Security sector still looking a safe bet

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Security markets across the world will recover at different rates but the outlook is still promising, finds Frost & Sullivan …

Recently published analysis from research and consulting firm Frost & Sullivan, Post-Pandemic Growth Opportunity in the Global Security Industry, finds that the security industry still offers tremendous 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, up from $109.30 billion in 2019. (In the pre-COVID-19 forecast, the industry had been estimated to increase at a CAGR of 7.1%, generating revenue of $164.97 billion over the forecast period.)

‘COVID-19 will cause a brief slowdown in the security market after almost a decade of uninhibited progress,’ says Danielle VanZandt, aerospace, defense 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 to more service-based solution offerings after years of hesitance on the part of customers to adopt these solutions.

‘The key security markets, such as disaster management, banking and finance, and airport security, will recover at different rates, and the time taken to return to pre-crisis spending levels will also vary significantly.’

Security sector trends

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:

• Digitalisation 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 unlikely to 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 investment.
• 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 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.

About Frost & Sullivan

Over more than five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, mega trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

About the report

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, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.