According to RationalStat’s analysis, the Middle East & North Africa (MENA), physical security market is estimated at US$ 1.8 billion in 2022 and is expected to reach US$ 3.0 billion by 2028, growing at a CAGR of around 7% from 2022 to 2028. The physical security market of the region is mainly driven by increasing construction activities, increased number of commercial facilities, growing smart city projects, and growing theft, burglaries, and terrorist activities.

Physical security involves a variety of products including cameras, access control systems, fire & life safety, intrusion & perimeter, and barriers used to track movement, and changes, detect unauthorized access and monitor the surroundings. Key products considered are video surveillance cameras, access control systems, fire & life safety equipment, intrusion & perimeter security systems, and barriers for parking and security gates.

Peaked construction activities in the MENA region especially in GCC countries during recent times have surged the demand for physical security solutions in the region. A significant increase in the number of commercial facilities such as malls, hospitals, and corporate offices across the MENA region has further fueled the demand for physical security solutions in recent times. The growth in spending by government bodies across the region on the installation of new physical security systems such as video surveillance, access control & others in government offices & public facilities is anticipated to provide growth opportunities to the MENA physical security market. This increased spending on physical security by government entities can be attributed to the growing security concerns due to the increasing theft, burglaries, and terrorism.  

Notable Takeaways in the MENA Physical Security Market:

  • There was a considerable demand for contact-based biometric and access control systems following the COVID-19 epidemic.
    • The primary drivers of the market growth are the rapid acceptance of contactless biometric systems in the pandemic and the growing demand for video surveillance solutions, particularly for remote monitoring activities. The market for physical security services has witnessed negative growth during the epidemic.
  • Commercial spending on physical security systems will grow at a robust rate, however, household spending in the segment will remain moderate. With the rise in construction projects and the development of smart cities across MENA, commercial spending on physical security systems is expected to grow exponentially.

Middle Eastern countries are working towards digital transformation to attract foreign investments. 5G network deployment fuels the digital transformation, IoT, smart cities, and the fourth industrial revolution. In MENA, the number of mobile internet users exceeded 300 million in 2021, with penetration due to reach 50% of the population by the end of 2022. The GCC Arab states are home to the highest concentration of mobile internet users. Additionally, increasing user engagement with bandwidth-hungry applications such as video will lead to a surge in data consumption across the region, growing by 400% between 2022 and 2028.

Furthermore, the rapid investments in the physical security are a key metric to the rising demand for cloud services in the MENA region. With large corporations like IBM, and Microsoft setting their offices in the region, the cost is further going to reduce along with better personalization of services and hence higher revenue generation. In a nutshell, the physical security market is mainly driven by;

  • Increasing investment by private and public entities coupled with the rising need for data storage capacity.
  • The growing demand for cloud computing, big data, and IoT technologies will be a major driver for Infrastructure-as-a-Service (IaaS) over the forecast period.

Government Laws and Regulations

When discussing regulations in the context of video surveillance solutions there are several factors that come into play. There is increased adoption of commercial security in the Middle East owing to infrastructural investment, rising risk of perceived threat activities, government mandates, and stringent implementations. Regulatory bodies in the GCC have laid down strict rules for the installation and deployment of surveillance cameras for almost all market sectors, along with 180-day video storage. Saudi Arabia, UAE, and Qatar are strong contributors to the commercial security market in the Middle East.

  • The fact is that under Abu Dhabi law most public and many private facilities are expressly required to have monitoring and control systems. The Monitoring and Control Center (“MCC”) was established by the Executive Council of the Emirate of Abu Dhabi under Abu Dhabi Law No.5 of 2011 (“MCC Law”) with the statutory aims of :
    • Managing, organizing, and utilizing the systems of monitoring and control devices in vital places, facilities, and public and private establishments as well as analyzing the data provided by such devices in order to prevent the commission of crimes and discover the perpetrators and preserve security and public order in the Emirate
    • Ensuring continuous operation of monitoring and control devices and systems and their integration and coherence with other monitoring and control devices and systems in the Emirate

Challenges impacting the growth of the physical security market across the region;

  • The initial investment and maintenance cost of employing physical security systems are high due to the integration of high-quality hardware.
  • Political conflict in MENA with a history of violence and war escalation.

Regional Snapshots

  • GCC: Significant adoption of physical access control systems is observed across Saudi Arabia’s commercial sector along with other end users.
  • Turkey: The market for physical security in Turkey is expected to grow at a significant CAGR of more than 7%. Significant demand for intrusion and perimeter security systems is expected in the country during the forecast period.
  • Rest of the Middle East: The rest of the Middle East’s physical security market is dominated by Israel on an account of a strong focus on safety. Israel's market for safety and security equipment and services is highly competitive with more than 600 security technologies and services, including integrators and service companies.
  • North Africa: The regional market is mainly driven by the fact that the region is one of the prominent places for international tourists. North African countries will gradually start requiring the installation of surveillance cameras in crowded places to increase security protection in malls, residential areas, companies, and hotels.

Leading companies across the globe are seeking a significant foothold in the regional and domestic Middle East and North Africa markets with innovative and cost-effective physical security solutions. The companies are also providing installation and aftermarket services. The MENA market is characterized by the presence of a large number of companies including FOSS LLC, Alpha Data, Emtech, Eumecon IT Systems, Hikvision, Bosch, iSecure, NAFFCO, Metallic Equipment Technologies, Febno Technologies, etc.

Source: https://store.rationalstat.com/store/mena-physical-security-market-analysis-forecast/