Bailed out: Demand for bail bond services will increase as personal savings rates remain low

The Bail Bond Services industry has grown steadily over the past five years. The industry has a very small loss ratio because the law permits industry operators to use all means possible to produce defendants who skip their court hearings. Bail bondsmen usually use the services of bounty hunters to track such individuals and produce them in court. Changes in the regulatory landscape will ultimately determine this industry's fortune over the next five years. This industry is being increasingly viewed as exploitative and one that favors the rich and high-risk criminals over the low-risk ones and social movements are developing to limit commercial bail activities...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 11-16
2.7%
Forecast Growth 16-21
Profit
Employment
29,630
Businesses
24,755
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Changes in the regulatory landscape will ultimately determine this industry’s fortune
  • A declining personal savings rate has improved this industry’s prospects
  • A continuous decline in the crime rate is expected to slow industry revenue growth
  • Industry Report - Starting a New Business Chapter

    This industry has a low level of concentration, with no player holding significant market power. The industry is highly fragmented, with a large number of small and independent players dominating the industry. Competition within the industry is high, contributing to its moderate barriers to entry. The skill level to compete successfully in the industry is moderate and agents are required to complete a licensing process. Agents must also comply with state regulatory requirements.Once a license is secured, new entrants will be further challenged by several factors, including securing the necessary start-up costs, establishing favorable distribution networks and building brand recognition. To operate, agents must possess assets or surety insurance to cover potential losses. The...purchase to read more.

    Additional Insights for the Bail Bond Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bail Bond Services Industry are

  • Having a good technical knowledge of the product
  • Must comply with government regulations
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Crime rate and Access to credit in the Bail Bond Services industry impact industry performance..

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    What's in this report

    What is the Bail Bond Services Industry?

    This industry provides security bonds backed by insurance companies that cover the risk involved in releasing a defendant in judicial custody until a trial’s conclusion. Bail bond agents guarantee payment of the full amount of the bond if the defendant fails to appear for their scheduled court appearance. Insurance companies that underwrite bond contracts are not included in this industry.

    Industry Products
  • Deposit bond
  • Surety bond
  • Collateral bond
  • Industry Activities
  • Selling secured bail bonds
  • Selling unsecured bail bonds
  • Providing financing for bail bond premium fees
  • Hiring bounty hunters to locate individuals on bail who miss their court dates
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Crime rate
  • Access to credit
  • Personal savings rate
  • Poverty rate
  • Yield on 10-year Treasury note

  • Current Performance
  • The nuts and bolts
  • Drivers of revenue
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Rising interest rates and access to credit
  • Regulation slows growth
  • Table: Bail Bond Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bail Bond Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Insurance Brokers & Agencies

  • Products & Services
  • Deposit bond
  • Surety bond
  • Collateral bond
  • Other
  • Chart: Bail Bond Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Drug
  • Immigration
  • Property
  • Public order
  • Weapons
  • Other
  • Violent
  • Chart: Major Market Segmentation for the Bail Bond Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciation, rent, utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Bail Bond Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bail Bond Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Bail Bond 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 Bail Bond Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Crime Rate (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bail
  • Bail refers to the money the defendant pays to remain out of jail during the time between the preliminary trial hearing and the trial.
  • Bounty Hunting
  • Bounty hunting is the process of locating defendants who have "skipped" their court date, and thus are liable for their entire bail amount.
  • No-Bail Area
  • An area where defendants must work directly with the courts to secure their release. No intermediary, including a bail bond agent, can interject on the defendant's behalf.
  • Premium
  • The dollar amount charged by the bail bond agent for providing pretrial release. Premiums are typically 10.0% of the bail amount.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Bail Bond Services provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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 Bail Bond 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 Bail Bond 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 Bail Bond Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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