Private Security Spending Rises as Businesses Expand Protection Services

According to CNBC, private security spending is rising as businesses, institutions and local governments add protection services in response to violent incidents and heightened concerns about safety. The Hillcrest Business Association in San Diego began paying about $400,000 a year in 2024 for eight hours of unarmed guard patrols each day and plans to add about $150,000 next year for a second shift. Revenue in the private security sector climbed 17% over the past decade to above $50 billion in 2025, according to Robert H. Perry & Associates, while outsourced services in the U.S. totaled just over $35 billion. Allied Universal, a privately held security company with operations in more than 100 countries, said it has about $23 billion in annual revenue and roughly 800,000 employees. The company said it receives about 65,000 applications a week, interviews around 40,000 candidates and hires about 3,500 people for its North America operations. Equilar found that about 40% of S&P 500 companies provided security services to at least some executives in 2025, up from just under 19% in 2019, and said the median cost rose 178% over that period. Walmart and other major companies have added executive security in recent years, and Cracker Barrel said in a July filing it would keep covering protective service expenses for former CEO Julie Masino. In Louisville, Kentucky, city lawmakers passed a measure in July requiring certain late-night businesses to hire private security, and Santa Fe, New Mexico, budgeted nearly $1 million for contract security at various facilities in its current fiscal year.