Private security industry to touch Rs 80,000 crore by 2020: Report

MUMBAI: With growing urbanisation and growth in the retail sector the private security industry in India is set to double by 2020 and touch Rs 80,000 crore, a report by Grant Thornton and FICCI said.

Currently the security industry in the country provides employment to about 70 lakh. Additional 50 lakh people could be hired by the industry in the next five years, the report added.

"Growing urbanisation, coupled with retail boom and increasing concerns regarding security has led to a rise of organisations catering to the private security segment in the country. Development of infrastructure and industries, residential complexes offers a sea of opportunities to the growing security industry. Government initiatives such as the development of 100 smart cities and 'Make in India' campaign will add to the overall growth of the industry," said Rahul Kapur, Partner, Grant Thornton India LLP.

The manned guarding is the biggest segment in the security space in the country and holds about 80% of the market share. According to the report globally, the demand for private contract security services is likely to increase by 7.4 percent annually and reach US$ 244 billion (Rs. 15.86 lakh crore) by 2016. It is expected that security industry segment will rapidly grow in the developing parts of Asia, Eastern Europe, Africa and the Middle East, where security markets are relatively underdeveloped. In fact, several markets including China, India, Mexico, Russia and South Africa are expected to achieve double digit annual growth through the year 2016.