Commercial Security System Market Size, Share, Statistics and Industry Growth Analysis Report by Hardware (Fire Protection, Video Surveillance, Access Control, Entrance Control), Software (Fire Analysis, Video Surveillance, Access Control), Services, Vertical and Region- Global Forecast to 2028
[210 Pages Report] The Commercial Security System Market Size is expected to reach USD 343.7 Billion by 2028 from USD 236.3 Billion in 2023, at a CAGR of 7.8% during the 2023–2028 period.
A commercial security system refers to a collection of security measures implemented in a commercial setting to safeguard individuals, communities, residences, personal belongings, or organizations from potential harm. To counteract such threats, a variety of security products are utilized. The demand for security systems has risen due to the need for protection against increasingly prevalent threats, heightened consumer awareness and concerns regarding security, and the willingness to invest in security measures. The report covers several security products, including fire protection systems, video surveillance, access control systems, entrance control systems, remote monitoring services, and security system integration services.
Within the commercial security system industry, video surveillance products are projected to dominate in terms of both market growth rate and market size. Video surveillance systems employ video cameras to remotely monitor individuals, facilities, or locations. This method is highly effective and cost-efficient in ensuring the safety of people, buildings, and valuable assets. Fire protection systems play a crucial role in preventing fire accidents and minimizing the resulting damages. They also help mitigate the impact of uncontrolled fires, thereby saving lives and property. Fire protection systems encompass various components, such as fire alarms and detection systems, fire sprinkler systems, and fire suppression systems.
Commercial Security System Market Forecast to 2028
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Commercial Security System Market Dynamics
Driver: Expanding construction industry has increased the utilization of Commercial security system
The construction industry is becoming larger and more complex. According to the Global Construction Perspective, the global construction market is expected to grow to USD 8 trillion by 2030. This growth will be driven by the US, China, and India. Growth in the construction industry in the US is attributed to the high demand for housing and commercial places. The construction sector uses expensive tools, materials, and equipment that are subject to theft and vandalism. On construction sites, commercial security solutions like alarms and surveillance cameras offer defense against unauthorized access and protect priceless assets. These initiatives serve as a deterrent and aid in preventing theft, hence minimizing financial losses for construction firms.
Safety remains of utmost importance since construction sites can prove to be hazardous locations. Commercial security systems are essential for reducing safety risks since they monitor and identify possible dangers. In order to intervene immediately and take appropriate action, surveillance cameras can assist in identifying harmful practices or behaviors. They can, for instance, keep an eye on employees' compliance with safety procedures, spot unauthorized people in restricted locations, and spot prospective accidents or risks. Commercial security systems now include functions like motion detection and video analytics. By using these tools, smash-and-grab crimes, vandalism, and other potentially hazardous situations may be identified and avoided. The large, open spaces, construction sites are vulnerable to trespassing and unauthorized intrusion. Commercial security systems, such as perimeter fence and access control systems, aid in controlling access and preventing unauthorized people from entering the property. The security of the entire site is increased through access control systems, such keycards, or biometric scanners, which make sure that only authorized individuals may enter restricted areas. Surveillance cameras can capture images or videos of specific areas, providing evidence of work completion, adherence to timelines, and potential issues that may arise during the construction process.
Restraint: Resistance to change hampers the adoption and effectiveness of commercial security systems
Resistance to change can be a restraint for the commercial security system. Due to concerns about cost, complexity, and operational interruption, some firms may be reluctant to invest in new security technology or upgrade their current systems. This unwillingness to change might restrict the market for commercial security systems' expansion and keep companies from using the most recent security tools and technology. Additionally, due to worries about data privacy and cybersecurity, some firms could be hesitant to implement new security measures. They could be reluctant to adopt cloud-based security solutions or to share critical information with outside security suppliers.
The security landscape is constantly evolving, with new threats and vulnerabilities emerging regularly. Resistance to change can result in delayed responses to these evolving security challenges. Businesses that are resistant to adopting new security technologies may be more susceptible to security breaches and attacks, compromising their assets and potentially impacting their reputation.
Opportunity: Artificial intelligence (AI) and Machine learning offer intelligent insights for proactive security measures
The use of artificial intelligence (AI) and machine learning presents a significant opportunity for the commercial security system market. AI and machine learning algorithms can analyze video footage in real-time, enabling automated video analytics for commercial security systems. This technology can detect and identify suspicious activities, objects, and behaviors, such as unauthorized access, loitering, or unusual movements. By automating video analysis, security personnel can focus their attention on critical events and respond more effectively.
Artificial intelligence-powered face recognition technology can improve business security systems' access control and identification verification. Individuals may be reliably identified by facial recognition algorithms, enabling quick and secure admission into restricted locations. By making it easier to identify people of interest, this technology also improves security and monitoring procedures.
Challenge: Integrating user interfaces with fire protection systems enhances monitoring and control
The integration of user interfaces with fire protection systems is a crucial aspect of ensuring effective monitoring and control of fire safety measures. Integrating user interfaces with fire protection systems can be complex due to the diverse range of fire protection components and protocols involved. Each system may have different communication protocols, data formats, and integration requirements. Ensuring seamless interoperability and communication between these systems can be challenging.
Access control systems and fire alarm systems can be integrated, however optimal integration calls for updated technologies. The fire alarm system poses inherent challenges for the engineering team and the contractor, and each fire alarm control unit must include a listed barrier gateway to keep other interfaced systems from interfering with or endangering the fire alarm system.
Commercial Security System Market Ecosystem
The prominent players in the commercial security system market are Fortive (US), National Instruments (US), Keysight Technologies (US), Teledyne Technologies (US), and Rohde & Schwarz (Germany). These companies not only boast a comprehensive product portfolio but also have a strong geographic footprint.
The fire protection system is holds the larger market share of the commercial security system market in 2023
Fire protection systems are designed to detect and suppress fires in order to protect people and property. These systems include a variety of hardware components that work together to detect and respond to fires. Fire protection systems can be divided into two main categories: passive fire protection and active fire protection. Passive fire protection involves the use of building components to control or limit a fire. Walls, floors, and ceilings can be designed and constructed to resist the passage of fire and smoke. Active fire protection, on the other hand, involves the installation and use of structural and operational systems to minimize the impact of fire on people and property. Some of the key components of active fire protection systems include fire alarm systems, smoke detectors, sprinkler systems, fire suppression systems, building exit systems, fire doors, fire dampers, fire extinguishers, and fireproofing materials. Fire alarm systems include circuits that connect initiating devices such as smoke detectors and heat detectors. When a fire is detected, the alarm system alerts building occupants and/or the fire department.
Video surveillance software is expected to grow at the highest CAGR in the commercial security system market during the forecast period
The global market for commercial security software is set to be dominated by video surveillance software, which is expected to experience rapid growth. This growth can be attributed to the widespread adoption of artificial intelligence (AI) technology in video surveillance systems. The integration of AI enables real-time analysis of images and audio from video surveillance feeds and recordings. Additionally, AI's advanced image recognition algorithms allow for the identification of faces, objects, events, and more. These factors collectively contribute to the global expansion of the video surveillance software market.
Commercial vertical is expected to hold the largest market share and grow at the highest CAGR in the commercial security system market during the forecast period
The commercial segment of the market experiences significant growth primarily due to the escalating incidents of theft and robbery in commercial buildings. To safeguard their assets, property owners are investing in security systems. Additionally, there is a growing concern regarding information security-related crimes and robberies. In response, corporations are allocating substantial financial resources to security technology in order to enhance security measures, ensure people's safety, and address security issues. Data companies, in particular, prioritize data and information protection, leading to the widespread adoption of access control systems for server rooms. Biometric security systems, such as fingerprint recognition, are employed by large corporations to prevent unauthorized access to data centers. Similarly, in the business process outsourcing (BPO) industry, finger vein-based access control systems are utilized to safeguard data and server rooms. Door access controls, which restrict access to authorized personnel only, are implemented as physical security measures to protect server rooms.
The advanced security requirements contribute to the growing demand for security systems in the commercial sector. The increased adoption of security products, including video surveillance systems, fire protection systems, and access control systems, is driven by their ability to protect assets and human lives. To ensure the optimal functioning of such systems, regular maintenance services are necessary, further fueling the global demand for commercial security services.
Asia Pacific is expected to register the highest market share during the forecast period
Asia Pacific is experiencing rapid growth in the video surveillance market due to substantial investments in infrastructure and smart city initiatives. The region is projected to sustain a high growth rate for video surveillance systems and services in the near future. The rise in terrorist activities has compelled governments to adopt IP surveillance systems for heightened security in government buildings. Additionally, Asia Pacific has embraced video surveillance technology in the retail sector.
The increasing adoption of cloud-based services and cloud management software is expected to drive the demand for access control systems, ensuring data confidentiality and authentication. Consumers in Asia Pacific are particularly receptive to biometric technology, especially for financial transactions, as it provides an added layer of security. This is anticipated to eliminate the reliance on traditional security measures such as PINs, passwords, security questions, or various identification cards. Biometrics has also captured the interest of other industries, including healthcare and banking.
Commercial Security System Market Statistics by Region
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Key Market Players
The major players in the commercial security system companies include Johnson Controls (US), Hangzhou Hikvision Digital Technology Co., Ltd (China), Carrier (US), Honeywell International Inc. (US), Robert Bosch GmbH (Bosch Sicherheitssysteme GmbH) (Germany), Dahua Technology Inc. (China), dormakaba Group (Switzerland), ADT (US), Axis Communication AB. (Sweden), SECOM. CO. LTD, (Japan), ASSA ABLOY(Sweden), Siemens (Germany), Halma plc (US), Hochiki Corporation (Japan), Teledyne FLIR LLC(US), Allegion plc (Ireland), Nice S.p.A. (US), Alarm.com (Canada), Motorola Solutions, Inc. (Avigilon)(Canada), Dallmeier electronic (Germany), Securitas Technology (Canada), Gunnebo AB (Sweden), Control4 (US), Viking Group Inc. (US), Norden (UK), Vivint Inc (US). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partnerships to strengthen their position in the market.
Commercial Security System Market Report Scope:
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Report Metric |
Details |
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Estimated Market Size in 2023 |
USD 236.3 Billion |
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Projected Market Size in 2028 |
USD 343.7 Billion |
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Growth Rate |
CAGR of 7.8% |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/Billion), Volume (Thousand Units) |
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Segments covered |
By Hardware, By Software, By Services, By Vertical, and By Region |
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Geographies covered |
North America, Europe, Asia Pacific, and Rest of World |
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Companies covered |
The major players in the commercial security system market are Johnson Controls (US), Hangzhou Hikvision Digital Technology Co., Ltd (China), Carrier (US), Honeywell International Inc. (US), Robert Bosch GmbH (Bosch Sicherheitssysteme GmbH) (Germany), Dahua Technology Inc. (China), dormakaba Group (Switzerland), ADT (US), Axis Communication AB. (Sweden), SECOM. CO. LTD, (Japan), ASSA ABLOY(Sweden), Siemens (Germany), Halma plc (US), Hochiki Corporation (Japan), Teledyne FLIR LLC(US), Allegion plc (Ireland), Nice S.p.A. (US), Alarm.com (Canada), Motorola Solutions, Inc. (Avigilon)(Canada), Dallmeier electronic (Germany), Securitas Technology (Canada), Gunnebo AB (Sweden), Control4 (US), Viking Group Inc. (US), Norden (UK), Vivint Inc (US). |
Commercial Security System Market Highlights
The study segments the commercial security system market based on hardware, software, services, vertical, and region at the regional and global level.
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Segment |
Subsegment |
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By Hardware |
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By Software |
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By Services |
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By Vertical |
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By Region |
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Recent Developments
- In May 2023, Hangzhou Hikvision Digital Technology Co., Ltd launched 4G solar-powered camera kit, a wireless bridge, and mobile solar security tower solutions, it is common for remote locations and momentary standalone applications to lack internet access and energy. Hikvision is providing a range of solar solutions to assist maintain these locations secure in an easy, practical, and affordable manner.
- In May 2023, Carrier launched i-Vu Pro v8.5 software it is an i-Vu building automation system. A phased download procedure for more effective controller upgrades, an operator information report for improved security, and interaction with Message Queueing Telemetry Transport (MQTT) are all provided by the digital lifecycle solution.
- In March 2023, Johnson Controls launched new IQ Pro Hybrid Security Panel, it refines the commercial security sector with IQ Pro, delivering a modular architecture that allows for future hardware and software improvements and connections.
- In February 2023, Hangzhou Hikvision Digital Technology Co., Ltd partnered with Evercam Construction Cameras, in order to offer a collaborative solution that will assist construction businesses in maximising performance and reducing risk on their significant projects.
- In October 2022, Marioff, a subsidiary of Carrier extends its service agreement with BluEdge Elite to provide maintenance services for its Marioff HI-FOG systems. HI-FOG systems are currently installed aboard 46 cruise ships in Royal Caribbean Group’s fleet.
Frequently Asked Questions (FAQ):
What is the current size of the global commercial security system market?
The commercial security system market is estimated to be worth USD 236.3 billion in 2023 and is projected to reach USD 343.7 billion by 2028, at a CAGR of 7.8% during the forecast period.
Who are the winners in the global commercial security system market?
Companies such as Johnson Controls (US), Hangzhou Hikvision Digital Technology Co., Ltd (China), Carrier (US), Honeywell International Inc. (US), and Robert Bosch GmbH (Bosch Sicherheitssysteme GmbH) (Germany).
Which region is expected to hold the highest market share?
North America is expected to dominate the commercial security system market during forecast period. Presence of established manufacturing companies, increasing need for security due to increasing criminal activities are some of the major factors driving the market growth in the region.
What are the major drivers and opportunities related to commercial security system market?
The growing global rate of terrorism and organized crime have increased demand for commercial security system solutions. Implementing robust fire protection standards for effective outcome, commercial security systems have high setup, maintenance, and ownership costs, rise in government and stakeholder funding for smart city development and city surveillance solutions is a major opportunity for the commercial security system market.
What are the major strategies adopted by market players?
The key players have adopted product launches, acquisitions, collaborations, and partnerships to strengthen their position in the commercial security system market.
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The research study involved 4 major activities in estimating the size of the commercial security system market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the commercial security system market. Secondary sources considered for this research study include government sources; corporate filings (such as annual reports, investor presentations, and financial statements); and trade, business, and professional associations. Secondary data has been collected and analyzed to determine the overall market size, further validated through primary research.
Primary Research
In the primary research process, various primary sources have been interviewed to obtain qualitative and quantitative information related to the market across four main regions— Asia Pacific, North America, Europe, and RoW (the Middle East, Africa, and South America). Primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology directors, and a few other related key executives from major companies and organizations operating in the commercial security system market or related markets.
After the completion of market engineering, primary research has been conducted to gather information and verify and validate critical numbers obtained from other sources. Primary research has also been conducted to identify various market segments; industry trends; key players; competitive landscape; and key market dynamics, such as drivers, restraints, opportunities, and challenges, along with the key strategies market players adopt. Most of the primary interviews have been conducted with the supply side of the market. This primary data has been collected through questionnaires, emails, and telephonic interviews.
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Market Size Estimation
The top-down and bottom-up approaches have been used extensively in market engineering. Several data triangulation methods have also been used to perform market forecasting and estimation for the report’s overall market segments and sub-segments. Multiple qualitative and quantitative analyses have been performed on the market engineering process to gain key insights throughout the report.
Secondary research has been used to identify the key players offering commercial security systems. The revenues of those key players have been determined through both primary and secondary research. The revenues have been identified geographically as well as market segment-wise, using financial statements and analyzing annual reports of the key market players. Interviews with CEOs, VPs, directors, and marketing executives have also been conducted to gain insights into the key players and the commercial security system market. All the market shares have been estimated using secondary and primary research. This data has been consolidated, supplemented with detailed inputs and analysis from MarketsandMarkets, and presented in this report.
Market Size Estimation Methodology-Bottom-up Approach
The bottom-up approach has been employed to arrive at the overall size of the commercial security system market from the calculations based on the revenues of the key players and their shares in the market. Key players in the commercial security system market, including Johnson Controls, Hangzhou Hikvision Digital Technology Co., Ltd., Robert Bosch (Bosch Sicherheitssysteme GmbH), Honeywell International Inc., and Carrier have been studied. The market size estimations have been carried out considering the market size of their commercial security system offerings.
In the top-down approach, the overall market size has been used to estimate the size of individual markets through percentage splits from secondary and primary research.
The most appropriate parent market size has been used to implement the top-down approach for the calculation of specific market segments.
The revenue shares used earlier in the bottom-up approach were verified by identifying and estimating the market share for each company. The overall parent market size and individual market sizes have been determined and confirmed in this study through the data triangulation process and data validation through the primaries.
Data Triangulation
After arriving at the overall market size from the market size estimation process explained above, the total market has been then split into several segments and sub-segments. Data triangulation has been employed to complete the market engineering process and arrive at the exact statistics for all segments and sub-segments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market has been validated using both the top-down and bottom-up approaches.
Market Definition
A commercial security system is designed to protect businesses from various risks, including theft, fire, flood, and liabilities. The components of a commercial security system may include a security consultant, smart surveillance, video surveillance, VSaaS, types of alarm, and types of lock. There are different types of commercial security systems that businesses can choose from, depending on their needs, size, and scale. These include off-the-shelf security systems for small businesses with less than 50 employees, and professional security system companies for large businesses. A commercial security system can also include sensors that detect smoke, fire, toxic gases, water leaks, flooding, and high temperature freezing to keep employees safe from environmental hazards. One of the most significant benefits of a commercial security system is the ability to manage security despite time and geographic issues. Modern video security systems have software that allows different facilities to be viewed from a single location, reducing equipment and overhead costs.
Key Stakeholders
- Raw material and manufacturing equipment suppliers
- Component designers, manufacturers, and suppliers
- Original equipment manufacturers (OEMs) of fire protection systems, video surveillance, access control systems, and entrance control systems
- ODM and OEM technology solution providers
- Suppliers and distributors
- Security organizations
- Forums, alliances, and associations
- Technology investors
- System integrators
- Middleware providers
- Assembly, testing, and packaging vendors
- Analysts and strategic business planners
- Research institutes and organizations
- Technology standards organizations, forums, alliances, and associations
- Governments, financial institutions, and regulatory bodies
The main objectives of this study are as follows:
- To describe and forecast the overall commercial security system market by hardware, software, service, vertical, and region, in terms of value.
- To describe the different types of commercial security systems
- To forecast the market for various segments regarding 4 regions—North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
- To provide detailed information regarding drivers, restraints, opportunities, and challenges that influence the growth of the commercial security system market.
- To provide a detailed overview of the commercial security system value chain and industry trends, along with the impact of recession on the commercial security system market players
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contribution to the overall market
- To analyze opportunities in the commercial security system market for stakeholders by identifying the high-growth segments
- To strategically profile key players, comprehensively analyze their market share and core competencies2, and detail the competitive landscape for market leaders.
- To analyze competitive developments such as acquisitions, product launches and developments, contracts, expansions, investments, partnerships, collaborations, and agreements in the overall commercial security system market.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Analysis for additional countries (up to five)
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Commercial Security System Market