What Is Security Industry Analysis?

Mary McMahon
Mary McMahon

A security industry analysis provides information about the state of the industry dedicated to protecting people and resources worldwide. This includes firms that focus on the security of information, individuals, facilities, assets, and events, all of which occupy different sectors of the security industry. Such analysis can be useful for investors considering purchases of shares, as well as companies that want an honest assessment of the industry that they can use to make business decisions. They may be available to the public or classified because they contain sensitive information pertaining to security measures or proprietary company information.

Woman with hand on her hip
Woman with hand on her hip

Some analyses offer a broad overview, but more commonly, they focus on a particular subject in the security sector, such as firms that focus on information security. The document may open with a discussion of historic topics to put the information in perspective. This can include market share of various companies, trading prices, and the state of the industry, as well as major security threats that required attention in the past. Within a security industry analysis, it can be important to have this information to understand the findings.

The document also covers the current state of the industry. It looks at emerging issues, current threats, and companies that appear to be dominating the market. In addition to looking at the industry, a security industry analysis can consider factors like political issues that might have an impact on the security industry. For example, private contractors can experience a jump in business during a war, which may be important to an analysis that covers their growth.

Finally, a security industry analysis can also offer projections. These provide information about where the industry is likely to go, in light of available information about growth, political situations, and pending legislation. Analytical tools can provide important insight into the future market movements of an industry for the benefit of interested parties who may have specific concerns. A company interested in getting into maritime security, for example, might want to know that growth in this sector is expected to fall as a result of specific political circumstances.

Public reports can be found in trade magazines and through government agencies. Some are released by security firms with annual reports and other disclosures for the benefit of their shareholders. In the case of a classified report, the document may be intended for internal use by company officials or government representatives. The security industry analysis is kept secure to reduce the risk that information in the document could be exploited to harm a company or government.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a wiseGEEK researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

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