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Correctional Facilities in the US Industry Data and Analysis
Correctional facilities have suffered from a mixture of policy changes at the federal and local levels, coupled with broader support for rehabilitative solutions to the broader issue of crime. The implementation of a ban on private prison contract renewals with the DOJ in 2021 cut off a considerable revenue stream across BOP and USMS clientele. While the order was reversed in January 2025, facilities were forced to pivot to alternative revenue streams, namely community centers and rehabilitative service provision. Demand is uniquely separate from the broader economic climate, since revenue growth is primarily influenced by crime and incarceration rates. Falling approval of for-profit prisons also influenced statewide restrictions on private correctional facilities. Revenue fell at a CAGR of 3.6% to an estimated $9.0 billion, including an estimated 3.5% decline in 2025 alone, as profit reached an estimated 12.4%.
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What's included in this industry analysis
IBISWorld's research coverage on the Correctional Facilities industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released May 2025.
About this industry
What's this industry report about?
The Correctional Facilities industry in the United States operates under the NAICS industry code 56121. The Correctional Facilities industry consists of operators that own or manage correctional facilities and halfway houses. Services provided by industry enterprises include private janitorial, maintenance, trash disposal, guard and security, mail routing reception, laundry and other services that support operations in correctional facilities. The industry doesn't include facility support services for other types of establishments, such as military bases and other government facilities. Related terms covered in the Correctional Facilities industry in the United States include prison, jail, probation and parole.
What's included in this industry?
Products and services covered in Correctional Facilities industry in the United States include Community correctional facilities, Minimum security and Medium security.
What companies are included in this industry?
Companies covered in the Correctional Facilities industry in the United States include The Geo Group, Inc., Corecivic, Inc. and Management & Training Corp.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Correctional Facilities industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Correctional Facilities industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Correctional Facilities industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Correctional Facilities industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Correctional Facilities industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Correctional Facilities industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Correctional Facilities industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Correctional Facilities industry in the United States.
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Frequently Asked Questions
What is the market size of the Correctional Facilities industry in the United States in 2026?
The market size of the Correctional Facilities industry in the United States is $9.0bn in 2026.
How many businesses are there in the Correctional Facilities industry in the United States in 2025?
There are 350 businesses in the Correctional Facilities industry in the United States, which has declined at a CAGR of 1.4 % between 2020 and 2025.
How may import tariffs affect the Correctional Facilities industry in the United States?
The Correctional Facilities industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Correctional Facilities industry in the United States?
The Correctional Facilities industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Correctional Facilities industry in the United States grown or declined over the past 5 years?
The market size of the Correctional Facilities industry in the United States has been declining at a CAGR of 3.6 % between 2020 and 2025.
What is the forecast growth of the Correctional Facilities industry in the United States over the next 5 years?
Over the next five years, the Correctional Facilities industry in the United States is expected to decline.
What are the biggest companies in the Correctional Facilities industry in the United States?
The biggest companies operating in the Correctional Facilities industry in the United States are The Geo Group, Inc., Corecivic, Inc. and Management & Training Corp.
What does the Correctional Facilities industry in the United States include?
Ownership and/or management of community correctional facilities and Ownership and/or management of minimum security prisons are part of the Correctional Facilities industry in the United States.
Which companies have the highest market share in the Correctional Facilities industry in the United States?
The company holding the most market share in the Correctional Facilities industry in the United States is The Geo Group, Inc..
How competitive is the Correctional Facilities industry in the United States?
The level of competition is moderate and increasing in the Correctional Facilities industry in the United States.
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