The Hindu : Business : A huge jump in homeland security spending seen

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Wednesday, Dec 10, 2008
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A huge jump in homeland security spending seen

Special Correspondent

Frost & Sullivan puts the estimate at over $9 b by 2016

Airports security is projected at over $3.2 billion
Mass transport systems vulnerable to attacks

MUMBAI: The recent Mumbai terror attacks are likely to see a huge jump in homeland security spending, which will be of the order of $9.7 billion in the Indian market by 2016, according to global consultancy firm Frost & Sullivan. Airports security is projected at over $3.2 billion by 2016 at a compound annual growth rate (CAGR) of 5 per cent, a report by the company said.

The report — Indian homeland security market — says the market earned revenues of $800 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 the overall security spending in India to over $9 billion by 2016,” said 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 criminal and terrorist activities.

Intelligent and durable surveillance systems within ‘rolling stock’ are key revenue generators. The 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 highlight a key issue 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 (in public and private sectors) are going to have become less squeamish and more pragmatic when it comes to developing a ‘last line of defence’ within sites such as hotels, religious buildings and tourist destinations,” says Mr. Buker.

Further, hotels (and other threat domains) will have to undertake the type of security measures previously avoided.

The massive development of small to medium-size airports around the world, coupled with potential increases in baseline international airport security standards, will significantly enhance the demand for airport security measures.

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