2024 Global Top 50 Security Companies

2024 Global Top 50 Security Companies

Analysis

1. The top ten companies on the list. From the statistics of the sales revenue of security products of the top 50 listed companies in the field of physical security in 2023, it can be seen that this year's top 50 global companies show a positive trend. The top 10 companies - Hikvision, Dahua Technology, ASSA ABLOY, Motorola Solutions, Axis, Allegion, Tiandiweiye, Hanwha, TKH (Intelligent Vision System) and AIPHONE all achieved year-on-year revenue growth in 2023, ranging from single digits to low double digits. Hikvision and Dahua are still the world's first and second largest security companies, with sales revenue of security products of US$9.31 billion and US$4.32 billion in 2023, respectively.

A new face appeared on this year's list: GWELLTIMES. It is a Shenzhen-based manufacturer of smart cameras, smart doorbells and smart floodlights. Not only that, this year there are companies that have returned to the Global Security 50, namely TKH (Intelligent Vision Systems), Dinaike, Zhongwei Century and Sparsh CCTV.

2. Foresee growth trends. A total of 36 companies in the Global Security 50 list achieved revenue growth between 2022 and 2023. The top 10 companies with the largest revenue growth are Sparsh CCTV, Jiwei Times, Synectics, Keda, Yinghu, Mi Rui, CP Plus, Allegion, NAPCO and ASSA ABLOY. It is worth noting that all Chinese companies (except two) have resumed revenue growth this year, which is in stark contrast to last year, when most Chinese companies in the Global Security 50 list saw revenue declines due to various internal and external challenges.

Looking at this year's list, we can clearly see that Chinese companies are bottoming out, which is consistent with China's positive economic performance in 2023. Thanks to factors such as the rapid recovery of the economy after the COVID-19 pandemic, government stimulus demand in various industries, and satisfactory export growth.

Industry Market Review and Outlook

2024 Security Market Review

i-PRO Chief Product Officer Gerard Figols said: "In 2024, the security industry saw significant growth and the market returned to normal. Embedded edge AI has become a basic configuration for most product lineups. It has driven continued double-digit growth, with positive performance in the Americas, Europe, the Middle East and Africa, and the Asia-Pacific markets."

Convergint's Executive Vice President of Products and Services Eric Yunag said: "The growing focus on the integration of physical security and network security, the growing demand for cloud-based security solutions, the growth of smart building technology and IoT integration, the continued modernization of systems, and the widespread use of artificial intelligence and analytics, etc."

In fact, the growing demand for advanced technologies (especially cloud and AI) has mainly driven the growth of the security field this year. In the security sector, the need for artificial intelligence (AI) and intelligent automation (IA) solutions is becoming increasingly prominent".

As the industry continues to consolidate, we have also witnessed some notable M&A cases this year. These include Vitaprotech Group's acquisition of Identiv's security business for $145 million; Honeywell's acquisition of Carrier's security business, including Lenel S2, for $4.95 billion (the transaction was announced in December 2023); and Milestone's merger with BriefCam and Arcules - which will combine the company's strengths in surveillance video management software, video analytics and VSaaS to provide users in different scenarios with complete surveillance security solutions.

CP PLUS Managing Director Aditya Khemka shared with us: "In 2024, there have been several important mergers and acquisitions within the security industry. It is worth noting that leading companies in the security field are actively seeking to cooperate with AI analysis companies to enhance their capabilities in predictive monitoring and automatic threat detection. For many industry insiders, this trend of integration has proven to be beneficial because it has accelerated the deployment of innovative technologies and helped to streamline the development of more integrated solutions. ”

Ongoing Challenges

Despite the positive outlook, certain challenges remain. One is the continued rampant cyberattacks, some of which are even launched using network security equipment. "With the threat of cyberattacks not decreasing in 2024, with more high-profile breaches, major hacks, and more warnings of sophisticated attacks by hostile nations, cybersecurity remains one of the biggest challenges facing the security industry," said Alex Lee, senior sales manager at IDIS. "Meeting this challenge requires a comprehensive data protection strategy and strong physical security measures. It is critical for video technology vendors and suppliers to design multi-layered cybersecurity defense mechanisms into their surveillance equipment and software."

At the same time, stricter data privacy regulations, especially for AI facial recognition and behavioral analysis technologies, also pose additional obstacles. Yunag listed some of the challenges facing the security industry: labor shortages and internal skills gaps, supply chain inefficiencies, budget constraints, and increased concerns about the safety of critical infrastructure. "These concerns are particularly prevalent because many organizations still rely on complex, legacy security system architectures. While these challenges are likely to persist through 2025, leaders can overcome them by developing personalized training programs to ensure employees have the latest skills and technologies, implementing innovative security program strategies to help streamline daily steps, and strengthening industry and partnerships to modernize system integration capabilities."

Finally, regional conflicts have also had an impact, bringing opportunities and risks. "Regional conflicts have had a significant impact on the security industry, especially in sensitive areas where critical infrastructure is deployed, which has increased the demand for surveillance systems. Not only that, these conflicts have also increased the need for fast-response, AI-enabled surveillance solutions to detect real-time threats. In addition, increased government spending on defense and security has also supported market growth." said Thomas Lausten, CEO of MOBOTIX.

Market Trend Outlook

In the short term, the security industry remains on a growth path. According to a recent joint report by SIA, ASIS and Omdia, the physical security equipment market is expected to grow at a compound annual growth rate of 8.2% from 2022 to 2026, and the physical security services market is expected to grow at a compound annual growth rate of 6.9%.

That said, the market will continue to grow in 2025 as the industry has more certainty and continues to adopt advanced technologies and solutions. "2025 is likely to be a more positive year for growth. By 2025, some countries may launch new government investment plans, and there will be greater certainty in private sector investment decisions," said Cropley and Woodhouse.

"We expect growth to continue through 2025, with the key driver being the continued adoption of ACaaS and VSaaS. These technologies will remain at the core of industry development as enterprises seek scalable, flexible and efficient security solutions," said Stamatelos.

By 2025, there is another trend, which is most obvious in the Chinese market. More and more security companies are starting to shift from security to diversified industrial digital business, focusing on solutions in different fields outside of security. For example, in the field of education, some Chinese companies provide solutions that can not only ensure campus safety, but also monitor whether any bullying occurs, or whether students are happy in class, so as to understand the performance of teachers. Some companies now position themselves as IoT/digital companies, providing online conferencing/streaming solutions and even electric vehicle charging solutions.

ABOUT BIT-CCTV:

Established 18 years ago, Blue Icon (Tianjin) Technology Co. Ltd, a national high-tech company, specializes in design, engineering, manufacturing and sales of high-quality CCTV surveillance equipment including pan-tilt head/positioner, long rang laser PTZ camera, IR thermal imaging PTZ camera, dual-vision PTZ camera, camera housing enclosures, camera mounting brackets and accessories, and provide custom pan-tilt products to meet our customers' various system/project requirements. Made with durable material, our products are tested to withstand continuous operation in the most harsh condition. Our products have been widely used in over 40 countries across five continents.