Frost & Sullivan research indicates that the total homeland security spending in the Indian market under all the eight major threat domains will amount to an estimated total of USD$9.7 billion by 2016. Airports security is projected to total over $3.2 billion by 2016 at a compound annual growth rate (CAGR) of 5 percent. New analysis from Frost & Sullivan, Indian Homeland Security Market, found that the market earned revenues of $800.0 million in 2007 and estimates this to reach over $1 billion in 2016.
"The continuous threat of terrorism, the development of India's infrastructure and the eventual development of the nation's civil aviation capacity promise to expand overall security spending in India to over $9 billion by 2016," notes Frost & Sullivan Senior Consultant Friso Buker. "The high level of mass transport infrastructure construction will push this figure even higher."
Mass transport systems are increasingly being seen as 'soft' targets for both criminal and terrorist activities. Intelligent and durable surveillance systems within 'rolling stock' are key revenue generators. Emphasis on low TCO, self-diagnosing CCTV systems, automatic wireless image downloads and innovative passenger screening technologies will boost investment within this threat domain.
The recent attacks in Mumbai highlights one of the key issues when formulating security measures to protect 'soft' targets with high levels of civilian activity: how to provide adequate protection for high numbers of people without turning relevant threat domains into areas resembling airport terminals. "In light of the horrendous death toll of innocent civilians, the relevant security stakeholders (both in the public and private sector) are going to have become a deal less squeamish and more pragmatic when it comes to developing a 'last line of defence' within sites such as hotels, religious buildings and various tourist destinations." says Buker.
The massive development of small- to medium-size airports around the world, coupled with potential increases in baseline international airport security standards, will enhance the demand for airport security measures. Key technologies include biometric electronic access control, passenger screening portals and explosive detection systems for baggage, as well as cutting-edge passenger processing systems.
However, slow procurement trends, an emphasis on developing the indigenous security industry and the prevalent dependence on manpower-intensive security measures will hamper security investment to a large degree, especially for foreign security firms that lack an effective local partner.