According to a new report from The Freedonia Group, revenues for the global guard service industry are forecast to grow six percent per year to $145.2 billion in 2022. In a statement, the research firm said that the growth will be primarily driven by gains in developing countries, with highly populous industrializing nations like China and India contributing a particularly large share.
Other factors that will drive the industry’s growth, according to The Freedonia Group, include:
• Increased urbanization and income inequality, which will heighten concerns about crime as well as boost the size of the population able to afford guard services;
• Improvements in licensing and professionalization, which will boost public trust and enable price increases;
• Greater outsourcing of non-core business activities such as guarding;
• And, increased penetration of technologically advanced security systems, which will demand more highly skilled guards.
Because the guard service industry tends to be mature in developed nations, the research firm said that gains in places like North America and Western Europe will be modest. Additionally, high labor costs and intensive penetration of electronic security services are expected to drive strong investment in labor-saving equipment that can reduce the number of guards needed for a given application.
Global revenues for all security service types are forecast to rise 5.8 percent per year to $269 billion in 2022. Generally, demand for supplemental security service is driven by the perceived risk of crime victimization and the ability to pay for it. Specific factors driving demand growth vary by the degree of development in the market.