The global physical security market is expected to reach a value of US $125.03 billion by 2019, growing at a CAGR of 14.9% from 2013 to 2019. The growing threats from terrorism and crime have resulted in increasing budget allocations for physical security by governments across the world.

Moreover, government regulations demanding increased security levels is driving the adoption of physical security across several end-user sectors including industrial and business organizations.

North America was the largest market in 2012 and accounted for around 34% share of the total physical security market followed by Asia Pacific.

However, Asia Pacific is expected to surpass North America by 2015, owing to strong demand for physical security solutions in China, India, and Japan.

Growth of physical security in the region is mainly spurred by increasing demand from India and China. Increase in incidences of crime and terror along with continued investments in infrastructure in the region is expected to be the significant factor for future growth of the market.

On the basis of components, the physical security market has been segmented into hardware, software, and services. The physical security hardware market was valued at US $36.48 billion in 2012 and is estimated that over the forecast period it would grow at a CAGR of 15.1% from 2013 to 2019.