On the whole, the global security services sector employs several million people. Manned guarding is still the most widely used security service globally and remains a cornerstone of Securitas' business. Geographically, regional markets differ significantly in terms of maturity and pace of growth. The demand for security services is closely linked to global economic development as well as social and demographical trends.
The predominately mature security markets North America and Europe has moved from growing 1-2 percent faster than GDP, to grow at the same pace as GDP. Growth rates in emerging markets Latin America, Africa, the Middle East and Asia still tends to outpace GDP. While growth is generally higher in emerging economies, volumes and large contracts are still confined to relatively mature markets.
Key market trends and developments
Technology development is changing the security industry. As better infrastructure continues to improve connectivity between hardware, software, and people, technology is creating growth opportunities everywhere. While developments affect the entire industry, certain markets are more technically mature than others.
Globally, the number of areas requiring professional security is on the rise. At the same time, more operations are experiencing sensitivity to disturbances. Securitas and other security companies have an opportunity to take over certain tasks from the police, which creates significant growth potential. In many countries, the work-load of the police force has increased. Allowing security officers, who are already on-site in the community, to take over noncore police tasks is an alternative being widely discussed in the US and several European countries.
However, as the global economic environment demands efficiency, it is becoming increasingly cost conscious. The steadily rising cost of manpower in mature markets, combined with more companies competing for contracts, means that market conditions are challenging.
Click here to read more about opportunities for growth in our Annual Report 2016