ASIS International and the Institute of Finance and Management (IOFM) jointly released an extensive benchmark study of the private security industry’s expansion over the past decade and its projected future growth. “The United States Security Industry: Size and Scope, Insights, Trends, and Data” presents an analysis of the security products and services market, as well as the industry’s personnel market.
Key highlights of the report are:
The $350 billion market breaks out to $282 billion in private sector spending and $69 billion in federal government spending on homeland security.
Operational (non-IT) private security spending is estimated to be $202 billion with expected growth of 5.5 percent in 2013; IT-related private security market is estimated at $80 billion with growth of 9 percent projected in 2013.
Number of full-time security workers is estimated to be between 1.9 million and 2.1 million.
Private detective/investigator is one of the fastest-growing occupations, with anticipated growth of 21 percent projected through 2020; several IT positions are anticipated to grow 22 percent through 2020.
“A heightened threat environment, among other factors, has stimulated rapid advancements and significant overall growth in technology and key services across the operational and IT security markets and increased the demand for knowledgeable, skilled workers at all levels within the security management structure,” said ASIS President Geoff Craighead, CPP. “Not since the ‘Hallcrest Report II,’ published in 1990, has such a definitive study been conducted. This data will assuredly be an invaluable tool for security practitioners, service providers and manufacturers as they develop business plans and strategies for the coming years.”
Complicated technical systems keep demand high for integration services
As corporate security programs grow ever more reliant upon technical systems to deliver security, the relationship between security management and security systems integrators is becoming more important, the study described.
It further noted that some organizations may wish to try to reduce the influence of integrators by trying to address as many of the technical aspects of security systems as possible with in-house personnel, but this has not worked particularly well because the technical end of large security systems is getting too complicated. Upgrades occur every year (or more often). A good integrator can provide a higher level of expertise than a company is likely to ever have in-house. As a result, integrators are becoming more vital to an organization’s strategic decision-making than they have been in past decades, the study pronounced.
The firms that participated in the ASIS/IOFM research exemplify the demand for integration services. Some 13 percent expect to increase spending on integration services in 2013, including 8 percent that will increase spending by more than 10 percent. Only 2.6 percent of respondents expect to spend less on integration services in 2013.
More than 400 security industry executives participated in the United States Security Industry Survey, conducted in late 2012. A companion survey of security manufacturers and vendors, security services providers, dealers, distributors, installers and integrators also was conducted in order to enhance market projections. Information collected was analyzed, aggregated and combined with additional data from related national studies conducted by ASIS and IOFM, as well as publicly available information from U.S. government data and market research of homeland security spending.
“This research is a watershed in understanding the enormous size and breadth of the security marketplace in the United States,” stated RD Whitney, executive director at IOFM, a source of market intelligence and resources in physical security and corporate financial management and a business unit within Diversified Business Communications.
“Market intelligence is a must-have tool for all security directors planning their departmental and personnel budgets and resource needs, as well as for industry suppliers planning their marketing and product growth. We are honored to have worked with ASIS on this landmark study.”
ASIS leaders and IOFM analysts will present high-level findings from the report in a special information session at the ASIS International 59th Annual Seminar and Exhibits at McCormick Place in Chicago.
“Defining the U.S. Security Market”
Session 4204, Room S502b
Thurs., Sept. 26, 2013