In contrast to common thinking, the domestic market for homeland security made up only 52 percent of the global market in 2005, according to a research report from the analyst firm Homeland Security Research Corp. in Washington
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 42 percent.
Most of this discrepancy comes from 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.
Predicted homeland security market share is split among the following 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 over the period from 2006 to 2015:
- Market segmentation by end customer, such as government agencies, private sector, state and local, intelligence community, and armed forces
- Market segmentation by geographical territory, including the U.S., E.U., PRC, and India
- Market segmentation by mission area, such as border and transportation security, intelligence and warnings, and domestic counter terrorism
- Market segmentation by homeland security and homeland defense sectors
- Business opportunities by threats and vulnerabilities, from CBRN, to intelligence community, maritime security, and aviation security
- Market drivers and inhibitors that will shape the growth opportunities
Homeland Security Research Corp. is a Washington-based international market research and strategic consulting firm serving the homeland security community. The company provides market, technology, and industry expertise that help clients get information about business opportunities in 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.