World Security Services

industry forecasts for 2012 & 2017

Publication Date	September 2008
Publisher	Freedonia Group
Product Type	Report
Pages	462
ISBN Number	not applicable
Product Code	FED00221

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Summary

Worldwide demand to grow 7.5% per year through 2012

The global market for private contract security services is forecast to advance by 7.5 percent per annum through 2012 to $195 billion. Gains will be driven by a generally healthy global economy, rising urbanization, and heightened fears of domestic crime and terrorism in many countries. An upswing in building construction is also expected in several major economies, most notably the US, Japan and Germany, although most other areas will see construction growth slow after a strong 2002-2007 performance.

Also limiting gains will be competition from electronic security measures such as CCTV and access controls, as well as by intense price competition in the guard and armored transport segments. The maturity of most developed country security markets will also constrain future increases in demand.

Contract guarding will remain the largest segment of the market, accounting for more than 40 percent of total revenues.

Especially favorable prospects exist for services such as systems integration and consulting, which benefit from the transition from manned to electronic security modalities. By contrast, the private prison management industry has suffered a dramatic reversal of fortunes since the late 1990s, as rising opposition to the privatization of correctional facilities has taken it from the fastest to one of the slowest growing security service segments. Indeed, prison management contracts with private firms have been revoked in countries from Canada to New Zealand, with the state resuming control.

Developing regions to offer best growth prospects

The strongest gains will be registered in developing parts of Asia, Eastern Europe, Africa and the Middle East, and Latin America. Security markets in these areas are, for the most part, underdeveloped, and demand will be fueled by generally strong economic environments, new business formation and foreign investment activity, increased urbanization (contributing to social tensions and criminal activity), and growing middle and upper class populations. As a result, these developing regions will increasingly have both the need for and means to invest in security services. China, India, Russia and Brazil are forecast to record some of the most robust sales increases.

The US will remain the largest single consumer of private contract security services, accounting for 30 percent of all demand. Advances will trail the global average by a wide margin as alarm monitoring and prison management markets continue to mature, although the rebound in building construction will provide some support.

Commercial & industrial markets to dominate

The commercial and industrial security service market is by far the largest. The dominance of this market reflects its size, potential for loss and availability of significant resources for protective purposes.

Future advances will be spurred by rising business activity and associated security requirements as the world economy continues to grow. Although the government/ institutional and residential security markets are considerably smaller, they will register healthy increases through 2012. Government/institutional market gains will be fueled by the heightened level of security consciousness that exists in the post 9/11 era, with government agencies playing a lead role in providing for the security of the public at large.

However, the strongest growth will be posted by the residential security market, stimulated by a high perceived risk of crime among residents in many areas.

Study coverage

It presents historical demand data plus forecasts (2012, 2017) for private contractual security service by type and market, as well as for 20 countries and six regions. The study also assesses market share and profiles 38 global industry competitors

Content

Section Page
Introduction Xi
I. Executive Summary
Ii. Market Environment
- General
- Economic Environment
- Recent Historical Trends
- Macroeconomic Outlook
- Demographic & Social Trends
- Demographic Trends
- Social Trends
- Unemployment
- Urbanization
- Building Construction
- Criminal Justice Trends
- Public Safety Environment
- Conventional Crimes
- Terrorism & Other Nonconventional Crimes
- Technology Trends
- Legal & Regulatory Environment
- Multinational Parameters
Iii. Market Overview
- Regional Overview
- Services
- Guard Services
- Guard Services: Opportunities
- Guard Services: Threats
- Alarm Monitoring
- Armored Transport
- Armored Transport: Opportunities
- Armored Transport: Threats
- Armored Transport: Suppliers
- Prison Management
- Prison Management: Threats
- Section Page
- Prison Management: Opportunities
- Prison Management: Participants
- Other Security Services
- Consulting
- Private Investigations
- All Other
- Demand By Market
- Commercial & Industrial
- Institutional
- Residential
Iv. North America
- General
- Security Service Market Environment
- Security Service Outlook
- United States
- Canada
- Mexico
V. Western Europe
- General
- Security Service Market Environment
- Security Service Outlook
- United Kingdom
- Germany
- France
- Spain
- Italy
- Netherlands
- Belgium
- Sweden
- Other Western Europe
Vi. Asia/Pacific
- General
- Security Service Market Environment
- Security Service Outlook
- Section Page
- Japan
- China
- South Korea
- Australia
- India
- Other Asia/Pacific
Vii. Other Regions
- Latin America
- Security Service Market Environment
- Security Service Outlook
- Brazil
- Other Latin America
- Eastern Europe
- Security Service Market Environment
- Security Service Outlook
- Poland
- Russia
- Other Eastern Europe
- Africa/Mideast
- Security Service Market Environment
- Security Service Outlook
- South Africa
- Other Africa/Mideast
Viii. Industry Structure
- General
- Market Share
- Securitas Ab
- G4s
- Tyco
- Brinks
- Secom
- Marketing
- Manned Security
- Electronics-Intensive Services
- Section Page
- Cooperative Agreements
- Mergers & Acquisitions
- Company Profiles
- Ademco Far East Pte Limited, See Rentokil Initial Plc
- Adt Security Services, See Tyco International Limited
- Afi International Group, See Transnational Security Group
- Alfa Security Services, See G4s Plc
- Allied Security Holdings Llc
- Armaguard, See Linfox Pty Limited
- Armorgroup International Plc, See G4s Plc
- Brambles Limited
- Brinks Company
- Canadian Corps Of Commissionaires
- Central Security Patrols Company Limited
- Choicepoint Incorporated
- Corrections Corporation Of America
- Counterforce North America, See United Technologies
- Day & Zimmermann Group Incorporated
- Dragon Starguard, See Prosegur Compania De Seguridad
- Eci Construction, See Day & Zimmermann Group
- Firstservice Corporation
- Forza Sa, See Securitas Ab
- Fraport Ag Frankfurt Airport Services Worldwide
- Frisco Bay Industries Limited, See Stanley Works
- Garda World Security Corporation
- Geo Group Incorporated
- G4s Plc
- Global Solutions Limited, See G4s Plc
- Group 4 Securicor Plc, See G4s Plc
- Gss Global, See Garda World Security Corporation
- Guardian Armored Security, See Securitas Ab
- Guardsmark Llc
- Homeland Solutions, See Marsh & Mclennan Companies
- Hsm Electronic Protection Services, See Stanley Works
- I-Sec International Security, See Icts International
- Icts Europe Holdings Bv
- Section Page
- Icts International Nv
- Icts Netherlands Airport Services, See Icts Europe
- Holdings And Icts International
- Initial Electronic Security Group, See United Technologies
- Integrated Alarm Systems Group, See Protection One
- Intercon Security Limited, See Tyco International Limited
- International Management Assistance Corporation, See
- Transnational Security Group
- Jardine Matheson Holdings Limited
- Kroll Incorporated, See Marsh & Mclennan Companies
- Kroll Security International, See Garda World Security
- Corporation
- Linfox Pty Limited
- Loomis Ab, See Securitas Ab
- Marsh & Mclennan Companies Incorporated
- Mason & Hanger Group, See Day & Zimmermann Group
- Mjm Investigations Incorporated, See G4s Plc
- Monteray Limited, See Reliance Security Group Plc
- Niscayah Group Ab
- Pinkerton Consulting & Investigations, See Securitas Ab
- Prosegur Compania De Seguridad Sa
- Protection One Incorporated
- Recall Corporation, See Brambles Limited
- Red Hawk Industries, See United Technologies Corporation
- Reliance Security Group Plc
- Rentokil Initial Plc
- Rosegur Sa, See Prosegur Compania De Seguridad Sa
- Royal Mail Holdings Plc
- Safemasters Company Incorporated, See Stanley Works
- Secom Company Limited
- Securitas Ab
- Securitas Ag
- Securitas Direct Ab
- Securitas Systems Ab, See Niscayah Group Ab
- Security America, See Transnational Security Group
- Security Forces, See Transnational Security Group
- Section Page
- Security Services & Technologies, See Tyco International
- Seguridad Burns De Colombia Sa, See Securitas Ab
- Senon Limited
- Servicios Generales Limitada, See G4s Plc
- Siemens Ag
- Simplexgrinnell Lp, See Tyco International Limited
- Sodexo
- Software House, See Tyco International Limited
- Sohgo Security Services Company Limited
- Stanley Works
- Star Protection Agency, See Transnational Security Group
- Transcor America, See Corrections Corporation Of America
- Transnational Security Group Llc
- Tyco International Limited
- United Technologies Corporation
- Us Security Associates Incorporated
- Wackenhut Corporation, See G4s Plc
- Walsons Services Private Limited, See Securitas Ab
- Whelan Security Incorporated, See Transnational Security
- Group Llc
List Of Tables
Table Number Page
Section I -- Executive Summary
Section Ii -- Market Environment
- Summary Table
- 1 World Gross Domestic Product By Region
- 2 World Population By Region
- 3 World Urban Population By Region
- 4 World Building Construction Expenditures By Type & Region
Section Iii -- Market Overview
- 1 World Security Service Revenues By Region
- 2 World Security Service Revenues By Type
- 3 World Security Guard Market By Region
- 4 World Alarm Monitoring Market By Region
- 5 World Armored Transport Market By Region
- 6 World Prison Management Market By Region
- 7 World Other Security Service Market By Region
- 8 World Security Service Revenues By Market
Section Iv -- North America
- 1 North America -- Security Service Market Environment
- 2 North America -- Security Service Revenues By Type & Market
- 3 United States -- Security Service Market Environment
- 4 United States -- Security Service Revenues By Type & Market
- 5 Canada -- Security Service Market Environment
- 6 Canada -- Security Service Revenues By Type & Market
- 7 Mexico -- Security Service Market Environment
- 8 Mexico -- Security Service Revenues By Type & Market
Section V -- Western Europe
- 1 Western Europe -- Security Service Market Environment
- 2 Western Europe -- Security Service Revenues
- By Type & Market
- 3 United Kingdom -- Security Service Market Environment
- 4 United Kingdom -- Security Service Revenues
- By Type & Market
- 5 Germany -- Security Service Market Environment
- 6 Germany -- Security Service Revenues By Type & Market
List Of Tables
Table Number Page
- 7 France -- Security Service Market Environment
- 8 France -- Security Service Revenues By Type & Market
- 9 Spain -- Security Service Market Environment
- 10 Spain -- Security Service Revenues By Type & Market
- 11 Italy -- Security Service Market Environment
- 12 Italy -- Security Service Revenues By Type & Market
- 13 Netherlands -- Security Service Market Environment
- 14 Netherlands -- Security Service Revenues By Type & Market
- 15 Belgium -- Security Service Market Environment
- 16 Belgium -- Security Service Revenues By Type & Market
- 17 Sweden -- Security Service Market Environment
- 18 Sweden -- Security Service Revenues By Type & Market
- 19 Other Western Europe -- Security Service Market
- Environment
- 20 Other Western Europe -- Security Service Revenues
- By Type & Market
- 21 Other Western Europe -- Security Service Revenues
- By Country
Section Vi -- Asia/Pacific
- 1 Asia/Pacific -- Security Service Market Environment
- 2 Asia/Pacific -- Security Service Revenues By Type & Market
- 3 Japan -- Security Service Market Environment
- 4 Japan -- Security Service Revenues By Type & Market
- 5 China -- Security Service Market Environment
- 6 China -- Security Service Revenues By Type & Market
- 7 South Korea -- Security Service Market Environment
- 8 South Korea -- Security Service Revenues By Type & Market
- 9 Australia -- Security Service Market Environment
- 10 Australia -- Security Service Revenues By Type & Market
- 11 India -- Security Service Market Environment
- 12 India -- Security Service Revenues By Type & Market
- 13 Other Asia/Pacific -- Security Service Market Environment
- 14 Other Asia/Pacific -- Security Service Revenues
- By Type & Market
- 15 Other Asia/Pacific -- Security Service Revenues By Country
List Of Tables
Table Number Page
Section Vii -- Other Regions
- 1 Latin America -- Security Service Market Environment
- 2 Latin America -- Security Service Revenues By Type & Market
- 3 Brazil -- Security Service Market Environment
- 4 Brazil -- Security Service Revenues By Type & Market
- 5 Other Latin America -- Security Service Market Environment
- 6 Other Latin America -- Security Service Revenues
- By Type & Market
- 7 Eastern Europe -- Security Service Market Environment
- 8 Eastern Europe -- Security Service Revenues
- By Type & Market
- 9 Poland -- Security Service Market Environment
- 10 Poland -- Security Service Revenues By Type & Market
- 11 Russia -- Security Service Market Environment
- 12 Russia -- Security Service Revenues By Type & Market
- 13 Other Eastern Europe -- Security Service Market Environment
- 14 Other Eastern Europe -- Security Service Revenues
- By Type & Market
- 15 Africa/Mideast -- Security Service Market Environment
- 16 Africa/Mideast -- Security Service Revenues
- By Type & Market
- 17 South Africa -- Security Service Market Environment
- 18 South Africa -- Security Service Revenues By Type & Market
- 19 Other Africa/Mideast -- Security Service Market Environment
- 20 Other Africa/Mideast -- Security Service Revenues
- By Type & Market
Section Viii -- Industry Structure
- 1 Selected Cooperative Agreements
- 2 Selected Acquisitions & Divestitures
List Of Charts
- Chart Number Page
Section Ii -- Market Environment
- 1 Median Age Of Population By Region
- 2 World Urban Population By Region, 2007
- 3 Security Service Revenues Per Urban Capita/Gdp Per Capita
- Relationship, 2007
- 4 World Terrorist Incidents, 1997-2007
- 5 World Terrorist Incident Fatalities, 1997-2007
Section Iii -- Market Overview
- 1 World Security Service Revenues By Region, 2007
- 2 World Security Service Revenues By Type, 2007
- 3 World Security Service Demand By Market, 1997-2017
Section Iv -- North America
- 1 North America -- Security Service Demand By Country, 2007
Section V -- Western Europe
- 1 Western Europe -- Security Service Revenues By Country,
- 2007
Section Vi -- Asia/Pacific
- 1 Asia/Pacific -- Security Service Revenues By Country, 2007
Section Viii -- Industry Structure
- 1 World Security Service Market Share By Company, 2007
- I
Introduction
- The Freedonia Group Incorporated Is A Leading International Industry
- Study/Database Company. Founded In 1985, Freedonia Now Publishes Over
- 100 Studies Each Year, Covering Such Areas As Building Materials, Chemicals,
- Health Care, Packaging, Pharmaceuticals, Plastics And Many Other Industries.
- Studies Cover Entire Industry Sectors, As Well As Key Niche Markets. Each
- Study Includes Valuable Intelligence Like Growth Markets And Products,
- Market Share, Product Analyses And Forecasts, Market Analyses And Forecasts,
- And Company Profiles.
- This Study Analyzes Global Markets For Private Contractual Security
- Services. Markets Covered Include Guard And Guard Patrol Services; Central
- Station Alarm Monitoring Services; Armored Car Transport And Related Cash
- Handling And Automated Teller Machine (Atm Services (Jointly Termed Cashin-
- Transit/Cit Services; Private Management Of Public Adult Correctional
- Facilities; And Private Investigations, Security Consulting, Systems
- Integration And Other Miscellaneous Security Services. Excluded Are Socalled
- proprietary Security Services, Such As Guards, Detectives And Offduty
- Police Officers On The Paid Staff Of Nonsecurity Business Establishments.
- Also Excluded Are Security Equipment And Alarm Installation And Repair
- Services (I.E., Nonrecurring Revenues, Locksmith Activities, Data Security
- Services, Telematics, And Security Products Manufacture And Distribution.
- Historical Data (1997, 2002, 2007 And Forecasts To 2012 And 2017 Are
- Provided For Revenues (Receipts By Type Of Service And Market On A Countryby-
- Country And Region-By-Region Basis. Detailed Market Data Are Valued In
Introduction
- Ii
- Current Us Dollars, Including Inflation. Historical And Forecast Security
- Service Employment Data By Country Is Also Provided.
- It Should Be Noted That Given The Difficulty Of Predicting The Public
- Decision Making Process And The Frequent Changes In Public Policy Based On
- Shifts In Governments, Revenues For The Private Management Of Correctional
- Facilities Have Only Been Forecast For Countries Which Were Actually
- Contracting Out Such Services At The Time Of Writing In August 2008.
- Aggregate Forecasts For That Segment Hence Likely Understate The Size Of The
- Market For 2012 And 2017, As New Nations May Well Decide To Experiment
- With Privatization In The Interim.
- National Crime Rate And Employment Historical Data Are Provided
- Where Available; However, Differing Definitions Of Crime And Unemployment
- And Varying Reporting Practices Make Country-To-Country Comparisons
- Difficult And Render Data For Certain (Primarily Developing Countries Highly
- Suspect. Discrepancies Between Crime And Unemployment Rate Data
- Presented Here And Other Published Figures May Reflect Differing Estimates Of
- A Countrys Population For A Given Year.
- A Potential Source Of Statistical Discrepancy In The Historical Series For
- Security Service Revenues Is The Conversion From National Currencies To A
- Common Currency (The Us Dollar. Every Effort Has Been Made To Adjust
- Compiled Data To Form A Consistent Pattern For Comparing The Various National
- Security Service Markets, Including The Use Of Purchasing Power Parity
- Currency Conversions.
- Data On Security Service Demand Are Derived From Differing Sources
- And Developed From Statistical Relationships. Given That Variations Are
- Commonplace In International Reporting, Data Presented In This Study Are
Introduction
- Iii
- Historically Consistent But May Vary From Other Sources. Variances May
- Occur Because Of Definitional Differences, Different Methods Of Currency
- Translation, And Various Other Factors. Every Effort Has Been Made To Factor
- Out Security Service Revenues Derived From The Activities Of Organized Crime
- Syndicates, Proprietary And Public Sector Security Forces, Ancillary Activities
- Like Traffic Control (E.G., In Japan And The Activities Of Proprietary/Contract
- Hybrid Security Vendors (Again, As Is Common In Japan.
- Based On Consultation With Multiple Sources. In Addition, Tabular
- Details May Not Add To Totals Due To Rounding. Unless Otherwise Noted,
- securitas Refers To Securitas Ab Of Sweden, Rather Than Switzerlands
- Securitas Ag.
- Freedonia Group Industry Studies Covering Related Topics Include
- #2362 Private Security In Addition, Major Global Security Service Vendors Are
- Identified And Profiled, And The Key Competitive Variables Are Discussed. The
- Entire Report Is Framed Within The World Private Security Industrys
- Economic, Technological And Market Environments; Environmental Variables
- Affecting Security Demand Patterns Are Emphasized. Given The Nature Of The
- Topic, Special Emphasis Is Placed Upon Demographic And Socioeconomic
- Factors Influencing The Incidence Of Crime And Other Potential Security Risks,
- And Thus The Demand For Security Services. World Security Service Market
- Share Data Presented In The industry Structure Section Are Estimated
- Services (July 2008, #2343 World Security Equipment (May 2008, #2332
- Electronic Security Systems (April 2008 And #1972 Biometric & Other
- Electronic Access Control Systems (September 2005.
- Macroeconomic And Demographic Indicators Presented In This Study
- Were Obtained From The Freedonia Group Consensus Forecasts Dated June
- 2008. Gross Domestic Product (Gdp Historical Data Are Derived From The
Introduction
- Iv
- National Income And Products Accounts From The Organisation For Economic
- Co-Operation And Development (Oecd For Its Member States, From The
- European Bank For Reconstruction And Development (Ebrd For Its Member
- Nations, And From The International Monetary Fund (Imf For Its Member
- Countries That Are Not Part Of The Oecd Or Ebrd. Gdp Estimates For Other
- Nations Are Based On Information From The World Bank And A Variety Of Other
- Sources, Including The Countries Statistical Bureaus. Gdp Forecasts Are
- Developed From A Consensus Of Public Agencies And Private Companies.
- All Estimates Of Gross Domestic Product And Components Of Gdp Are
- Done In Terms Of Constant Purchasing Power Parity, Using Purchasing Power
- Parity Gdp Estimates Obtained From The Oecd, The World Bank, The Us
- Central Intelligence Agency And Selected Other Sources. That Is, The Gdp
- Estimates For The Year 2006 Are Based On Gross Domestic Product Data
- Expressed In Individual Nations Local Currency, Which Are Then Converted To
- Us Dollars By Valuing Each Countrys Output At Us Prices In The Year 2006.
- This Approach Values The Same Physical Output At A Consistent Price For All
- Nations, Thereby Reducing The Distorting Influence Of Different Price Levels In
- The Different Countries.
- The Alternative Approach Of Using Exchange Rates To Convert Local
- Currency Gdp To Us Dollars Will Tend To Overvalue The Output Of Nations With
- High Average Price Levels And Undervalue The Output Of Countries With Low
- Average Price Levels, Because Exchange Rate Conversions Only Partially
- Reflect The Relative Prices For Goods And Services That Are Domestically
- Consumed And Invested. Furthermore, Factors Other Than Relative Prices --
- Like Demand And Supply In Currency Markets, Interest Rates And Capital Flows
- -- Affect Exchange Rates As Well.
Introduction
- V
- For Years Other Than 2006, The Growth In Inflation-Adjusted Gdp For A
- Given Nation Is Based On Historical And Forecast Growth Rates Of Gdp,
- Expressed In Inflation-Adjusted Units Of Local Currency. This Approach
- Insures That The Gdp Series For Any Given Country Is An Accurate Index Of
- Changes In Inflation-Adjusted Gdp For That Country, But It Implicitly Assumes
- That The Price Structures Across Nations Do Not Change From Those Of The Base
- Year. Therefore, Caution Should Be Used In Comparing The Relative Gdp Of
- Countries In Years Other Than The 2006 Base. If The Ratio Of Prices Across Two
- Nations In A Given Year Differs From The Ratio Of Prices Across Those Nations In
- 2006, The Change In The Relative Sizes Of Those Two Economies As Measured
- Will Not Accurately Reflect Changes In Output.
- A Wide Variety Of Primary And Secondary Sources Were Used In The
- Compilation Of This Report. These Include National And Regional Statistical
- Agencies, Criminal Justice Organizations And Foreign Embassies. The Us
- Bureau Of The Census And Federal Bureau Of Investigation, International
- Criminal Police Organization (Interpol, United Nations, Oecd, World
- Bank, Imf, European Union And Various National Government Statistical
- Publications Were Among The Public Sector Data Sources Utilized.
- Also Useful Were Market Data And Background Literature Provided By
- Various Industry And Trade Associations And Academic Institutions, Including
- Asociacion Latinoamericana De Seguridad (Alas, Association Of Private
- Correctional And Treatment Organizations (Apcto , Australian Security
- Industry Association Limited (Asial, British Security Industry
- Association (Bsia, Bundesverband Deutscher Wach- Und
- Sicherheitsunternehmen (Bdws, Canadian Alarm And Security Association
- (Canasa, European Confederation Of Security Services/Confederation
- Europeenne Des Services De Securite (Coess, European Security Transport
- Association (Esta, Independent Armored Car Operators Association
Introduction
- Vi
- (Iacoa, Memorial Institute For The Prevention Of Terrorism, National
- Australian Security Providers Association (Naspa, Pan-American
- Federation Of Private Security (Fepasep, Security Industry Association
- (Us And The University Of Florida. These Base And Supporting Data Were
- Refined And Adjusted In Light Of Consultations With Industry And Other Private
- Contacts.
- In Addition To Various Business And Online Databases, Trade
- Publications Consulted Included Access Control & Security System
- Integration , Automation & Security International, Aviation Security
- International, Canadian Security, Hi-Tech Security Solutions, International
- Fire And Security Product News, Professional Security, Security , Security
- Distribution & Marketing , Security Investing, Security Management Today,
- Security Sales, Security Technology & Design , Security World International,
- Seguridad Latina And Sp&T News . Used Extensively In Framing The Industry
- And Market Environments And As Input To Market Size Assessment Were
- Corporate Annual Reports, Sec Form 10-K Filings, Product Catalogs,
- Interviews With Company Officers, And Security Analyst And Brokerage
- Reports.