The Russian Federation Security Systems Market In 2024

The Russian security systems market, despite experts’ concerns, continues to grow.

The past year was unpredictable for the domestic security systems market, and its results completely defied forecasts. Despite expectations of a probable decline due to the departure of a number of serious players, it demonstrated confident growth, including in new segments. What to expect from the Russian security systems market this year?

Key results for 2023 by segment

Currently, there are almost 20 thousand industrial enterprises and farms in Russia, as well as many times more business centers. At the same time, the number of new production facilities, agricultural enterprises and office centers in 2023 demonstrated an increase, caused, among other things, by an increase in investment activity. Also, some companies sought to expand their production and office space. All this entailed an increase in demand for security systems. Due to this, most players in the security systems market managed to increase the volume of production.

Video surveillance. The growth rate of the Russian video surveillance market is slightly lower than the global one (6% versus 9%), but it is worth considering the factor of its transformation in 2022. It is worth noting that this process is already generally at the final stage: European, Japanese and Taiwanese equipment has been replaced by Chinese and Russian, and domestic software has long replaced foreign analogues. Now the volume of the Russian video surveillance market is estimated at 14 billion rubles. Moreover, in 2023, Russia entered the top three world leaders (second to the United States and China) in the number of street cameras: there were more than 23 million of them.

Information security. By the end of 2023, almost 40% of Russian companies had increased their budgets in this area, due to which the total volume of the information security systems market reached 252 billion rubles last year. The reason for this trend is the increase in the number of hacker attacks, which have become more sophisticated and aimed not only at specific companies or government agencies, but also at service providers, as well as at vulnerabilities in corporate platforms. Financial organizations, energy companies, and various government agencies remain the most protected. Retail and marketplaces show great interest in information protection.

The departure of a number of foreign vendors certainly affected the Russian information security market. At the same time, most of them managed to find equivalent replacements during 2022-2023. Interestingly, Russian customers have become more conscious in choosing information security solutions: the most popular solutions last year were firewalls, monitoring and response centers, and information and event management systems.

Fire safety systems. The fire safety systems market in 2023 grew by more than 15% compared to 2022, reaching 50 billion rubles. This is explained by both the intensification of construction (not only residential, but also industrial, as well as the construction of new large-scale warehouse complexes) and the need to modernize existing systems. It is worth noting that 75% of this market is accounted for by three domestic companies: Argus-Spectr, Rubezh and Bolid.

UAVs. In 2023, the market volume of unmanned aerial systems in the Russian Federation approached 34 billion rubles, which is 129% more than in 2022. At the same time, the civilian segment accounted for almost 20 billion rubles, compared to 2022, the increase was 35%. Interestingly, according to the results of a study of the areas of application of purchased UAVs in this segment, 45% of them are used to ensure security.

It is worth noting that the scope of UAV application, including for ensuring the safety of facilities, suffers due to flight restrictions imposed by regions. Otherwise, the growth in the use of drones is estimated at a minimum of 15% year on year.

About three quarters of the unmanned systems market is occupied by Chinese manufacturers, as well as Russian brands that order products from Chinese enterprises. At the same time, domestic projects are gradually appearing that take into account the specifics of application and meet the needs of the target audience.

ACS. In 2023, the volume of the access control systems market approached 15 billion rubles. This is more than 9% higher than the 2022 figures. The lion's share of it is made up of solutions from domestic companies: Parsec, Rubezh Strazh, Vision Labs. An interesting trend in 2023 was the expansion of the product line of domestic ACS manufacturers, and this concerned both the technological filling and the software.

PPE. The Russian Social Fund calculated that about 48 million people worked at domestic enterprises last year, 7 million of whom worked in hazardous and dangerous industries. The number of various accidents at industrial facilities is about 35 thousand incidents per year.

In order to reduce injuries and diseases caused by working conditions, the Social Fund of Russia annually allocates significant funds for worker safety. Thus, in 2023, more than 21 billion rubles were allocated for these purposes, of which about 7.7 billion rubles were intended for the purchase of personal protective equipment. More than half of this amount (4.4 billion rubles) was spent on the purchase of protective clothing, 1.6 billion rubles - on foot protection.

It is worth noting the dependence of the PPE segment on the situation on the labor market. The more actively companies open new vacancies and hire new people, the more dynamically the PPE market grows.

Trends and forecasts for 2024

General trends. The main trend of 2024 in the domestic security systems market will be the further implementation of "smart" solutions. This concerns both integration into a "smart" building system or into a single facility security system, and the use of artificial intelligence, machine learning and other similar tools to improve the efficiency of security systems. Moreover, "smart" solutions are relevant for different segments - for ACS, and for fire safety, and for video surveillance, as well as, of course, in the field of information security and unmanned systems. We should also expect an increase in the share of cloud solutions. This is relevant both for video surveillance systems and for the information security systems market. In addition, information protection in the "cloud" is becoming increasingly important. Import substitution is certainly a trend that is relevant for all segments of the security systems market. This is especially relevant for those companies that want to work with government customers who have serious requirements for the country of origin of the goods.

Video surveillance systems. In 2024, the main drivers of growth in video analytics with AI tools will be such sectors of the economy as industry, retail, logistics and, of course, the security services market. It is worth noting that Russia is the leader in the development of predictive and forecast analytics systems, big data collection, process management and video surveillance systems. These areas have excellent prospects in the next three to five years.

Information security. In the next 3 years, the volume of the Russian information security systems market may more than double, to 500 billion rubles. In addition, the share of Russian vendors will continue to grow, with experts estimating that by 2026 they will account for 89% of the entire market (or 446 billion rubles). The main drivers of this process will be government support, as well as an increase in the number of hacker attacks and the departure of foreign software suppliers. At the same time, the significance of the latter factor will gradually decrease. In terms of products, the main growth will be provided by comprehensive security solutions for key sectors of the economy and the state. A separate and very promising area is affordable, but effective solutions for small and medium businesses.

Fire safety. According to RUBEZH Analytics experts, the fire safety segment will see market growth of about 10-15% by the end of 2024, and will reach 30% in some areas. This dynamic is primarily due to the growth in the volume of new buildings being commissioned and major repairs of existing buildings. In addition, the current maximum service life of fire safety systems, according to GOST R 59638-2021, is 10 years. This factor will also affect the volume of production and sales of fire safety solutions.

Among the promising trends in the field of fire safety, it is worth noting passive fire safety systems, including those based on video fire detectors. Such solutions were presented at industry exhibitions held in late 2023-early 2024. Their advantage is the ability to integrate with existing classic fire safety systems, which increases the efficiency of preventing and detecting fires.

UAVs. The market volume of unmanned systems for civilian use by the end of 2024 may exceed 49 billion rubles, and by 2026 it will almost double, to 97 billion rubles. We should expect an increase in UAV purchases both for security and for solving applied problems: cargo delivery, monitoring and sanitization.

It is worth dwelling separately on the systems of protection against UAVs. Taking into account the existing challenges, this segment, consisting of means of electronic warfare, mobile rifle installations, networks and capes, may grow by at least 40-50% this year.

PPE. The growth rate of the Russian PPE market in the coming years is expected to be almost twice as high as the global average. According to the PPE Association, the Russian market for personal protective equipment grows by an average of 13% annually, while the global market grows by 7%. The main drivers will be construction, the military-industrial complex, mechanical engineering, and the mining and processing industries.

One of the most promising areas in the PPE segment is the development of exo-solutions (exoskeletons, exo-belts). Provided that they are certified, this sector may demonstrate high growth rates in the near future, as such solutions are in high demand in construction, industry and mining.

What is the value of participating in the Securika Moscow exhibition?

The Russian security systems market has passed the stage of adaptation to new operating conditions and is showing good growth rates. This opens a window of opportunity for both domestic and foreign companies ready to offer their solutions. They can be demonstrated to the target audience at the International Exhibition of Technical Security Equipment and Equipment for Ensuring Security and Fire Protection Securika Moscow, which is the largest industry event in Russia.

The status of this event underlines its demand among security industry specialists. Thus, in 2024, the exhibition was visited by 20,379 unique guests, 26% of whom were end customers of security systems, 93% have a direct influence on the decision to purchase products, and 64% hold leadership positions in their companies.

If you are a manufacturer or supplier of technical security equipment and safety and fire protection equipment, then participation in the Securika Moscow exhibition (Moscow, Crocus Expo IEC, Pavilion 3) will allow you to find new partners, clients and expand your sales geography.