U.S. market share lags global growth in homeland security

WASHINGTON, 16 Sept. 2005. In contrast to common thinking, the domestic market for homeland security makes up only 52 percent of the global market in 2005, according to a research report from the analyst firm Homeland Security Research Corp.

WASHINGTON, 16 Sept. 2005. In contrast to common thinking, the domestic market for homeland security makes up only 52 percent of the global market in 2005, according to a research report from the analyst firm Homeland Security Research Corp.

That share will drop even lower in coming years, as the non-U.S. market grows from $22.5 billion in 2005 to $104 billion by 2015, an estimated average annual growth rate of 16.5 percent.

By comparison, U.S. demand for homeland security products will grow at 12.1 percent over that period -- from $23.9 billion to $74.8 billion -- dropping U.S. market share to just 42 percent.

Most of this discrepancy is sparked by strong demand from three regions -- the European, Indian, and Chinese markets, according to the report, which is titled "2006-2015 Homeland Security & Homeland Defense Global Market (May 2005)."

Predicted homeland security market share is split among these countries. Numbers are given per region, with market size in billions of U.S. dollars in 2005, 2010, and 2015:

Middle East -- 4.6, 9.8, 15.2
European Union -- 8.1, 21.5, 39.6
Australia, Japan, Pac. Rim -- 5.1, 10.9, 16.3
China and India -- 1.7, 6.9, 16.8
Canada and Mexico -- 0.7, 1.8, 3.3
USA -- 23.9, 49.7, 74.8
Rest of World -- 2.2, 6.2, 12.4
Total -- 46.4, 106.8, 178.3

The entire global market is predicted to grow from $26 billion in 2003 to $178 billion in 2015.

The 400-page report analyzes six categories of this industry, each over the period from 2006 to 2015:
1. market segmentation by end customer, such as government agencies, private sector, state and local, intelligence community, and armed forces,
2. market segmentation by geographical territory, including the U.S., E.U., PRC, and India,
3. market segmentation by mission area, such as border & transportation security, intelligence and warnings, and domestic counterterrorism,
4. market segmentation by homeland security and homeland defense sectors,
5. business opportunities by threats and vulnerabilities, from CBRN, to intelligence community, maritime security, and aviation security, and
6. market drivers and inhibitors that will shape the growth opportunities.

Homeland Security Research Corp. is a Washington, D.C. based international market research and strategic consulting firm serving the homeland security community. The company provides market, technology and industry expertise that enable clients around the world gain critical insight into the business opportunities that exist within the homeland security market. Its clients include the U.S., european and Israeli governments, Fortune 500 companies and security decision makers worldwide. For more information, see www.hsrc.biz.

By Ben Ames
Senior Editor, Military & Aerospace Electronics

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