Security Services in the US

Revenue for security companies in the United States has been volatile during the current period. Declining corporate profit caused demand for the industry's services to plunge during COVID-19. While the US economy recovered following mass vaccination, the continuance of work-from-home policies...

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Bibliographic Details
Format:	Market Research
Language:	eng
Subjects:	Armed security guard services Armored car services Armored vehicle services Bodyguard services Corporate investigative services Investigation services Polygraph services Private detective services Security guard and crowd control services for temporary events Security guard and patrol services Unarmed security guard services
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Summary:	Revenue for security companies in the United States has been volatile during the current period. Declining corporate profit caused demand for the industry's services to plunge during COVID-19. While the US economy recovered following mass vaccination, the continuance of work-from-home policies reduced nonresidential construction, hindering downstream demand for the industry. As more employees returned to the office in 2022, businesses hiked their uptake of security services, causing revenue to rise. Higher interest rates have recently threatened consumer spending, threatening to put the economy into a recession. Recessionary fears have made companies more hesitant to invest in security services, depressing the industry's performance. Overall, revenue for security services providers in the United States is expected to dwindle at a CAGR of 1.0% during the current period, reaching $47.7 billion in 2024. This includes a 0.2% decline in revenue in that year. Price competition has intensified because of high fragmentation and limited differentiation, causing profit to creep downward over the past few years. To gain the upper hand, some providers have been engaging in mergers and acquisitions, boosting market share concentration somewhat. The industry will perform better during the outlook period. Steady economic growth will raise the number of businesses and corporate profit, encouraging private companies to invest more in security services. Increased urbanization will spur business growth and nonresidential construction, providing another revenue stream for the industry. Despite these trends, security companies will be negatively affected by lower crime rates, as they will discourage businesses from investing in defensive services. Overall, revenue for security services companies in the United States is forecast to creep upward at a CAGR of 0.5% during the outlook period, reaching $48.9 billion in 2029.