Private Security Market Size, Share & COVID-19 Impact Analysis, By Service Type (Manned Security, Cash Services, Electronic Security Services, and Others), By Application (Residential, Commercial, Industrial, and Government), By End User (Manufacturing, Energy & Utilities, BFSI, Infrastructure, Retail, Ports/Airports, and Others), and Regional Forecast, 2023-2030

The global private security market size was valued at USD 224.49 billion in 2022 and is projected to grow from USD 235.37 billion in 2023 to USD 338.23 billion by 2030, exhibiting a CAGR of 5.3% during the forecast period.

Private security service refers to a company that offers protective and preventive measures to individuals, businesses, and other entities to safeguard against various risks, threats, and criminal activities. These services encompass roles, such as physical security, surveillance & monitoring, access control, event security, cybersecurity, personal protection, investigations, security consulting & risk assessment, and security training.

These services are offered by trained professionals who are not part of the government or public law enforcement agencies. This market can represent a wide range of organizations including corporate security, security guard companies, armored car businesses, investigative service agencies, and many others. They typically engage in providing bodyguard, guard dog, parking security, and security guard services. These services are broadly defined as personnel and asset protection services. The rising threats and crime rates are expected to drive the growth of the global market size from 2023 to 2030.

COVID-19 IMPACT

COVID-19 Positively Impacted Market Owing to Increased Demand for Access Control and Screening Personnel

During the pandemic, various sectors experienced increased demand for private guard services. Security personnel were utilized for the screening process with the help of thermal cameras and other security systems integrated into various healthcare applications. Businesses, healthcare facilities, and essential service providers required additional security personnel to enforce health protocols, control crowds, and ensure compliance with safety measures. Security services switched their focus from standard concerns to pandemic-related challenges. To reduce physical contact, a greater emphasis was placed on remote monitoring technologies, such as CCTV cameras, drones, and access control systems.

Monitoring people’s compliance with mask mandates, social distancing, and temperature checks, as well as addressing potential health and safety hazards within facilities, were all part of this. Additionally, after years of decline, the crime rate increased during the COVID-19 pandemic. In 2020, crime rates in the U.S. increased substantially. Most notably, the number of murders per 100,000 people increased by 30%. The cases of assault also climbed by more than 10%. Both these increases are linked to a considerable rise in gun violence.

Moreover, in 2020, more than 75% of murders were committed with a firearm. Cities that reported shooting events, such as New York, had also seen a considerable rise in this type of violence. Many events, such as concerts, sports games, and conferences were canceled or scaled down due to restrictions on gatherings. This led to a decline in demand for event security services and revenue for companies specializing in this area.

LATEST TRENDS

Integrated Security Solutions and Predictive Analytics & Threat Intelligence are Prominent Market Trends

Modern security concerns frequently necessitate a comprehensive response. Integrated security solutions combine numerous security technologies and systems to give complete protection. This can include integrating access control, video surveillance, intrusion detection, and other systems into a single system for enhanced threat management. For instance, in October 2021, Backstreet Surveillance, Inc., a U.S.-based manufacturer of Do-It-Yourself (DIY) security camera systems, unveiled the Backstreet Cyber Secure Series, a next generation of powerful, "hardened," IP-based video surveillance systems.

The product effectively provides every element requested by a surveillance business on a single platform. It claims to incorporate powerful deep learning Artificial Intelligence (AI,) peer-to-peer remote access, automated motion monitoring, gunshot detection & location identification, 24-hour color night vision video technology, facial detection, profile identification, people counting, and much more. Additionally, with the help of predictive analytics and threat intelligence, it is possible to anticipate potential security threats and take preventive action. Organizations can improve their overall security by anticipating security breaches and cyberattacks by examining patterns and trends in data.

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DRIVING FACTORS

Shifting Focus Toward Private Security Owing to Rising Crime Rates and Changing Societal Dynamics to Drive Market Growth

Individuals, businesses, and communities have an increased need for comprehensive security solutions as crime rates fluctuate and criminal activities become more diversified and complex. Public law enforcement authorities may find it difficult to handle these evolving risks which, in turn, can boost the focus toward private security services. The complexity and range of criminal activities, ranging from cybercrime and identity theft to vandalism and organized crime, will create a surge in the demand for specialist security services.

For instance, businesses in London are increasingly turning to companies operating in security services due to claims that the Metropolitan Police (Met) has failed to deal with shoplifting incidents. In November 2022, the Business Improvement District (BID) launched two My Local Bobby (MLB) wardens, allocating a third of its USD 470,397 yearly budget to the program. MLB is a private contract-based security company. In June 2023, according to the Metropolitan Police Service (MET), a London-based territorial police force, retail crime in London is increasing, with shoplifting up by 21.1% as compared to 2022. However, the area's BID anticipated that the increase is much greater.

BIDs are privately directed and publicly sanctioned entities that augment governmental services within a specific geographical area by earning multiyear revenue through a mandatory assessment on local property owners or companies. In December 2022, banks and supermarkets in Lebanon relied on private security due to rise in violent crimes and pickpocketing in recent months.

Advancements in Cloud-based Security Surveillance Systems to Catalyze Market Growth

Cloud-based surveillance solutions enable remote access to camera feeds and recorded video from any location with an internet connection. This adaptability is useful for companies and individuals to help them monitor their assets while they are abroad. Cloud storage also provides redundancy, protecting important footage from alteration or on-site destruction.

For instance, in March 2023, ProdataKey Inc. (PDK), U.S.-based cloud access control platform for cloud video surveillance systems, unveiled a powerful integration that provides users with a seamless solution that offers benefits of a 100% cloud-based platform.

With the help of this solution, integrators can provide customers with a feature-rich, fully scalable video and access control system with low upfront costs, always-updated software, embedded cybersecurity, and less IT staff support. Additionally, advanced technologies and systems, such as surveillance cameras, drones, biometric access control, artificial intelligence (AI)-based analytics, and remote monitoring, have revolutionized the private security landscape.

These technological advancements can aid security vendors in delivering effective solutions in real-time. Furthermore, live feeds and notifications enable quick decision-making, which allows security teams to effectively coordinate their crisis responses.

RESTRAINING FACTORS

High Recruitment & Training Costs and Changing Threat Landscape May Hamper Market Growth

Acquiring and retaining skilled security personnel can be difficult. Competition for competent individuals, particularly in areas of labor shortage, can put a strain on recruitment efforts. Additionally, offering continual training to ensure workers are up to date on the latest security procedures and technologies can be costly. Inadequately qualified people can decrease the quality of security services, which can shrink the client base and hamper the global private security market growth.

Additionally, keeping track of the constantly changing threat scenario, which includes cyberattacks, terrorism, and sophisticated criminal activities, is a difficult task. To address these multiple dangers, constant software updates and investment in cutting-edge technology and talent are required. Failure to keep up with the growing risks can decrease the quality of security services, which is expected to hinder the market growth.

SEGMENTATION

By Service Type Analysis

Manned Security to Dominate Market Due to Rising Threats of Crime and Terrorism in Various Sectors

By service type, the market is categorized into manned security, cash services, electronic security services, and others. The manned security segment dominates the private security market share and is estimated to be the fastest growing segment during forecast period due to persistent threat of crime, terrorism, and other security breaches. Manned security, also known as manned guarding, refers to security guards that provide physical protection to property and personnel. Businesses, public spaces, and critical infrastructure require on-site personnel to deter and respond to potential threats effectively.

An electronic security system uses software and electronics to perform a multitude of security functions to enhance the protection of a designated area. These systems monitor and collect data from subsystems, allowing operators to interpret data, determine responses, and quickly respond to events. The increasing demand for remote surveillance is anticipated to boost the growth of this segment.

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By Application Analysis

Rising Demand for Appropriate Asset Protection Solutions to Boost Product Use in Industrial Applications

By application, the market is bifurcated into residential, commercial, industrial, and government. The industrial segment is dominating the market and is expected to register significant growth during the forecast period due to the rising demand for appropriate asset protection solutions. Industrial security comprises a wide variety of security services, such as supervision during manufacturing, security access control, vehicle patrol & security services, ingress & egress at distribution, warehousing & manufacturing facilities, construction traffic control and others.

The residential segment is expected to be the fastest growing segment due to rising concerns of safety and security of homes and related entities. Residential security refers to protecting people and their property from privacy violations, disturbances, or any other threat that could endanger the safety of the people who live there. Some gated communities may also hire security guards to patrol the premises and monitor entrances. Similarly, some HLM agencies use video surveillance and access control services for this purpose.

By End User Analysis

End Users in Manufacturing Sector to Increase Product Adoption with Growing Demand for Integrated Risk Management Platforms

The market, by end user, is segmented into manufacturing, energy & utilities, BFSI, infrastructure, retail, port/airports, and others. The manufacturing segment dominates the market and is expected to register a significant growth owing to the rising demand for integrated risk management platforms. The manufacturing sector is extremely diverse, from manufacturing advanced fighter jets, ventilators, and pharmaceuticals to automobiles, paper products, steel, clothing, high-tech components and more. This factor will increase the use of security solutions to protect production processes from data breaches.

The BFSI segment is expected to be the fastest growing segment due to the increasing demand for cash management services. This segment includes ATM replenishment, Cash-In-Transit (CIT), and cash pickup & delivery services, which uses high-end security systems to conduct these activities smoothly.

REGIONAL INSIGHTS

In terms of geography, the market is divided into North America, Europe, Asia Pacific, and the Rest of the World.

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Asia Pacific dominated the market share in 2022 and was valued at USD 70.85 billion during that year. This region is also expected to be the fastest growing region during the forecast period. This growth is attributed to rapid urbanization, industrialization, and infrastructure development. For instance, in September 2022, the Airport Authority of India (AAI) announced that it would deploy security personnel to 60 airports to perform non-core duties. As per decision of the central government, a total of 1,924 personnel from private manned security agencies will be deployed to 60 airports in place of CISF staff assigned to non-essential positions.

Europe captured the second-largest market share in the base year. This growth is due to the increasing demand for anti-retail theft solutions. For instance, in November 2022, according to the Commercial Victimization Survey, 42% had been victims of crime in the past 12 months who worked for establishments in the wholesale and retail sectors. Medium-sized establishments with 10 to 49 employees were more likely to become victims of crime (38%) than those with 9 or fewer employees (26%).

North America held a significant share in the base year and is anticipated to experience considerable growth during the forecast period. This growth is attributed to the presence of major OEMs and increasing number of mergers & acquisitions in this region. For instance, in April 2021, Allied Universal Security Services LLC, a U.S.-based security and facility services company, completed the acquisition of G4S plc for a deal amount of USD 5.3 billion. This acquisition created a world-leading integrated security company that claims to provide unparalleled capabilities for customers and new opportunities for corporate teams around the world. G4S plc is a U.K.-based private security company.

The Rest of the World, which includes Latin America and the Middle East & Africa, is anticipated to witness significant growth in the global market during the forecast period. The growing demand for monitoring and inspection solutions due to increasing illegal activities and gang violence in Latin America is set to help the regional market grow. Furthermore, the expansion of industries, such as infrastructure, energy & utilities, and transportation, will necessitate the implementation of robust security measures to protect both assets and customers.

KEY INDUSTRY PLAYERS

Mergers & Acquisitions, Emerging Markets, and Technological Advancements are Key Focus Areas of Leading Players

The global market is highly fragmented with key private security players such as Allied Universal Security Services LLC, ADT Inc., Securitas AB, Secom Co., Ltd., Prosegur Compania de Seguridad, S.A. and others. These companies are focusing on product innovation, technological advancements, and mergers & acquisitions to increase their market share. For instance, in August 2022, Allied Universal Security Services LLC, a global leader in security facilities and services, completed the strategic acquisition of Attenti Group, one of the world's leading electronic surveillance companies. This would enable the combination of Attenti Surveillance Technology and G4S to become a world leader in electronic surveillance solutions.

LIST OF KEY COMPANIES PROFILED:

• Allied Universal Security Services LLC (U.S.)


• ADT Inc. (U.S.)


• Securitas AB (Sweden)


• Secom Co., Ltd. (Japan)


• Prosegur Compania de Seguridad, S.A (Spain)


• The Brink's Company (U.S.)


• ISS A/S (Denmark)


• GardaWorld Corporation (Canada)


• Loomis AB (Sweden)


• SIS Group Enterprise (India)


• ICTS International N.V. (Netherlands)


• AMZ Sicherheitsdienste GmbH (Germany)


• Hanwei International Security Services Co. Ltd. (China)


• Kingdom Protection Services Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 - Downtown Santa Monica (DTSM) Inc. will spend up to USD 1.7 million on private security measures in response to safety concerns and changing community requirements. DTSM Inc. has teamed with security firm Covered 6 to enhance the services offered by the city's police department to further improve safety and security in Downtown Santa Monica.


• May 2023 - Gallagher Group Limited announced an exclusive distribution agreement with Gasbot Pty Ltd. to introduce a satellite-based liquid monitoring system in the North America market. The Gallagher Satellite Liquid Monitoring System uses Gasbot's most advanced wireless sensor technology to provide timely information on liquid levels in tanks, helping farmers make informed decisions about fluid use and management. The system uses satellite communications to transmit tank data to farmers' mobile phones, making it easy for them to access tank information even in remote or hard-to-reach locations.


• February 2023 - i-PRO Co. Ltd., a global leader in professional security solutions for surveillance and public safety, introduced the MonitorCast Access Control software. With the addition of mercury-based intrusion detection feature in the new version of MonitorCast, access control and intrusion detection can be easily combined without the need for additional hardware or integrations. By combining access control with an Intrusion Detection System (IDS), users can restrict physical access to specific buildings or areas while simultaneously keeping an eye on them.


• March 2023 - Johnson Controls, a global leader in smart, healthy, and sustainable buildings, released the new IQ Pro Hybrid Security Panel, designed specifically to prevent intrusion in commercial buildings, big residential facilities, campuses, and K–12 sectors. With an expansive selection of devices for life safety and security as well as an industry-leading wireless range, the IQ Pro supports PowerG's innovative sensor technology.


• September 2022 – Protos Security, a leading provider of technology-based security services in North America, announced the acquisition of MG Security Services. This acquisition helped Protos expand its presence in the East Coast. MG Security Services provides armed and unarmed security guard services, crisis management, fraud prevention & private investigation for commercial real estate, hospitals, property management, and education & financial services to its clients. Headquartered in NYC, MG Security employs over 1,200 guards.

REPORT COVERAGE

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The market research report provides a detailed market analysis. It comprises all major aspects, such as R&D capabilities and optimization of operating services. Moreover, the report offers insights into the market forecast, dynamics, regional analysis, porter’s five forces analysis, and competitive landscape of various companies profiled with market competition, and highlights key industry developments. In addition to the above-mentioned factors, it focuses on several factors that contributed to the global market growth in recent years.

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