Security Services in Canada Industry Report

WWW.IBISWORLD.
CA Security Services in CanadaDecember 2018 1
Not secure: The declining crime rate will

ultimately lead to a decrease in revenue
This report was provided to
IBISWorld Staff Member (2130086072)
by IBISWorld on 29 January 2019 in accordance with their licence agreement with IBISWorld
IBISWorld Industry Report 56161CA

Security Services in Canada
December 2018 Lucie Couillard
2 About this Industry 18 International Trade 30 Revenue Volatility

2 Industry Definition 19 Business Locations 31 Regulation and Policy
2 Main Activities 31 Industry Assistance
2 Similar Industries 21 Competitive Landscape
3 Additional Resources 21 Market Share Concentration 32 Key Statistics
21 Key Success Factors 32 Industry Data
4 Industry at a Glance 21 Cost Structure Benchmarks 32 Annual Change
23 Basis of Competition 32 Key Ratios
5 Industry Performance 23 Barriers to Entry
5 Executive Summary 24 Industry Globalization 33 Jargon & Glossary
5 Key External Drivers
7 Current Performance 25 Major Companies
10 Industry Outlook 25 GardaWorld Corporation
12 Industry Life Cycle 26 Securitas AB
27 Brink’s Canada Limited
14 Products and Markets 28 G4S Secure Solutions (Canada) Ltd.
14 Supply Chain
14 Products and Services 29 Operating Conditions
16 Demand Determinants 29 Capital Intensity
16 Major Markets 30 Technology and Systems
www.ibisworld.ca | 1-800-330-3772 | info @ibisworld.ca

WWW.IBISWORLD.CA Security Services in CanadaDecember 2018 2
About this Industry
Industry Definition This industry provides investigation money, receipts and other items. The
and detective services, guard and industry does not include companies
patrol services, and protected that sell security systems, such as
transport of valuables, including burglar or fire alarms.
Main Activities The primary activities of this industry are

Security guard and patrol services
Armoured car services
Private investigative services
Security guard and crowd control services for temporary events
Corporate investigative services
Polygraph services
Bodyguard services
The major products and services in this industry are

Armoured vehicle services
Investigation services
On-site security guard services
Similar Industries 33422CA Communications Equipment Manufacturing in Canada

Operators in this industry primarily manufacture radio and TV broadcasting, as well as other wireless
communications equipment.
33431CA Audio & Video Equipment Manufacturing in Canada

Establishments in this industry manufacture electronic audio and video equipment for home entertainment
systems, vehicles and public areas.
56144CA Debt Collection Agencies in Canada

Establishments in this industry collect delinquent payments for claims and send clients contractual
payments.
56162CA Security Alarm Services in Canada

Establishments in this industry sell, monitor and maintain security equipment, including burglar and fire
alarms.
Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

About this Industry
Additional Resources For additional information on this industry

www.asisonline.org
ASIS International
www.capicanada.ca
Canadian Association of Professional Investigators
www.canasa.org
Canadian Security Association
www.securitymagazine.com
Security Magazine
IBISWorld writes over 400 Canadian

industry reports to help you make
better business decisions, faster. To
see all reports, go to www.ibisworld.ca

WWW.IBISWORLD.CA Security Services in Canada December 2018 4
Industry at a Glance
Security Services in 2018
Key Statistics Revenue Annual Growth 13–18 Annual Growth 18–23

Snapshot
$5.8bn 2.9% 0.4%
Profit Wages Businesses
$415.9m $3.6bn 1,800

Revenue vs. employment growth Corporate profit
Market Share
GardaWorld 15 200
Corporation
10 180
9.8%
5 160
% change
Securitas AB
$ billion
7.3% 0 140
-5 120
-10 100
Year 10 12 14 16 18 20 22 24 Year 10 12 14 16 18 20 22 24
Revenue Employment
SOURCE: IBISWORLD
p. 25
Products and services segmentation (2018)
Key External Drivers 4.7%

Corporate profit
Number of businesses
Crime rate
Value of nonresidential
construction
35.2%
Demand from oil and
gas extraction
60.1%
p. 5
SOURCE: WWW.IBISWORLD.COM
Industry Structure Life Cycle Stage Mature Regulation Level Medium

Revenue Volatility Medium Technology Change Medium
Capital Intensity Low Barriers to Entry Medium
Industry Assistance Medium Industry Globalization Medium
Concentration Level Low Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32

Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Summary The Security Services industry in Canada demand, as industry operators are
provides guard and patrol services, typically needed to safeguard real estate
in-transit cash and valuables protection development projects.
and investigative services. Over the five Over the next five years, the domestic
years to 2018, industry revenue modestly Security Services industry will continue
increased at an annualized rate of 2.9% to to experience steady demand from the
$5.8 billion, as guard, investigative and public sector, as industry operators are
other industry services became contracted to provide passenger
increasingly popular among corporate screening for all of Canada’s designated
and government services. Consequently, commercial airports. However, the
industry revenue is expected to increase industry is expected to endure serious
1.3% in 2018 alone. competition from security alarm service
During this period, an increase in the systems, which include the installation
number of new businesses led to an of verification and remote monitoring
security systems, as well as off-site
response services. Similar to the past
The
industry will continue to experience steady five years, a growing number of
potential downstream customers will
demand from the public sector substitute manned security guard
services for this high-tech alternative.
expansion in the potential pool of Industry operators will respond to this
clientele for security services. The competition by offering integrated
industry commonly provides security security systems, which incorporate
measures for business and public entities surveillance and verification systems
that opt to outsource guard and patrol while stressing the importance of guard
functions. Despite the volatility of and patrol services. Ultimately, the
Canadian corporate profit margins industry will benefit from expanding
during the period and the decline in Canadian corporate profit levels, which
nonresidential activity, businesses will bolster security budgets. However,
continued to increase spending on the declining crime rate will ultimately
security services to protect their lead to the decrease in the growth of
expanding assets from potential theft or revenue. As a result, industry revenue is
crime. Additionally, steady residential expected to increase at an annualized
construction growth over the past five rate of 0.4% to total $5.9 billion over
years further heightened industry the five years to 2023.
Key External Drivers Corporate profit Number of businesses

Changes in corporate profit can determine Businesses make up one of the
the renewal or upgrade of contracts and the industry’s largest markets.
recruitment of new clients. An increase in Consequently, an increase in the
corporate profit will encourage businesses number of businesses will boost
to spend more on outsourced services, demand for security services, as more
including those offered by this industry. businesses will require security
Corporate profit is expected to strongly services. The total number of
increase during 2018, representing a Canadian businesses is expected to
potential opportunity for the industry. increase in 2018.

Key External Drivers Crime rate because many of these structures require
continued Actual and perceived increases in crime security services. The value of
lead to upgrades of security systems and nonresidential construction is expected
services. An increase in perceived crime, to increase in 2018.
whether this fear is actualized, will boost
demand for security services. The crime Demand from oil and gas extraction
rate is expected to decline in 2018, posing Industry operators commonly provide
a potential threat to the industry. security services for oil and gas extraction
sites, which are often located hundreds of
Value of nonresidential construction kilometres from major cities and publicly
The value of nonresidential construction funded police services. As a result, greater
includes expenditure on office buildings, oil and gas drilling activity in Canada
hospitals, factories, power plants, mining generally translates to higher demand for
shafts and communication lines. When the Security Services industry in Canada.
the value of nonresidential construction Demand from oil and gas extraction is
rises, it is likely to boost industry demand expected to increase in 2018.
Corporate profit Number of businesses
200 1.35
180
1.30
160
$ billion
Million
1.25
140
1.20
120
100 1.15
Year 10 12 14 16 18 20 22 24 Year 10 12 14 16 18 20 22 24
SOURCE: IBISWORLD

Current Over the five years to 2018, the Security

Services industry in Canada is expected Industry revenue
Performance to expand as improved employment
15
rates, higher consumer spending and
new business growth spur an increase in 10
demand for guard and patrol services.
The industry provides security measures 5
% change
for businesses and public areas that opt
to outsource security systems rather 0
than take on the logistical burden of

-5
protecting their facilities themselves.
Therefore, industry revenue is extremely -10
dependent on corporate expenditure Year 10 12 14 16 18 20 22 24
trends and business formation rates, as
new businesses are likely to require SOURCE: IBISWORLD
security services. Rising corporate profit

benefits industry operators in two ways. governments may outsource security
First, increasing profit margins permit services for office buildings, parks and
corporate clients to more easily afford other facilities. Over the five years to
the various mobile, remote monitoring 2018, rising government demand and
and guard-patrolled security services increasing new business growth bolstered
provided by this industry. Second, rising industry revenue, which is expected to
profit provides an incentive for increase at an annualized rate of 2.9% to
businesses to protect their expanding $5.8 billion. Over 2018, corporate profit,
assets from potential theft or which was declining in the beginning of
economic crime. the period, experienced significant
The industry also relies on government growth, leading to an industry revenue
spending, as federal, provincial and local increase of 1.3% that same year.
Demand from vital In 2013 and 2014, the domestic Security especially in developing nations such as
markets vacillates Services industry experienced an uptick China, fuelled demand for Canadian
in demand from the oil and gas, commodities, which include oil and gas.
manufacturing and petrochemical This, in turn, enabled Canadian natural
sectors. In many instances, services to resource companies to flourish through
these markets entail security functions 2014. Moreover, the remoteness of these
that extend beyond asset protection, as drilling and production facilities, many of
industry operators are hired to ensure the which are located hundreds of kilometres
health and safety of their clients’ from major cities and public police
employees. For example, industry major forces, also increased demand for
player Securitas AB offers security, outsourced security services. However,
emergency and environmental health an expedient decline in oil, gas and
services to Dow Chemical Canada’s Fort commodity prices in 2015 and 2016
Saskatchewan, AB, facilities, providing hampered demand from these sectors, as
access control for all facility visitors, mining and energy companies scaled
including contractors and truck back their operations and delayed new
deliveries. Over most of the past five projects in response to lower global
years, strong global economic growth, demand for natural resources.

Demand from vital Similarly, the domestic Security Western Canada in 2015 and 2016. The
markets vacillates Services industry benefited from value of nonresidential construction is
increasing commercial, residential and expected to decline at an annualized rate
continued
public construction activity early over of 3.0% over the five years to 2018. This,
the past five years. Industry operators in turn, helped constrain industry
are commonly selected to safeguard revenue growth as private security
private real estate developments and guards are often hired to protect large-
public construction projects. The value scale building and development sites
of nonresidential construction, which during and after construction.
measures expenditures on office Additionally, corporate profit had a
buildings, hospitals, factories, power sudden decline in 2015, which led to a
plants and other structures, increased 0.7% decline in industry revenue that
modestly through 2014. However, the year. However, stable growth in the
rampant decline in global commodity number of businesses and the value of
prices stalled commercial development residential construction during the
in resource-rich provinces such as period helped bolster the industry later
Alberta, as well as other parts of in the five years.
Stable downstream The federal government also provides

industry operators with stable streams of The
industry experienced
markets
revenue. For example, in 2002, the robust demand for hospital
Canadian Air Transport Security Authority
(CATSA) was formed in response to the security services
September 11 terrorist attacks in the United
States. While CATSA manages the policy, outsource security to companies that
safety procedures and guidelines for all of specialize in security services. As a result,
Canada’s designated airports, safety the industry experienced increased demand
procedures, such as screening and boarding for security services at office, retail and bank
verification, are normally provided by locations over the five years to 2018.
outsourced private security companies, Lastly, the domestic Security Services
which operate in this industry. As a result, industry also experienced robust demand
industry players such as GardaWorld, for hospital security services, as a
Securitas and G4S commonly sign multiyear progressively aging Canadian population
contracts for airport security. These increasingly in need of critical healthcare led
government contracts help cushion the to higher employment and patient
industry from fluctuations in the business admittance in Canadian healthcare facilities.
cycle, offering a source of demand not Higher foot traffic, in turn, boosted demand
dependent on private sector spending. for security services. For example, industry
Additionally, a couple of strong years of player G4S provides healthcare security
corporate profit growth in other sectors, solutions to more than 85 hospitals and
such as retail and finance, bolstered healthcare facilities in Canada. These
spending on security services, as optimism healthcare security services entail the
grew and these businesses began to spend transport and protection of biobank
more on patrolled guard and other industry material, including biological tests and
services. With extra cash on hand, these samples. Industry operators also commonly
downstream markets were likely to bypass manage hospital visitor and vendor
planning their own security operations and management services.

Industry structure Improving demand helped contribute to

stable industry profit margins, as profit Increasing
industry
and profit
for the average industry operator is 7.2% revenue attracted new
in 2018. While declining purchase costs
bolstered margins, rising industry industry entrants
employment and wage costs constrained
industry profit growth, as the Security their lines of business to streamline costs
Services industry in Canada remains and focus on industry niches. For
labour intensive, relying on trained example, in 2013, G4S sold off its
guards for building protection as well as Canadian Cash Solutions business to
cash and valuables transport. Industry industry competitor and major player
employment is projected to increase at an GardaWorld for $110.0 million.
annualized rate of 2.2% to 102,915 GardaWorld is now among the industry’s
individuals. Likewise, industry wages are top players for armoured vehicle and
expected to increase at an annualized rate cash-in-transit services. Moreover, this
of 3.9% during the same period. trend of consolidation is expected to
Over the five years to 2018, increasing continue over the next five years. The
industry revenue attracted new industry industry will endure competition from
entrants, and the number of security the Security Alarm Services industry in
services companies is expected to Canada (IBISWorld report 56162CA) as
increase at an annualized rate of 2.4% to companies weigh the decision to opt for
1,800 operators. However, the industry high-tech security systems, which include
has recently experienced a high level of alarm monitoring and response services,
mergers and acquisitions. Over the past over more traditional manned security
five years, major international security guard and patrol services offered by the
service corporations have consolidated domestic Security Services industry.

Industry Over the five years to 2023, the Security

Services industry in Canada will benefit
number of Canadian businesses, will
boost demand for security services as
Outlook from a projected increase in Canadian new businesses typically rely on industry
corporate profit levels, which will lead to operators for cash safeguard and delivery
an increase in security budgets. Similar as well as guard-patrolled services. As a
to the past five years, a growing number result, industry revenue is expected to
of potential downstream customers, the increase at an annualized rate of 0.4% to
result of a projected increase in the total $5.9 billion over the five years to 2023.
Persisting trends The rising trend of outsourcing public

security functions to private companies is Thetrend of outsourcing
expected to continue over the next five
years, supporting industry demand. For
public security functions
example, industry operators have been to private companies will
contracted to provide passenger continue
screening and boarding security in
Canada’s airports for more than a decade.
In 2014, Canada’s federal government screening is vital for government
commissioned a study to outline other buildings, hospitals, healthcare and
potential roles in which private security educational facilities. Private security
operators could reduce demand for service companies typically install
traditional public policing. The primary automated visitor management systems,
motivation for this study was cost related, which include temporary badge printing,
as federal agencies, provincial and local photo ID capability, electronic records
governments perceive security storage and networking capabilities.
outsourcing as a cost effective means to These systems can provide rapid online
reduce public spending. There are, background checks against wanted
however, some distinguishable benefits persons lists as well as other person-of-
to contracting domestic Security Services interest lists. Moreover, domestic
industry operators. Security Services industry employees are
According to Canadian Security typically trained and comfortable with
Magazine, the need for efficient visitor operating modern security systems.
Technology and Having skilled employees who can interact simultaneously, recognize and track faces
competition with emerging security technology will be that are up to half a mile away, screen
essential to this industry’s success over the hundreds of items and control remote
next five years, as the Security Services access. Consequently, several businesses
industry in Canada is expected to endure are expected to substitute labour-intensive
serious competition from high-tech security services with alarm, monitoring
security systems, which include alarm and other electronic equipment, which has
monitoring, response services and closed- the potential to constrain demand for
circuit TV systems. Remote monitoring manned security guard services.
systems have experienced rapid Manned security services, however,
advancement in recent years, including will continue to offer the proven ability to
the ability to monitor hundreds of people act as a deterrent to crime and to

Technology and minimize the risk of loss should a breach salaries, setting a mandate to bolster
competition occur. Security officers can make a guard wages to $2.25 above the
judgment, confront individuals and province’s minimum wage standards
continued
respond appropriately. These starting in 2017. These regulatory
fundamental advantages are not offered measures will provide salary growth for
by unmanned services. Moreover, major entry-level or less-experienced security
industry players will continue to respond officers. However, rising technology
to this competition by offering integrated investments will temper industry
security systems, which incorporate employment growth, as a growing
surveillance, communications and number of industry operators replace
verification systems while stressing the labour-intensive security services with
importance of guard and patrol services. electronic monitoring and alarm
Accordingly, over the next five years, the equipment. As a result, industry
domestic Security Services industry will employment is expected to increase at an
create the right balance, combining both annualized rate of only 0.7% to 106,449
technology and manned guarding. people over the five years to 2023.
This emergence of highly trained Industry profit margins are expected to
industry employees has also led to a decrease slightly to 7.1% in 2023, as rising
multitier compensation structure within purchasing and technology-related
the industry, as experienced guards with investment costs will temper industry profit
extensive law enforcement backgrounds growth over the next five years.
will continue to receive high salaries, Nevertheless, with stable profit margins and
while other security officers will receive an anticipated expansion in industry
salaries just above minimum wage. The revenue, driven by a rise in business
industry is expected to experience spending on security-related services, new
modestly increasing total wage costs at companies will enter the industry. Over the
both skill levels. For example, the five years to 2023, the number of industry
Security Guard Sector Plan of Manitoba operators is expected to increase at an
aims to boost minimum security guard annualized rate of 0.5% to 1,847 companies.

Life Cycle Stage Industry value added is expected to grow at
a similar pace as the overall economy
Competition from high-tech security solutions is increasing
Anticipated declines in cash-based transactions
may threaten demand for industry services
There has been consolidation in the industry’s cash
management and security lines of business

Industry Life Cycle The Security Services industry in Canada integrated security systems, which use
is in the mature phase of its life cycle. surveillance, communications and
IBISWorld estimates that the industry’s verification systems while stressing the
Thisindustry contribution to the overall economy, importance of guard and patrol services.
is M
ature measured by industry value added (IVA), However, industry operators will
is expected to increase at an annualized contend with other developing threats
rate of 2.3% over the 10 years to 2023. over the next five years. Decreased use of
Comparably, Canadian GDP is expected cash could have a negative influence on
to grow an annualized 1.9% during the the domestic Security Services industry, as
same period. An IVA growth rate that is many operators provide cash-in-transit
in line with overall economic growth is and valuables transport services. The
indicative of a mature industry. increasing popularity of other payment
In addition, the industry has options, such as credit and debit cards and
experienced mounting competition from mobile payments, has slowly decreased
external industries that provide similar demand for cash transactions. In addition,
services, as a growing number of the popularity of online commerce may
companies outside the industry offer new potentially lead to a decline in the need for
high-tech security methods, systems and brick-and-mortar banking branches and
equipment, including monitored alarms, retail stores. Therefore, there has been
live video surveillance TV and biometrics, consolidation in the industry’s cash
which provide less expensive and more management and security lines of
efficient alternatives to traditional, business. For example, in 2013, industry
labour-intensive security guards. major player G4S sold off its cash
Nevertheless, industry operators have solutions business to industry competitor
responded to this competition by offering GardaWorld for $110.0 million.

Products & Markets

Supply Chain | Products and Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

21CA Mining In Canada
The mining and oil and gas sectors in Canada commonly require security services to protect
extracted commodities, machinery, equipment and personnel.
23CA Construction In Canada
Security service companies provide construction operators with guards for residential and
nonresidential construction sites and materials.
31-33CA Manufacturing In Canada
Manufacturing operators require security services to limit access, guard inventory and provide
monitoring services.
44-45CA Retail Trade In Canada
Retail stores use security services for inventory control, cash transfers and in-store video
48-49CA Transportation and Warehousing In Canada
Public and private transportation companies require security services for passenger safety.
52CA Finance and Insurance In Canada
Security service companies provide banks with security associated with cash transfers, ATMs
and general patrol.
71CA Arts, Entertainment and Recreation In Canada
Casinos, hotels, entertainment and other recreation facilities use security service operators for
visitor, employee and cash transfer security.
92CA Public Administration in Canada
Schools, universities, health and hospital facilities and courts and prisons in the public sector
demand security services from the industry.
KEY SELLING INDUSTRIES

33422CA Communications Equipment Manufacturing in Canada
Manufacturing operators require security services to limit access, guard inventory and provide
33431CA Audio & Video Equipment Manufacturing in Canada
The Audio and Video Equipment Manufacturing industry in Canada provides industry
operators with video equipment such as closed-circuit TV.
56162CA Security Alarm Services in Canada
The Security Alarm Services industry in Canada supplies security monitoring systems to
security services companies.
81121CA Electronic & Computer Repair Services in Canada
The Electronic and Computer Repair Services industry in Canada provides security service
companies with repair and maintenance services of electronic security equipment.
Products and Services On-site security guard services security presence at a front desk or gate,
The on-site security guard services guarding manufacturing plants and
segment is expected to account for 60.1% equipment, monitoring computer rooms,
of revenue in 2018. This segment checking automatic machinery and
includes security professionals who are maintaining visitor logs. This segment
hired to guard people, property and also includes security personnel at special
buildings. On-site guards perform a events such as crowd controllers at
variety of tasks, including maintaining a concerts and festivals. Additionally, other

Products & Markets
Products and Services Products and services segmentation (2018)

continued
4.7%
35.2%
60.1%
Total $5.8bn SOURCE: IBISWORLD
services including bodyguards. This also hired to investigate accidents, arson,

service protects public figures, corporate employee checks, fraud, white-collar
executives, politicians and celebrities and crime, stock shrinkage and other crimes.
aims to provide protection from physical Operators also provide security
threats, property damage and harm to recommendations through consulting
family members. work. Over the five years to 2023, this
For many clients, the mere presence of segment is expected to increase as
on-site guards at company facilities is corporate profit grows and clients are
enough to deter theft and vandalism. more willing to spend money on
Guards are typically supported by a central investigating corporate fraud.
monitoring station; radio communications
provide personnel with additional support Armoured vehicles
when required. Clients receive occurrence Armoured vehicles deliver, collect and
reports, which highlight any breaches of count cash from financial institutions,
security. Over the five years to 2018, retailers (including for jewellery and
security guard services as a share of total precious metal shipments) and casinos.
industry revenue increased slight due to a This segment, which is expected to
rise in the total number of businesses account 4.7% of industry revenue in
buoyed overall demand for security guard 2018, also provides document transfer,
and patrol services. However, lower including cancelled checks and the
corporate profit margins have caused provision of secure safes for some clients,
companies to hold back on more security such as convenience stores and gas
services, which had stifled any major stations. Industry major players Brink’s
growth of the segment. Canada and GardaWorld also have their
own fleet of aircraft for document and
Investigation services valuables transfers.
Investigation services are expected to A subcomponent of the armoured
account for 35.2% of total industry vehicle segment is ABM servicing, which
revenue in 2018. Investigation services banks have largely outsourced to the
include the examination of legal and Security Services industry in Canada.
insurance claims to corporate and According to World Bank Data, Canada
domestic issues. Private investigators are has an estimated 220 ABM machines per

Products & Markets
Products and Services 100,000 residents. Furthermore, to 2023, as a decline in cash usage,
continued according to the Canadian Bankers driven by the increasing popularity of
Association, there are more than other payment options, such as credit,
65,000 ABMs in Canada. Despite the debit and mobile payments, will
high concentration of ABMs in Canada, negatively influence demand for ABM
this service segment will endure and cash transport services provided by
mounting pressures over the five years this industry.
Demand Demand for the Security Services aligned with the incidence of crime, as
Determinants industry in Canada originates from retail according to Statistics Canada, total
establishments, offices, banking locations reported crime rates are at decade lows.
and manufacturing companies that wish Nevertheless, a security-conscious society
to safeguard their facilities through has strained the resources of publicly
manned personnel and computer funded law enforcement agencies and
monitoring equipment. For decades, sparked demand for additional private
these industries have increasingly security services.
outsourced security services rather than Furthermore, during periods of
hire in-house security officers and economic growth, an increase in the
systems, relying on the specialization and number of businesses drives demand for
expertise of industry operators. security services, as this expands the
Increasing public concerns over pool of potential industry clients. In
security and safety, propelled by terror- addition, a rise in corporate profit,
related attacks in North America and which generally translates to greater
overseas, have heightened demand for budget allocations for security and other
security services. However, these public outsourced business services also boosts
perceptions of safety may not be fully industry demand.
Major Markets Corporate clients security, involves everything from

The Security Services industry in Canada reception management, property security
derives a large share of revenue from by closed circuit, access control systems,
industrial, energy, technology, business alarms and physical barriers such as
services and other commercial clients. fences and bars.
IBISWorld estimates that major
corporations account for 34.0% of Government clients
industry revenue in 2018. Over the past The government market segment is
five years, the industry experienced an expected to account for 20.0% of revenue
uptick in demand from the healthcare in 2018. In Canada, government demand
and manufacturing sectors. In many for private security predominantly stems
instances, services to these markets entail from the Canadian Air Transport Security
security functions that extend beyond Authority’s designation that passenger
asset protection, as industry operators preboarding scanning, screening and
are hired to ensure the health and safety boarding verification be provided by
of their client’s employees. This trend outsourced private security operators.
toward outsourcing all aspects of their For example, industry major player
security, also known as integrated GardaWorld’s protective services include

Products & Markets
Major Markets Major market segmentation (2018)

continued
12%
Retail, leisure and consumer clients
34%
Corporate clients
16%
Residential and other clients
18%
Financial clients
20%
Government clients
Total $5.8bn SOURCE: IBISWORLD
airport screening in 28 airports across security services. In 2018 retail, leisure

Canada, including Toronto Pearson and consumer services clients are
International Airport, which is Canada’s expected to account for 12.0% of total
busiest airport as measured by passenger industry revenue.
traffic. Over the past five years, demand
from the government sector aided Financial institutions
revenue growth for industry operators. Banks use security services to protect
Moving forward, this market’s share of physical assets such as cash and maintain
industry revenue is expected to slightly their automated banking machines. They
rise over the five years to 2023, as also use guards and closed-circuit
federal, provincial and municipal systems to provide a safe environment
governments increasingly outsource for customers. In 2018, financial
public security services to industry institutions are expected to account for
operators to reduce public spending. 18.0% of industry revenue. This
segment’s market share has slightly
Retail, leisure and consumer declined over the past five years, as
services clients innovations, especially from financial
Individual retail clients primarily use technology companies, led to growing
security services to prevent theft. Malls consumer acceptance of cashless or
also use guards to deter criminal activity electronic means of payment.
and vandalism while promoting a safe
atmosphere for shoppers. Furthermore, Residential and other clients
retail clients use cash transit services to Residential clients use patrols for
handle the physical flow of cash. Malls private communities and apartment
and other retail centres often have complexes. In 2018, residential and
closed-circuit camera systems in addition other clients are expected to account for
to security guards on foot and in cars. 16.0% of total industry revenue. Over
Demand from this segment held steady the past five years, residential clients
over the past five years, as rising have marginally declined as a percentage
Canadian disposable incomes and a of industry revenue as the crime rate has
resilient consumer permitted more retail fallen over the same period. The
outlets to opt for on-patrol and high-tech industry services a variety of other

Products & Markets
Major Markets industries, including ports, utility investigation services. Over the next five
continued companies and private citizens. While years, industry demand from other
most residential clients use security markets is anticipated to increase as
services for guards, private citizens use industry services extend their reach to a
the industry for bodyguards and private greater number of other industries.
International Trade Due to the service-based nature of the in the industry mainly serve local and
Security Services industry in Canada, regional markets, the industry’s largest
industry operators do not partake in any security companies have a multinational
international trade. However, while players presence and are headquartered in Europe.

Products & Markets
Business Locations 2018
Establishments (%)
Less than 5%
5% to less than 20%
20% to less than 40%
40% or more
NT
YT NU
NORTHERN TERRITORIES
0.9
BC AB SK MB
19.4 15.4 2.7 2.3
QC NL
1.3
ON 14.5
39.1
PE
NB 0.4
1.7 NS
2.4
SOURCE: IBISWORLD

Products & Markets
Business Locations The Security Services industry in Canada

Distribution of establishments vs. population
is largely concentrated according to
population density. A greater
40
concentration of security services
operators occurs in regions with large
30
populations and cities, especially in
Ontario and Quebec. Similarly, the
dispersion of revenue largely follows the 20
%
concentration of establishments. Since
areas with higher populations often have 10
a greater number of businesses requiring
security services, the industry’s presence 0
is strongest among large metropolitan
Alberta
British Columbia
Manitoba
New Brunswick
Newfoundland
NW Territories
Nova Scotia
Ontario
Prince Edward Island
Quebec
Saskatchewan
areas. This level of geographic
concentration is not expected to change
over the next five years.
Establishments
Ontario
Population
Ontario contains the industry’s highest SOURCE: IBISWORLD
concentration of establishments,
accounting for an expected 39.1% of from a high concentration of offices and
total industry establishments in 2018. businesses. Furthermore, rising
Ontario is Canada’s most populated residential and nonresidential
province and home to an estimated construction in this region, driven by a
75.0% of the country’s service-sector progressively wealthy Canadian
businesses, both public and private. As a population, has supported demand for
result, offices per capita in this region security services, as industry operators
are high compared with other provinces, are commonly hired to safeguard real
boosting demand for patrol services, estate developments.
cash and valuables transport and
investigative services for businesses and Quebec
commercial property owners. Quebec is expected to account for 14.5% of
total industry establishments in 2018. The
British Columbia region has a high concentration of
British Columbia contains the next manufacturing and technology companies,
highest share, with an expected 19.4% of boosting demand for outsourced security
industry establishments in 2018, despite services related to the protection of
holding an estimated 13.5% of the total employees, assets and intellectual
population. Similar to Ontario, industry property, as well as provide visitor
operators in British Columbia benefit screening and management services.

Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share Market share concentration in the Over the five years to 2023, the overall
Concentration Security Services industry in Canada is level of industry concentration is
moderate. IBISWorld estimates that the expected to slightly increase, as the
four largest industry players will account industry’s largest companies are expected
Level
for less than 25.0% of total market share to continue to engage in mergers and
Concentration in in 2018. Most industry operators are acquisitions. In addition, the increasing
this industry is L ow small, with an estimated 28.9% of presence of integrated security, cash
companies having fewer than five handling and other value-added services
employees, while companies with more will pressure smaller security service
than 500 employees account for only operators, as these companies have
2.6% of total operators in 2018, limited resources and lack the capital to
according to Statistics Canada and provide integrated and technologically
IBISWorld estimates. augmented services.
Key Success Factors Ability to compete on tender closely monitor their competitors for
The ability to compete for new security service and price changes.
contracts and have a high rate of contract
IBISWorld identifies renewals ensures good cash flows. Use of most efficient work practices
250 Key Success Efficient work practices,
Factors for a Fast adjustments made to including wages, training and staff
business. The most changing regulations benefits, can reduce the labour
Industry operators must monitor changes turnover rate.
important for this
to federal and provincial regulations that
industry are: affect this industry and adapt accordingly. Having a good reputation
Maintaining a reputation for
Close monitoring of competition quality service helps move
As the Security Services industry is clients away from solely price-
highly competitive, operators must based competition.
Cost Structure Profit Wages

Benchmarks Industry profit, measured as earnings The largest cost for the Security Services
before interest and taxes, increased industry in Canada is wages, as guards,
over the past five years. In 2018, patrols and investigative services, all
industry profit is expected to account major components of this industry, are
for 7.2% of industry revenue, up from highly labour-intensive. In 2018,
6.5% in2013. During this period, IBISWorld expects wages to account for
increasing wage and labour-related 62.1% of total revenue. Wages’ share of
expenses, as well as increasing service industry revenue increased over the past
competition from overlapping five years from 59.3% in 2013, as industry
industries such as the Security Alarm operators hired more guards and
Services industry in Canada professionals in response to rising
(IBISWorld report 56162CA), demand for security services.
pressured industry margins. However, Over the five years to 2023, wages’
declining purchase costs have helped share of industry revenue is expected to
bolster margins. grow at a slower pace, as the increasing

Cost Structure use of technology reduces overall demand Other

Benchmarks for security staffing and personnel. Industry operators are also subject to
Industry operators are expected to several other costs, including
continued
increasingly integrate surveillance, administration, legal and accounting
communication, verification and other expenses. Companies must also pay for
systems technologies, which will help appropriate forms of insurance, such as
reduce the industry’s high level of general liability, performance and crime
labour intensity. However, total wage bonding, professional liability as well as
costs are expected to increase, as a automobile coverage for operators that
greater share of trained employees offer mobile security services. Licences
capable of using these technologies will are particularly important for armed
command higher salaries. guards who must complete additional
certification courses to carry a weapon.
Purchases Rent and utility costs are expected to
Industry operators commonly provide account for 2.8% of total industry
their security officers with badges and revenue in 2018. These costs are low
uniforms as well as communications, because security services are performed
restraint and defence-related equipment. at a clients’ place of business.
In total, purchases are expected to Depreciation costs in the industry are
account for 8.8% of total industry minimal and constrained to the
revenue in 2018. Over the past five years, depreciation of computing equipment
this segment’s share of industry revenue and operating software, office furniture
has ultimately declined. and equipment and vehicles. Marketing
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2018) (2018)
100 n Profit
11.8 7.2 n Wages
n Purchases
80 n Depreciation
n Marketing
36.3 n Rent & Utilities
n Other
Percentage of revenue
60 62.1
40
28.9
8.8
20 2.6 1.4 1.2 1.1
3.8 2.8
15.2 16.8
0
SOURCE: IBISWORLD

Cost Structure costs are also small and are expected to

Benchmarks comprise 1.1% of revenue in 2018.
continued
Basis of Competition Internal competition can work with one company throughout
Internal competition in the Security their various locations, rather than
Services industry in Canada is largely relying on multiple security providers.
Level & Trend based on price and service quality,
ompetition
C in particularly with respect to guards. Over External competition
this industry is the past five years, customers of security External competition comes from
Highand the trend services increasingly demanded technologically based security services,
operators that provide value-added such as electronic alarms, closed-circuit
is I ncreasing
services. For example, a client might TV and sensors. As a result, the industry
need a security operator that can provide endures competition directly from the
cash transit in addition to on-site guard Security Alarm Services industry in
services. Some value-added services also Canada (IBISWorld report 56162CA), as
require investment in high-tech some clients may fully replace guard
equipment, which can provide a services for more automated forms of
competitive advantage for industry security. Monitored security systems
operators willing to take on the added are now a major competitor to the
cost of expanding their business industry’s guard-patrolled services, as
offerings. Furthermore, having national they provide a more cost-effective
operations can play a crucial factor when security solution for businesses, which
a client chooses a security provider, as lack the budgets to pay for around-the-
downstream clients, such as retail stores, clock security teams.
Barriers to Entry Barriers to entry in the Security Services

industry in Canada are moderate, as Barriers to Entry checklist
Level & Trend there are an estimated 1,800 enterprises Competition High
operating in this industry. This industry Concentration Low
arriers to Entry
B is highly labour intensive and has Life Cycle Stage Mature
in this industry are minimal capital requirements. Start-up Capital Intensity Low
Mediumand S teady costs, which are typically associated with Technology Change Medium
hiring security guards and installing Regulation and Policy Medium
surveillance systems, are relatively low. Industry Assistance Medium
However, some service segments require
more capital, such as the purchase of SOURCE: IBISWORLD
armoured trucks for cash transport.

Conversely, other services such as regarding licensing and background
bodyguard protection require little checks, which have slightly elevated costs
capital investment on behalf of industry for industry operators.
operators. Over the past decade, In addition, companies that aim to
provincial governments have required enter the industry must be aware of
private investigators and security guards increasing competition from other
to meet certain minimum standards industries that provide comparable

Barriers to Entry services such as alarm companies industry as more clients look for cost-
continued (IBISWorld report 56162CA). These effective alternatives to hiring manned
operators will pose a threat to the security staff.
Industry Globalization in the Security Services Securitas AB employs more than

Globalization industry in Canada is moderate. The 335,000 people in 53 countries and
industry’s two largest operators, G4S operates in North America, South
and Securitas AB, are European- America, Asia, the Middle East
Level & Trend owned companies. For example, and Africa.
lobalization
G in
this industry is
Mediumand the
trend is S
teady

Major Companies
GardaWorld Corporation | Securitas AB | Other Companies
Major Players
(Market Share) Securitas AB 7.3%
82.9%
Other
GardaWorld Corporation 9.8% SOURCE: IBISWORLD
Player Performance Montreal-based GardaWorld Corporation segment provides guard and patrol, asset
(GardaWorld) offers of wide range of protection, aviation, risk consulting and
integrated security services to both public crises management services in Canada
GardaWorld and private market sectors, including and internationally. The company’s cash
Corporation healthcare, telecommunications, oil and gas, services segment provides cash
Market Share: 9.8% retail, property management, special events management services, such as the
and transportation. GardaWorld has more processing of cash, notes and coins and
than 48,000 employees and operates in 300 counterfeit detection services. In
branches across the globe. The company has addition, this segment provides cash-in-
more than 55 locations in Canada, transit security services through its fleet
providing security services to over 5,000 of armoured vehicles, which transport
clients across the country. Garda’s clientele cash, cheques, securities and valuables
also includes passenger preboarding from banks and other financial
screening for 28 of Canada’s airports, institutions, as well as retailers,
including Toronto Pearson International hospitality operators, casinos and other
Airport, which is the country’s busiest commercial establishments.
airport by passenger traffic.
The company’s industry-relevant Financial performance
security services are divided into two Over the five years to 2018, GardaWorld’s
business segments, which include industry-specific revenue is expected to
protective services and cash services. increase strongly, at an annualized rate of
GardaWorld’s protective services 6.6% to $564.7 million. Over the past five
GardaWorld Corporation (industry-relevant operations) - financial

performance*
Revenue Operating profit
Year ($ million) (% change) ($ million) (% change)
2013 411.1 N/C 53.6 N/C
2014 433.3 5.4 56.5 5.4
2015 427.2 -1.4 63.0 11.5
2016 494.9 15.8 59.1 -6.2
2017 530.0 7.1 65.8 11.3
2018 564.7 6.5 68.8 4.6
*Estimates
SOURCE: IBISWORLD

Major Companies
Player Performance years, the company has benefited from solutions segment for $110.0 million,
continued an increase in private sector demand, leaving GardaWorld and Brink’s
driven by new business growth, which Canada as the two dominant players in
permitted for increased business the cash management and secure cash
services on guard and patrolled security transport subsegment of this industry.
services. Additionally, the company has In 2015, the company acquired Aegis, a
expanded through a series of strategic provider of high-skilled protective
acquisitions. In 2014, GardaWorld services with an estimated annual
completed the acquisition of G4S’ cash revenue of $450.0 million.
Player Performance Securitas Security Services North public corporations, government facilities,
America (Securitas) is a subsidiary of the manufacturing plants, multifamily
Swedish company Securitas AB, which residential units and nonprofit institutions.
Securitas AB employees an estimated 345,000 people For example, Securitas offers security,
Market Share: 7.3% in 45 countries. Securitas provides emergency planning and environmental
security guards, consultations, mobile health services to Dow Chemical Canada’s
patrol and investigation services from Fort Saskatchewan, AB, facilities, providing
600 offices, and employs more than access control for all facility visitors,
112,000 people across North America. including contractors and truck deliveries.
The North America segment, which Securitas’ public customers include
represents more than 40.0% of the municipalities, regional and state
company’s total revenue, is divided into governments and international bodies.
five business units, including critical Additionally, Securitas provides specialized
infrastructure (which includes the federal aviation security services, including
government), defence and aerospace preboard, baggage and nonpassenger
projects, healthcare, corporate risk screening for 32 airports in five provinces
management and technology and mobile. and two Canadian territories.
Securitas has more than 7,000
employees in 24 offices across Canada. The Financial performance
company primarily provides patrolled and Over the five years to 2018, IBISWorld
integrated security services to private and estimates that Canadian industry-specific
Securitas AB (industry-relevant operations) - financial performance*

Revenue Operating profit
Year ($ million) (% change) ($ million) (% change)
2013 242.9 N/C 12.4 N/C
2014 271.1 11.6 12.1 -2.4
2015 317.0 16.9 13.8 14.0
2016 375.1 18.3 16.5 19.6
2017 384.7 2.6 22.7 37.6
2018 420.0 9.2 25.4 11.9
*Estimates
SOURCE: IBISWORLD

Major Companies
Player Performance revenue from Securitas has increased at solutions also entail the integration of
continued an annualized rate of 11.6% to $420.0 traditional security officer services and
million. This growth is due in part to the technology such as alarm, surveillance,
expanding Canadian economy. However, communications, verification and other
much of this growth was driven by a electronic systems. Along these lines, in
favourable exchange rate, as the Swedish October 2015, Securitas acquired
Krona declined significantly against the Diebold’s North American Electronic
Canadian dollar over the past five years. Security business. While security alarm
Similar to many players in the systems and related services are outside
industry, Securitas’ revenue rose as a the scope of this industry, this acquisition
modest increase in the total number of helps Securitas to more effectively
Canadian businesses and corporate profit combine guarding with technology and
margins spurred higher business-related monitoring solutions. This, in turn, will
security budgets. Over the past five years, bolster company revenue and profit
Securitas also increasingly tailored its margins, as customers of tailored security
security services to meet a customer’s solutions are willing to pay a premium
specific challenges. These specialized for higher specialization.
Other Company Established in 1927, Brink’s Canada businesses and banks, as well as the
Performance Limited (Brink’s) is a wholly owned transport of cash, securities and other
subsidiary of Brink’s Inc., which has a valuables between commercial banks,
security network of more than 500 investment banks and brokerage firms.
Brink’s Canada armoured vehicles and 50 branches In addition, the company provides secure
Limited across Canada. Brink’s specializes in transportation of new currency, coins and
Market Share: 3.3% automatic banking machine (ABM) precious metals for central banks and
management and replenishment services, other customers. The company’s main
including ABM maintenance and clients include banks, retailers and other
installation. Accordingly, Brink’s employs commercial businesses. However, the
trained service technicians capable of company also provides secure storage
repairing and replacing parts, loading solutions and inventory management for
software and providing data collection clients in the commodity markets,
and analysis. To boost profit margins and including miners of precious metals.
revenue over the past five years, Brink’s Additionally, Brink’s offers barcoding for
offered premium integrated management audit purposes, inventory control
services, which include ABM remote software and daily reports on balances, as
monitoring, service call dispatching and well as liability coverage for these
transaction processing. downstream customers.
In addition to ABM management The company’s revenue is expected to
services, Brink’s provides cash decrease slightly at an annualized rate of
management, cash-in-transit and 0.8% to $189.3 million over the five years
armoured transport services, including to 2018. While the company benefited
the secure air transport of valuable from a rise in the number of new
goods. Brink’s cash management services Canadian businesses, a strengthening US
include money processing as well as dollar increased price pressures and hurt
currency and coin sorting. The company’s company revenue. Nevertheless, Brink’s
cash-in-transit services generally include has introduced value-added solutions to
the secure transportation of cash between attract new business over the past five

Major Companies
Other Company years. For example, in November 2014, funds the same day, without leaving their
Performance Brink’s partnered with the Canadian retail location. The new partnership is
Imperial Bank of Commerce (CIBC) in a directed toward cash-intensive retailers,
continued
pilot program that enables business such as quick service restaurants and
owners to electronically deposit cash to convenience stores, which have a high
their CIBC account and have access to the reliance on cash flow.
Other Company G4S Secure Solutions (Canada) Ltd. baggage checking and nonpassenger
Performance (G4S) was incorporated in 2009. G4S screening for 21 airports in the Pacific
services clients across the globe and has region. The company also provides static
operations in more than 100 countries. and perimeter protection services for
G4S Secure With more than 1,000 customers and airports and airlines across Canada.
Solutions (Canada) 9,000 employees, G4S provides security Additionally, G4S provides healthcare
Ltd. solutions, including screening services, security solutions to more than 85 hospitals
security technology and personnel, as and healthcare facilities in Canada. In
Market Share: 0.8%
well as risk assessments for private and 2013, G4S sold off its Canadian cash
public customers across Canada. G4S solutions business to industry competitor
offers integrated security services, pairing and major player GardaWorld for $110.0
trained security guards with security million. Although this sale is expected to
system, alarm, surveillance and other significantly lower the company’s share of
technologies. In addition, the company industry-relevant revenue, the cash
provides compliance and investigative solutions segment is expected to account
services for businesses. Currently, G4S is for less than 15.0% of company revenue.
contracted by the Canadian Air Transport Therefore, IBISWorld estimates that
Security Authority to provide integrated industry-specific Canadian revenue at G4S
security services, including preboarding, will total $46.9 million in 2018.

Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity The Security Services industry in Canada

requires a low level of capital Capital Intensity
Capital units per labour unit
investment, as wages are the largest cost
Level
for operators, accounting for 62.1% of 0.5
The levelof capital revenue in 2018. Labour costs come in
intensity is L ow the form of guards, investigative work 0.4
and corporate employees. As a result, 0.3

IBISWorld estimates that for every
dollar put toward labour in 2018, $0.02 0.2
is spent on capital expenditures. 0.1

Nevertheless, for some industry services,
such as cash-in-transit security, 0.0
Economy Admin, Business Security Services
substantial capital investments must be Support & Waste
Mgmt Services
made including the purchase of Dotted line shows a high level of capital intensity
armoured trucks for transport of cash SOURCE: IBISWORLD
and other valuables. In addition, over

the five years to 2023, capital intensity is technologies and value-added products
projected to marginally increase as that extend beyond simple armed
industry operators invest in automated guard services.

Technology and The Security Services industry in Canada including pepper spray and stun guns.
Systems has experienced moderate technological However, the technology behind these
change in recent years, though the use of tools has remained constant.
Level various monitoring technologies has Security providers need to be aware of
become an increasingly common existing and emerging technologies to
The level
of substitute for the industry’s security evaluate and provide appropriate
technology change services. While communications, solutions to clients. These technologies
is M
edium surveillance, alarm and alert equipment include alarm monitoring, closed-circuit
are becoming popular additions to TV and emerging biometrics products
support traditional guarding and patrol such as fingerprint scanners, retina
services, the industry’s level of capital recognition and access systems. In
intensity is too low to experience major addition, security providers are
boosts in productivity stemming from increasingly using satellite technology,
any recent technological improvements. including vehicle immobilization systems
Security guards are occasionally and global positioning systems for
equipped with a wide array of equipment, cash-handling vehicles.
Revenue Volatility The Security Services industry in Canada industry has a broad and diverse
has exhibited a moderate level of revenue customer base, businesses and government
volatility over the past five years, with offices, which helps lessen the industry’s
Level
year-to-year revenue growth rates exposure to fluctuations in the business
The level
of volatility ranging from a 0.7% decline in 2015 to a cycle and shelters against poor
is M
edium substantial growth of 7.6% in 2016. performance. Moving forward, industry
Industry performance closely follows the revenue volatility is expected to remain
health of the overall economy and levels moderate as the overall Canadian economy
of corporate profit. Additionally, the experiences relatively stable growth.

Regulation and Policy Each province in Canada holds unique all aspects of private security, including
minimum licensing requirements for the administration, ethics and training. The
Security Services industry in Canada. For BSP requires all individuals and
Level & Trend example, in Ontario, the Private Security businesses providing private security
he level of
T and Investigative Services Act of 2005 services in Quebec to obtain a licence.
Regulation is requires that all private investigators and Since its inception, the BSP has issued
Mediumand the security officers obtain a licence and meet more than 30,000 agent licences.
minimum requirements, which includes In Nova Scotia, private investigators
trend is I ncreasing
passing a criminal record background check. and guards must be at least 19 years of
In Quebec, the Private Security Act, age, pass a criminal records screening
which was adopted in 1996 and ratified in and be a Canadian citizen. In addition,
2010, created the Private Security Bureau a member of a police agency is
(BSP), an agency which manages the prohibited from acting as a private
regulatory and compliance framework for investigator or guard.
Industry Assistance The Canadian Air Transport Security Private Investigators is an advocacy and
Authority (CATSA) manages airport not-for-profit group representing the
safety in all of Canada’s designated private investigation industry.
Level & Trend airports. However, the passenger Last, ASIS International, is a
he level of Industry
T screening process is provided by worldwide organization for security
Assistance is outsourced private security firms. professionals with more than 38,000
Mediumand the Accordingly, the Security Services members. ASIS offers education and
industry in Canada has benefited from professional development programs,
trend is S
teady
the privatization of airport-related annual seminars and security forums and
security over the past decade. networking opportunities for private
Security system operators also receive security officers, organizations and
indirect assistance from a variety of trade businesses. ASIS also administers three
associations. The Canadian Security internally accredited certification
Association (CANASA) is a not-for-profit programs, including the Certified
industry association, which provides Protection Professional, Professional
education, research, advocacy and Certified Investigator and the Physical
networking services for security Security Professional. Moreover, ASIS
professionals in Canada. Established in works with the international standards-
1977, CANASA has grown to include setting organizations to develop
more than 1,000 member organizations. voluntary standards and guidelines for
In addition, the Canadian Association of security professionals.

Key Statistics
Industry Data Industry Corporate
Revenue Value Added Establish- Wages Domestic profit
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($b)
2010 5,514.5 3,697.1 2,260 1,545 87,766 -- -- 3,233.7 N/A 132.3
2011 5,050.2 3,402.4 2,201 1,475 87,008 -- -- 2,981.1 N/A 157.7
2012 4,805.5 3,291.5 2,174 1,468 89,995 -- -- 2,897.7 N/A 141.0
2013 5,005.7 3,352.2 2,403 1,598 92,253 -- -- 2,966.6 N/A 152.3
2014 5,173.8 3,680.8 2,507 1,744 93,778 -- -- 3,196.8 N/A 170.8
2015 5,140.1 3,698.1 2,568 1,792 95,519 -- -- 3,210.0 N/A 113.1
2016 5,530.9 3,845.2 2,581 1,800 98,279 -- -- 3,378.3 N/A 104.8
2017 5,700.1 4,011.7 2,570 1,795 101,330 -- -- 3,532.9 N/A 138.4
2018 5,775.7 4,070.0 2,580 1,800 102,915 -- -- 3,586.5 N/A 145.9
2019 5,802.8 4,091.9 2,593 1,809 103,554 -- -- 3,607.7 N/A 154.6
2020 5,829.9 4,120.6 2,592 1,808 104,418 -- -- 3,635.1 N/A 160.4
2021 5,856.4 4,140.8 2,602 1,814 104,929 -- -- 3,652.6 N/A 169.1
2022 5,881.1 4,165.1 2,612 1,823 105,661 -- -- 3,676.1 N/A 177.7
2023 5,905.8 4,190.9 2,647 1,847 106,449 -- -- 3,701.1 N/A 184.8
2024 5,932.3 4,218.0 2,663 1,860 107,257 -- -- 3,726.9 N/A 191.2
Annual Change Industry Establish- Domestic Corporate

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand profit
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 -8.4 -8.0 -2.6 -4.5 -0.9 N/A N/A -7.8 N/A 19.3
2012 -4.8 -3.3 -1.2 -0.5 3.4 N/A N/A -2.8 N/A -10.6
2013 4.2 1.8 10.5 8.9 2.5 N/A N/A 2.4 N/A 8.0
2014 3.4 9.8 4.3 9.1 1.7 N/A N/A 7.8 N/A 12.1
2015 -0.7 0.5 2.4 2.8 1.9 N/A N/A 0.4 N/A -33.8
2016 7.6 4.0 0.5 0.4 2.9 N/A N/A 5.2 N/A -7.4
2017 3.1 4.3 -0.4 -0.3 3.1 N/A N/A 4.6 N/A 32.1
2018 1.3 1.5 0.4 0.3 1.6 N/A N/A 1.5 N/A 5.5
2019 0.5 0.5 0.5 0.5 0.6 N/A N/A 0.6 N/A 5.9
2020 0.5 0.7 0.0 -0.1 0.8 N/A N/A 0.8 N/A 3.7
2021 0.5 0.5 0.4 0.3 0.5 N/A N/A 0.5 N/A 5.4
2022 0.4 0.6 0.4 0.5 0.7 N/A N/A 0.6 N/A 5.1
2023 0.4 0.6 1.3 1.3 0.7 N/A N/A 0.7 N/A 4.0
2024 0.4 0.6 0.6 0.7 0.8 N/A N/A 0.7 N/A 3.5
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2010 67.04 N/A N/A 62.83 58.64 38.83 36,844.56 0.02
2011 67.37 N/A N/A 58.04 59.03 39.53 34,262.37 0.02
2012 68.49 N/A N/A 53.40 60.30 41.40 32,198.46 0.02
2013 66.97 N/A N/A 54.26 59.26 38.39 32,157.22 0.02
2014 71.14 N/A N/A 55.17 61.79 37.41 34,089.02 0.02
2015 71.95 N/A N/A 53.81 62.45 37.20 33,605.88 0.02
2016 69.52 N/A N/A 56.28 61.08 38.08 34,374.59 0.02
2017 70.38 N/A N/A 56.25 61.98 39.43 34,865.29 0.02
2018 70.47 N/A N/A 56.12 62.10 39.89 34,849.15 0.02
2019 70.52 N/A N/A 56.04 62.17 39.94 34,838.83 0.02
2020 70.68 N/A N/A 55.83 62.35 40.28 34,812.96 0.02
2021 70.71 N/A N/A 55.81 62.37 40.33 34,810.20 0.02
2022 70.82 N/A N/A 55.66 62.51 40.45 34,791.46 0.02
2023 70.96 N/A N/A 55.48 62.67 40.21 34,768.76 0.02
2024 71.10 N/A N/A 55.31 62.82 40.28 34,747.38 0.02
Figures are in inflation-adjusted 2018 dollars. SOURCE: IBISWORLD

Jargon & Glossary
Industry Jargon BIOMETRICSA technology that involves the use of INTEGRATED SECURITY SERVICESSecurity services
face, fingerprint or similar recognition of individuals to that combine remote monitoring systems and other
permit secure access. technological solutions as well as patrolled guard
CLOSED-CIRCUIT TV (CCTV)A technology that uses services.
video surveillance equipment to transmit images to a MONITORED SECURITY SYSTEMA security system
specific set of monitors. that involves the use of video, such as CCTV systems.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that INDUSTRY REVENUEThe total sales of industry goods
new companies struggle to enter an industry, while low and services (exclusive of excise and sales tax); subsidies
barriers mean it is easy for new companies to enter an on production; all other operating income from outside
industry. the firm (such as commission income, repair and service
CAPITAL INTENSITYCompares the amount of money income, and rent, leasing and hiring income); and
spent on capital (plant, machinery and equipment) with capital work done by rental or lease. Receipts from
that spent on labour. IBISWorld uses the ratio of interest royalties, dividends and the sale of fixed
depreciation to wages as a proxy for capital intensity. tangible assets are excluded.
High capital intensity is more than $0.333 of capital to INDUSTRY VALUE ADDEDThe market value of goods
$1 of labour; medium is $0.125 to $0.333 of capital to and services produced by the industry minus the cost of
$1 of labour; low is less than $0.125 of capital for every goods and services used in production. IVA is also
$1 of labour. described as the industry’s contribution to GDP, or profit
CONSTANT PRICESThe dollar figures in the Key plus wages and depreciation.
Statistics table, including forecasts, are adjusted for INTERNATIONAL TRADEThe level of international
inflation using the current year (i.e. year published) as trade is determined by ratios of exports to revenue and
the base year. This removes the impact of changes in imports to domestic demand. For exports/revenue: low is
the purchasing power of the dollar, leaving only the less than 5%; medium is 5% to 20%; and high is more
“real” growth or decline in industry metrics. The inflation than 20%. Imports/domestic demand: low is less than
adjustments in IBISWorld’s reports are made using 5%; medium is 5% to 35%; and high is more than
Statistics Canada’s implicit GDP price deflator. 35%.
DOMESTIC DEMANDSpending on industry goods and LIFE CYCLEAll industries go through periods of growth,
services within Canada, regardless of their country of maturity and decline. IBISWorld determines an
origin. It is derived by adding imports to industry industry’s life cycle by considering its growth rate
revenue, and then subtracting exports. (measured by IVA) compared with GDP; the growth rate
EMPLOYMENTThe number of permanent, part-time, of the number of establishments; the amount of change
temporary and casual employees, working proprietors, the industry’s products are undergoing; the rate of
partners, managers and executives within the industry. technological change; and the level of customer
acceptance of industry products and services.
ENTERPRISEA division that is separately managed and
keeps management accounts. Each enterprise consists NONEMPLOYING ESTABLISHMENTBusinesses with
of one or more establishments that are under common no paid employment or payroll, also known as
ownership or control. nonemployers. These are mostly set up by self-employed
individuals.
ESTABLISHMENTThe smallest type of accounting unit
within an enterprise, an establishment is a single PROFITIBISWorld uses earnings before interest and tax
physical location where business is conducted or where (EBIT) as an indicator of a company’s profitability. It is
services or industrial operations are performed. Multiple calculated as revenue minus expenses, excluding
establishments under common control make up an interest and tax.
enterprise. VOLATILITYThe level of volatility is determined by
EXPORTSTotal value of industry goods and services sold averaging the absolute change in revenue in each of the
by Canadian companies to customers abroad. past five years. Volatility levels: very high is more than
±20%; high volatility is ±10% to ±20%; moderate
IMPORTSTotal value of industry goods and services
volatility is ±3% to ±10%; and low volatility is less than
brought in from foreign countries to be sold in Canada.
±3%.
INDUSTRY CONCENTRATIONAn indicator of the
WAGESThe gross total wages and salaries of all
dominance of the top four players in an industry.
employees in the industry. Benefits and on-costs are
Concentration is considered high if the top players
included in this figure.
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.

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CA Security Services in CanadaDecember 2018 1

Not secure: The declining crime rate will

IBISWorld Industry Report 56161CA

2 About this Industry 18 International Trade 30 Revenue Volatility

www.ibisworld.ca | 1-800-330-3772 | info @ibisworld.ca

About this Industry

Main Activities The primary activities of this industry are

The major products and services in this industry are

Similar Industries 33422CA Communications Equipment Manufacturing in Canada

33431CA Audio & Video Equipment Manufacturing in Canada

56144CA Debt Collection Agencies in Canada

56162CA Security Alarm Services in Canada

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

About this Industry

Additional Resources For additional information on this industry

IBISWorld writes over 400 Canadian

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Key Statistics Revenue Annual Growth 13–18 Annual Growth 18–23

$415.9m $3.6bn 1,800

Key External Drivers 4.7%

Industry Structure Life Cycle Stage Mature Regulation Level Medium

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Key External Drivers Corporate profit Number of businesses

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Corporate profit Number of businesses

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Current Over the five years to 2018, the Security

than take on the logistical burden of

security services. Rising corporate profit

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Stable downstream The federal government also provides

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Industry structure Improving demand helped contribute to

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Industry Over the five years to 2023, the Security

Persisting trends The rising trend of outsourcing public

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Products and Services Products and services segmentation (2018)

Total $5.8bn SOURCE: IBISWORLD

services including bodyguards. This also hired to investigate accidents, arson,

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Major Markets Corporate clients security, involves everything from

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Major Markets Major market segmentation (2018)

Total $5.8bn SOURCE: IBISWORLD

airport screening in 28 airports across security services. In 2018 retail, leisure

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Business Locations 2018

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Products & Markets

Business Locations The Security Services industry in Canada

Provided to: IBISWorld Staff Member (2130086072) | 29 January 2019

Cost Structure Profit Wages

CA Security Services in CanadaDecember 2018 1