|Home>||Security||>Access Control||>Security industry predicted to shift towards service-based solution offerings post-pandemic|
|Home>||Security||>CCTV||>Security industry predicted to shift towards service-based solution offerings post-pandemic|
|Home>||Security||>Cyber Crime||>Security industry predicted to shift towards service-based solution offerings post-pandemic|
Security industry predicted to shift towards service-based solution offerings post-pandemic
05 August 2020
THE LATEST analysis completed by market researcher Frost & Sullivan, entitled ‘Post-Pandemic Growth Opportunity in the Global Security Industry’, finds that the security business sector harbours tremendous investment opportunities despite the economic slowdown witnessed due to the COVID-19 pandemic.
Under an aspirational recovery scenario, according to Frost & Sullivan the global security industry is likely to develop at a compound annual growth rate (CAGR) of 4.3%, garnering revenue of circa £112 billion by 2025 from circa £87 billion in 2019. The conservative forecast scenario predicts that the industry will generate circa £104 billion between 2019 and 2025 at a CAGR of 3.1%.
In the pre-COVID-19 forecast, the industry was estimated to increase at a CAGR of 7.1%, generating revenue of circa £131 billion over the forecast period.
“COVID-19 will cause a brief slowdown in the security market after almost a decade of uninhibited progress,” explained Danielle VanZandt (aerospace, defence and security industry analyst at Frost & Sullivan). “Additionally, while some security sectors may find themselves experiencing a slower recovery than others, much of the industry will witness a shift towards more service-based solution offerings after years of hesitance by customers to adopt these types of solutions.”
VanZandt added: “The key security markets such as disaster management, banking and finance, as well as airport security, will recover at a different pace. The time taken to return to pre-crisis spending levels will also vary significantly. Markets that will record higher-than-average CAGRs during the recovery period include ports (4.5%), disaster management (4.0%), first responders (4.0%) and mass transit (4.0%).”
Despite a marginal slowdown expected in 2020 and 2021, strong demand-side trends will present “immense development potential” for security market participants.
Trends for growth
The following trends are forecast to generate growth opportunities in the security business sector:
*Digitalisation priorities: Remote/cloud-connected access to security systems and monitoring tools will witness a dramatic rise in demand as security guarding will become extremely limited due to stay-at-home orders and likely not recover once those orders expire
*Emphasis on contactless technologies: In the post-pandemic period, contactless technologies such as biometrics, remote access and authentication, in addition to multi-use analytics solutions, will attract investments
*Plug-and-play surveillance: Customer willingness to deploy plug-and-play surveillance equipment over permanent system additions due to cost-effectiveness will offer solution vendors repeat business opportunities
*Sensors-to-action: Vendors must prioritise the development/enhancement of data analytics and sensor networks’ capabilities to provide increased value to customers without having to purchase new solutions or equipment
‘Post-Pandemic Growth Opportunity in the Global Security Industry’ is the latest addition to Frost & Sullivan’s Aerospace, Defence and Security research and analyses available through the Frost & Sullivan Leadership Council.