HLS – The market dimensions

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The global homeland security market is estimated by experts at 415.53 billion u.s dollars in 2013 and is expected to reach 544.02 billion u.s dollars by 2018. This according to a market research made by MarketsandMarkets.

Homeland security aims to avert any terrorist attacks on the homeland and to provide resilience in case of an attack. It also has to provide credible security against cyber fraud and cyber espionage and to provide detection and protection capabilities against CBRN threats. The threat of cross border terrorism, cybercrime, piracy, drug trade, human trafficking, internal dissent and separatist movements has been a driving factor for the HLS.

The risk of terrorist attack has led to an increase in aviation security spending. The illegal arms and drug trafficking and immigration has led to heightened border and seaport security and has increased the demand for explosive detection systems, body scanners and baggage screening systems. The threat of a cyber attack disrupting public and private network and infrastructure has driven the cyber security spending across the past decade. The need for effective identification and security checking and the need to provide access control to critical infrastructure have led to adaptation biometric and other identification technologies.

The general IT modernization has greatly improved record keeping and coordination of cases across the internal security department and thus has gained wide acceptance across the world and is seen as yet another driver in the homeland security sector. Similarly, the need for effective command, control and intelligence apparatus for the first responders has led the need for effective C3I systems. The upgrading of border security and the demand for effective immigration control has fueled the need for biometrics, fixed surveillance devices, and unmanned aerial vehicles.

US and Europe are expected to remain the main market for homeland security systems and the region has the top industry participants who cater to this sector.

The second biggest growth opportunity is from the Asia Pacific region where the growing economies are set to increase their homeland security expenditure.

Opportunity also exists in Middle East, followed by Latin America and Africa. Although Asian market especially China’s internal security spending is significantly higher than US, it is of less interest as the market is restricted to western firms.