Companies engaged in providing guard and patrol services, such as bodyguard, guard dog, parking security, and others, offer non-public security services that typically deal with issues related to trespassing, burglary, theft, or threat to clients. Non-public security companies offer a wide variety of security services, including uniformed officers, concierge or lobby security service, construction security, executive protection, and security consultation, among others. Commercial, industrial, government, and residential are the most prominent end-users in the non-public security service market.
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Guard services are being reduced in various areas and industry verticals globally due to nationwide lockdown and government measures to promote social distancing. In other places, however, security services are being viewed as more vital than before. Still, the COVID-19 crisis is impacting the non-public security services industry in ways that could not have been foreseen.
The impact of COVID-19 on the non-public security service market varies from sector to sector. Certain sectors are beginning to slow down and reduce their hours while others are drastically picking up. Hotels have reduced staff temporarily, from about 120 to 10 as occupancy approaches 0%. Retail stores, malls, and commercial buildings now only need a couple of security officers.
Securitas has put into place a Business Continuity Planning system to ensure client service and officer support remains uninterrupted, with work-from-home and remote workplace options for core operational teams to ensure that they meet social distancing guidelines, along with employee separation plans for co-located management and support departments. Securitas is working closely with key suppliers of technology, uniforms, and operational supplies to ensure supply chain continuity so that officers remain safe and properly supported.
The guard services segment accounts for more than 90% of the private security services industry and employs millions of people globally. Sustained security threat perception and increasing labor wages are expected to bolster the market growth during the forecast period. Manpower procurement and retention are expected to increase with the rise in alternate employment opportunities.
Government policies, budget allocation for the installation of critical communication networks, biometric security and authentication systems, surveillance systems, scanning and screening systems, and regulatory norms for the safety of security providers during the pandemic are anticipated to drive the market growth in the coming years.
Rising conflicts lead to the infiltration of terrorists into a country via usual transportation. The private sector, including commerce, services, maintenance and repair, transportation, construction, manufacturing, and mining industries are increasingly being seen as an important partner in border conflict prevention, resolution, and in the provision of humanitarian relief and post-conflict reconstruction. Crime rates and terrorist activities have witnessed an immense increase in the last few years globally, which has increased the concerns over the safety and security of assets, people, and processes.
High crime rates and attacks have been reported in the U.S. and parts of South America in recent years that have led to the loss of several human lives and severe damage to infrastructure, thus highlighting the need for physical security solutions and efficient monitoring systems.
According to the U.S. Department of State, terrorist activities have been rising across the globe. Other countries have routinely experienced a large number of terrorist attacks in terrorism in 2019, as compared to 2018. This has severely accelerated the demand for guard services, alarm monitoring, and armored transport among various industry verticals to safeguard valuable assets.
Non-public security service companies provide allied services, such as the installation, operation, and maintenance of electronic security products, such as CCTVs. Currently, the revenues from this segment for large security service companies are generally not significant; however, they are expected to grow substantially as companies decide to cut operational costs and invest more in technology.
Despite the challenges, the security services industry is expected to retain its growth momentum in the forthcoming years. Leading companies expect strong organic growth in guard services and cash services and are increasing their capabilities in auxiliary services, such as facility management, and value-added services, such as consultancy and training. The industry is also observing an increase in the number of acquisitions and growth in the inflow of private equity funds, which underscore its growth potential for the coming years.
Guard services comprise the key segment in private security services, followed by cash services. The sector contributes more than 90% of the private security services industry and is anticipated to grow significantly during the forecast period. Guard services refer to services rendered in safeguarding client premises against unauthorized access or occupation and destruction and damage.
The segment is expected to record robust growth, driven by sustained security threat perception and an increase in labor wages. Key market players are enhancing their capabilities in auxiliary services, such as facility management, consultancy, and training. The growing number of acquisitions and the influx of private equity funds are also expected to propel the segment’s growth in the near future.
BFSI, manufacturing, retail, and commercial are some of the prominent end-users in the guard services segment. The growing incidence of terrorist attacks and crimes and the high pace of infrastructure development have been acting as demand drivers for security service personnel in the last few years.
India is expected to be an attractive off-shoring destination for global players, with increased investments in commercial real estate, such as in IT and ITES, leading to the demand for security systems. Private security agencies are involved in a variety of operations that require armed personnel, such as the transport and storage of cash and valuables. The use of arms by guards during employment with private security agencies is construed as the usage of arms for commercial purposes.
Commercial establishments are often unwilling to procure sufficient arms for the safe transport of valuables. They can seek commercial arms licenses, according to the government, which can then be provided to employed staff as a retainer for the protection of the establishment. The private security industry has assumed a more critical role in recent years with the increasing demand for security arrangements of industrial complexes, offices, IT parks, and other infrastructures, such as airports, metro stations, shopping malls, and public utilities.
The industry has significantly scaled its operational capabilities to meet this demand and supplement government machinery toward maintaining the safety and security of citizens and their assets.
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North America to Dominate, APACto Witness a Significant Growth in the Upcoming Years
Non-public security services are a crucial industry in the U.S. responsible not only for protecting many of the nation’s institutions and critical infrastructure systems but also for protecting intellectual property and sensitive corporate information. Companies in the country also rely heavily on private security for a wide range of functions, including protecting employees and property, conducting investigations, performing pre-employment screening, providing information, and many other functions.
The advanced and dynamic adoption of new technologies has been propelling the U.S. non-public security market these last few years. The region is categorized by amendments to national security policies to deal with increasingly sophisticated threats. Flexible economic conditions, industrialization-motivated government policies, and growing digitalization are expected to substantially impact the business community. The U.S. is the largest security services market globally and its security services revenue has grown broadly within the last few years.
Several countries in Asia-Pacific are at varying stages of development. A combination of economic growth and low-security utilization in countries such as China and India significantly drive the regional security services industry and is expected to continue doing so in the upcoming years. China presents significant business opportunities for security service companies as the government is making investments in upgrading airports, aviation systems, shipping ports, highways, and the tourism and retail sectors. Government investment and private funding are expected to augment the non-public security service market during the forecast period.
The non-public security service market is considerably fragmented and expected to get more organized with the enactment of policies such as the Private Security Agencies Regulation Act, adherence to regulatory norms, and an increase in organized play in user industry segments. Wage regulations are expected to positively impact margins, which are already under pressure due to intense competition.
The sector is highly fragmented with the top five players accounting for not more than 20% of the total market. Even within specific industry segments, sub-segments are highly fragmented with the top five to seven players accounting for less than a 50% share. Key players in the global Non-Public Security Service Market include SECOM CO., LTD, Securitas AB, G4S Plc., Allied Universal, Prosegur, ADT LLC, Brinks Incorporated, GardaWorld, SIS Group Enterprises, and ISS Group, among others.
|Market Size||USD in Billion By 2030|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Type (Guard Services), Application (Commercial and Industrial, Government and Institutional)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||SECOM CO., LTD, Securitas AB, G4S Plc., Allied Universal, Prosegur, ADT LLC, Brinks Incorporated, GardaWorld, SIS Group Enterprises, and ISS Group|
|Key Market Opportunities||Rapid Growth In Technology Industry Enhances Non-Public Security Service Market|