Global Security Industry Shifts to Service-based Solution Offerings Post-Pandemic

Security markets across countries will recover at a different pace but the outlook is promising,finds Frost & Sullivan

SANTA CLARA,California,June 25,2020 -- Frost & Sullivan's recent analysis,Post-Pandemic Growth Opportunity in the Global Security Industry,finds that the security industry has tremendous investment opportunities despite the economic slowdown witnessed due to COVID-19. Under an aspirational recovery scenario,the global security industry is likely to grow at a compound annual growth rate (CAGR) of 4.3%,garnering revenue of $140.60 billion by 2025 from $109.30 billion in 2019. The conservative forecast scenario predicts that the industry will generate $131.01 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 $164.97 billion over the forecast period.

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"COVID-19 will cause a brief slowdown in the security market after almost a decade of uninhibited progress," said Danielle VanZandt,Aerospace,Defense & 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 to more service-based solution offerings after years of hesitance by customers to adopt these solutions."

VanZandt added: "The key security markets such as disaster management,banking and finance,and airport security will recover at a different pace,and 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. The following trends are forecast to generate growth opportunities in this sector:

Digitalization priorities:Remote/cloud-connected access to security systems and monitoring tools will witness a drastic rise in demand as manned guarding will become extremely limited due to stay-at-home orders issued by state or federal governments,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,and 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 vendors repeat business opportunities.

Sensors-to-action:Vendors must prioritize 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 Industryis the latest addition to Frost & Sullivan's Aerospace,Defense & Security research and analyses available through the Frost & Sullivan Leadership Council,which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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Post-Pandemic Growth Opportunity in the Global Security Industry

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