US demand for private contracted security services is projected to increase
5.2 percent annually to $63.8 billion in 2016. The market will be supported by
a high perceived risk of crime (from conventional violent and property crimes
to white collar crimes and terrorism) and a concern that public safety
officials are overburdened. The outsourcing of security activities to
contracted firms, instead of relying on in-house security, will support
demand. The privatization of some public safety operations, such as guarding
government facilities and correctional facilities management, will also boost
gains.
Higher tech services hold especially good prospects
Security services that capitalize on continuing technological developments
hold especially good prospects. For instance, both security consulting and
systems integration revenues will see above-average growth. Security
consultants and systems integrators are able to manage a wide variety of
services when creating, upgrading or implementing security plans and when
installing or upgrading complex electronic security devices. In addition, the
trend toward more sophisticated and automated security electronics that are
increasingly integrated with other building operations will boost growth for
these services.
Labor intensive services to see below average growth
In contrast, security services that are more labor intensive, such as private
investigations and armored transport, are expected to see below average
growth. These services face strong competition from a range of technological
advancements, including improvements in security systems, information
technology and, in the case of armored transport, electronic finance. In
contrast, security guarding, though also labor intensive, will see solid gains
through 2016 as providers continue to promote valueadded services and
features, emphasizing their guards' special skills and high level of training
as a way to differentiate themselves from low-price vendors.
Residential market to outpace nonresidential
Security service requirements vary across the major markets, influenced by
factors such as exposure to potential loss, the nature of the customers'
activities, and the availability of alternative security options. In 2012, the
nonresidential market accounted for approximately three-fourths of all private
security services demand. However, through 2016 the residential market is
expected to outpace the nonresidential market, benefiting from the recovery in
housing construction, which will spur strong growth in residential alarm
monitoring.
In the nonresidential market, the best growth prospects are in the industrial
and institutional sectors. Industrial demand for security services will be
supported by the recovery in manufacturing activity and rebound in industrial
construction. The institutional market will also benefit from strong growth in
construction activity, which will increase the number of facilities that
require protection. In addition, demand will be supported by the gravity of
security risks in institutional settings where large numbers of persons
typically are gathered, many of whom are less able to protect themselves.
Study coverage
Details on these and other findings are contained in the upcoming Freedonia
industry study, Private Security Services presents historical demand data for
2001, 2006 and 2011, plus forecasts for 2016 and 2021 by type, market, and US
region. The study also assesses key market environment factors, evaluates
company market share, and profiles 35 US industry competitors, such as ADT,
AlliedBarton, CCA, G4S and Securitas.
Table of Contents
Table of Contents
INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
General
Demographic & Social Environment
Demographic Trends
Employment Outlook
Macroeconomic Environment
Consumer Spending Trends
Building Construction Outlook
Business Establishment Trends
Manufacturing Outlook
Retail Sales Outlook
Service Sector Outlook
Public Safety Environment
Crime
Violent Crimes
Property Crimes
Terrorism & Other Nonconventional Crimes
Terrorism
Other Nonconventional Crimes
Adult Inmate Trends
Fire
Technological Environment
Regulatory Environment
Security Guards
Alarm Monitoring
Private Investigators
Correctional Facility Management
Armored Transport
Pre-Employment Screening
Others
World Market
III. SECURITY SERVICES
General
Guarding
Market Trends
Pre-Employment Screening
Training
Wages & Benefits
Applications
Vendors & Market Share
Alarm Monitoring Services
Residential Intrusion & Fire
Market Trends
Market Threats
Nonresidential
Personal Emergency Response Service
Vendors & Market Share
Competition
Leading Vendors
Private Investigation Services
Market Trends
Vendors
Correctional Facility Management
Market Trends
Market Threats
Vendors & Market Share
Armored Transport Services
Traditional Armored Transport
ATM Servicing & Other
ATMs
Other Services
Vendors & Market Share
Systems Integration & Management
Services & Technologies
Vendors
Security Consulting
Services
Vendors
Pre-Employment Screening
Market Trends
Vendors
Other Security Services
IV. MARKETS
General
Nonresidential
Commercial
Commercial Offices & Office Buildings
Financial Institutions
Retail
Other Commercial
Government
Industrial
Manufacturing Facilities
Warehouses
Institutional
Health Care Facilities
Schools
Other Institutional Markets
Other Nonresidential Markets
Public Venues
All Other
Residential
Alarm Monitoring
Guarding & Other Services
V. REGIONAL MARKETS
General
Regional Demographic & Economic Trends
Population Patterns
Economic Outlook
Construction Activity
Public Safety Trends
Regional Crime Rates
Local Crime Trends
Fire Trends
Regional Private Security Service Overview
Northeast
Market Outlook
New England
Middle Atlantic
Midwest
Market Outlook
East North Central
West North Central
South
Market Outlook
South Atlantic
East South Central
West South Central
West
Market Outlook
Mountain
Pacific
Major Metropolitan Areas
Correctional Facility Management
VI. INDUSTRY STRUCTURE
General
Industry Composition
Guarding Firms
Alarm Monitoring Firms
Private Investigation Firms
Correctional Facility Management Firms
Armored Transport Firms
Security Systems Integration Firms
Security Consulting Firms
Pre-Employment Screening Firms
Market Share
Competitive Strategies
Marketing
Nonresidential
Residential
Mergers & Acquisitions
Cooperative Agreements
COMPANY PROFILES
ABM Industries Incorporated
Accuity Holdings, see Reed Elsevier Group
Adesta, see G4S
ADT Corporation
Advanced Solutions, see Protection One
Akal Security Incorporated
AlliedBarton Security Services
Altegrity Incorporated
American Alert, see Vector Security
Armstrong Group
Automatic Data Processing Incorporated
BI, see GEO Group
Brink's Company
Camtronic Security Integration, see Protection One
Central Alarm, see Protection One
Certified Security Systems, see Vector Security
Champions of the West, see G4S
Coastal International Security, see Akal Security
Corrections Corporation of America
Counterforce USA, see United Technologies
Day & Zimmermann Group Incorporated
Diebold Incorporated
Diversco Integrated Services, see ABM Industries
Doyon-Akal JV, see Akal Security
Dunbar Companies
Garda World Security Corporation
GEO Group Incorporated
G4S plc
Guardian Protection Services, see Armstrong Group
Guardsmark LLC
Hamilton Pacific, see Stanley Black & Decker
Heritage Security Services, see TransNational Security Group
HireRight, see Altegrity
Honeywell International Incorporated
HR/Plus, see AlliedBarton Security Services
Integration Logistics, see Protection One
Inter-Con Security Systems Incorporated
Johnson Controls Incorporated
Kroll Advisory Solutions, see Altegrity
Loomis AB
Management & Training Corporation
Mason & Hanger Group, see Day & Zimmermann Group
Monitronics International Incorporated
Niscayah Group, see Stanley Black & Decker
Paragon Systems, see Securitas
Philips Lifeline, see Royal Philips Electronics
Pinkerton Consulting & Investigations, see Securitas
Protection One Incorporated
Red Hawk Fire and Security US
Reed Elsevier Group plc
Regent Security Services, see TransNational Security Group
Royal Philips Electronics NV
Securitas AB
Security Consultants Group, see Securitas
Security Management, see Securitas
Security Professionals, see Securitas
Siemens AG
Silver Shield Security, see TransNational Security Group
SimplexGrinnell, see Tyco International
Slomin's Incorporated
Software House, see Tyco International
Sonitrol, see Stanley Black & Decker
Stanley Black & Decker Incorporated
TransCor America, see Corrections Corporation of America
TransNational Security Group LLC
Tyco International Limited
United Technologies Corporation
Universal Services of America, see TransNational Security Group
US Security Associates Incorporated
USIS, see Altegrity
Vector Security Incorporated
Visonic, see Tyco International
Vivint Incorporated
Wackenhut Services, see G4S
Whelan Security, see TransNational Security Group
Other Security Service Companies
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table
SECTION II -- MARKET ENVIRONMENT
1 Population & Households
2 Employment Outlook
3 Macroeconomic Indicators
4 Personal Consumption Expenditures
5 Building Construction Expenditures
6 Business Establishments
7 Manufacturers' Shipments
8 Retail Sales
9 Service Income
10 Public Safety Sector Employment, 2001-2010
11 Violent Crime Levels, 2001-2010
12 Property Crime Levels, 2001-2010
13 Terrorism, 2001-2010
14 Selected Other Nonconventional Crimes, 2001-2010
15 Adult Inmate Population
16 Fire Levels & Losses, 2001-2010
SECTION III -- SECURITY SERVICES
1 Private Security Service Revenues
2 Security Guard Revenues
3 Alarm Monitoring Service Revenues
4 Residential Intrusion & Fire Alarm Monitoring Market
5 Nonresidential Alarm Monitoring Market
6 Personal Emergency Response Service Monitoring Market
