Increased use of technology
The increasingly complex security needs of clients are creating demand for complementary solutions, such as technology-enabled predictive security services, emphasizing the importance of having the right technology, data and cloud capabilities as a security services provider. The higher the labor costs in a country, the more attractive the use of technology becomes. However, countries with low labor costs are also showing greater interest in using more technology in security solutions.
Software as a service (SaaS)
We also believe that integrated, software-as-a-service (SaaS) solutions are becoming increasingly important to clients. The physical and digital worlds are becoming more intertwined, driving the development of more advanced security systems, mainly in mature markets. The increased development of technological solutions is also resulting in a higher level of acquisition activity in the market, as companies are looking to expand their expertise in emerging segments.
Data analysis
Data analysis is contributing to imrpovements in both services and technological equipment. For example, data gathered may detect access control anomalies or increase alarm accuracy through video analytics. This information can subsequently be used to design and integrate products and services to further enhance client value. Data may also contribute to the creation of entirely new opportunities such as SaaS tools, where security software products are provided on a subscription basis.
Urbanization and industrialization
Urbanization and industrialization are continuing as people continue to move into cities. The residential security market is also expected to grow rapidly in most developed countries as technological monitoring equipment becomes more common. Continued industrialization and increased global industrial production are leading to investments in production facilities, offices and other workplaces, each with specific security needs.
Securing sensitive infrastructure
There is a growing awareness of the need to secure sensitive infrastructure from various disruptions. Manufacturing industries, airports, data centers, ports and public transportation are examples of operations that rely on a well-functioning infrastructure and where disruptions could result in high costs and increased vulnerability.
Economic and political development
Economic growth and continued global investments in new construction are driving the demand for security services. As global disposable income and net worth rise, there will be more to protect and more clients that can afford to do so. Infrastructure investments in, for example, real estate, public transport and public logistic hubs create a need to safeguard these assets and associated flows. Increased privatization through the outsourcing of public security services to private security service providers is a way to control or reduce public spending or to open the market for competition.
Customized and cost-effective security
Each industry, company and operation have specific needs and requirements in terms of security. If security providers can meet these challenges, companies will assign them greater security responsibility. Clients are generally prepared to pay more for a service with more comprehensive content, higher quality and relevant specialist skills. There is also a willingness in certain markets to pay a premium to have one contact person in charge of the entire security solution, thus gaining more effective and better control over price changes and supply chain and sustainability issues.
Greater focus on corporate risk management
Companies and other organizations are now devoting greater attention to security issues. Factors that we have identified as contributors to this trend include a higher level of insecurity in society, an increased cost of disruptions to business and greater security demands by clients and insurance companies. Companies usually opt to outsource security when enhancing it since security activities are often not considered part of their core business. Companies are also using security consulting services more often, enabling their management teams to proactively identify risks and put appropriate mitigating actions in place.
Increased focus on sustainability
Sustainability trends are continuously evolving as individuals, businesses, and
governments strive to address environmental and social challenges. The transition to renewable energy sources, such as solar, wind, and hydropower, is accelerating. The concept of a circular economy is gaining traction. It focuses on minimizing waste and reusing materials and products, promoting recycling and sustainable design. Consumers are increasingly seeking out products and brands that align with their values, including ethical and sustainable practices. Sustainable and socially responsible investing is gaining popularity, with more financial institutions offering green investment options. Companies are working to make their supply chains more transparent and sustainable, addressing issues like fair labor practices as well as diversity and inclusion.
