Perimeter security has come a long way from simple fences installed around the outer bounds of premises. As a market, growth has been steady due to increased terror threats globally.
The perimeter security market is expected to reach US$196.6 billion by 2022, up from $110.6 billion in 2017, at a compound annual growth rate (CAGR) of 12.2 percent between 2017 and 2022, according to a report by MarketsandMarkets. Market growth is primarily attributed to the rise in terror attacks worldwide. Increasing technological developments in video surveillance are also fuel-ing the demand for perimeter security systems and services, as is the increased usage of the Internet of Things (IoT) and smart technologies.
In North America, which is expected to hold the largest share of the global market, an increase in terrorist activities, illegal immigration and criminal activities are the biggest factors driving the perimeter security market growth, according to MarketsandMarkets.
Dori Ribak, VP of Marketing at
RBtec Perimeter Security Systems, also pointed to a rise in crime, theft and vandalism in the commercial and industrial market in North America. He attributes this to less available police, which forces businesses to protect themselves without relying on the police to help or stop crimes.
The fastest growing region for the perimeter security market, however, is APAC. This is a result of economic development in terms of infrastructure (e.g., airports, railways and highways) and strong growth in financial and banking services, which MarketsandMarkets believes will serve as opportunities for growth of the region’s perimeter security market.
Verticals demanding more
The increasing number of threats has made
perimeter security a much more important issue in critical infrastructures such as utilities, transportation, government and defense establishments, according to a report by Memoori. Threats can cause major disruptions to the operations of these infrastructures and lead to huge losses across the whole economy.
Companies specializing in perimeter security have noticed steady growth in the market resulting from an increased concern over protecting critical infrastructure and a willingness to spend more money to do so.
Stewart Dewar, Product Manager at
Senstar, named utilities, oil and gas, commercial and corrections as verticals with visible growth in demand.
“There is pressure on utilities to ‘keep the lights on’ and protect sites from a full range of threats including vandalism, militant activists and terrorist activity. This growth is also partly driven by increased government regulations,” Dewar said.
Stewart Dewar,
Product Manager,
Senstar
The oil and gas market has long been a strong contributor to the global perimeter market due to the various threats it constantly faces. Dewar pointed out that many countries, even ones like Canada who are considered to have a low threat level, have been investing a great deal of money to protect above-ground infrastructure primarily due to increased recognition of its criticality.
In the commercial sector, increased demand for perimeter security is being driven by advances in perimeter technology, which is making it more appropriate and affordable for smaller installations. More commercial customers are also starting to accept perimeter security as a necessary alarm system to protect their business. “Businesses are constantly looking for solutions they can easily add to their existing fence,” Ribak said.
Data centers are also seeing an increase in deployments as more and more people and organizations use cloud-based services. As such, data centers have become targets for attackers. “Data centers continue to increase in their degree of criticality, which in turn requires increased security,” Dewar added.
Current technological trends
Integration with and adoption of new and advanced technologies is expected to help drive market growth. Memoori specifically pointed to advances in sensor technologies, wireless technology and radar and integration with video surveillance, access control and outdoor lighting as drivers that will further increase market demand. The introduction of video analytics and deep learning software are also expected to have a big impact on the intrusion alarm and perimeter protection market.
“Steady improvements in video analytic technology combined with higher-performance, lower-cost surveillance cameras have improved the effectiveness of using analytics as part of perimeter intrusion solutions,” Dewar said.
The integration of systems to create comprehensive security solutions is a key trend for the perimeter market, according to Dewar. “For example, the Senstar LM100 combines perimeter intrusion detection and intelligent lighting. These combined systems result in a lower total cost of ownership while improving deterrence, detection and assessment.”
Tomohiro Tsuji, Senior Manager of Sales and Marketing at
Optex, explained how image sensing technology has influenced perimeter security by providing additional features to video surveillance cameras, such as object recognition of humans, cars and animals. Detection performance and reliability, however, have not met industry expectations due to miss alarm as well as false alarm issues as a result of light, rain, insects, etc., he added. “Therefore, proven technologies like laser, fiber optics, infrared beam, microwave and even passive infrared are being used for more reliable performance.”
As fiber optic technologies continue to increase in popularity for both fence-mounted and buried perimeter detection applications, the key to its popularity is their absolute immunity to lightning and electromagnetic interference, explained Dewar. It is also intrinsically safe for use in areas with explosive gas hazards.