Malaysia Physical Security Market Set to Secure Valuation of USD 98.65 Million By 2032 | Astute Analytica

The Malaysian physical security market holds immense potential, driven by technological advancements, increasing urbanization, and heightened security concerns. With robust government support and rising investments, the sector is poised for significant growth. Innovative solutions like AI, cloud services, and mobile technologies promise a secure and prosperous future.

New Delhi, July 04, 2024 (GLOBE NEWSWIRE) — According to the latest Astute Analytica research, the Malaysia physical security market was valued at US$ 30.02 million in 2023 and is projected to reach US$ 98.65 million by 2032 at a CAGR of 14.53% during the forecast period 2024–2032.

Urbanization, with an urban population expected to hit 80% by 2030, drives this demand, alongside infrastructure projects like high-rise condominiums and special economic zones. Technological advancements in biometric authentication, AI-based video analytics, and cloud-based security solutions are also pivotal, with increased adoption enhancing threat detection and real-time monitoring capabilities. Government initiatives to combat terrorism and secure critical infrastructure significantly contribute to market growth, ensuring compliance and public safety.

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In terms of segmentation of Malaysia physical security market, key areas include video surveillance, access control systems, and biometric technologies. Services like consulting, professional services, and security system integration are growing, catering to industries such as IT (with 15% growth), telecommunications, BFSI, government, healthcare, and education. Some of the major players like Axis Communications AB, ABB Ltd, Bosch, Honeywell, Johnson Controls, Cisco Systems, and Securiforce dominate the fragmented market. The commercial sector represents 35% of the market, while the residential sector accounts for 25%. Businesses and residential areas alike are increasingly employing security services, reflecting a broader trend towards enhanced safety measures across sectors.

Employment in the physical security market is on the rise, particularly in urban centers and commercial hubs across Malaysia market. The demand for skilled personnel trained in advanced security systems and crisis management is increasing, with the security personnel sector growing by 10% annually. Security employment spans manned guarding, system installation, and consulting services, with over 50,000 security personnel currently employed. The growing preference for security personnel and advanced systems is evident, with commercial establishments (employing 60% of security personnel), government facilities, healthcare, and educational institutions seeking robust security solutions. This employment trend is vital for supporting the expanding market, ensuring comprehensive security coverage across Malaysia. The Malaysian security industry is expected to add 20,000 new jobs by 2028, further underscoring the sector’s growth and importance.

Key Findings in Malaysia Physical Security Market

Market Forecast (2032) US$ 98.65 million
CAGR 14.53%
By Component Services (62.4%)
By Industry  Government (17.7%)
By Enterprise Size Large (85.0%)
Top Trends
  • Integration of AI and machine learning in surveillance and monitoring systems.
  • Increasing adoption of cloud-based physical security solutions and services.
  • Rising demand for mobile-based access control and remote monitoring technologies.
Top Drivers
  • Growing concerns about public safety and crime prevention in urban areas.
  • Government initiatives and regulations promoting advanced security infrastructure deployment.
  • Technological advancements and innovation in physical security solutions and products.
Top Challenges
  • High costs associated with implementing and maintaining advanced security systems.
  • Ensuring data privacy and protection against cyber threats and breaches.
  • Limited technical expertise and skilled workforce in physical security sector.

Key Dynamics Driving Physical Security Demand in Malaysia

The demand for physical security market in Malaysia has been on a significant rise, driven by a combination of socio-economic, technological, and geopolitical factors. This growth aligns with Malaysia’s rapid economic development and urbanization, where over 78% of the population now lives in urban areas. In major cities like Kuala Lumpur and Johor Bahru, the proliferation of high-rise condominiums, gated communities, and commercial centers necessitates robust security measures. Additionally, the country has seen a 15% increase in tourism over the past year, further driving the need for enhanced security at high-profile events, international summits, and conventions.

Several factors contribute to the heightened demand for solution in physical security market across Malaysia. Technological advancements, such as the adoption of surveillance systems, biometric access controls, and integrated security management platforms, are pivotal. The number of CCTV cameras installed in urban areas has increased by 25% in the last two years, reflecting the government’s commitment to public safety. Moreover, the integration of AI and analytics in security systems has improved threat detection and proactive management, with AI-driven security solutions expected to grow by 20% annually. The construction of new special economic zones and smart city initiatives, particularly in regions like Penang and Selangor, also underscores the need for advanced security infrastructure.

The Malaysian government plays a crucial role in driving the physical security market. Government initiatives aimed at enhancing public safety and security, coupled with stringent regulatory requirements and compliance mandates, have significantly bolstered market growth. For instance, the recent introduction of new security regulations for commercial buildings has led to a 30% increase in demand for security consulting services. The number of registered security personnel has grown by 18% in the past year, reflecting the evolving security needs of businesses and residential areas. Additionally, the increasing emphasis on converged security solutions, integrating physical security with cybersecurity, is shaping the market’s future. As Malaysia continues to develop its digital infrastructure, with a 40% increase in smart city projects, the demand for comprehensive security solutions is expected to grow, ensuring safer urban environments.

Security Services are in Higher Demand than Solutions in Malaysia Physical Security Market, Accounts for 62.4% Market Share

The surge in demand for physical security services in Malaysia, including Access Control As A Service (ACaaS), Video Surveillance As A Service (VSaaS), Remote Monitoring Service, Security System Integration Service, and Professional Services, can be attributed to a confluence of factors. Urbanization and industrial growth have led to an increase in the construction of commercial spaces, with over 1,200 new commercial buildings constructed in the past year alone. This development necessitates robust security measures to safeguard assets, employees, and sensitive information. Additionally, the Malaysian government’s initiatives, such as the National Security Blueprint, emphasize the importance of advanced security infrastructures, further propelling the adoption of these services.

Technological advancements play a pivotal role in the proliferation of these security services in the physical security market. The integration of AI and IoT in security systems has enhanced the efficiency and reliability of monitoring and access control. For instance, there are now over 500,000 AI-based surveillance cameras installed across the country, and more than 300,000 IoT-enabled access control devices in use. Furthermore, the Malaysian market for cloud-based security solutions, including VSaaS and ACaaS, has seen significant growth, with over 1,000 companies adopting these technologies to ensure scalable and cost-effective security measures.

Astute Analytica’s data underscore the dominance of these services in Malaysia. The market for physical security services is projected to reach MYR 2.5 billion by 2028. The penetration rate of remote monitoring services in commercial buildings has reached 40%, with over 2,000 buildings now utilizing these services. Additionally, the demand for professional security services, such as risk assessment and compliance consulting, has surged, with over 500 firms offering these services. The integration of security systems in new commercial projects is now a standard practice, with 70% of new office buildings incorporating advanced security solutions. This comprehensive adoption signifies a robust and growing market for physical security services in Malaysia.

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Dominance of Large Enterprises in Malaysia’s Physical Security Sector Take Up over 85% Market Share

Large enterprises are the leading employers in physical security market globally, and Malaysia is no exception. In 2024, it is estimated that over 150,000 physical security personnel are employed by large enterprises in Malaysia. These organizations have the financial resources and scale to implement comprehensive security measures. Large enterprises, such as multinational corporations and government agencies, often require extensive security infrastructure to protect their assets, personnel, and data. With the increasing complexity of security threats, large enterprises are compelled to invest heavily in physical security, with the total physical security expenditure in Malaysia projected to reach MYR 5.2 billion by the end of this year. Additionally, the average annual budget for physical security in large enterprises is around MYR 10 million.

In Malaysia, physical security market roles within large enterprises encompass a broad range of responsibilities. Key roles include security management, surveillance operations, access control, emergency response coordination, and cybersecurity integration. Security management positions, which constitute a significant portion of security roles, are critical for overseeing comprehensive security strategies and operations. Surveillance operations, utilizing advanced technologies such as AI-powered cameras and real-time monitoring systems, are increasingly prevalent, with over 5,000 AI-powered cameras installed across large enterprises. Access control and emergency response coordination are also pivotal, ensuring that only authorized personnel enter secure areas and that there are robust procedures in place for crisis situations. Additionally, the integration of physical and cybersecurity measures has become increasingly significant, with over 1,200 cybersecurity specialists working in tandem with physical security teams to combat sophisticated threats.

The dominance of large enterprises in Malaysia’s physical security market is driven by several factors. Economies of scale allow these organizations to invest in cutting-edge security technologies and hire specialized personnel. As of 2024, over 80% of large enterprises utilize advanced security technologies, such as facial recognition and biometric systems, with more than 3,000 biometric access points installed nationwide. Furthermore, regulatory compliance and industry standards necessitate rigorous security protocols, pushing large enterprises to maintain high levels of security. The ability to offer competitive salaries and benefits also attracts top talent in the security field, with average salaries in large enterprises being MYR 120,000 annually, compared to MYR 90,000 in smaller firms. Lastly, the comprehensive security needs of large enterprises, driven by their expansive operations and high-value assets, solidify their dominance in the physical security domain in Malaysia.

Government in Malaysia’s Physical Security Market Stays at Top with Over 17.75% Revenue Share

In Malaysia, the government is a pivotal player in the physical security market, a trend driven by multiple factors including national security demands, economic stability, and regulatory frameworks. This dominance is evidenced by the fact that government contracts account for approximately 65% of the total industry revenue, a significant share compared to other sectors. The Malaysian government employs over 70,000 security personnel across various agencies apart from defense and police, ensuring a robust presence in both urban and rural areas.

The strategic importance of physical security in Malaysia is underscored by the country’s geopolitical positioning and its commitment to public safety. For instance, Malaysia’s crime rate has seen a 30% reduction over the past decade, partly due to the government’s investment in security infrastructure. Additionally, the government allocates about RM2 billion annually to enhance security measures, including the installation of over 10,000 CCTV cameras nationwide. The Ministry of Home Affairs has reported a 20% increase in funding for security technology over the past five years, reflecting an ongoing commitment to modernization and efficiency.

Moreover, the government’s involvement extends to stringent regulatory oversight, ensuring that private security firms adhere to high standards. This is exemplified by the Private Agency Act 1971, which mandates rigorous licensing and operational guidelines for private security providers. Government agencies conduct over 500 audits annually to ensure compliance, resulting in a 15% improvement in service quality and reliability, adding fuel to the physical security market growth to some extent. Furthermore, the collaboration between government bodies and private security firms has led to a 25% increase in joint operations, enhancing overall security effectiveness. This symbiotic relationship not only bolsters national security but also provides a stable and controlled environment for the physical security market to thrive.

Malaysia Physical Security Market Key Players

  • Cisco Systems, Inc.
  • Entrypass Corporation
  • Genetec Inc.
  • Hangzhou Hikvision Digital Technology Co., Ltd.
  • Johnsons Control
  • NEC Corporation
  • Robert Bosch GmbH
  • RSS security sdn bhd
  • Securiforce Group
  • Other Prominent Players

Key Segmentation:

By Component

  • System
    • Physical Access System​
    • Video Surveillance System
    • Perimeter Intrusion & Detection
    • Physical Identity & Access Management​
    • Physical Security Information Management​
    • Others
  • Service Type
    • Access Control as a Service​
    • Video Surveillance as a Service​
    • Remote Monitoring Service​
    • Security System Integration Service​
    • Professional Services​
    • Others

By Enterprise Size

  • Small & Medium Enterprises
  • Large Enterprises

By Industry 

  • Banking & Finance
  • Government​
  • Utility & Energy
  • Transportation​
  • Residential​
  • Industrial
  • Hospitality
  • Others

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About Astute Analytica

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