Looking Forward: Security Industry Trends and Outlook for 2016 and Beyond
Despite growing concerns over a potential global economic slowdown, the outlook for the Private Security Services industry in the U.S. and abroad continues to be upbeat. As security concerns continue to escalate, government and private entities are expected to increase spending to improve all aspects of their security programs.
The following statistics and trends suggest that the Private Security Services Industry is poised for continued growth in 2016:
- Worldwide annual spending on private contract security services is predicted to climb to $244 billion this year, according to a report from the Freedonia Group. The report finds that the U.S. will remain the biggest consumer of security services, accounting for 26% of overall global private contract security services spending. U.S. spending on such services is estimated to rise 5% to $68 billion annually by 2019.
- The Freedonia Group report also notes that security guard services will attract the largest share of overall U.S. security spending through 2019, highlighting the continued importance of having skilled, qualified personnel to conduct security system monitoring and incident response. Despite the proliferation of security technology, highly trained security guards remain the best way to provide an adequate deterrent to potential unauthorized incursions and coordinate effective responses to unexpected events.
- The U.S. Bureau of Labor Statistics anticipates “excellent” overall job opportunities for security guards through 2024, with employment growing at about 5% during the period. The BLS expects the number of people employed as security guards in the U.S. to reach 1.15 million by 2024.
- IBISWorld’s Security Services market research report predicts an annual growth rate of 2.4% for the security services sector over the next 10 to 15 years. According to IBISWorld, U.S. spending on security services has surged over the past five years in tandem with the economic recovery and increased investment in commercial, residential and public construction projects.
- Fiscally strapped municipalities are increasingly turning to contract security services providers as an alternative to expanding their more expensive police forces, notes a research report from Robert H. Perry & Associates. Contracted private security guards services will increasingly replace traditional in-house guard services at government-run schools, hospitals, parking facilities and other municipal properties.
As always, people will remain the key to effective security services, even in an age of proliferating technology. The increasing adoption of ever more advanced security technology will only spur the need for well-trained security officers, who are able to monitor and work with complex systems. For more information on the industry, and any security services that Summit can provide, please contact us.