HOMELAND SECURITY MARKET ANALYSIS

The global homeland security market size was valued at US$ 573 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.70% from 2023 to 2030. The global homeland security market is expected to witness strong growth in the coming future. This is owing to rise in need for advanced homeland security solutions, growing prevalence of online crimes, cyber terrorism, and cyber-attacks on businesses around the world. Moreover, increasing expenditure on security is also likely to drive the market growth.  

Global Homeland Security Market: Regional Insights

North America among regions is anticipated to show significant growth in the global homeland security market over the forecast period due to rapid adoption of homeland security related products and services, as a result of multiple military modernization and improvement programs planned in the region. Moreover, rise in investment to improve national security against various types of threats by the countries in this region is also expected to fuel development of advanced tools in the region. This in turn is likely to drive growth of the market across the region.

Furthermore, Asia Pacific is also projected to augment growth of the global homeland security market during the forecast period. This is due to growing rate of modernization of police forces, rise in yearly budgetary expenditure on homeland security, and increasing terrorist attacks in the region. The demand for better maritime security is increasing across the region from countries such as Japan, Sri Lanka, India, and Bangladesh. Along with this, initiatives for the public and property safety by governments in the region are also expected to fuel growth of the global homeland security market in Asia Pacific region in the coming future.

Figure 1. Global Homeland Security Market Share (%), By Region, 2022

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Global Homeland Security Market Drivers:

Rise in government initiatives for protecting nation from civil wars and cross border disputes to drive the market growth

The world is experiencing rise in civil wars and cross-border disputes. Border conflicts are occurring among nations as a result of expansionism, terrorism, possession of natural resources among others. Whereas, civil wars are arising due to territorial disagreement, and political unrests. In order to overcome these conflicts, several governments are taking significant actions for controlling such situations and hence are heavily investing in the homeland security of the country. This in turn is expected to augment growth of the global homeland security market over the forecast period.

Increasing cases of trafficking and smuggling across the world to boost the market pace

Among various other reasons, criminal activities are growing all over the world due to trafficking and smuggling. Smuggling and trafficking can include illegal human immigration, human trafficking, and drug smuggling starting the fastest growing anti-social threat worldwide. This is due to various global factors such as prolonged poverty in nations such as Botswana, Namibia, Mozambique, Paraguay, and Uruguay leading to increasing migration from these countries, and economic crisis among countries such as Afghanistan, Pakistan, and Iraq. These factors are driving the demand for homeland security solutions, which is expected to propel growth of the market in the coming years.

Global Homeland Security Market Opportunities:

Growing demand for information security is expected to offer growth opportunities in the global homeland security market during the forecast period. Information security involves protecting user information and data from unauthorized modification, access, destruction, or disruption that can pose threat to the nation. Governments, hospitals, the military, research and educational institutes, along with public and private organizations among others maintain a large amount of information. This information is stored on the cloud and servers and through electronic media it is transmitted across networks. To maintain security of this data or information demand for information security solutions is increasing all over the world, which in turn is creating growth opportunities for homeland security market.

Increasing technological developments are likely to provide market players with multiple business opportunities during the forecast period. With the launch of novel technologies, the market is projected grow significantly in near the future. The market will be transformed due to advancements in robotics, biotechnology, portable unmanned vehicles, nanotechnology, and cloud computing among others. Adoption of these technologies will create demand for homeland security solutions and services, which in turn will offer various opportunities in the market during the forecast period.

Global Homeland Security Market Trends:

Growing proliferation of social networking and development in Information Technology is a growing trend

The rise in proliferation of social networking and development in information technology are offering numerous benefits in the working and living environments. However, with these advantages can also come problems in different types of cyber exploitation threats. Advancement in cyber security is gathering the knowledge of experts of cyber security from government, academia, and industry in several countries and international borders in order to provide ways and means to sustain and protect the cyber space ecosystems. Thus, this trend is fueling demand for various homeland security solutions, which is expected to boost the market growth.

Growing focus of market players of reducing the innovation cost is a major trend in the market

Several major market competitors in the global homeland security market are increasing their focus on reducing the cost of innovation of next-generation solutions and technologies such as sensor technology to cater growing consumer demand. There is an increase in investment in R&D by suppliers for offering scalable, efficient technologies that offer real-time instrumentation as well as analytics among networks. This further will boost adoption of homeland security solutions, which is expected to propel growth of the global homeland security market over the forecast period.

Global Homeland Security Market Restraints:

High cost of ensuring homeland security to impede growth of the market

Homeland security products, systems, and services are offered to various agencies are high cost. The adoption of this technology is slower in regions such as Middle East and Asia Pacific due to the high cost of homeland security solutions and services. Moreover, the cost of installation of these solutions is also significantly high. Thus, this factor is expected to restrain growth of the global homeland security market over the forecast period. However, several market players are investing in R&D to develop cost effective homeland security solutions, which is likely to support the market growth.

Low prioritizing of emergency management action plans to obstruct the market growth

Manmade or natural disasters and their consequences can significantly impact the political environment of a state, community, or nation. After disaster, engagement and coordination by participants at all government levels are need to set overall priorities as well as objectives to recover from the disaster. However, due to involvement of several politicians, there is a slow response to operations, which further causes delay in the adoption of incident management solutions. Thus, this factor is thus expected to hinder growth of the global homeland security market over the forecast period.

Figure 2. Global Homeland Security Market Share (%), By End User, 2022

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Global Homeland Security Market Segmentation:

The global homeland security market report is segmented into Type, End User, and Technology.

Based on Type, the market is segmented into Border Security, Aviation Security, Maritime Security, Critical Infrastructure Security, Cyber Security, Mass Transport Security, Law Enforcement, CBRN (Chemical, Biological, Radiological, and Nuclear) Security, Others (First Responders, Counter Terror Intelligence, C3I, and Pipeline Security). Out of which, Border Security is expected to dominate the global market over the forecast period and this is attributed to the growing occurrence of illegal cross-country smuggling of goods that are prohibited in various regions across the globe leading to enhancement of border security.

Aviation Security segment is also expected to witness significant growth in the near future and this is owing to the development of various aviation related cybersecurity programs by global associations for steadily decreasing the risk posed on aviation systems by cyber-attacks. Global associations are collaborating with industry leaders to develop novel programs and solutions. This in turn is expected to support growth of the segment.

Based on End User, the market is segmented into Public sector, Private sector. Out of which, Public Sector is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of homeland security products and services by government organizations as well as defense department of many countries around the globe. The services, products, and systems used by the public sector to protect property and public of nation range from surveillance and security systems, marine systems, fighter aircrafts to antivirus software. The growing adoption of these systems is likely to support growth of this segment.

Private Sector segment is also expected to witness significant growth in the near future and this is owing to the growing use of various homeland security products by several private companies, such as use of maritime security services by private shipping companies, and use of security systems for oil & gas pipelines production by oil & gas industry for protection against destruction, thefts, and terrorist attacks.

Based on Technology, the market is segmented into Recognition and Surveillance Systems, AI based Solutions, Security Platforms, and Others. Out of which, Recognition and Surveillance Systems is expected to dominate the global market over the forecast period and this is attributed to the growing demand for recognition and surveillance systems due to advantages such as high accuracy in recognizing weapons/people otherwise difficult to identify.

AI-based Solutions segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of AI-based solutions due to their benefits. For instance, in May 2021, The WCC Group applied artificial intelligence in its border management offering, and became the first one to do so. Thus, such use of AI-based solutions is likely to fuel growth of the market in the coming future.

Global Homeland Security Market: Key Developments

In June 2021, Elbit Systems Ltd. received a US$ 16 million contract from the U.K. Ministry of Defense for supplying XACT Night Vision Goggles to the U.K. Armed Forces. This contract will be performed over an 18 month period.

In January 2021, General Dynamics Corporation received a contract from the U.S. Army Europe for enterprise mission information technology services. With this partnership, the company will be delivering enterprise information technology, mission command support, and communication services to the U.S. Army Europe Headquarters for five years of period.

In June 2021, International Business Machine Corporation announced expansion of its cyber security center footprint, as it established a novel cyber security center focused on providing support to federal agencies in addressing current and future cyber security threats.

In February 2021, L3Harris Technologies, Inc. introduced the smallest multi-channel, multi-mission vehicular radio RF-7850D at the international defense exhibition & conference 2021.

Global Homeland Security Market: Key Companies Insights

The global homeland security market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global homeland security market are L3Harris Technologies, Inc., Elbit Systems Ltd., International Business Machine Corporation, and General Dynamics Corporation.

*Definition: Homeland Security services are the products and programs that protect people and property from terrorism, natural disasters, and other threats. These services are a combination of public, private, and non-governmental efforts that are coordinated at the federal level to prevent and respond to potential emergencies.