The UK Manned Security Market Development Report is available from market reserach firm MBD. Price: £600.
After researching the UK Manned Security Market Development and taking into account various other factors MBD’s report concludes as follows.
Market Review 2004 – 2008
In 2008, the UK market for manned security increased by an estimated 4pc to £3.34 billion, consolidating growth of 5pc recorded in the previous year. The market has expanded in each year since 2004, with annual growth levels peaking at 9pc in 2004. Growth has mainly been driven by the expanding CIT and the custodial services sectors, as well as by manned security companies increasingly offering more integrated security solutions. The deteriorating economic conditions during 2008 are not believed to have had a significant impact on the market during the year. However as the recession is now believed to be more severe and prolonged than previously anticipated, and with companies focussing on cost cutting measures, this is expected to have a stronger impact on the manned security market, in particular the manned guarding sector, during 2009.
Market Forecast 2009 – 2013
The value of the manned security market is anticipated to increase by 1pc in real terms in 2009. This is expected to be followed by slightly stronger annual growth levels of between 2pc and 4pc in the following four years. In 2013, the value of the market is anticipated to reach £3.85 billion (at 2008 prices), equivalent to overall growth of 15pc in real terms compared with 2008. The more moderate increase in 2009 is a reflection of the current economic downturn, which is expected to particularly affect the manned guarding sector, as companies are focussing on cost cutting measures.
The overall market development over the next five years is expected to be largely driven by the CIT and custodial services sectors. In contrast, the manned guarding sector is reaching a level of maturity, partly reflecting increased substitution by electronic security systems. Growth in the market is also expected to be generated by the broadening and diversifying their service offering amongst major providers, with an increasing number of larger companies offering fully
integrated, seamless security solutions and with some diversifying to become fully fledged facilities management companies. Providers are also expected to continue to benefit from the trend towards outsourcing of non-core activities.
Proportional Importance of Manned Guarding Sector to Total Manned Security
Market Expected to Decline from 62pc in 2008 to 58pc in 2013
In 2009, the manned guarding sector is expected to increase by just a marginal level. The modest increase is expected to be due to more companies using fewer guards, opting instead
for more cost effective electronic security solutions, in bid to reign in costs due the more challenging trading conditions. Intense price competition is also expected to remain a feature of the sector over the next few years. From 2010 onwards the value of the sector is anticipated to increase at a slightly stronger rate, although annual growth levels are not expected to exceed 3pc in real terms. Overall, the manned guarding sectors is forecast to expand by 8pc in real terms between 2009 and 2013. However the share of the sector to the total manned security market is expected to decline from 62pc in 2008 to 58pc in 2013.
Value of CIT Sector Forecast to Increase by 23pc in Real Terms Between 2008 and 2013
The proportional importance of the CIT sector to the total manned security market is expected to increase from 26pc in 2008 to 28pc in 2013. The value of the sector is forecast to increase by 23pc in real terms during the same period, reaching £1.06 billion (at 2008 prices) in 2013. However in the short-term, demand for CIT services may be negatively affected by the increased consolidation in the banking sector and by the increased number of insolvencies in the retail sector, due to the economic downturn. However, growth is expected to be maintained throughout the forecast period, reflecting the continued trend towards outsourcing in the sector.
