by Corinne Gangloff
August 7, 2024
Growth will be driven primarily by ongoing economic expansion in industrializing countries
Cleveland OH, August 7, 2024 – A new report from Freedonia Group, Global Security Services, global guard service revenues are projected to increase 3.8% per year to $168 billion in 2028. Growth will be driven primarily by ongoing economic expansion in industrializing countries, which will broadly expand the need for security guards in a wide variety of settings. In addition, many lower-income countries still have a significant amount of private security guard activity occurring outside of the scope of the formal industry, and a greater share of security revenues will be captured by the formal market as these countries develop.
Other factors supporting growth in guarding revenues include:
increased urbanization and income inequality, which will heighten concerns about crime and boost the share of the population able to afford guard services
improvements in licensing and professionalization, which will boost public trust and enable price increases
greater outsourcing of non-core business activities such as guarding
increased penetration of technologically advanced security systems, which will demand more highly skilled guards
The guard services segment tends to be mature in high-income nations, and the rate of growth in North America and Western Europe will be slower. Much of the revenue growth in these regions will reflect wage growth, as guarding remains a labor-intensive activity that is sensitive to changes in labor costs. Firms will attempt to counteract growth in labor costs by greater investment in labor-saving electronic security equipment, which will make individual guards more efficient and reduce the number of guards needed for a given application. However, greater concern about retail theft – which became a prominent topic in the US in the years following the COVID-19 pandemic – will continue to fuel spending on security guard services.
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