Digital Version of July/August 2015
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Homeland security and public safety markets to grow at 4.7% annually, says HSRC
In contrast to the cuts in U.S. defense spending, the homeland security (HLS) and public safety sector stands out as a bright light given the growing funding allocated for procurement and upgrade in this area which are expected to grow at a CAGR of 4.7% during the 2013- 2020 period, says the Homeland Security Research Corp.
Its new U.S. Homeland Security & Public Safety Market - 2013-2020 report is a comprehensive review of the U.S. HLS and public safety market.
The report includes both the homeland security and public safety markets, since in most cases HLS products and systems have dual-use applications and present the same business opportunities, says a news release issued by HSRC on Oct. 31.
The report reveals that:
- The strong demand for HLS and public safety products is driven by the need to mitigate man-made and natural disasters (e.g., terrorism, floods, cyber-attacks and pandemic disease outbreaks), identity theft, border security, cyber security and critical infrastructure security among other sectors.
- The industry is expected to undergo a period of consolidation driven by the declining defense budgets, as prime contractors are looking at providing an expanded product portfolio under one roof. The total U.S. HLS and public safety markets (including post-warranty maintenance and upgrade revenues) are forecasted to grow from $74.5 billion in 2012 to $107.3 billion in 2020 at a CAGR of 4.7%.
- While the U.S. HLS and public safety market is attractive, the size of federal and local funding required to deploy advanced products, presents an impediment for new product sales.
- Annual capital investments in HLS and public safety products (excluding post-warranty revenues) purchased by the U.S. federal agencies and private sector increased from $48 billion in 2011 to $51 billion in 2012, and are forecasted to increase to $81 billion by 2020, says the company.
- Unlike other U.S. Government sectors, the 2013-2020 funding for HLS and public safety will grow over the next eight years at a CAGR of 4-5%. This growth is driven by solid bipartisan congressional support.
- Technology advances and better performance drive demand for upgrade, refurbishment and replacement of legacy systems.
- The DHS has a key role in the industry, but it does not dominate the market. DHS controls only a fraction of the HLS and public security market.
- The “state & local” HLS market is larger than the DHS market. This market (i.e., 50 states and over 30,000 counties and cities) represents 23% of the total HLS and public safety business opportunities.
- The U.S. possesses the most advanced HLS and public safety technologies in the world. However, due to their age and legacy architectures, the period 2013-2020 will see significant investments in systems upgrade, refurbishment and replacement.
- Aviation security, representing only 4% of the HLS, HLD and public safety market, is an important sector. However, it is much smaller than other industry sectors (e.g., critical infrastructure security, first responders).
With 680 pages, 193 tables and 247 figures, this new report covers 88 sub-markets and offers for each sub-market: 2010-2012 market data and analysis, as well as 2013-2020 forecasts and analysis.