World Security Services Market to Exceed $218 Billion in 2014

The global market for private contract security services is forecast to advance 7.4 percent per year through 2014 to more than $218 billion.  Through 2014, gains will also be boosted by improved economic activity and building construction expenditures from a low 2009 base in developed nations, as well as continued growth in these areas in developing ones.  These and other trends, including market share and product segmentation, are presented in World Security Services, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

The strongest market gains will be posted in developing parts of Asia, Eastern Europe, Africa and the Middle East where security markets are relatively underdeveloped.  Factors such as rapid gains in economic activity, rising personal incomes, foreign investment activity, and the increasing belief that public safety forces are overburdened, corrupt or insufficient will boost gains.  Increasing regulation and a trend toward greater professionalism will also drive growth by generating improved levels of public trust.  Intensity of product use is relatively low in these regions, indicating significant growth potential going forward.  The BRIC countries of Brazil, Russia, India and China, as well as Mexico and South Africa, are expected to achieve double-digit annual growth through 2014.

The US will remain the largest single consumer of private contract security services, accounting for 29 percent of total world demand in 2014.  Advances will trail the global average by a wide margin as the market for most security services continues to mature; however, spending will benefit from a strong cyclical rebound in construction and capital investment spending from a low 2009 base, following a period of economic contraction. 

Contract guarding will continue to be the largest segment of the market, accounting for more than half of total revenues in 2014.  This segment benefits from the minimal capital requirements for operation which, along with relatively low labor costs, make it the dominant security service in the developing markets.  The strongest growth prospects exist for services such as systems integration and consulting.  Above-average growth rates are also expected for alarm monitoring services. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.