Latin America Physical Security Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 11.85 Billion |
| Market Size (2029) | USD 15.26 Billion |
| CAGR (2024 - 2029) | 5.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America Physical Security Market Analysis
The Latin America Physical Security Market size is estimated at USD 11.85 billion in 2024, and is expected to reach USD 15.26 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
- Physical security provides a secure framework for businesses to identify hazards and potential risks before they occur, intentionally or unintentionally. It safeguards personnel, assets, and data from unauthorized access. This productivity can be achieved by implementing various security measures, such as combination locks, alarm systems, security cameras, and lighting. The need for physical security solutions is expected to increase due to labor shortages.
- The physical security market in Latin America has undergone significant advancements, transitioning from traditional security measures like armed personnel and physical searches to more advanced ICT-based solutions. These include video surveillance, biometrics, RFID, and other cutting-edge security services. It is crucial to prioritize implementing strong security measures to protect government organizations, public places, businesses, and critical infrastructures from potential terrorist threats, sabotage, or unauthorized entry.
- The security system can be monitored from a distance or on-site and consists of cameras, DVRs, and NVRs. Video surveillance management systems monitor entry points and prevent unauthorized entry. Video surveillance systems typically employ various technologies, such as CCTV technology. The development of advanced video surveillance technologies, such as high-resolution cameras, intelligent analytics, and remote monitoring capabilities, is increasing the need for more advanced video surveillance solutions.
- In June 2023, RGB Spectrum announced the installation of a video wall processor for the command-and-control center at the Chilean port. The port, which is Chile's second busiest port, was facing increased demand for cruise and freight services and necessitated a significant improvement in real-time tracking of operations, such as ship loading, unloading, and drug and explosives detection, to improve personnel's ability to identify and respond to potential concerns quickly and efficiently.
- Latin America has a significant demand for physical security solutions. The industrial sector in the area is experiencing convergence, which suggests that the market is increasingly adopting these solutions to address criminal activities. As a result, spending in this sector is expected to rise in the upcoming years. Countries like Brazil, Argentina, México, Chile, and others are likely to lead the way in the physical security market in Latin America.
- Hybrid-cloud adoption is on the rise in the physical security space. For instance, according to various sources, the onset of the pandemic in Mexico in November 2022 led to a surge in demand for cloud-based services. As a result, the cloud became an increasingly important component of any organization's strategic plan, even more so than before the outbreak.
- The market for physical security has been steadily expanding, although there was a slight decline during the pandemic. However, the post-pandemic scenario further stimulated the demand for voice control within homes, increasing awareness and acceptance of additional intelligent home devices and services. As a result, there is likely to be a shift in consumer spending toward technology-based services for residential consumption. Physical security systems allowed compliance with hygiene regulations and mask requirements.
- The installation costs of physical security systems are a significant restraining factor that may prevent some organizations from utilizing them. Physical security systems typically incorporate innovative technologies such as AI (artificial intelligence), machine learning (ML), Internet of Things (IoT) devices, and sensors, which can be costly to develop and implement. In addition, physical security systems require periodic maintenance, and the maintenance costs are borne by the end users of that equipment over its lifetime, thus increasing the burden on end users.
Latin America Physical Security Market Trends
Video Surveillance Systems Are Expected to Hold a Significant Market Share
- The need for video surveillance has increased due to the increased rate of criminal activity. Security organizations are preparing to develop more sophisticated versions of existing CCTV software, as it has become essential for both civilian and corporate entities to take security measures.
- The growing demand for security and surveillance services due to the rise in criminal activity is creating the need for sophisticated solutions, such as robots, that can evaluate real-time occurrences and provide a live view to the security officer. Commercial security robots are increasingly becoming crucial in the security and surveillance of commercial buildings and sites. Violations of security regulations can have serious repercussions not only on the company but also on the broader community and economy. These factors force robots to ensure facilities' security through surveillance and related security measures.
- In May 2023, the Argentine government announced that it had increased the resources available to federal security forces in the region to combat drug trafficking and violence. Additionally, the government declared it planned to install 600 surveillance cameras with face recognition software in Rosario and establish a branch of its Anti-Money Laundering Agency to address drug-related financial activities.
- Organizations and individuals are increasingly acknowledging the necessity of proactive security protocols, leading to increased demand for comprehensive physical security systems incorporating sophisticated video surveillance capabilities. For instance, the Federal District Court, Brazil, implemented a district-wide security system in June 2023 to protect defendants from escape during the trial and to detect potential criminals roaming its premises. The system was equipped with intelligent video analytics from Axis Communications and Bosch, all integrated with the open platform Milestone Xprotect Expert video management software (VMS).
- The use of AI in video surveillance has surged recently as several end users have become aware of its capabilities and advantages. AI-powered video surveillance systems can improve safety and operational efficiency and reduce costs. Mexico is a significant security market in Latin America owing to its size, prominent industries, growth, and overall demand.
- Security is a highly dynamic sector of the economy. In 2022, approximately 60,548 private residences were reported as having been burglarized. As the number of burglaries in Mexico has been on the rise in recent years, the issue of safety and security remains a pressing concern for citizens.
Brazil is Expected to Witness Significant Market Growth
- Biometric data is stored securely and encrypted, protecting sensitive personal data. As biometrics become more widespread, various sectors are beginning to recognize their benefits in terms of productivity, user-friendliness, and security. This increasing recognition prompts the need for physical security solutions incorporating biometrics.
- In August 2023, Valid and Innovatrics developed a biometric system to be used for school roll calls across Brazil. It was expected to be revolutionized by the implementation of face biometric technology. This new system was implemented in Paraná (Brazil) to reduce the time spent on roll calls by up to 80%. The detection software extracts the face of each student from the photographs. Such a rise in biometric systems across Brazil will likely boost the physical security market.
- In January 2023, the Brazilian police announced plans to use facial recognition technology to identify protesters who had vandalized government buildings, further intensifying state control in a development that raised concerns among privacy and human rights advocates. Thousands of protesters had vandalized the Supreme Court, Congress, and presidential offices in the city of Brazil, leading to the arrest of approximately 1,000 individuals. The police had previously stated that biometric data would be used to identify the perpetrators of the vandalism.
- Vehicle break-ins are becoming increasingly prevalent, increasing the demand for physical security solutions. For instance, in Brazil in 2022, there were 225,200 reported vehicle break-ins, an increase of 188,900 from the previous year. These statistics raised awareness regarding the need for improved protection and prevention measures, increasing the demand for advanced physical security solutions.
- The Brazilian electronic security sector had projected a positive outlook for 2023, with increased demand from both public and private sectors for AI and 5G solutions and efforts to address economic and regulatory challenges.
- In December 2022, the Brazilian subway system of Sao Paulo Metro implemented ISS face biometrics technology on Line 3-Red. This system is capable of identifying and tracking objects. As a result of the project, approximately 1,400 cameras were installed across 18 transit stations, of which 945 were new models that replaced older models. The system also included passenger flow control and other measures to enhance passenger safety.
Latin America Physical Security Industry Overview
The Latin American physical security market is fragmented, with several players operating in it. The high expense on research and development, new product launches, partnerships, collaborations, and mergers and acquisitions are the prime growth strategies adopted by the companies in the region to sustain the intense competition. Key players in the market include Bosch Security Systems GmbH, Dahua Technology Co. Ltd, Johnson Controls, Genetec Inc., Hangzhou Hikvision Digital Technology Co. Ltd, Securitas AB, Secom Co. Ltd, G4S Limited, Siemens, Schneider Electric, and Honeywell International Inc.
- May 2023: Qognify, a subsidiary of Hexagon, an enterprise video and incident management solution provider, partnered with Johnson Controls Security Products to provide a comprehensive physical security solution. This integration between the two companies' products, Qognify VMS and Johnson Controls EntraPass (Kantech EntraPass), allows the display of door held open, forced door alarms, and clearance alarms as events within the VMS, synchronized to the relevant video recording.
- February 2023: Genetec, in partnership with Axis Communications, declared a change in the paradigm of physical access control with the announcement of its new product, Axis Powered by Genetec. This enterprise-grade access control solution is an advanced product, combining Genetec's access control software and Axis' network door controllers into a single, easy-to-deploy package. The product was expected to be exclusively available through the network of Genetec's certified partners, who would provide the inventory for the Genetec-engineered AXIS A1120 and Genetec AXIS A1125 network door controllers.
Latin America Physical Security Market Leaders
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Bosch Security Systems GmbH
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Dahua Technology Co., Ltd
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Johnson Controls
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Genetec Inc.
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Hangzhou Hikvision Digital Technology Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Latin America Physical Security Market News
- June 2023: Robert Bosch developed a panoramic camera system, the FLEXIDE 5100i, which enhances situational awareness by integrating audio AI. As with all Bosch products, this new camera system combines AI with the IoT, efficiently converting video data into useful information. The cameras provide a 360-degree field of view with no dark spots, a built-in microphone array, and three MEMS acoustic sensors that can detect sound from any angle to assist operators in locating the desired area.
- February 2023: Dahua Technology released the IPC WizMind S, designed to provide improved image clarity and enhanced AI capabilities. This IPC WizForce Series optimizes image quality through a selection of image enhancement technologies that address the intricate challenges of security solutions. Artificial Intelligence generates AI-powered images and offers full-image transparency in various environments. The brightness of footage in low light conditions is more evenly distributed, and key objectives can be intelligently targeted through deep-learning algorithms to eliminate noise and restore detail.
Latin America Physical Security Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Government Regulations have Mandated High-Security Protocols
- 5.1.2 Increasing Proliferation of Smart Cities and Smart Buildings
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5.2 Market Challenges
- 5.2.1 The Prevalence of Security Breaches in Physical Security Systems is on the Rise
- 5.2.2 Rising Concerns Related to Data Privacy
6. MARKET SEGMENTATION
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6.1 By System Type
- 6.1.1 Video Surveillance System
- 6.1.1.1 IP Surveillance
- 6.1.1.2 Analog Surveillance
- 6.1.1.3 Hybrid Surveillance
- 6.1.2 Physical Access Control System (PACS)
- 6.1.3 Biometric System
- 6.1.4 Perimeter Security
- 6.1.5 Intrusion Detection
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6.2 By Service Type
- 6.2.1 Access Control as a Service (ACaaS)
- 6.2.2 Video Surveillance as a Service (VSaaS)
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6.3 By Type of Deployment
- 6.3.1 On-Premises
- 6.3.2 Cloud
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6.4 By Organization Size
- 6.4.1 SMEs
- 6.4.2 Large Enterprises
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6.5 By End-user Industry
- 6.5.1 Government Services
- 6.5.2 Banking and Financial Services
- 6.5.3 IT and Telecommunications
- 6.5.4 Transportation and Logistics
- 6.5.5 Retail
- 6.5.6 Healthcare
- 6.5.7 Residential
- 6.5.8 Other End-user Industries
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6.6 By Country***
- 6.6.1 Brazil
- 6.6.2 Mexico
- 6.6.3 Argentina
- 6.6.4 Colombia
- 6.6.5 Chile
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Bosch Security Systems GmbH
- 7.1.2 Dahua Technology Co., Ltd
- 7.1.3 Johnson Controls
- 7.1.4 Genetec Inc.
- 7.1.5 Hangzhou Hikvision Digital Technology Co., Ltd.
- 7.1.6 Securitas AB
- 7.1.7 Secom Co., Ltd
- 7.1.8 G4S Limited
- 7.1.9 Siemens AG
- 7.1.10 Schneider Electric
- 7.1.11 Honeywell International Inc.
- 7.1.12 Axis Communications AB
- 7.1.13 NEC Corporation
- 7.1.14 HID Global Corporation
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityLatin America Physical Security Industry Segmentation
Physical security refers to preventing unauthorized intruders from accessing controlled facilities. Physical security technologies have developed significantly recently, offering advanced protection at competitive prices. Physical security devices utilize cloud technology and AI for even more sophisticated real-time data processing. Various automated physical security components can perform multiple functions in a physical security system.
The Latin American physical security market is segmented by system type (video surveillance system [IP surveillance, analog surveillance, and hybrid surveillance], physical access control system (PACS), biometric system, perimeter security, and intrusion detection), service type (Access Control-as-a-Service (ACaaS) and Video Surveillance-as-a-Service (VSaaS)), type of deployment (on-premises and cloud), organization size (SMEs and large enterprises), end-user industry (government services, banking and financial services, IT and telecommunications, transportation and logistics, retail, healthcare, residential, and other end-user industries), and country (Brazil, Mexico, Argentina, and the Rest of Latin America). The report offers the market sizes and forecasts for all the above segments in terms of value (USD).
| By System Type | Video Surveillance System | IP Surveillance |
| Analog Surveillance | ||
| Hybrid Surveillance | ||
| By System Type | Physical Access Control System (PACS) | |
| Biometric System | ||
| Perimeter Security | ||
| Intrusion Detection | ||
| By Service Type | Access Control as a Service (ACaaS) | |
| Video Surveillance as a Service (VSaaS) | ||
| By Type of Deployment | On-Premises | |
| Cloud | ||
| By Organization Size | SMEs | |
| Large Enterprises | ||
| By End-user Industry | Government Services | |
| Banking and Financial Services | ||
| IT and Telecommunications | ||
| Transportation and Logistics | ||
| Retail | ||
| Healthcare | ||
| Residential | ||
| Other End-user Industries | ||
| By Country*** | Brazil | |
| Mexico | ||
| Argentina | ||
| Colombia | ||
| Chile |
Latin America Physical Security Market Research FAQs
How big is the Latin America Physical Security Market?
The Latin America Physical Security Market size is expected to reach USD 11.85 billion in 2024 and grow at a CAGR of 5.20% to reach USD 15.26 billion by 2029.
What is the current Latin America Physical Security Market size?
In 2024, the Latin America Physical Security Market size is expected to reach USD 11.85 billion.
Who are the key players in Latin America Physical Security Market?
Bosch Security Systems GmbH, Dahua Technology Co., Ltd, Johnson Controls, Genetec Inc. and Hangzhou Hikvision Digital Technology Co., Ltd. are the major companies operating in the Latin America Physical Security Market.
What years does this Latin America Physical Security Market cover, and what was the market size in 2023?
In 2023, the Latin America Physical Security Market size was estimated at USD 11.23 billion. The report covers the Latin America Physical Security Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Physical Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Physical Security Industry Report
Statistics for the 2024 Latin America Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Physical Security analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
