The global homeland security market is expected to grow at a CAGR of 5.6% during the forecast period from 2014 to 2020 to reach a market size of USD 364.44 billion by 2020. The market was valued at USD 245.72 billion in 2013. Increasing demand for equipments to tackle issues such as terrorist threats, cross border insurgency, illegal immigration, human and drug trafficking and cyber threats are fuelling the growth of this market.
On the basis of security type, the homeland security market can be categorized into eight segments including aviation security, maritime security, border security, critical infrastructure security, cyber security, CBRN security, mass transit security, and others (C3I, public safety, and counter terror intelligence). Cyber security segment was the largest segment and accounted for 39.31% of the global market in 2013 due to worldwide increase in demand for products and solutions to counter the cyber threats. The cyber security market is expected to grow at a CAGR of 5.8%.
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The market for homeland security is primarily driven by several government initiatives undertaken to restrict increasing terrorist threats and cross border insurgency. In addition, rising cases of illegal immigration, drug smuggling and human trafficking is compelling the governments of various nations to invest heavily in procurement of homeland security products.. Adoption of unmanned aerial vehicles (UAVs) by various armies for border surveillance is also influencing the growth of this category.
North America is the leading regional market due to technological advancement and huge expenditure in defense segment. North America is followed closely by the Asia Pacific owing to its substantial investments in military technologies by countries such as China and India. European region is also a promising market and has shown a rapid growth for homeland security products for countering terrorist threats. In rest of the world, the growth of homeland security market is largely driven by countries such as Brazil, UAE and Turkey.
Critical infrastructure security was the second largest segment in 2013 and is expected to grow at a CAGR of 6.7%. This growth is attributed to increasing risk of terrorist attacks on strategic sites such as nuclear plants, power stations, water supply access points, oil and gas terminals, dams, and communication centers.
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Rising Security Concerns across the Globe to Increase Growth Rate of Homeland Security Market between 2013 and 2020
The homeland security market is expected to gain promising growth across the assessment period of 2013-2020. The escalating number of cross-border insurgencies, terrorist threats, cyber threats, human and drug trafficking, and others are proving to be growth pillars for the homeland security market. The growing expenditure of the governments of various countries on ramping up the security of the overall region may further serve as prominent growth factors for the homeland security market.
- A large number of security-related initiatives by the governments of numerous countries may bring extensive growth opportunities for the homeland security market. The growing advancements in technology regarding security systems may also prove to be a vital growth generator for the homeland security market. Nanotechnology and the utilization of other tools are deemed important for the overall development of security systems. The overwhelming use of security systems may bring profitable growth for the homeland security market.
- Governments of numerous countries are ramping up the budget for defense. This is because of the rising terrorist threats and other types of security concerns. All these aspects may bring notable growth opportunities for the homeland security market during the tenure of 2013-2020. In addition, homeland security is always a priority for any country and great expenses are incurred on the same. This aspect may further strengthen the growth of the homeland security market.
- The COVID-19 outbreak has affected the homeland security market to a certain extent. The lockdown restrictions in place coupled with the border restrictions imposed by numerous countries to contain the spread of the novel coronavirus resulted in supply chain disruptions and logistics problems. In addition, many manufacturing facilities were also closed. All these aspects snowballed in a negative effect on the growth of the homeland security market.
- Nevertheless, the relaxations introduced by various countries in lockdown restrictions may prove to be a great opportunity for the players in the homeland security market.
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