Physical Security Services
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Security Services Industry Outlook

• In 2017, the global security service industry was valued at approximately $264 billion. By the end of 2019, it is expected to reach $296 billion with a compound annual growth rate (CAGR) of 6 percent.
• Developed Regions : These regions contribute almost 50 percent of the global market with an annual growth rate of 4 – 5 percent, and the large-sized contracts are from these regions.
• Emerging Countries : These countries have a higher growth rate as compared to the mature markets, such as the US and Europe. However, the contract size is still small in these regions and the market is highly fragmented.
• The increase in crime rates, social unrest within countries and terrorism have fuelled the demand for better security solutions all over the globe
• The KPIs in Physical Security Services: Cost, security systems, confidentiality, area secured per Security Guard.
• High physical security market maturity regions—North America and Western Europe.
• Low physical security equipment market maturity regions: LATAM and MEA.
• Critical Cost Components: Manned guarding wages and new electronic equipment cost
• The Global Physical Security Market Size is around $283 Billion.
• Top Global Physical Security Service Providers: G4S | Securitas AB | Prosegur | GardaWorld.
• The North American physical security equipment market is estimated to be around $53.19 billion and is growing at a 4–5 percent. 

Global Security Services Market Maturity

• The rising social insecurity in the recent times is prompting the buyers to be more proactive in securing their premises
• Technology plays a huge role in reducing the labor required. Increasing the investments in unmanned guarding will reduce the cost of services as it is directly related to the labor cost.
• The adoption of technology which requires high capital investment is limited to the mature markets and is making slow inroads in the developing regions

Global Security Services Drivers and Constraints 

• Technology is a double-edged sword. On one hand, the adoption of new technologies (such as CCTV and electronic surveillance systems) reduces cost, and on the other, there is a threat to data security, which causes a rise in demand for it
• Cost savings from 20–80 percent can be achieved in the long run depending upon the buyer's area under surveillance and rate of adoption of unmanned guarding. The cost savings would increase over successive years as the total cost of ownership (TCO) for electronic equipment gets written off every year

Drivers 

• The increasing demand for security services in different segments and the arrival of new entrants has lead to more competition among service providers and higher fragmentation in the U.S. and Europe.
• The increasing threats of social insecurity, terrorism and rising crime rates raises the concern for securing assets, employees and information; hence, the security services industry will have a potential growth period.
• The increase in infrastructure, such as malls and office complexes, will in turn require more manpower; hence, the security service suppliers will have a potential growth period in their businesses

Constraints 

• The lack of common procedures and standards across borders has resulted in operational problems for security devices in different regions. This restricts buyers from investing in technology and security equipment on a large scale.
• Lack of awareness of new technologies and security devices among buyers might result in slower adoption of electronic security services, especially in emerging regions.
• The availability of a skilled labour force in emerging regions is quite low as compared to mature markets like Europe and the U.S. This results in increased training costs and reduced quality of services

Key Industry Trends

Security as a Service:

Physical security services are moving towards a system that provides more specific solutions as well as a higher level of integration and service. Instead of viewing physical security as a series of connected hardware and software systems, the industry has started to move towards system that provides more of security as a service to successfully run security operations

Deeper Convergence of Physical and Logical Security:

The upcoming convergence of physical and logical security is an absolute certainty, which is already in progress. For example, Role-Based Access Control (RBAC) has been the predominant model for access control in the IT world of logical security and today this architecture is reflected in the design of leading access control systems, because it significantly reduces the cost of access management.

Shift from Proprietary to Open Hardware:

Security dealers and integrators have started to manufacture hardware that are compatible with third party operable software. This is mainly because of the issues customers faced in the past due to the manufacturer's negligence in updating the software or discontinued operations. The customers feel guaranteed with the invention of these open hardware which can also be run on other third party operating software (apart from OEM)

More Focus on Video Analytics:

The security industry has started to develop video analytics software that works in a similar way to software that analyzes numerical and text data. Instead of having a person to work through video footage, the software can work in real time to help make quick and informed decisions. This would help professionals address several challenges such as facial recognition, forensic analysis and perimeter protection

Integrated Cloud Systems:

Integration of various security systems in an organization have been the trend for quite some time and now the cloud storage is being utilized to achieve maximum operational efficiency through integration. This not only integrates the security systems in an organization, but also provides the user a remote access to the security network, which could be used in techniques such as intrusion prevention which is different from intrusion detection.

Market Overview

The usage of innovative technologies, such as robots and drones, is in the nascent stage as of now, and it is expected to change the landscape of physical security services in the next five years.

One of the largest emerging trends is the increased use of smart technology for monitoring and managing security workforces.

The physical security market size in India is expected to exceed 1500 billion by 2022.

The global physical security market is fragmented, and there are many suppliers who can perform security services at different scales.

 Operating margin is 5.5-6 percent for tier 1 players and around 4 percent for tier 2 players in the physical security equipment market. 

Why You Should Buy This Report

• The report gives information on the regional and global physical security market size, maturity, industry trends, drivers and constraints.
• It gives a regional market outlook of the physical security equipment market in the APAC, North America, MEA and Europe regions and Porter’s five force analysis of the developed and emerging markets.
• It provides insight into the supply landscape of the global physical security equipment market and does a SWOT analysis of key players like GardaWorld, Prosegur, Brink’s, etc. 
• The report details the cost breakup, cost analysis, pricing analysis, pricing models, etc. of physical security services.