Evolving market dynamics bolster physical security growth

Security is perhaps the hottest category in field services for 2024. Sectors like retail and education increasingly rely on surveillance and access control systems to increase safety. Thanks to advancements in technology and equipment, installation and maintenance are faster, easier, and more cost-effective. This growth trajectory opens up significant opportunities in the field service sector as organizations prioritize security initiatives.

Let’s take a closer look at some of the drivers and trends fueling the increased demand.

 

Inventory shrinkage and consumer safety are critical concerns

Inventory shrinkage is a formidable challenge for the retail sector, severely impacting profitability and hindering growth. The National Retail Federation identifies this issue as a staggering $112 billion problem. Additionally, our 2024 Field Service Trends and Predictions report highlights the emergence of “partial shrink,” where customers underpay at self-checkout, causing another common and costly retail threat. Emphasizing these security challenges, big-box retailer Target recently closed nine stores as theft and organized retail crime threaten the safety of workers and customers.

Further, recent research by enterprise-building security solutions provider Verkada (in partnership with the Harris poll) sheds light on growing consumer apprehensions around safety while shopping. According to the Verkada survey, 81% of Americans are concerned about their personal safety in stores. Retailers also feel the impact, with over half reporting increased instances of violence and 66% of retail workers experiencing security incidents.

 

A heightened emphasis on school security

Recent data underscores a significant shift in priorities within the education sector and a heightened focus on school security. The U.S. educational security market has surged past $3.1 billion, with projections indicating an annual growth rate exceeding 8%, according to market research firm Omdia. As schools recognize the critical need for enhanced safety measures, many of these investments aim at modernizing security systems with newer technologies.

 

Growth areas come into focus

For most organizations, physical security solutions are a necessity rather than a luxury, regardless of the prevailing macroeconomic climate. So it’s no surprise to see security emerge as the fastest-growing type of work on the Field Nation marketplace, experiencing a notable 41% uptick over the past year.

Access control, especially door access, is expanding significantly within the security category. In the realm of surveillance, many organizations are switching from CCTV cameras to IP cameras. While surveillance cameras cannot entirely stop crime, they act as passive deterrents by capturing incidents when they occur. As a result, retailers are pushing for more security installations across their entire store footprint to prevent shrinkage.

Given the escalating threat landscape, retailers and educational institutions continue to ramp up security measures. In our 2024 Field Service Trends and Predictions report, we uncover the transformative shifts that will drive widespread commercial security system rollouts in these sectors.

 

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