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According to a new report from Memoori, the growth of the physical security industry over the next several years will rely on the ability of the industry to deliver innovative products that provide ROI to end-users.

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Allan McHale is director for UK-based market research firm Memoori.

Memoori’s third annual report, The Physical Security Business in 2011, shows that growth in this market can only come about during the next three years from a stream of more innovative products and systems that deliver on meeting the customers need to drive more ROI out of its investment.

Physical security needs to move, as far as is possible, from a cost center to a profit center status, if it’s to overcome the anticipated aftershock from the 2008 financial meltdown which now looks inevitable.

This will dampen future demand but we are optimistic that as it can now deliver more attractive opportunities for clients to improve security and profit from it, demand will edge forward at a CAGR of 3.7 percent over the next five year period.

The report identifies five emerging technologies that are already creating new business opportunities and also discusses advances in their development that will further impact on the business in the future. The former include:

- Wireless technology
- IP networking technology
- Video-surveillance-as-a-service (VSaaS) and managed video
- Video management and analytics software
- Security management software, PSIM and PIAM

They all have one thing in common and that is they improve productivity and help edge security systems move towards profit center status and in some cases reduce the cost of installation.

Wireless technology is now getting traction with the highest penetration of wireless communication being in commercial and transportation verticals whilst banking and finance are still concerned that these security systems can be breached. Education and health buildings look to be the next growth markets. The main drivers for the emergence of the wireless culture, staying mobile, reducing investment cost and improving productivity has got estate managers leveraging wireless throughout their organizations.

IP network products whether for access control, intruder alarms but particularly for video surveillance grew rapidly in 2011 and they are believed to be on the verge of a long and strong run.