April 7, 2006—US demand for private contracted security services is expected to increase 4.3 percent per year to $48.3 billion in 2010, according to a report from The Freedonia Group.
Despite falling crime rates through 2004, many consumers remain concerned about violent and property crimes the report finds. With the public’s perception of the high risk of crime, a belief that public safety officials are overburdened, and terrorism, opportunities will continue to present themselves for private security firms.
Gains will also be fueled by an upward trend in the privatization of some public safety operations such as guarding and correctional facilities management. Additionally, the ongoing outsourcing of in-house security functions will continue to be a factor, although less so as this trend matures.
In 2005, the nonresidential market accounted for nearly three-quarters of all private security services demand. Growth in the nonresidential market will also outpace the residential market through 2010, driven in part by the ongoing trend of the government market’s outsourcing of services such as guarding and correctional facility management, according to the report.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. The Freedonia study, “Private Security Services,” is available at the Freedonia Web site.
