Increased use of technology

The increasing use of technology allows security services companies to offer clients more efficient and even higher-quality security solutions. 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. For instance, in 2021, the number of security cameras installed globally exceeded one billion units, corresponding to an increase of over 50 percent compared to 2018.

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. As these systems are integrated with technologies, such as big data and artificial intelligence (AI) through smart devices and the Internet of things (IoT), the need for skilled and highly trained security officers and employees increases.

With more devices, sensors and other security equipment being sold in the market, equipment costs are decreasing. Moreover, as data networks evolve and larger, faster network systems become more connected, data storage costs are decreasing.

Enabling preventive security by analyzing historical data

Due to technological improvements, there is more data available than ever, which can be transferred faster and at lower costs. In combination with the computing power and storage available, there are large amounts of historical data that can be analyzed to enable preventive security. This means that guards increasingly only need to act responsively or according to predictable patterns instead of monitoring and deterring, which have constituted traditional guarding activities.

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.

Technology as a core complementary offering

In recent decades, the security services industry has witnessed significant growth in the use of technology as a core complementary offering to traditional guarding services. Security services and solutions may be further complemented by the addition of hosted and managed services, cloud services, AI, biometrics, IoT and other remote services.

As a result of the increasing use of technology in security installations, new data and business opportunities are being created. Data analysis is contributing to improvements 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.