Updated By: LatestGKGS Desk
The CRISL research report shows that security services, where small and medium enterprises (SMEs) have 60-65 percent market share, have logged a compound annual growth rate (CAGR) of 18-20 percent over the past three fiscal years and it expects them to grow at a similar pace over the next two fiscal years.
The growth of security services is driven by infrastructure development, urbanisation, the growing incidence of crime and terrorism, and the low police to population ratio. Major factors which contributed to this growth are
Urban housing stock and commercial stock have grown at a CAGR of five percent in the last three years (calendar years 2015 to 2018) and is expected to continue the same momentum over the next three years.
United Nations data shows that 34 percent of India’s population lived in urban areas in 2018. The number is expected to increase further to 37.4 percent by 2025.
India has a large gap between actual and sanctioned police personnel. Data from the Bureau of Police Research and Development shows that India had 150.75 police personnel per 100,000 people, compared with a sanctioned strength of 192.87 in 2017.
Value-added services like site-specific training, supervisor patrols at all sites, high-tech surveillance systems, biometric technologies, remote-sensors, and cybersecurity are being offered by the security services
But the Industry is facing its own set of challenges. Challenges like tough licensing norms, unavailability of trained personnel, high attrition and heavy working capital requirements are acting as a bottleneck in achieving their potential.
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