Industrial Security Systems Market

Market Definition

The market encompasses the products, services, and technologies designed to secure industrial infrastructure and assets from unauthorized access, theft, sabotage, cyber-attacks, and other security threats.

This includes physical security systems such as surveillance cameras, access control, and perimeter security, as well as cybersecurity solutions such as firewalls, intrusion detection systems, and network monitoring tools.

The report examines critical driving factors, industry trends, regional developments, and regulatory frameworks impacting market growth through the projection period.

Industrial Security Systems Market Overview

The global industrial security systems market size was valued at USD 50.12 billion in 2023 and is projected to grow from USD 53.39 billion in 2024 to USD 87.85 billion by 2031, exhibiting a CAGR of 7.37% during the forecast period. 

Market growth is driven by the rising need for reliable and integrated security solutions across key industries such as manufacturing, energy and utilities, oil and gas, transportation, and critical infrastructure.

Major companies operating in the industrial security systems industry are Honeywell International Inc., Bosch Security Systems, Siemens AG, Johnson Controls International plc, Schneider Electric SE, Cisco Systems, Tyco International Ltd, Alliance Systems Integrators, Inc., Securitas AB, Axis Communications AB, Accenture PLC, Raytheon Technologies Corporation, G4S plc, IBM Corporation, Fortinet Inc., and others.

The increasing adoption of automation and smart technologies across industrial sectors is propelling the growth of the market. As industries integrate connected devices, IoT, and operational technologies, the need for advanced security solutions becomes critical to safeguard infrastructure from both physical breaches and cyber threats.

Traditional security systems often fall short in providing real-time monitoring and threat response, prompting organizations to adopt intelligent, integrated security systems that offer enhanced visibility, control, and rapid incident resolution.

Key Highlights:

1. The industrial security systems industry size was recorded at USD 50.12 billion in 2023.
2. The market is projected to grow at a CAGR of 7.37% from 2024 to 2031.
3. North America held a market share of 33.09% in 2023, with a valuation of USD 16.58 billion.
4. The surveillance systems segment garnered USD 20.11 billion in revenue in 2023.
5. The video surveillance & AI segment is expected to reach USD 32.74 billion by 2031.
6. The physical security segment garnered USD 35.14 billion in revenue in 2023.
7. The on-premise segment is expected to reach USD 55.99 billion by 2031
8. The transportation & Logistics segment is anticipated to grow at a CAGR of 8.11% over the forecast period.
9. Asia Pacific is anticipated to grow at a CAGR of 8.38% through the projection period.

Market Driver

"Rising Digital Transformation Initiatives"

Digital transformation is fueling the growth of the industrial security systems market as more organizations adopt cloud environments, hybrid work models, and third-party integrations. Traditional security methods are inadequate for handling the increasing complexity of these changes.

With increased use of cloud applications, remote workforces, and diverse devices, identity and access management has become more challenging. This shift creates a need for more advanced security solutions to effectively manage and protect identities across diverse and evolving IT environments.

• In April 2024, CyberArk launched its Identity Security Platform services from a UAE-based data center,  allowing organizations  to manage and store sensitive identity data locally and comply with regional data sovereignty regulations.

Market Challenge

"Modern Security Threats"

A key challenge hampering the progress of the industrial security systems market is the growing complexity of modern security threats. These threats are now more sophisticated, involving both physical and cyber risks. The convergence of these threats has made it difficult for companies to implement effective security measures.

To address this challenge, companies must deploy advanced, multi-layered security systems to protect against a wide range of potential threats. These systems must be capable of monitoring, detecting, and responding to security issues in real-time, while also adapting to new and evolving risks.

Market Trend

"Surging Adoption of Smart Security in Industrial Systems"

The growing focus on smart security in industrial systems is emerging as a notable trend in the industrial security systems market. Organizations are increasingly adopting intelligent technologies that enhance monitoring, threat detection, and incident response capabilities across their facilities. 

This trend is particularly evident in the use of AI-driven surveillance systems, smart access controls, and automated perimeter monitoring solutions, which improve operational efficiency and strengthen overall security infrastructure in industrial environments.

Moreover, companies in the industrial security sector are increasingly using AI and edge computing technologies to enhance traditional surveillance systems. These technologies enable real-time data processing and faster decision-making at the source, reducing delays and improving response times to security threats.

• In April 2024, Lanner Electronics launched the EAI-I510 Edge AI Computer, aimed at improving urban safety with AI-driven video analytics. Powered by Intel Core Ultra Series 2 processors, the EAI-I510 features advanced capabilities such as facial recognition and intrusion detection. Offering 2.5 times the AI performance of previous models, it enables faster real-time AI analytics with improved energy efficiency, positioning it as a key innovation in smart surveillance and security monitoring.

Industrial Security Systems Market Report Snapshot

Segmentation	Details
By Component	Surveillance Systems, Access Control Systems, Perimeter Intrusion Detection, Fire and Safety Systems, Others
By Technology	Video Surveillance & AI, Biometric & Facial ID, Intrusion Detection Tech, Thermal & IR Sensing, Other Smart Security
By System Type	Physical Security, Cyber-Physical Systems
By Deployment Mode	On-Premise, Cloud-Based
By End-Use Industry	Oil & Gas, Utilities & Energy, Manufacturing, Transportation & Logistics, Chemical & Pharmaceutical
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Component (Surveillance Systems, Access Control Systems, Perimeter Intrusion Detection, Fire and Safety Systems, and Others): The surveillance systems segment earned USD 20.11 billion in 2023 due to increased demand for real-time video monitoring and enhanced threat detection in high-risk industrial areas.
• By Technology (Video Surveillance & AI, Biometric & Facial ID, Intrusion Detection Tech, Thermal & IR Sensing, and Other Smart Security): The video surveillance & AI segment held a share of 39.12% in 2023, fueled by growing reliance on AI-driven analytics to automate security responses and improve surveillance accuracy.
• By System Type (Physical Security and Cyber-Physical Systems): The physical security segment is projected to reach USD 61.24 billion by 2031, propelled by its essential role in preventing unauthorized access and ensuring operational safety across industrial facilities.
• By Deployment Mode (On-Premise and Cloud-Based): The on-premise segment held a share of 65.09% in 2023, attributed to a reference for greater data control preferences and the need for reliable, low-latency performance in critical operations.
• By End-Use Industry (Oil & Gas, Utilities & Energy, Manufacturing, Transportation & Logistics, and Chemical & Pharmaceutical): The oil & gas segment is projected to reach USD 34.85 billion by 2031, fueled by increased vulnerability to physical and cyber threats, prompting greater investment in advanced security systems.

Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America industrial security systems market accounted for a share of around 33.09% in 2023, valued at USD 16.58 billion. This dominance is reinforced by its strong technological infrastructure, high adoption of advanced security solutions, and stringent regulatory standards for industrial safety and cybersecurity.

Rising threats from cyber-physical attacks and growing concerns over the protection of critical infrastructure are creating a demand for advanced security systems. Furthermore, strong investments from both the government and private sectors in areas such as surveillance, access control, and cybersecurity are fostering regional market expansion.

The Asia-Pacific industrial security systems industry is estimated to grow at a robust CAGR of 8.38% over the forecast period. This growth is reinforced by rapid industrialization, increasing investments in infrastructure development, and growing concerns over workplace safety and cyber threats across emerging economies such as China, India, and Southeast Asian countries. 

China has contributed significantly to smart city development and the adoption of advanced security technologies. Through initiatives such as the China Smart City Industry Alliance, the MIIT has facilitated the implementation of video surveillance systems and other security measures across various sectors, contributing to the region's market dominance.

Regulatory Framework

• In the United States, the NIST Cybersecurity Framework (CSF) 2.0 provides voluntary guidance for organizations, including critical infrastructure and industrial operators, to manage cybersecurity risk. It focuses on a risk-based approach to securing operational technologies, offering profiles, quick-start guides, and mappings to align with best practices and  standards such as ISO/IEC 27001.
• In the European Union, the Directive on Security of Network and Information Systems (NIS Directive) mandates that operators of essential services, including energy, transport, and manufacturing, implement cybersecurity measures and report significant incidents. This regulation aims to improve  cybersecurity across the EU, influencing the deployment and upgrade of industrial security systems.

Competitive Landscape

Market players in the industrial security sector are increasingly prioritizing AI-enabled security systems to enhance threat detection capabilities. By collaborating with IoT providers, these players are delivering integrated security services that drive operational efficiency and provide protection across diverse industrial environments.

Additionally, market participants are expanding their product portfolios and gaining access to advanced technologies, such as AI-based surveillance, through strategic collaborations.

• In January 2023 Cobalt Robotics collaborated with Johnson Controls to integrate the C-CURE 9000 access control and event management system with Cobalt’s remote guard service. This integration combines AI robotics, machine-learning software, and human oversight to enhance security operations.

List of Key Companies in Industrial Security Systems Market:

• Honeywell International Inc.
• Bosch Security Systems
• Siemens AG
• Johnson Controls International plc
• Schneider Electric SE
• Cisco Systems
• Tyco International Ltd
• Alliance Systems Integrators, Inc.
• Securitas AB
• Axis Communications AB
• Accenture PLC
• Raytheon Technologies Corporation
• G4S plc
• IBM Corporation
• Fortinet Inc.

Recent Developments (M&A/Agreements)

• In February 2025, CyberArk acquired Zilla Security for USD 165 million in cash, with an additional USD 10 million earn-out. This acquisition strengthens CyberArk's Identity Security Platform by integrating Zilla’s AI-powered, cloud-native Identity Governance and Administration (IGA) capabilities, offering automation for identity compliance and provisioning across hybrid and SaaS environments
• In January 2025, SSH Communications Security (SSH) entered into a reseller agreement with Honeywell to enhance the security of Operational Technology (OT) environments. Through this agreement, SSH will integrate Honeywell’s Forge Cybersecurity+ platform with its IT/OT Privileged Access solution (PrivX OT), offering a more comprehensive and customizable cybersecurity solution for OT/ICS networks.
• In December 2024, Bosch reached an agreement to sell its Building Technologies division’s security and communications technology product business to European investment firm Triton. The deal includes Bosch’s Video, Access and Intrusion, and Communication units, along with the entire product business that was put up for sale.  
• In June 2024, Honeywell acquired Carrier Global Corporation’s Global Access Solutions business forUSD 4.95 billion,   strengthening its position in the digital security solutions. This strategic move enhances Honeywell’s Building Automation segment by integrating key access control brands, including LenelS2, Onity, and Supra.