Debt to society: Higher incarceration rates have supported industry revenue growth

The Correctional and Detention Services industry aims to provide a safe, secure and humane correctional system that incorporates elements of rehabilitation, education and community protection. The industry encompasses the operation and management of prisons, community correctional facilities, programs for adult offenders, immigration detention centres and juvenile detention facilities. Most industry revenue comes from publicly funded and government-operated facilities. Four privately operated companies account for most of the remaining proportion of yearly industry revenue. Industry performance is generally influenced by criminal activity rates, government capital expenditure and appropriation levels, overall population trends, and rates of incarceration...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 13-18
6.1%
Forecast Growth 18-23
Profit
Employment
32,674
Businesses
18

Industry Threats & Opportunities

  • Higher incarceration rates and population growth have contributed to rising revenue over the period
  • The number of industry facilities has increased in response to rising incarceration rates
  • Industry funding is forecast to increase as governments try to demonstrate they are tough on crime
  • Industry Report - Industry Key Buyers Chapter

    The Correctional and Detention Services industry is highly concentrated. The four largest industry players are projected to account for 77.5% of total revenue in 2017-18. State governments effectively maintain regional monopolies in the industry, and market share concentration has therefore remained fairly stable over the past five years. Unlike public corrective facilities that are non-profit organisations, private facilities seek to generate profit. However, the final responsibility for all correctional and detention services remains with the Federal Government and the respective state and territory governments. For example, the Federal Government contracts out the operation of Australia's main immigration detention centres to Serco Group...purchase to read more.

    Additional Insights for the Correctional and Detention Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Correctional and Detention Services Industry are

  • Ability to vary services to suit different needs
  • Optimum capacity utilisation
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Level of criminal activity and Capital expenditure by state and local government in the Correctional and Detention Services industry impact industry performance..

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    What's in this report

    What is the Correctional and Detention Services Industry?

    Companies in the industry are primarily engaged in managing and operating correctional institutions and detention centres. Facilities include prisons, remand centres, juvenile detention centres and immigration detention centres.

    Industry Products
  • Government-managed prisons
  • 24-hour court cell centres
  • Periodic detention centres
  • Privately managed prisons
  • Transition centres and programs
  • Juvenile detention centres
  • Immigration detention centres
  • Industry Activities
  • Prison operation
  • Detention centre operation
  • Remand centre operation
  • Juvenile detention centre operation
  • Correctional centre operation
  • Operating correctional facility on a contract or fee basis
  • Managing immigration detention centres on a contract basis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Level of criminal activity
  • Capital expenditure by state and local government
  • Population
  • Capital expenditure by the government

  • Current Performance
  • Revenue and profitability
  • Industry structure
  • Prison safety and rehabilitation
  • Immigration detention centres
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Public versus private
  • Safety and welfare
  • Immigration trends
  • Table: Correctional and Detention Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Correctional and Detention Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Police and Firefighting Services
  • Consumers

  • Key Selling Industries
  • Catering Services
  • Commercial Cleaning Services
  • Investigation and Security Services
  • Laundry and Dry-Cleaning Services

  • Products & Services
  • Government-managed prisons
  • Juvenile detention centres
  • Transition centres and programs
  • 24-hour court cell centres
  • Privately managed prisons
  • Immigration detention centres
  • Periodic detention centres
  • Chart: Correctional and Detention Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • NSW Government
  • VIC Government
  • WA Government
  • QLD Government
  • Other state and territory governments
  • Federal Government
  • Chart: Major Market Segmentation for the Correctional and Detention Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Correctional and Detention Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Correctional and Detention Services Industry

  • Industry Globalization
    Department of Justice NSW, Victorian Department of Justice & Regulation, Department of Corrective Services, Department of Justice & Attorney-General,
  • Table: Department of Justice NSW - financial performance
  • Table: Victorian Department of Justice & Regulation - financial performance
  • Table: Department of Corrective Services - financial performance
  • Table: Department of Justice & Attorney-General - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Correctional and Detention Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Correctional and Detention Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Appropriation
  • The act of setting aside government funding for the specific uses, in this case the operation of correctional and detention facilities.
  • Mobile Phone Jamming
  • A technique used by some prison operators to prevent mobile phones from receiving signals from base stations.
  • Periodic Detention
  • A form of detention where prisoners are only incarcerated for two days per week, allowing them to improve their lives and remain a part of their community.
  • Transition Centre
  • Facilities provided to prepare prisoners for release back into the community and reduce reoffending rates.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Correctional and Detention Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Correctional and Detention Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Correctional and Detention Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Correctional and Detention Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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