1.6.5Segment

Physical Security Services

Companies providing security guard services, physical security consulting, loss prevention, executive protection, and private investigation services to corporate and institutional clients.

5
Verticals

Overview

Physical Security Services companies provide manned guarding, physical-security consulting, loss prevention, executive protection, and private investigation to corporate and institutional clients. It is a large, labor-intensive market — over three-quarters of a million security officers across the country — distinct from the advisory consulting that surrounds it in this industry.

The market is consolidating rapidly around a few global operators (Allied Universal, Securitas, GardaWorld) that have rolled up regional guarding firms, while remote monitoring and security technology gradually reshape the labor-heavy model. Revenue is contract-based and recurring, but margins are thin given the wage-dominated cost structure.

Market snapshot

Market size
~$37B
Growth
~4.6%CAGR (2017–22, nominal)
Companies
~10,700
FragmentationConsolidating

U.S. Census Bureau 2022 CBP/Economic Census, NAICS 561612 (Security Guards & Patrol Services); ~765,000 security officers — a labor-intensive, contract-based market.

Business model & economics

Revenue model
Recurring per-hour guarding contracts
Recurring revenue
High — multi-year guarding contracts with steady renewal
EBITDA margin
5–10%
Capex intensity
Low
  • Wage-dominated cost structure keeps margins thin.
  • Recurring contracts provide steady, predictable revenue.
  • Remote monitoring and technology are reshaping the labor model.

M&A deal context

High deal activity

Who’s acquiring

Global guarding consolidatorsSecurity-technology integratorsPE-backed security platforms

What’s driving deals

  • Rapid roll-up of regional guarding firms by global operators.
  • Shift toward remote monitoring and security technology.
  • Scale economics in a labor-intensive, low-margin market.

Verticals in this segment

  • 1.6.5.1Executive Protection & VIP Security

    Firms providing close protection details and VIP security for executives and public figures.

  • 1.6.5.2Loss Prevention Consulting

    Retail and corporate loss prevention advisory firms reducing theft and shrinkage.

  • 1.6.5.3Physical Security Consulting & Design

    Consultancies designing security systems, access control, and physical protection programs.

  • 1.6.5.4Private Investigation Services

    Licensed PI firms conducting corporate investigations, surveillance, and due diligence.

  • 1.6.5.5Security Guard & Patrol Services

    Companies providing uniformed security officers and mobile patrol services.

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