Similar estimates from Global Market Insight support this upward trend, with a valuation of USD 79.8 billion in 2023 and a compound annual growth rate exceeding 7% through 2032.

Geopolitical tensions drive security demand

Geopolitical tensions and rising terrorist incidents are primary drivers of this market expansion. From 2010 to 2020, global terrorism incidents almost doubled, increasing from 4,540 to over 8,000 annually, according to the Global Terrorism Database. In response, governments worldwide have ramped up spending to secure borders and critical assets, ensuring robust perimeter protection.

Technological advancements fuel growth

The perimeter security market is largely driven by heightened security concerns related to terrorism, criminal activities, and illegal immigration. Recent technological advancements in surveillance and detection – including intelligent video analytics and biometric systems – are also pushing growth. These technologies play an essential role in protecting critical infrastructure across key sectors.

Increased regulatory demands and the integration of AI and ML technologies are further enhancing market potential, making systems more adaptable and effective in threat detection and response.

Urbanisation, IoT, and smart cities

Urbanisation, the development of smart cities, and the growing integration of IoT devices are also driving the perimeter security market forward. These factors contribute to enhanced monitoring capabilities, public-private partnerships, and advancements in wireless technology and data analytics, which improve system scalability and operational efficiency.

PIDS leading the way in growth

Perimeter Intrusion Detection Systems (PIDS) are anticipated to lead in growth within the perimeter security market, as the prevalence of sophisticated security threats necessitates advanced detection and response measures. PIDS solutions employ a range of sensor technologies – radar, Lidar, thermal imaging, infrared, and vibration sensors – to detect boundary breaches, often providing real-time alerts. These systems are widely implemented in high-security environments like airports, military facilities, nuclear plants, and other critical infrastructure sites.

Enhanced detection with AI and ML

PIDS technologies are evolving through the integration of AI and machine learning, which enables systems to differentiate between genuine threats and false alarms with greater accuracy. As a result, response times are faster, and overall security is more robust.

The impact of stringent regulatory requirements

The global PIDS market was valued at around USD 55.5 billion in 2023 and is expected to achieve a CAGR of 13.4% from 2024 to 2032, reaching approximately USD 140 billion by 2032, according to a report from Imarc Group.

The growth of critical infrastructure projects globally, such as energy grids, transportation hubs, and data centres, further fuels demand for PIDS, as these facilities face higher security risks. The trend is reinforced by stringent regulatory requirements, which mandate businesses to implement adequate security systems to mitigate risks and comply with legal standards.

The expanding role of IoT

Advancements in PIDS technology are further augmented by IoT integration, which enhances versatility and applicability across a wide range of environments, from dense urban centres to remote areas. The IoT’s role in perimeter security improves monitoring capabilities, data analysis, and system efficiency, contributing significantly to the adoption of PIDS.

Commercial sector

The commercial sector is forecasted by Marketsandmarkets to become the largest end-use market for perimeter security solutions. Commercial properties – including retail centres, office buildings, and warehouses – face a variety of security threats that demand robust perimeter solutions. Additionally, the value of urban commercial assets necessitates advanced systems to protect against theft, vandalism, and unauthorised access.

The expansion of the retail industry, alongside the growth of mixed-use developments that combine retail, residential, and office spaces, increases security complexities and drives demand for comprehensive perimeter solutions.

Regional growth insights

North America currently holds the largest share of the perimeter security market, supported by substantial investments in security infrastructure and advanced technology. Europe follows, with significant investments driven by the need to secure critical infrastructure. The Asia-Pacific region – led by China and India – is expected to experience the fastest growth due to rapid infrastructure expansion and the implementation of stricter security regulations.

This analysis aligns with research findings from IMARC Group and Market Research Future, which identify these regions as leading contributors to perimeter security market growth.