Private security sector aims 20% growth to touch Rs 80,000 crore market size by 2020

New Delhi:The domestic private security services industry aims at registering over 20 per cent growth in the next few years and expects to double its market size to Rs 80,000 crore by 2020.

This was stated by Kunwar Vikarm Singh, Chairman, the Central Association of Private Security Industry (CAPSI), during the 9th Security Skills and Leadership Summit 2014. The Rs 40,000-crore private security sector in India, which has over 15,000 security services firms, operates across 600 districts and directly employs about 70 lakh individuals, plans to achieve robust growth on the back of rising demand for manned guarding and cash services business.

"The need for security arrangements of industrial complexes, offices, IT parks and other public infrastructures such as airports, metro stations, shopping malls and public utilities has grown manifold. We believe that manned guarding continues to be a key segment in private security space and contribute about 80 per cent of business in the industry, followed by cash services," said Mr. Singh.

"We are confident that the domestic private security services sector will witness robust growth in value terms on the back of rising demand for human capital by security services firms," he added.

The private security sector is a sunrise sector, with potential to be the second-largest employment generator, and involved in skill development and employment of backward, economically weaker sections of the society, particularly from the rural and semi-urban areas of the country.

At present, the private security services sector has a workforce of 7 million guard-men and women engaged in providing private security cover to the nation. He said cash services business is still a small category of the private security industry, which currently contributes 10 per cent in the industry, and added that this segment is expected to grow at a rate of 20-25 per cent over the next few years on the growing ATMs across the country.

Notably, the cash logistics industry deals with the physical movement and storage of currency notes and other valuables on behalf of the banks. This sector employs about 50,000 individuals and caters to approximately 1 lakh ATMs pan-India for cash replenishment services. Apart from man guarding and cash services, several security service companies provide allied services such as installation, operations and maintenance of electronic security products such as CCTVs.

Currently, while the revenues from this segment, for large security service companies are generally not significant, it is going to gain increased importance as companies decide to cut operational costs and invest more in technology products.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.