Scope of Growing Security Services Industry in India

calendar08 Jul, 2024
timeReading Time: 8 Minutes
security services industry

The expansion of infrastructure and commercial operations throughout the nation, increased urbanisation, and growing worries about security threats have all contributed to India’s security services industry’s recent rapid growth. That shows the scope of growing security services and its bright future.

The need for private security guards has grown to be one of the most prominent industries, affecting not only corporate settings but also individual homes and apartment buildings. The security services industry has a significant positive impact on the economy, jobs market, and financial stability. In this post, we will discuss the scope of the growing security services industry.

Let’s read it out:

What is a Security Service?

“Security service” refers to a broad processing or range of services that improve an organisation’s defences against common cybercrimes, including ransomware, malware, and phishing. In addition to professional training and education, these services include design and integration, consultation, implementation, risk and threat assessment, and more.

Highlights of the Growing Security Services

Some of the key highlights of the scope of thriving security services industry are mentioned below-

  • By 2024, the Security Services industry is expected to generate US$1.42 billion in revenue.
  • Revenue growth is anticipated to occur at a compound annual growth rate (CAGR) of 9.93% by 2029, reaching a market volume of US$2.28 billion.
  • The average spend per employee in the security services market is expected to reach US$2.60 in 2024.
  • When compared globally, the United States will produce the most revenue ($44,700.0 million in 2024).

The scope of the growing security services market in India is segmented as below:

By Component

  • SaaS security services
  • Managed Security
  • Security consulting services
  • Threat intelligence security services

By End-user

  • Commercial buildings
  • Residential buildings
  • Industrial buildings

By Application

  • Critical infrastructure security
  • Transportation Security
  • Event security

According to this analysis, one of the main factors propelling the growth of the security services industry in India over the following years would be the growing acceptance of virtual security systems. Also, the market will see significant demand due to the high use of AI and automation in security and integrated facilities management services for buildings.

The following topics are covered in the study on the Indian market for security services:

  • Size of the Indian market for security services
  • India’s projected market for security services
  • Industry overview of the Indian market for security services

This study offers a thorough analysis of several of the top security services markets in India, with the goal of assisting clients in strengthening their position in the market.

A Look at Booming security services industry in India

An outline of the size of the Indian security services market is provided below:

  • Manned Guarding Services- A sizeable chunk of India’s security services market comprises this sector. Private security guards offer physical protection, access control, and surveillance services at various business, residential, and industrial locations.
  • Cash-in-Transit Services- Cash-in-transit services are now essential for banks, companies, and other organisations handling vast sums of cash due to the rise in cash transactions and the requirement for secure transportation.
  • Electronic Security Systems- The need for sophisticated electronic security solutions, like fire alarm systems, access control systems, CCTV systems, and intrusion detection systems, has been rising quickly in India. Numerous industries use these systems, including banking, manufacturing, retail, and government buildings.
  • Cyber Security Services– The need for cyber security services has increased because enterprises are more digitally integrated, and cyber-attacks have become more prevalent. To shield businesses from cyberattacks, security service providers provide managed security services, vulnerability assessment, and penetration testing.
  • Security Consulting and Risk Management– Businesses and organisations turn to experts in risk management and security consulting to identify possible risks, create security policies and processes, and implement efficient security measures.
  • Background Verification Services– Employers frequently utilise background verification services to perform due diligence and pre-employment screenings on prospective hires, guaranteeing a secure and safe work environment.
  • Facility Management Services- In addition to security services, several Indian security service providers also provide integrated property management services, which include housekeeping, maintenance, and support services.

Indian Security Services Market Research Report

  • Market CAGR for the anticipated timeframe
  • Comprehensive details about the elements that would propel India’s security services Market expansion and projections from 2023 to 2028
  • Accurate assessment of the market’s size and share with a primary focus on the parent market
  • Accurate forecasts on future consumer behaviour shifts, market trends, and analysis
  • Expansion of the Indian market
  • Comprehensive market research, a report that examines the competitive environment in the market, and comprehensive company data
  • A thorough examination of the variables that will hinder market organisations’ expansion

Market Key Drivers, Trends, and Challenges

Using 2023 as the base year, our researchers examined the data to identify the leading causes, patterns, and difficulties. Businesses can improve their marketing strategy and obtain a competitive edge by conducting a comprehensive analysis of drivers.

Key Market Driver

The lack of an adequate police force to safeguard the vast Indian population is one of the main reasons propelling the regional market expansion. At present, India is experiencing a surge in crime and a growing sense of insecurity among its populace. Furthermore, because of the low police-to-population ratio, troublemakers ruin the tranquil atmosphere of the nation since they believe they can escape from the scene.

In addition, the country’s police force is dealing with a growing number of issues, which adds to its workload. It must also consistently address situations while working with fewer resources available to it. Additionally, the likelihood that someone may be hurt and the amount of criminal activity surrounding an infrastructure are reduced when safety services workers are present. Therefore, during the forecast period, these factors are propelling the expansion of the regional market.

Key Market Trends

Providing integrated facility management services for buildings is a significant driver of market expansion. Under one roof, integrated facility management services provide all the main building support functions. It also includes hiring a single service provider for protection services, cleaning, trash management, helpdesk, HVAC repair, and other services.

Furthermore, end users in India are starting to embrace integrated facility management as a significant trend. When they choose integrated facility management services from a single market player, they do not need to go through numerous businesses for service delivery. As a result, the end users can focus on their primary tasks without having to pay for each service separately. Therefore, during the forecast period, these factors are propelling the expansion of the regional market.

Major Market Challenge

One of the main obstacles impeding the expansion of the regional market is the proliferation of electronic security and surveillance. Since building safety technology has advanced, electronic safety equipment designed to safeguard infrastructure has also undergone periodic updates. Furthermore, electronic devices that allow complete structure surveillance have entered the Indian market.

Furthermore, technological advancements have enabled end consumers to afford these products. Implementing electronic safeguards within a building is a one-time expenditure made by the infrastructure to guarantee the building’s safety. Thus, these issues are adversely affecting the market. As a result, they are anticipated to impede the growth of the regional market throughout the projection period.

Business Growth and Scope of Growing Security Services Approach

A complete approach would be necessary to get into the Indian market for security services at the municipal or state level, which includes both government and civilian demand. It is a feasible idea that could be implemented: 

Perform Analysis and Research on the Market

(a) Identify the critical sectors, industries, and potential customers within the selected city or state. (b) Examine the unique security requirements and complaints of these industries and customers. (c) Evaluate the market’s security service providers and the competitive environment.

Create Tailored Service Provisioning

(a) Based on market research, Create customised security service packages to meet the particular needs of various industries and clientele. (b) Include cutting-edge technology, tailored instruction, and best practices unique to your sector in your service offerings.

Form Strategic Alliances

(a) Locate and collaborate with chambers of business, local industry organisations, and pertinent government organisations. (b) Work together to create security solutions with system integrators, technology suppliers, and other complementary service providers.

Personalised Sales & Marketing Initiative

(a) Create focused marketing and sales efforts that are adapted to the particular requirements and inclinations of the targeted markets and customers. (b) Use a multi-channel strategy that includes networking events, digital marketing, regional advertising, and direct sales outreach. (c) Participate in industry events, trade shows, and exhibitions pertinent to the city or state.

Establish Local Presence and Connections

(a) To improve your presence and responsiveness, consider opening a local office or forming a strategic alliance with a nearby security company. (b) Employ people from the area and cultivate connections with local partners, including trade organisations, organisations, governmental organisations, and law enforcement units.

Emphasize Opportunities in the Public and Government Sectors

(a) Look for and apply for government contracts for security services, RFPs, and tenders. (b) Gain experience in satisfying the unique security needs of public sector organisations, vital infrastructure, and government agencies. (c) Use industry events and networking to build contacts with decision-makers and relevant government departments.

Prioritise Regulatory Adherence and Compliance

(a) Ensure that the state or city’s licencing laws, industry rules, and security requirements are strictly followed. (b) Keep abreast of local regulations, legislation, and changing regulatory environments to modify your offerings.

Constant Observation and Modification

(a) Monitor rivalry within the city or state, client feedback, and market trends regularly. (b) Adjust your service offerings, marketing plans, and operational procedures to keep ahead of the competition and satisfy changing client expectations.

By adhering to this workable plan, security service providers can effectively enter the city or state market, meet the needs of the government and the general public, and set themselves up for long-term growth in the dynamic and locally focused security services sector.

Which are the Most Significant Growing Segments in the Market?

Throughout the projection period, the SaaS security services category is expected to experience significant expansion. Because SaaS security solutions are frequently scalable, businesses may alter their security procedures to suit evolving requirements.

Moreover, services can be used according to the size of operations, regardless of the size of the business—small startups or giant multinational corporations. Furthermore, many services use a subscription-based business model, eliminating the need for sizeable upfront hardware and software purchases.

The largest segment, SaaS security services, was valued at USD 955.03 million in 2018. Additionally, since businesses only pay for their services, this may save money. In addition, compared to conventional on-premises solutions, solution implementation is typically faster and easier. Additionally, because of his simplicity of implementation, organisations can quickly improve their security posture.

 Furthermore, providers are in charge of software maintenance and updates, including implementing security patches and upgrades and ensuring the company is shielded from the most recent threats without requiring manual involvement. Therefore, during the projected period, these factors will drive the expansion of this sector, which in turn will promote the growth of the regional market.

Industry Structure

Security and allied services are the two main segments of the private security industry.

Security Services Industry

Mandated guarding is a large portion of the security services industry, followed by cash and electronic security. Around 75% of the market comprises manned guards, with cash services management and electronic security services coming in second and third, respectively, with roughly 20–25% shares.

  • Manned Guarding: Mandated guarding accounts for a significant portion of the security services sector, with the most excellent employment rate and revenue share in the PSI. IT/ITES, retail, commercial, and manufacturing are the primary industries that use manned guarding services; 41% of these services are used in the commercial sector and 39% in the residential sector. Furthermore, large cities like New Delhi, Chennai, Bangalore, Pune, Chandigarh, Lucknow, Ahmedabad, and Jaipur account for 70% of the demand in the residential sector.
  • Cash Management Services: Because there are significant security considerations related to operations in this area, the market share is controlled by 7-8 businesses, making it primarily organised.

Since there are still problems with weapons licensing, liability transfers, and insurance, this sector is still in its infancy and offers little profit margins. On the other hand, due to the growing network of bank branches, the expansion of ATMs nationwide, and the rising popularity of debit cards, there has been a rise in the need for cash management services.

Among the cash management services provided by PSI are cash replenishment services for the bank’s ATM network, transfer of high-value goods and cash throughout the bank’s branch network, and cash delivery and pickup for big box stores, retail establishments, etc.

Allied Services

The segments receive assistance from Allied Services in providing security services, which include security guard training and event security management.

  • Event security management: Using a command-and-control approach, event security service providers let their clients concentrate on their events without worrying about security. The two main tasks included in event security management are VIP protection and crowd control. These services also aid in security and emergency management planning.
  • Security guard training services: Since the Private Security Agencies (Regulation) Act of 2005 was passed, private security companies have implemented internal training programmes that the state-specific PSARA has approved. States have given permission for training institutions they recognise to open per PSARA. Attaining a PSARA license is crucial for all the businesses involved in security services.

The sector skill council, which is the subject-matter authority on NOS and QPs, collaborates with several training partners (TPs) to provide the training; but, in order for the learners to be hired as security guards, they must hold a certification from a PSARA-accredited training organisation. The training industry is disorganised and dispersed since PSARA does not recognise the training provided by private TPs connected to the sector skill council.


The scope of growing security services industry in India seems promising, and several reasons have aided its development. The need for private security services is predicted to rise as the nation’s urbanisation, industrialisation, and economic growth continue rapidly. However, to continue, issues like personnel shortages, regulatory compliance, and the requirement for ongoing investments in technology and training must be resolved within the scope of the growing security industry in India.

Frequently Asked Questions

  1. How big is the Indian security services industry?

    Precise estimates place the industry's value at approximately INR 400 billion (USD 5.1 billion), and exponential growth at a CAGR (Compound Annual Growth Rate) of 20% or more is anticipated. The future of the Indian security services industry holds immense scope.

  2. What are the employment opportunities in this sector?

    In India, the security services sector contributes significantly to job growth. It is anticipated to employ more than 7 million people, and as the industry grows, so will this number.

  3. What is the current state of the security services industry in India?

    The need for private protection in the residential, commercial, and industrial sectors is growing, driving the fast expansion of the security services business in India. Urbanisation, rising crime rates, and the demand for more robust safety measures are the main drivers of growth.

  4. What types of security services are in high demand in India?

    Executive protection, event security, electronic surveillance, manned guarding, cybersecurity, and integrated security solutions that combine physical and digital security measures are among the in-demand security services.

  5. What factors are contributing to the growth of the security services industry?

    Some factors include urbanisation, increased crime rates, infrastructure investment, increased awareness of security concerns, and regulatory mandates requiring security measures for different sectors.

  6. How do private security agencies get licensed in India?

    Agencies are required to adhere to the PSARA, which entails filling out an application, fulfilling the requirements, being verified by the police, and making sure staff members get the required training.

Read our article: What Are The Essential Conditions Of PSARA License?

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