GVR Report cover Homeland Security Market Report

Homeland Security Market Analysis By Type (Aviation, Maritime, Border, Critical Infrastructure, Cyber, CBRN and Mass Transit) And Segment Forecasts, 2020 - 2024

  • Report ID: 978-1-68038-877-0
  • Number of Pages: 76
  • Format: Electronic (PDF)
  • Historical Range: 2015 - 2024
  • Industry: Technology

Report Overview

The global homeland security market size was estimated at USD 339.68 billion in 2019 and is expected to witness a compound annual growth rate (CAGR) of 5.4% from 2020 to 2024. The increase in demand for safety equipment and solutions across several industries such as aviation, maritime, cyber, and border security is anticipated to drive market growth over the forecast period. The industry is highly competitive, and manufacturers invest heavily in R&D operations to offer innovative products. For example, Harris Corporation invests its R&D funds in providing new mission-critical communications at a faster pace and lowering cost.

Asia Pacific Homeland Security Market Size, by Type, 2015-2024 (USD Billion)

Several government initiatives were undertaken to restrict increasing cross-border insurgency and terrorist threats are expected to drive demand. Also, growing human trafficking, drug smuggling, and illegal immigration are persuading the government of various countries to invest profoundly in the procurement of homeland security solutions. Cybersecurity is anticipated to be the fastest-growing market segment. This growth can be attributed to regions such as North America, and Europe that is investing immensely in cyber defenses, hence, driving the homeland security market.

Advanced technologies such as cloud, social, and next-generation mobile computing in the business environment are fundamentally altering the way organizations exploit information technology for sharing information and conducting online commerce. Presently, more than 80 percent of total commercial transactions are made online, which seeks high quality of safety for transparent transactions.

Unmanned systems are being used extensively in national safety missions across the world. For instance, as of October 2014, the U.S. Army and U.S. Air Force (USAF), unmanned aerial systems (UAS) had flown over three million flight hours. Recently, the U.S. Navy has increased its experimentation in an assortment of unmanned maritime systems (UMS). Unmanned systems are becoming more affordable, proficient, and easier to operate which is expected to drive the industry growth further.

Homeland Security Market Trends

The homeland security market is expected to witness a substantial growth over the forecast period, owing to rising demand for security solutions and equipment across various industry verticals such as maritime, aviation, border and cyber security, among others.

Increasing proliferation of social networking and advancement of information technology offer infinite benefits in the living and working environments. However, such advantages can also create troubles in several types of cyber exploitation threats. Advances in Cyber Security gather the knowledge of cyber security experts from academia, government and industry across national and international boundaries to offer ways and means, which protect and sustain the cyberspace ecosystem.

There is an increasing demand for few federally funded technologies such as Path Scan, which is a intrusion detection system that prevent cyber-attacks by detecting anomalous network-hopping activities; MLSTONES, which is biology based malware and event analysis forensic tools that tags and sequences events looking for similarities.

Another unique approach to cyber security is virtual dispersive networking, which is highly advanced than the non-traditional military radio spread-spectrum security approaches. Such dispersive technologies encrypt each component message individually and route them over diverse protocols following independent paths.

Key market participants in the homeland security market are unceasingly focusing on reduction in the cost of innovative next-generation technologies and solutions such as sensor technology for evolving customer needs. Suppliers in the industry invest immensely on R&D to offer efficient, scalable technologies, which offer real-time instrumentation and analytics across networks. It includes delivering deep intelligence and high-fidelity visibility about networked systems, their vulnerabilities, and providing required information on security.

Cyber security is expected to be a significant segment owing to the increased investment in cyber security products and solutions due to growing cyber threats, cyber espionage, and cyber frauds. With increasing uncertainties in international relations is leading to greater threat from cyber espionage. An alarming increase in digitalization, mobile data usage, and cloud usage as well as cyber security laws and legislations are expected to fuel growth of cyber security systems and solutions.

Type Insights

Cyber security has accounted for over 20% of the overall revenue share, which is expected to grow at a CAGR of over 5.5% from 2016 to 2024. The significant cyber protection risks occur from the widespread and increasing dependence on information and communication technology infrastructure and e-services, which has led the key focus on ensuring safety by combating cybercrime more efficiently and advancing national defense capabilities.

Aviation segment is expected to witness significant growth at a CAGR of nearly 5% owing to the advances in technologies such as biometric identification, handheld screening, and RFID technology.

CBRN segment is estimated to grow at a CAGR of nearly 4.5% over the forecast period. Technological innovations, such as nanotechnology, networked video cameras, and software design, to identify critical intelligence information have become powerful tools for counter-terrorism operations, increasing the effectiveness of anti-terrorism countermeasures. However, diffusion of advanced technological capabilities could facilitate terrorist access to CBRN materials, as well as guided missiles which could harm the homeland safety.

Regional Insights

The Asia-Pacific homeland security market is expected to grow at a CAGR of over 6.0% from 2016 to 2024. Emerging economies such as China and India are expected to drive regional growth over the future. In India, safety concerns about domestic law and terrorist attacks have prompted the state and central government to focus on the modernization of the country’s security and defense infrastructure. This has led to the increase in budgetary allocation for homeland security expenditure and other initiatives such as National Security Agency, providing a Unique Identification (UID) number to all citizens of the country and establishment of the Crime and Criminal Tracking Network and Systems (CCTNS). North America dominated the industry with over 25% of the revenue share in 2015 and is expected to grow at a CAGR of nearly 3.5% from 2016 to 2024. The number of cyber-attacks has increased exponentially in the U.S. that has led to an increased focus on cyber safety across the region.

Asia Pacific is anticipated to witness significant growth owing to the advancements across developing countries such as China and India. India's homeland security spend is now larger than the overall defense budget of several countries. Recently, the sector has started to attract just as much consideration from India's national industry as the superior defense sector. Moreover, homeland security in India is an sector having lower entry barriers for Indian private companies and several high-value solutions are being crafted with the COTS (conventional off the shelf) technology. Presently, police transformation coupled with terrorism tackling is witnessing prominent growth in India with the increasing annual spend.

The budget cuts across several regions such as North America and Asia Pacific will critically hinder government operations, which are expected to drive down the market growth over the forecast period. For instance, Congress protected the FY 2013 budget for border security agents, however, other Department of Homeland Security (DHS) programs are affected by the budget cuts. This may lead to critical issues for commerce, airline passengers, border and cyber security. In a recent proposed NYC budget 2017, president calls for cutting the funding for the Urban Area Security Initiative that helps prevent or respond to terror attacks, to USD 300 million from USD 600 million which may challenge the industry growth over the future.

Homeland Security Market Trends by Region

 

The Asia-Pacific and European region are investing heavily in aviation security due to the growing uncertainties in international relations among nations and increasing sophistication in the techniques and method used to conduct criminal activities. Threats to the aviation sector exist through Improvised Explosive Device, cyber-attack, laser illumination, and Surface-to-air Missile. Domestic and international aviation security legislations characterized by European Civil Aviation Conference and the US Transport Security Administration are expected to sustain market share in Europe and North America.

Key Companies & Market Share Insights

Key participants include Elbit Systems Ltd., FLIR Systems Inc., General Dynamics Corporation, Harris Corporation, L-3 Communications Holding Inc., Megal Security Systems Ltd., Raytheon Company, Safran SA, Thales SA, and Unisys Corporation. Manufacturers in the industry continuously focus on cost reduction of advanced next-generation solutions and technologies such as sensor technology for evolving customer needs. For example, FLIR Systems continues to lower the cost of advanced sensing products as the cost of thermal technology continues to decline.

Homeland Security Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 355.4 billion

Revenue forecast in 2024

USD 452.4 billion

Growth Rate

CAGR of 5.4% from 2016 to 2024

Base year for estimation

2019

Historical data

2013 - 2018

Forecast period

2020 - 2024

Quantitative units

Revenue in USD million/billion and CAGR from 2020 to 2024

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, region

Regional scope

North America; Europe; Asia Pacific; Rest of the World

Key companies profiled

lbit Systems Ltd.; FLIR Systems Inc.; General Dynamics Corporation; Harris Corporation; L-3 Communications Holding Inc.; Raytheon Company; Safran SA; Thales SA; Unisys Corporation

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Global Homeland Security Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2024. For this study, Grand View Research has segmented the global set top box market report based on type, and region:

Global Homeland Security Market Segmentation

Type Outlook (Revenue, USD Billion, 2015 - 2024)

  • Aviation security

  • Maritime security

  • Border security

  • Critical infrastructure security

  • Cybersecurity

  • CBRN security

  • Mass transit security

  • Others

Regional Outlook (USD Billion, 2015 - 2024)

  • North America

  • Europe

  • Asia Pacific

  • RoW

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