Global security services industry to experience spend growth of more than $80 billion
The global security services industry is poised to experience spend growth of more than $80 billion between 2019-2024 at a CAGR of over 8% during the forecast period, according to SpendEdge.
Factors such as the increase in the instances of IP infringement, the frequency of economic and sporting events are exposing masses to significant security risks. This is creating a pressing requirement to engage security services across the domestic and business sectors across the globe and in the process is driving investments in the security services industry at a substantial rate.
The US is one of the dominant regions in the global security services industry in terms of spend share and is accounting for over 80% of the total regional demand.
Factors such as increasing standardization of private security regulations and the US-based SME’s preference towards the contract guarding industry segment are driving adoption in the security services industry in the US.
Insights into the industry price trends
- The potential impact on the security services prices because of the rise in minimum labor wages will be countered by the fact that most of the developed nations are replacing manned security services with integrated security solutions. This will contribute to the stability in the price of procuring in the global security services industry.
- Overhead expenses such as costs related to utilities, insurance, taxes, repairs, and advertising will observe a minimal increase which will have a hairline impact on the security services prices.
What are the strategies to adopt to optimize procurement spend in this industry?
Leverage integrated solutions to reduce costs. The adoption of technology-based security services is an effective way for buyers to reduce the procurement costs associated with security services. However, the efficacy of these solutions gets compromised when the security systems are used in silos.
Using integrated solutions is an excellent way of reducing costs and redundancy associated with standalone security systems.
Develop a risk profile of risks faced by organizations. Buyers are advised to develop a risk profile of the threats faced by their organizations and assess the their abilities to absorb the same. This would help in eliminating unnecessary outlay on risks that can be borne by the buyers or can be mitigated through more cost-effective measures.