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Abstract: 

Estimating the true size of the U.S. market for electronic monitoring devices and services has always been difficult. Perhaps even more challenging has been defining the proper role and function of electronic monitoring: Are we monitoring the right people? Too few or too many? Two long-time observers—one from academic research, the other a veteran of the industry—take a new look at the economic activity around offender monitoring, and what it tells us about the “justice industry” today. Specifically, the authors chart the growth in the numbers of individuals monitored electronically within the justice system; the emergence of new companies and products; the effects of mergers and acquisitions; the interplay of sentencing trends, incarceration rates, and EM as a low-cost alternative to prison; the small proportion EM takes in from overall taxpayer spending on justice and corrections, and the potential for expansion; stock prices and market valuations for EM companies; the downward pressure on cost exerted by government procurement practices and consortia, including the resultant stifling of engineering R&D as profits are squeezed; the inherent conflict between profitability and justice goals; and the likely future direction of the EM market.

Keywords: Electronic Monitoring Companies Operating in the US; Monitoring Trends in the United States; Market Valuation; Estimated Expenditures on Electronic Monitoring as a Percentage of Corrections Spending; Market Growth

Affiliations:  1: Northern Kentucky University; 2: Alteo Group LLC.