Report Says New Technologies Can Enhance Security Measures

A new Frost & Sullivan report says technologies that can increase security capabilities and supply chain efficiency, while simultaneously reducing cost, "could experience significant demand growth over the next ten years."

The demand for biometric identification/authentication systems, RFID (radio frequency identification) and explosive detection systems should surge over the next decade, the report says, as they are increasingly implemented at major entry/exit points such as airports.

In the report, Friso Buker, a Frost & Sullivan aerospace and defense analyst, predicts that biometrics will be more widely deployed at airports for passenger processing and electronic access control, as the technology provides an opportunity to reduce labor costs while at the same time maintaining, or even potentially increasing, security capabilities.

In addition, Mr. Buker writes that by 2014, the European homeland security technologies market (comprised of biometrics, screening, RFID, unmanned aerial vehicles (UAV) and closed circuit television (CCTV) technologies) is set to amass nearly €874.0 million.

Airports are expected to display significant demand for screening and identification/authentication technologies between 2005 and 2014, as will seaports, particularly for tracking technologies.  Borders will generate the lowest level of demand for screening technologies in the first half of the 2005-2014 timeframe; however, overall border demand will increase in the second half of this period, spurred on by the growing importance of UAVs, according to the report.

The need to improve air travel security and facilitate economical and effective air passenger processing will promote the uptake of security technologies, especially biometrics.  The passage of key legislation along with standardization efforts by industry associations are expected to provide further impetus to the biometrics market.  Most EU national governments have already begun biometric procurement programs, with companies receiving several sizeable contracts for biometric technologies.

Government receptivity is playing a central role in the more widespread implementation of biometric systems.  At the same time, the establishment of standards and safeguards is supporting public awareness and acceptance of biometric technologies.

For companies keen to leverage emergent growth opportunities in the European homeland security market, a prospective pitfall that must be avoided is to use the U.S. homeland security experience as a template for entering the European market.  The EU market is unique, in terms of both overall security requirements and security funding, the report warns.

"The level of funding, the number of stakeholders, the identification of decision-makers, and the selection of strategic partnerships: all these, and more, are necessary to prevent failure in this expanding market," explains Mr. Buker. "Without a true understanding of the hurdles that they need to overcome, market participants will struggle to achieve competitive success."

As the market expands, small industry participants are likely to be taken over by different types of industry participants that, in turn, are likely to be acquired by other companies that may not have existing expertise in the homeland security market, but are looking to gain a foothold in this lucrative industry.

Strategic partnerships and alliances with regional leaders will advance the prospects of potential market participants.  Moreover, an in-depth understanding of the regional market along with its particular business idiosyncrasies will advance revenues in the long term.

More information is available by sending an email to Srividhya Parthasarathy, Corporate Communications, at sparthasarathy@frost.com with the following information: your full name, company name, title, telephone number, fax number and e-mail address.  01-14-2006.

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