Security

COVID-19 has Created a Multitude of Challenges & New Solutions in Physical Security

During the last 4 months Covid-19 has created an economic tsunami across the world, and in its wake has caused a reduction in demand for physical security products during the first 4 months of 2020. Memoori’s annual world report on the Physical Security Business has over the last 12 years shown that only in 2 years 2008/9 during the financial crisis has demand for physical security products declined. The total value of world production of Physical Security products at factory gate prices in 2019 was $34.31Bn, an increase of 8.5% on 2018 whist the compound annual growth over the last 5 years was 7.24 % and 6.27% over the last 12 years which includes the economic world crisis of 2008/9. This proves that the Physical Security industry supplies products that provide a valuable and vital service and delivers a return in a relatively short time. It has proven that it is a very robust business […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $180 USD per year per user ( just $15 USD per month) for Access to Quality Independent Smart Building Analysis!

What Exactly Do you Get?

  • Read every article published in full and get unlimited access to our archive of over 1,400 articles.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

During the last 4 months Covid-19 has created an economic tsunami across the world, and in its wake has caused a reduction in demand for physical security products during the first 4 months of 2020.

Memoori’s annual world report on the Physical Security Business has over the last 12 years shown that only in 2 years 2008/9 during the financial crisis has demand for physical security products declined. The total value of world production of Physical Security products at factory gate prices in 2019 was $34.31Bn, an increase of 8.5% on 2018 whist the compound annual growth over the last 5 years was 7.24 % and 6.27% over the last 12 years which includes the economic world crisis of 2008/9.

This proves that the Physical Security industry supplies products that provide a valuable and vital service and delivers a return in a relatively short time. It has proven that it is a very robust business that can survive in difficult economic times.

In the last 4 months demand has declined significantly and until a vaccine is discovered (or effective therapeutics) we cannot forecast the sales of Physical Security products for 2020 other than it will be a significant decline on 2019; Optimistically not more than 20% and return to growth by the 2nd quarter of 2021.

COVID-19 is already forcing companies to radically rethink how they operate their business in particular controlling their cash flow and getting a balance on financing the company more conservatively between debt and capital, which will be a real problem when sales are declining.

In parallel with this there is a lesson to be learnt on having a more integrated, diverse, and coordinated supply chain. The Video Surveillance business is far too dependent on Chinese manufacturers and also component manufacturers.

On the positive side COVID-19 has brought about the need for some physical security products to help deal with the pandemic and increase their sales during the opening of lockdown.

Thermal cameras can make a contribution to detecting COVID-19 by measuring people’s temperature as they enter buildings. Demand for these cameras has grown rapidly despite the fact that a number that have been tested are not particularly effective. Top of the range thermal cameras can cost up to $10,000 USD and although this is just one product in the video surveillance business it could help stimulate revenue generating opportunities through 2020.

Physical distancing technology through AI-powered analytics and video security cameras can continuously monitor physical distancing efforts within a building so that managers can run a report of when physical distancing violations occur. As well as recognising high violation zones and times requiring corrective measures.

The analytics algorithms are able to provide real-time information on the net number of people on the premises at any particular time as they can simultaneously count both people entering and those leaving the premises. The data can be displayed in an easy to understand format on smartphones, laptops and PCs to provide managers with an early warning that customer numbers are close to the permitted limit.

Access Control can also play an important role in contact tracing solutions. These can help ensure that the workforce stays safe by helping to prevent contamination in buildings. Physical access control enriched with video security evidence can provide important insights, such as understanding where an infected individual has been, which doors they accessed and who else may have come in contact with those doors and that individual.

These security solutions are designed to support organisations as they explore options for moving staff safely back into their buildings. The solutions focus on the key elements of safety and security around COVID-19, including prevention, protection and response. These offerings are vital to unlock our lives and get the world back to work. The Physical Security business is making a crucial contribution to getting life back to normal.

Most Popular Articles

Startup Acquisitions in Smart Building Technology
Smart Buildings,Uncategorized

Startup Acquisition Activity Remains Resilient in the Smart Buildings Space

Strategic acquisitions are enabling leading players across the smart buildings market to augment their technology offerings with bolt-on startup acquisitions in several areas and increase their focus on software solutions. This forms part of a 2 pronged strategy to mitigate the risk of market disruption, with leading players (and increasingly private equity firms) taking majority […]

Carrier Strategy Map Smart Buildings Building Automation
Energy

Mapping the Strategic Direction of Carrier in the Smart Buildings Space

This Research Note examines the emerging strategic priorities of Carrier Global Corporation in the smart commercial buildings space. We have mapped M&A, divestments, strategic partnerships and investment activity to ascertain the growth ambitions of the business, by categorizing the various business relationships by technology and investment type over a 3-year period. This article is intended as a non-exhaustive indicator of […]

The Long-Term Impacts of COVID on the Physical Security Market
Security,Uncategorized

Exploring the Long-Term Impacts of COVID on Physical Security

The world has changed. The once-in-a-century pandemic that we have been consumed with for the past 3-years has changed several aspects of the way we live and work. COVID has changed the way that industries operate and the way that businesses think. All this has had a transformative impact on real estate and the development […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy