© Copyright 2017 Beroe Inc. All rights reserved.

Developed regions enhance sourcing potential for physical security services

2

Table of Contents

01Executive Summary• Global Security Services Industry Outlook • Security Services Market Outlook• Brexit – Impact on security services

02Market Analysis• North America and Latin America (LATAM) • Europe, Asia Pacific (APAC), Middle East and Africa (MEA)• Drivers and Constraints• Opportunities and Challenges• Private Security Services – India Landscape• Security Services – Industry Trends in India• Manned Guarding – India Landscape• Cash and Electronic Services – India Landscape• Porter’s for Developed Regions• Porter’s for Emerging Regions

03Supplier Analysis• Global Supplier Landscape• SWOT analysis for India – Supplier Perspective • Mergers and Acquisitions• Security Services Trends

and Insights• Key Global and Regional Suppliers Service Portfolio• Key Global Supplier Profiling and SWOT Analysis• Key Regional Supplier Profiling

04Cost and Pricing Analysis• Cost Model for Manned Guarding• U.S., U.K., India, France and Australia• Pricing Models• Pricing Analysis

05Procurement Best Practices• Engagement Models• Switching Costs• Sourcing Models - Pros and Cons• Cross Industry Sourcing Model Adoption• Capacity Management• Security Services Market in India – Competitive Advantage• Regulatory Reforms in Indian Market• Challenges and Concerns in India• Key Performance Indicators (KPIs) and Service Level Agreements

(SLAs)• Case Studies

06End-User Industry Update• Financial Services• Mining

33

Preview

4

Executive Summary (1/3)

3

Market Overview (2015)Global Market Size - $234 Billion

Pricing in Security Services: Cost Plus Model | Fixed Price Model

Emerging Engagement Strategies: Regional and Hybrid Engagement Strategy

Top Global Security Service ProvidersG4S | Securitas AB | Prosegur | GardaWorld

Critical Cost Components: Manned Guarding Wages and New Electronic Equipment Cost

Payment Term: 45–60 Days

Negotiation Factors:Overheads and Profit Margins

Contract PeriodMinimum 3 years | Maximum 5 Years (Reviewed Annually)

KPIs in Security Services: Cost, Security Systems, Confidentiality, Area Secured Per Security Guard

High Market Maturity Regions - North America and Western Europe

Medium Market Maturity Regions –APAC

Low Market Maturity Regions - LATAM and MEA

Adoption Trend2011 - Manned Guarding2015 - Electronic Security2018 - Integrated Security Services

Sources: Beroe Analysis, Primary Expert 1

5

Executive Summary (2/3)Global Security Services Industry Outlook

High Medium Low

• In 2015, the global security service industry was valued at approximately $234 billion. By the end of 2018, it is expected to reach $277 billion with a compound annual growth rate (CAGR) of 6 percent.

• Developed Regions: These regions contribute almost 50 percent of the global market with an annual growth rate of 4–5 percent, and the large-sized contracts are from these regions.

• Emerging Countries: These countries have a higher growth rate as compared to the mature markets, such as the U.S. and Europe. However, the contract size is still small in these regions and the market is highly fragmented.

• The increase in crime rates, social unrest within countries and terrorism have fuelled the demand for better security solutions all over the globe.

01 North America

$47 billion

growing at 4–5 percent

02 LATAM

$33 billion

growing at 8–9 percent

03 Europe

$68 billion

growing at 4–5 percent

04 MEA

$37 billion

growing at 8–9 percent

05 APAC

$49 billion

growing at 10–11 percent

Sources: Beroe Analysis, FICCI, Primary Expert 1

01

02

04

03

05

6

High-Maturity Regions andCountries:U.S., U.K., Europe, Japan, Australia and Argentina

Executive Summary (3/3) Security Services Market Outlook

Suppliers: Established service providers have been providing outsourced security services for more than two contract generations.

Widely Adopted Engagement

Strategy

Upcoming Engagement

Strategy

Regional Sourcing Hybrid Sourcing

High

Medium-Maturity Regions andCountries:U.A.E., Saudi Arabia, Qatar, Singapore, Canada and Eastern Europe

Suppliers: Eastern European countries are still in the growth phase in terms of technological implementation.

Widely Adopted Engagement

Strategy

Upcoming Engagement

Strategy

Local/RegionalSourcing

Hybrid Sourcing

Medium

Medium-high Maturity Regions andCountries:India, South Korea, China, Mexico, Malaysia and Brazil

Suppliers: Countries like China and Malaysia are advancing in terms of implementing security technologies like closed-circuit television (CCTV) and biometric access systems.

Widely Adopted Engagement

Strategy

Upcoming Engagement

Strategy

Local Sourcing Hybrid Sourcing

MediumHigh

Low-Maturity Regions andCountries:Africa, Middle East, Yemen and Oman

Suppliers: The majority of African nations still lack the knowledge of technology implementation due to the lack of financial capacity.

Widely Adopted Engagement

Strategy

Upcoming Engagement

Strategy

Local Sourcing Regional Sourcing

Low

Source: Beroe Analysis

7

Sign up to view the full report for FREE Sign up to view the full report for FREE Sign up to view the full report for FREE Sign up to view the full report for FREE