The security market - France

1.2 The global private security market is booming

There is no data available for guarding on a global scale. Nevertheless, we can take a broader look at private security systems. The latter have been booming for a few years. Indeed, more and more countries are opening up to private security, to the detriment of public security forces. Today, about forty countries would have more private security agents than law enforcement agents.

Private security employees and police officers World, ****, in millions of employees Source: ****

The differential is particularly large in India, where private security is nearly * times larger than public security. China is also well positioned in the sector, followed by the US and South Africa. Many other countries favor private security. This is notably the case in Canada, Australia and the United Kingdom. France, on the other hand, is recording the opposite proportions, with **% more police officers than private security agents in ****.

India, at the forefront of the market:

According to the Federation of Indian Chambers of Commerce and Industry, the private security sector has registered an annual growth of **% between **** and ****. This sector is now the second most important sector in the country after agriculture, in terms of employment. In ****, nearly * million people were employed in the sector, ...

1.3 National market

In **** in France, according to the site Making our world safer, the security market was estimated at *.* billion euros, of which **% concerned private security and **% security systems. Thus, the national private security market was valued at *.* billion euros. According to the index of the turnover of the sector provided by the INSEE, one can thus establish the turnover of the private security in ****. We obtain the following figure: *.* billion euros for the year ****.

Private security sector turnover index France, **** - ****, base *** in **** Source: ****

In order to have an approximation of the security market in France, we are interested in the turnover distribution of the private security sector. The most recent figures date from ****, but the distribution remains roughly the same today.

Distribution of the turnover of the private security sector France, ****, in % Source: ****

Thus, guarding accounts for **.*% of private security turnover. In ****, the guarding market in France would therefore be valued at *.*** * *.* = *.** billion euros.

It is the largest companies in the sector that capture the majority of the revenues. In the intervention surveillance segment, companies with more than *** employees account for **% of revenues [***]

Among these large companies, some are particularly important, such as :

Securitas (***). Fiducial Sécurité (***). ONET Group (***).

2.1 Demand and drivers

The demand for guarding, and therefore surveillance, is above all dominated by companies. INSEE data, which covers guarding, patrol and cash-in-transit services, shows that nearly **% of the turnover is generated by services to companies [***].

Distribution of revenues from guard, patrol and cash-in-transit services by type of client France, ****, % Source: ****

Building security

Building security is generally the best known form of the profession. Often hired by a condominium, the guards may or may not belong to a company, and are remunerated by the payment of condominium fees.

Their task, most often, is to meet the current needs of the inhabitants of a building (***). The main consumers of concierge services are real estate developers, both in the case of residential and office buildings, as well as condominiums or companies directly.

The demand for this type of service is thus logically very localized: it is an urban demand, and located within cities mainly in business districts and affluent neighborhoods where real estate prices are high. Although the type of service is different, the uneven distribution of this type of service across France is similar to the distribution of building janitors, who are overwhelmingly located in the Ile-de-France region. According to a **** study by Opco ...

2.2 The security issue at the heart of people's concerns

New alarms now allow households to have a security system at home, without having to rely on a service provider. Somfy alarms are connected and meet the needs of French people to be able to monitor their homes at any time.

But security issues are multiple and the majority of French people are still worried, particularly because of the memory of the attacks. **% of French people say they are often or sometimes worried, * points more than in ****.

Do you feel worried about your physical safety or that of your property? France, ****, in Source: ****

**% of French people feel that the actions taken by the government are not effective enough to fight insecurity; and **% feel that the internal situation has deteriorated. The need for security is therefore very important, as much from the point of view of individuals as from the point of view of companies, increasingly threatened by cyber attacks.

2.3 A demand in search of digitalization

Companies, which represent the largest segment of the demand for security services, no longer have the same expectations of security companies. They are looking for a certain upmarket service that is no longer limited to physical surveillance, with security guards.

Thus, the growth in demand continues to be very important on the remote surveillance and cybersecurity side, which respectively saw their activity grow by **.*% and **.*% in ****. [***].

This is because remote monitoring allows for more extensive monitoring of buildings, which can be centralized in a central room. The coverage is wider and the technology can be coupled with more powerful solutions (***), which makes the work of security more efficient.

Cybersecurity responds to the growing concern of companies about losing their data (***) to hackers. Regulatory changes are also forcing companies to put in place greater security for customer data.

The competition in this sector is less fierce since only **% of companies market remote surveillance solutions. [***].

3.1 Market organization and dynamics

In ****, approximately ***,*** people were employed in the private security sector, including security guards (***). [***].

Distribution of the workforce in the sector France, ****, in % Source: ****

The sector is dominated by medium-sized and large companies (***). Microenterprises still account for **% of the market.

Breakdown of security revenues by company size France, ****, % Source: ****

Large companies are generally present in several segments of private security (***). However, it is rare for these companies to be present in several fields at the same time; they are highly specialized.

3.2 Production costs for the entire sector

Production costs in the private security sector have increased slightly at an annual rate of *.*% over the past ** years [***].

evolution of production costs for private security France, **** - ****, base *** in **** Source: ****

The main costs in the sector are related to the personnel employed (***), nearly **% of whom are full-time. The average hourly wage of employees in the sector was **.* euros before the revaluation.

According to Eurostat data, the physical investments of private security companies in **** represented a sum of ***.* million euros, or about *% of their turnover on average.

As a result, the margins achieved by security companies are quite high, with rates that can reach over **%. This is related to the low need to invest in research and development and the low cost of employees (***) [***].

The rate of added value of private security companies is **.*% on average and subcontracting represents **.*% of the sector's activity.

4.1 Products and/or services

The guarding gathers a whole of missions carried out by security agents. It is above all a question of protecting buildings, which can be done for example by the control of the entries and exits, rounds... The websites of Securitas and Atlas Sécurité give an outline of these missions related to the job of the ADS (***).

Source: ****

4.2 Prices and household budgets

Arcadis, a private security company, presents on its website the rates for guarding according to the amount of time included in the contract. Given the intense competition in the sector, the prices should not differ much from those of Arcadis. On the other hand, the costs associated with specific services (***) per hour.

Source: ****

Rates are generally higher for night missions (***). Moreover, the rounds are carried out at the unit rate of ** € HT, the intervention on alarm for doubt removal are evaluated at ** € HT.

4.3 The market is about to be revolutionized by startups

Considered for a long time as an essentially physical activity, security guarding has managed to resist direct digitalization (***). However, some start-ups are now challenging this idea.

A complementary offer to guarding for individuals

The start-up Securkeys offers to keep the keys of private individuals and return them in less than an hour, anywhere in France, in the event that they have lost them or left them inside their home.

The company currently works with *** custody centers and more than *,*** security guards who deliver keys to individuals.[***]

This is not a business that competes directly with security companies, since building guards often have a duplicate set of keys for members of their condominium. On the contrary, it develops the market with individuals who did not have a guard yet (***) and makes them more sensitive to an adapted guarding offer.

The flexibilization of the work of security guards

New companies are now offering individuals and companies the possibility to book a security service (***) for an event, for a duration determined by the client.

Guardio and GettGuard both connect security professionals with individuals or companies looking for a specific and short security need. GettGuard only offers security guards, but Guardio's offer is broader and ...

5.1 Rules specific to guarding

The code of internal security regulates the activities of private security companies. Title VII of Book II specifies the laws concerning guarding. Thus, when the size of a residential building justifies it, it is necessary for the inhabitants to provide guarding. [***] The main measures regulating guarding are as follows:

Administrative authorizations are required in order to create a private security company and to recruit people. [***] Events (***) gathering more than *,*** people must use certified security agents to perform security pat-downs and visual inspection of hand luggage. [***] Landlords are obliged to provide surveillance or guarding of collective buildings for rental purposes as long as they are located in a sensitive urban area or in a municipality with more than **,*** inhabitants. One person is responsible for this guarding for every *** dwellings. [***]

5.2 The role of the CNAPS

The CNAPS (***) regulates the activities of private security companies. This organization has three missions:

Administrative police: delivery, suspension or withdrawal of authorizations, approvals and professional cards Disciplinary: on-site and off-site control of private security companies, and initiation of disciplinary action if necessary Advice and assistance tothe profession: answering questions from the various actors and stakeholders in the private security sector.

The CNAPS also sets a certain number of rules that private security companies must respect. As long as they have not obtained the authorizations of the organization, they can neither canvass, nor contract nor start a service. [***]

Every year, *,*** companies are checked to verify their compliance with this, but also with the rules of article L. ***-* of the code of internal security: the activities of private security and research, physical protection and private protection of ships at sea are incompatible with any other type of activity.

Clients of private security companies must also respect a number of rules:

Contact a company that the CNAPS has authorized Check the approval of the company's managers in the KBIS Ask for a copy of the CNAPS professional cards of the security guards provided Check that the company pays a contribution of *.*% of the ...

5.3 Calls for tender, application and limits

The file written by France Marchés on calls for tenders and the site Marché Public provide information on the legislation on calls for tenders.

Formalized procedure

A call for tenders is a consultation launched by a public purchaser, which he can or must use. Formalized procedures are so called because beyond a certain market estimation threshold, a call for tender is mandatory and a whole codified process is engaged. The thresholds are as follows:

*.** million euros for works contracts ***,*** for government supply and service contracts ***,*** euros for supply and service contracts for local authorities

After receiving the bids, the local authority must engage in a negotiation procedure (***), followed by a competitive dialogue phase.

The offer can be open - the candidate company must submit two files, the first containing its skills and qualities and the second containing the offer - or restricted - in which case the candidate company is only invited to submit its offer after its skills and qualities file has been selected.

Then, depending on the type of procedure, the deadlines for submitting the files vary more or less around one month.

Adapted procedure

When the estimated value of the contract is lower than the above-mentioned ...

6.1 Segmentation

• Securitas
• Prosegur
• ONET Groupe
• Sotel Groupe
• Securalliance
• GettGuard
• G4S Secure Solutions