Guarding Revenues Reached $29 Billion in 2018
Charlotte NC November 23 2019 According to a new report from The Freedonia Group, guarding revenues reached $29 billion in 2018, representing 43% of all private security service revenues.
Revenues by service include:
guarding (includes patrolling, monitoring surveillance equipment, and overseeing stationary locations)
security monitoring (includes planning security systems, performing maintenance and reviews, reacting to events, and providing post-event support)
private investigations – includes hired personnel to perform such duties as:
criminal, credit, and driving record searches
verification of social security numbers, educational and professional credentials, previous employment, and property ownership
the location of missing persons
polygraph examinations
undercover operations
searches for data for legal proceedings and regulatory matters
retrieval of electronic data
forensic accounting
insurance, internal theft, competitive intelligence, and due diligence investigations
systems integration and management, including:
installation of new security systems, adding new components to an existing system, or integration of security equipment into overall building functions
recurring services such as system maintenance, database management, and system monitoring
cash-in-transit and related services (includes the transport of cash, other legal tender, and valuables via armored transport vehicles, and the provision of ATM management and replenishment, cash management, secured logistics, and other back office services)
security consulting (includes proactively planning security systems, performing maintenance and reviews, reacting to events, and providing post-event support)
pre-employment screening (includes the screening of job applicants)
drug and contraband detection dog services
training for guards and other security personnel
sweeping for bombs and surveillance devices
renting vault rooms for off-site storage of computer data and other valuables
private airline security services
Markets include:
nonresidential:
commercial (commercial offices and office buildings)
industrial (manufacturing facilities and warehouses)
government (courthouses, embassies, jails, military bases, monuments, prisons, publicly owned utilities, other government buildings)
institutional (includes drug treatment centers, hospitals, nursing homes, psychiatric facilities, and rehabilitation centers, as well as primary and secondary schools, higher education facilities and campuses such as colleges and universities, day care centers, tutoring centers, non-degree granting institutions such as certificate, business, or trade programs)
other nonresidential (includes theaters, concert halls, convention centers, sports arenas, stadiums, and other public venues; private utilities plants; nonprofit agencies; and air and nautical ports, bus terminals, train stations, and other transportation facilities)
residential (includes single-family homes, multifamily homes, and manufactured homes)
Excluded from the scope of this study are:
public safety personnel (e.g., police officers, public corrections officers, federal agents, and firefighters)
in-house, proprietary security services, such as guards, detectives, and off-duty police officers on the paid staff of (non-security) business establishments
equipment installation services (aside from systems integration)
locksmith activities
security products distribution and sales
private correctional facility management
In addition, the market research firm said that U.S. guarding revenues are expected to grow 2.6% per year through 2023, reaching $33 billion. These gains are predicted to be driven by:
Continued interest in more highly trained, and thus more expensive, guards who provide a variety of market specific services;
Increasing demand for armed security guards, who require additional training and command higher wages;
And, ongoing technological advances to security systems that make guards more efficient and cost effective.
“Guards are valued for their visible, physical presence, which can deter potential crimes,” read an analyst’s statement on the new report. “Many end users also prefer not to maintain their own in-house, proprietary security forces due to liability concerns, supporting demand from private providers.”
From 2013 to 2018, research firm said that guarding revenues matched the pace of the overall security services market, supported by a number of the aforementioned trends. However, given that guarding is one of the most mature segments of the market, it will see among the slowest gains of any segment through 2023.
