The Indian civil security market is burgeoning as left wing extremism and terrorist threats compel state governments and police forces in the country to upgrade their civil security capabilities. Market participants spot considerable opportunities in the country’s need to modernize critical infrastructure such as airports, mass transportation, and oil and gas facilities. The government emphasized on natural disaster management and securing the borders and coastline is as well seen as a growth prospect.
The Indian civil security market is burgeoning as left wing extremism and terrorist threats compel state governments and police forces in the country to upgrade their civil security capabilities. Market participants spot considerable opportunities in the country's need to modernize critical infrastructure such as airports, mass transportation, and oil and gas facilities. The government emphasized on natural disaster management and securing the borders and coastline is as well seen as a growth prospect.
Assessment of the Civil Security Market in India, new analysis by Frost & Sullivan, finds that the market revenue earns $10.69 billion in 2012 and estimates this to over $26.46 billion in 2020 at a compound annual growth rate (CAGR) of 12%. The research covers the segments of border and maritime security, critical infrastructure protection for airports, oil and gas, power and utilities and mass transportation, first responder C3i and emergency response, safe cities, and cyber security. Airport security followed by safe cities will be the fastest expanding segments, with growth rates of 31.2% and 21.4% respectively.
Investment plans have been proposed by the central and state police agencies to improve the capabilities of various state police forces in areas such as communications, surveillance, weapon systems, combat uniforms, ammunition, ground vehicles, and airlifting.
In addition, changes have been made to the Defense offset policy that requires foreign vendors, who receive contracts of more than $60 million, to invest 30% in the Indian market through offset partners. They can discharge their offset liabilities in some areas of internal security, thereby aiding market development.
With numerous companies offering various products and solutions, the Indian civil security market has become highly fragmented. Price sensitivity in a fragmented market adds to the challenge.
To sustain profits, suppliers are looking to offer end-to-end security solutions, as they do not have an integrated portfolio at present, market participants are quite likely to turn to mergers and acquisitions. Market consolidation will allow market players to expand their offer.