Spring for bail: Rising per capita disposable income and a declining crime rate will hurt industry demand

The Bail Bond Services industry comprises establishments that provide security bonds, backed by insurance companies that cover the risk in granting pretrial release to defendants awaiting sentencing. Bail bond agents guarantee payment of the bond if the defendant fails to appear for their scheduled court appearance. This industry does not include the insurance companies that underwrite the bond contracts. Over the past five years to 2018, revenue growth has been hampered by a declining crime rate, a decreasing poverty rate and an increase in per capita disposable income. Therefore, the primary driver in offsetting these effects during the five-year period has been an increase in the number of temporary employees...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
0.0%
Forecast Growth 18-23
Profit
Employment
23,888
Businesses
18,620
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Slight growth in the poverty rate will not be strong enough to offset declines in crime and disposable income
  • The number of people arrested drives industry revenue
  • A decrease in the young adult population drives declines in the crime rate
  • Industry Report - Industry Analysis Chapter

    The Bail Bond Services industry comprises bail bondsmen who provide a surety to the courts that they will produce a defendant for his or her hearing. In case a defendant skips their hearing, the bondsman is responsible for paying the entire sum of the bail amount. Defendants, when they are unable to afford the financial conditions of their bail, use the services of a bail bondsman. The bondsman charges a premium depending on the value of the bond and in most cases, also keeps collateral to ensure compliance. Then, an insurance underwriter underwrites the bail bond and charges a premium to the bondsmen for the services provided. This industry only includes revenue generated by bail bondsmen and does not include insurance underwriters. 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 Poverty rate 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
  • Unsecured bond
  • Personal recognizance
  • Deposit bond
  • Surety bond
  • Collateral bond
  • Other type of pretrial release
  • 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
  • Poverty rate
  • Number of temporary employees
  • Per capita disposable income
  • Demand from community housing and homeless shelters

  • Current Performance
  • Bailed out
  • Revenue drivers
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Decreasing crime rate
  • Rising disposable income
  • Industry landscape
  • 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
  • Unsecured bond
  • Personal recognizance
  • Deposit bond
  • Surety bond
  • Collateral bond
  • Other type of pretrial release
  • Chart: Bail Bond Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Property offenses
  • Drug offenses
  • Public order offenses
  • Immigration offenses
  • All other offenses
  • Violent offenses
  • 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
  • Profit
  • Wages
  • Purchases
  • Depreciation, 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Crime Rate (2009-2023)

  • 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, therefore, are liable for their entire bail amount.
  • Forfeiture
  • The amount owed by a for-profit bondsman to the court in the event of a failure-to-appear by their client at trial.
  • 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 Bail Bond Services Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
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    • Inform your decisions for marketing, strategy and planning
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    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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