others. Furthermore, there is a growing resistance to change in companies as well as personnel working for the firms as they may not be comfortable with the adoption of new systems.

Industrial Security Systems Market: Segmentation

The global industrial security systems market is segmented based on end-user, offering, technology, and region.

Based on end-user, the global market segments are defense, manufacturing, educational, service, and others. In 2022, the industry witnessed the highest growth in the defense segment, and during the forecast period, it is expected to continue its dominance. The high segmental revenue is driven by the growing expenditure by regional governments on systems and technologies to ensure national safety. In current times, when the global political situation is undergoing tremendous change with the rising concerns over potential conflict between countries such as the US, China, Taiwan, Japan, North Korea, and others, the need for improving and enhancing activities for curbing security breaches has reached new levels. Currently, severe countries have been accused of infiltrating the defense facilities of other countries which has led to higher demand for these systems. For instance, Russia's military budget in 2022 was USD 75 billion.

Based on offering, the global industrial security systems market divisions are systems and services.

Based on technology, the global market is segmented into scanning, imaging, sensing, and others. In 2022, the highest growth was in the scanning segment which refers to the processes undertaken to scan the security of a web-based program or a website along with file systems and networks. This process ensures that there are no harmful elements attached to the platform being accessed. Sensors, on the other hand, are tools that detect environmental factors and send out alarms to concerned authorities in case of any anomalies or deviation from the ideal environment. To restrict access to sensitive areas, companies or units may use access control systems. In 2020, Alphabet, the parent company of Google, spent nearly USD 18.5 billion on research & development which included investments in digital security.

Recent Developments:

• In April 2023, Socura, a UK-based cybersecurity firm, announced the launch of its Secure Access Service Edge (SASE) program. The new launch is in partnership with Palo Alto Networks’ Prisma. The company expects to bring changes to the lesser-explored sector of SASE technology in the coming years. With the new services, the company is expecting to target small and medium enterprises
• In March 2022, Hexagon and Ouster announced the launch of a new and advanced light Detection and Ranging (Lidar) solution with a core focus on the multi-billion dollar market of physical security

Industrial Security Systems Market: Report Scope

Industrial Security Systems Market: Regional Analysis

North America to register the highest growth

The global industrial security systems market is expected to witness the highest growth in North America during the forecast period. The US is projected to lead with the largest part of the regional market share. The growth rate is mainly driven by the presence of some of the world’s most dominating companies that deploy industrial security systems worth millions of dollars. In addition to this, the US is home to several companies that have pioneered the development of some of the most acclaimed industrial security systems and are used for military or non-military purposes across the globe.

During the coming years, the US government is expected to invest more in its defense sector to improve its safety protocols protecting data and other assets owned by the regional defense segment. In Asia-Pacific, the growth is expected to be led by the high adoption of the systems in the growing manufacturing segment and the adoption of Industry 4.0 technologies.

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Industrial Security Systems Market: Competitive Analysis

The global industrial security systems market is led by players like:

• Honeywell International Inc.
• Johnson Controls International PLC
• Siemens AG
• Schneider Electric SE
• ABB Ltd.
• Bosch Security Systems Inc.
• Axis Communications AB
• Cisco Systems Inc.
• Symantec Corporation
• McAfee LLC
• IBM Corporation
• Fortinet Inc.
• Thales Group
• Lockheed Martin Corporation
• Northrop Grumman Corporation
• Raytheon Technologies Corporation
• BAE Systems PLC
• Booz Allen Hamilton Inc.
• Accenture PLC
• Deloitte Touche Tohmatsu Limited
• KPMG International Cooperative
• PwC International Ltd.
• Ernst & Young Global Limited
• G4S plc
• Securitas AB.

The global industrial security systems market is segmented as follows:

By End-User

• Defense
• Manufacturing
• Educational
• Service
• Others

By Offering

• Systems
• Service

By Technology

• Scanning
• Imaging
• Sensing

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa