LONDON--(BUSINESS WIRE)--The global physical security market in the retail sector is expected to grow at a CAGR of nearly 7% during the forecast period, according to Technavio’s latest report.
In this report, Technavio covers the market outlook and growth prospects of the global physical security market in the retail sector for 2016-2020. The market is further categorized into three segments by type, including EAS (electronic article surveillance), video surveillance systems, and access control and intruder alarm system, of which the EAS market in retail sector will grow at a CAGR of 7% by 2020.
“The global retail market will grow significantly during the forecast period, driven by the discount, dollar store, food, and service retail concepts. Restaurants will be the strongest category in terms of overall unit growth among all retail concepts. The demand for physical security deployments will increase in line with the significant growth in the global retail industry,” says Amrita Choudhury, a lead IT security research analyst from Technavio.
Technavio’s research study segments the global physical security market in the retail sector into the following regions:
In 2015, with a market share of 47%, the Americas dominated the global physical security market in retail sector, followed by EMEA with 38% and APAC with 15%.
Americas: largest physical security market in retail sector
By 2020, the physical security market in retail sector in the Americas will account for a market share of over 46%, growing at a CAGR of over 6%. Though the market share of the Americas region is decreasing, the market is likely to have increased demand for security solutions because of growth in the number of retail stores and facilities. Several international retailers are expanding in the US. Wal-Mart Stores, a multinational retail corporation that owns and operates a chain of retail stores in different formats such as restaurants, supermarkets, apparel stores, discount stores, drug stores, and hypermarkets, is also planning to expand its business in different locations across the Americas.
US retailers are using several tools to combat retail shrinks, such as video surveillance, alarm monitoring, and security guards. The most common solutions in the country to protect merchandise are EAS, security keepers, and advanced inventory control tactics.
“The US is one of the most advanced retail markets globally, with significant amounts of retail spending, and the market is attracting international retailers. The portal cities of New York City, San Francisco, Miami, Chicago, and Los Angeles have the presence of most global brands,” says Amrita.
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Increasing awareness about retail shop security fueling the market in EMEA
The physical security market in retail sector in EMEA will account for a market share of over 38% by 2020, growing at a CAGR of nearly 7%. The Middle Eastern cities such as Dubai, Kuwait, Abu Dhabi, Jeddah, and Riyadh are emerging as business and travel hubs, and they are attracting more global retail brands. The cities' strong in-place tourism helps increase the flow of foreign money. The cities have affordable retail space, supported by franchise structures, which are feasible options for international retailers. In addition, the international brands can enter into the Middle East's retail market without too much competition from domestic brands, because the domestic retail market is not as mature compared to other regions.
Furthermore, the quickening pace of recovery in many of traditional European markets is evident to both the adaptability of the many retail partners such as SPAR. Recovery in European markets had gathered pace with strong retail sales growth reported by SPAR Austria, SPAR Belgium, and SPAR Hungary. Among the African countries, Nigeria was the second-largest market for video surveillance systems in the Sub-Saharan region after South Africa in 2015.
APAC to post a CAGR of more than 7% during the period 2016-2020
The physical security market in retail sector in APAC will account for a market share of above 15% by 2020. The revenue of the market is expected to increase because of the rapid growth in the retail sector across APAC. Asia is always an attractive region for international retailers, and it is evident from the global retail development index 2015 for countries like China, India, Mongolia, and Malaysia. Additionally, India is benefiting from its the economic stability and regulatory reforms, which are aimed at improving ease of doing business. China's number one spot in the list is due to the shift in the economy from an infrastructure investment-driven model to consumer consumption model. The growing middle class coupled with the relaxation of one-child policy will boost consumer spending in the country, leading to higher retail market growth during the forecast period.
With the rise in the number of international retail chains entering the local market, the adoption of security solutions to prevent inventory shrinkage has increased. This is expected to create awareness about the requirement of security solutions among the local retail stores.
The top vendors in the global physical security market in the retail sector highlighted in the report are:
- Axis Communications
- Checkpoint Systems
- Tyco Security
Browse Related Reports:
- Global Cloud Security Market in the Retail Sector 2016-2020
- Global Inventory Management Software Market in the Retail Sector 2016-2020
- Global Mobile Identity Management Market 2016-2020
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