Global Security Services Industry Analysis
The world security services market (segment of the business services industry) exceeded $174 billion in 2010, reports MarketLine. Market growth is expected to accelerate to exceed a yearly rate of 4.5% between 2010 and 2015 to reach almost $220 billion. The security services industry refers to the electronic, managed and outsourced personnel security solutions.
According to Freedonia, security services demand is being fuelled by an increasing rate of urbanization, a growing middle class owning assets they wish to protect, a lack of faith in public safety measures and fear of terrorism and crime. Developed nations will record the strongest market growth, fuelled by foreign investment, economic recovery following the economic crisis, unreliability or overloading of public security services and higher personal incomes.
Countries including South Africa, China, India, Brazil and Mexico are forecast to record double-digit growth over the next few years. The US is the number-one private contract security services consumer, expected to hold close to 35% market share in 2014.
Key Market Segments
- The global managed security services industry is expected to reach close to $8.5 billion, reports Global Industry Analysts. Market growth is fuelled by rising hacker activity, with strong demand expected from developing countries, especially Asia-Pacific. Companies are paying increasing attention to risk management and network security due to network threats and the need to manage security. Managed security service providers are stepping in to provide services necessary to a business environment in which the internet is playing an increasing role in organization to track emails, manage network logs and regulate data.
- The world managed security service providers industry is expected to record close to 18% yearly growth through 2014, reports TechNavio. The market is witnessing rising demand for cloud-based solutions. Obstacles to market growth include factors such as automation, professional expertise and scalability. Leading players operating in the market include Hewlett-Packard, IBM, BT Global Services and Symantec.
- Freedonia estimates the world private contract security services industry will record almost 7.5% yearly growth through 2014 to reach $218 billion. Market growth will be driven by economic recovery and rising building construction spending. Contract guarding represents the leading segment, expected to generate more than 50% of overall revenues in 2014.
- The global homeland security market exceeded $194 billion in 2011, according to Visiongain. Market growth is expected to continue over the coming decade, fuelled by government defense spending to protect against factors such as cyber attack, piracy, natural disasters and terrorism.
- Homeland Security Research forecasts the world x-ray security screening industry, covering systems sales, upgrades and service, will exceed 10% yearly growth through 2016 to reach almost $2 billion, up from $1 billion in 2010. The market’s cost-performance is challenged by a lack of competitive modality in the industry. Market expansion will be led by China, the US and India.
- The global surveillance and security equipment market is expected to record close to 12% yearly growth to exceed $139 billion in 2015, up from under $80 billion in 2009, reports BCC Research. Industrial/commercial represents the leading end-user segment and is forecast to record 13% yearly growth to reach close to $95 billion by 2015. The state/military market segment is expected to record yearly growth of 10% to exceed $16 billion by 2015. The non-commercial applications market segment is forecast to record 9% yearly growth to exceed $29 billion in 2015.
The global security services industry continues to grow across various sectors. An expanding middle class will continue to fuel demand for private sector security services, while developed countries will pay increasing attention to data protection at government level. The financial and defense sectors in particular will avail of security in the face of mounting cyber attacks and more sophisticated hacker activity. As the nature of security threats becomes more complex, the industry will have to concentrate on streamlining operations and making more effective use of technological tools.
Leading Industry Associations
- Information Systems Security Association
- National Association of Security Companies
- International Securities Systems Association
- British Security Industry Association
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