Global guard service revenues rise 3.8% by 2028

A report from Freedonia Group, released on September 12, 2024, indicates that global guard service revenues are expected to rise by 3.8% annually, reaching $168 billion by 2028. This growth is largely attributed to the economic expansion in industrializing nations, which is increasing the demand for security services across various sectors. As these countries develop, a larger portion of private security activities will transition into the formal market, enhancing revenue capture. Urbanization and rising income inequality are also contributing factors, as they elevate concerns about crime and increase the number of individuals who can afford security services. Additionally, improvements in licensing and professionalization are expected to enhance public trust in security services, allowing for potential price increases. The trend of outsourcing non-core business activities, including guarding, is likely to continue, further driving demand. In high-income regions like North America and Western Europe, the growth rate for guard services is anticipated to be slower, primarily due to the maturity of the market. Here, revenue growth will be influenced by wage increases, as guarding remains a labor-intensive sector sensitive to labor cost fluctuations. Companies are expected to invest more in labor-saving technologies to counteract rising labor costs, which may lead to a reduction in the number of guards needed. Concerns about retail theft, particularly heightened in the aftermath of the COVID-19 pandemic, are expected to sustain spending on security guard services. This ongoing demand reflects a broader trend of prioritizing security in various settings, ensuring that the guard services market remains robust in the coming years.