A Balance of Manned Guards and Improved Technology Will Support the Growth of the European Manned Guarding Market, Says Frost & Sullivan

LONDON - As the ever-escalating threat of terrorism continues to push security issues to the foreground, optimisation of security solutions is assuming great importance. Alarm monitoring and rapid response solutions are being increasingly deployed in enterprises to effectively tackle any critical situation. Great stakes are placed on the quality of the service, and vendors in this space are offering a synthesis of technology and manned guarding, incorporating video surveillance, access control and intruder detection to provide a wholesome security solution.

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New analysis from Frost & Sullivan (www.autoid.frost.com), European Manned Guarding Market, finds that the market earned revenues of over euro 24.8 billion in 2007 and estimates this to reach euro 35.7 billion in 2014.

“Technology or guarding alone cannot address the growing security needs,” says Frost & Sullivan Senior Research Analyst Archana Rao. “An optimum solution combining manned guarding services and security technology will emerge as the most preferred solution in the future.”

Another significant issue exerting its influence on the market is that of de-policing, which has encouraged the migration of former police officers to manned guarding services provided by private security companies. Faced with an acute shortage of police authorities, countries across Europe are grappling with the rising crime graph. This is expected to enhance the prospects for adoption and outsourcing of manned guarding services to private security service providers. Video surveillance technology has added another layer to security, further optimising the solution.

“Shortage of trained guards is forcing companies across Europe to raise the wages of guards, negatively impacting profit margins of smaller companies in the market,” explains Archana Rao. “This rising cost is driving the adoption of technology among end users, thereby cutting down on the number of static guards required.”

Nevertheless, manned guards are scarce and there is a huge discrepancy between demand and availability. In the United Kingdom, shortage of guards is taking on serious dimensions. Low wages are at the crux of the problem as guards are typically paid around 18,500 pounds sterling - 22,500 pounds sterling a year. Unless companies take serious note of this and hike wages in the United Kingdom, the market will continue to encounter serious roadblocks.

Besides shortage of guards, cost of service and low margins have restrained market progression. In the wake of the economic slowdown, cost control has become critical, and companies are pressurising service providers to cut costs. Service providers are circumventing cost challenges by deploying technology that can help expedite the efficiency of guards and security measures.

The market is characterised by stiff competition and participants are operating on very tight margins. Companies have found it extremely difficult to sustain in such a scenario. To offset the margin crunch, companies are offering comprehensive security packages that combine guarding and electronic security. Businesses are opting for services that combine manned guarding with other facility services such as cleaning and building maintenance, where all services are handled by a single contractor.

Going forward, manned guarding services will entail packages that combine both security service and facility service. Service providers must strive to upscale customer value by offering optimised guarding services. End users must also be made aware of the benefits of combining state-of-the-art security technologies with manned guarding to achieve better penetration capability in this competitive marketplace.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

European Manned Guarding Market is part of the Automatic Identification and Security Growth Partnership Service program, which also includes research in the following markets: European access control security markets, European security services market, world physical security solutions in retail service, and world physical security solutions in Banking. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

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GIL 2009: Europe

Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress ‘GIL 2009: Europe’ on 19-20 May, at the Sofitel St James in London. GIL Global is the industry’s only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for GIL 2009: Europe, please contact Joanna Lewandowska, Corporate Communications for Frost & Sullivan in Europe, at Joanna.lewandowska@frost.com. One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled. For more information you can also visit www.frost.com/gilglobal.

European Manned Guarding Market M213-11 Contact: Joanna Lewandowska Corporate Communications - Europe P: +48-22-390-41-46 E: joanna.lewandowska@frost.com www.frost.com

Source: Frost & Sullivan

Joanna Lewandowska, Corporate Communications - Europe of Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com; Logo: https://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO