Billions of dollars have been allocated toward bolstering airport security, encouraging the development of dozens of new technologies; increased reliance on e-ID documents, more attention to perimeter security, emphasis on cargo screening, and a decision of defense against shoulder-fired missiles will see billions more going to airport security
The war in terror began when terrorists exploited a major security weakness in U.S. travel system: The U.S. airline industry engaged in a sustained lobbying campaign and persuaded Congress not to impose meaningful security standards at airports. The two main targets of the industry's lobbying campaign were proposals to mandate airlines to equip the cockpits of their planes with impregnable doors, and proposals to impose tougher standards on security checking at airports.
Those days are gone. Billions and billions of dollars have been directed at airport security, giving boost to industries and scope for new technologies. The latest boost comes the stimulus package which allocated $1 billion toward improving baggage detection at airports, among other airport security-related goals.
Broad, deep market
Airport security refers to the techniques, methods, and equipment used in protecting airports and aircraft from terrorism and crime. The issue is not only the protection of the large number of people who pass through airports each day, and not only the protection of the passengers concentrated on large airliners. As the 9/11 attacks showed, the airplanes themselves may be turned into weapons to inflict death and massive destruction on targets on the ground.
There are many different technologies involved in airport security. The list would include, but would not be limited to:
Digital surveillance
Explosive detection
Biometrics
Perimeter and access control
X-ray and infrared
Metal detectors
"Others" and integration
Closed-circuit television
Intercom and video door phones
Alarms and sensors
Fences and physical barriers
Night and thermal imaging
The combination of increased air travel in the next few years, growing reliance on biometric, RFID-equipped ID documents, and growing attention to two heretofore relatively neglected aspects of airport security -- baggage screening and perimeter security -- present good opportunities for investing in firms that develop or sell airport-security equipment (this was the conclusion last year of consulting firm Frost and Sullivan).
F&S notes that, for one thing, the airport security market is giving all indications it will start another boom period, following an initial rush of federal spending that came on the heels on the 9/11 attacks. In 2003 the Transportation Security Administration (TSA) purchases from security firms spiked at nearly $6.5 billion. That created a temporary "overcapacity" of equipment, according to Rani Cleetez, a F&S financial research analyst.
Thus, in the following year, 2004, aviation-security spending from TSA dropped to about $2 billion. Now, the top 30 firms in the field, which earned a collective $2.6 billion in 2004, are expected to bring in more than $6.1 billion in 2009.
According to Frost's Ken Herbert, the "market mix" in both North America and around the globe is not expected to change significantly over the next few years. "Market mix" refers to the regulatory, political, and economic conditions that can confound predictions for the growth rate in particular industries or market segments.
Within the airport-security equipment industry, Frost expects to see particularly healthy growth rates in an unusually high number of industry sub- segments, especially digital surveillance and explosive detection. Other growing segments will be biometrics, RFID technology for baggage management.
The airport security market remains an area in which large and established companies compete with smaller start-ups.
Perimeter security
The perimeter security market is big - and it is growing. Two things account for the size of the market and growth trends in it:
The many technologies involved
A brief list of the technologies -- and, hence, the companies - involved in perimeter security would include, according the Frost & Sullivan:
Fencing Systems (taut wire, infrared/thermographic sensing): Fencing systems determine boundaries, deter casual intruders, control access, and create delays in the event of intrusion
Fiber Optic: Glass fiber optic cable is used in video signals that communicate between short or long run locations. It is also used in remote sensing, buried under the secure side of a barrier and can sense light movements
Intelligent CCTV: Intelligent CCTC analyzes specific behaviour patterns and algorithms and assesses the scene for security breaches. It possesses capabilities to alert the specific authorities through network systems
Intrusion Detection System (IDS): Set detection systems and technologies that define, observe, control, and sense entry into a secure area
Access Control System (ACS): This manages various combinations of entry, exit, and movement within sterile and non-protected areas. ACS is a subsystem that supports intrusion detection systems
Next generation digital video recording: This refers to the video box that records, stores, manages and analyzes video streams
Perimeter and access control: This refers to simple barriers, fences, identity badges and other means of intrusion control, as well as devices that help in access control at airports
Closed-circuit Television (CCTV): This refers to the video system of a collection of CCTV cameras and surveillance that act as virtual barriers and assess the situation. The use of television cameras for close scrutiny and observation allows for quick response time
Volumetric Sensing: Volumetric sending monitors the physical space adjacent to fence lines for system penetration
Digital systems: Digital signal processing are used to evaluate alarms; characterized by very open architecture systems, large camera installations and a wide variety of technologies.
Booming passenger capacity
The increase in world travel -- even if that increase has flattened during the recent economic slow down -- will fuel technological upgrades and growth of strong perimeter security solutions.
According to F&S, increased efforts to protect critical airport infrastructure following 9/11 have led to increased budget allocations to combat security threats and protect airport perimeters. The result is that a more active approach has been adopted to install integrated security solutions that will be interoperable with new emerging technologies, as well as legacy security systems. Hence, large, system integrators are marking forays into the security market and forging partnerships with smaller niche companies to offer airport operators greater benefits.
The steady growth in the number of airline passengers means that airports will require strong, proactive security solutions. "The perimeter still remains a vulnerable target for terrorism, which, as history has shown, is highly adaptable," remarks the author of a recent F&S study on the topic. "As a result, increased funds allocation is expected toward new technology and protection initiatives, especially in countries witnessing the largest influx of airline passengers."
The direction: Layered technology solutions
The main boost in airport perimeter security will come from networking. A greater number of airports are switching to digital networks, making it essential to network all security solutions to the main command, control, and communications (C3) center. Further, as layered technology security solutions gain importance, integrated network systems are likely to drive increased airport sales. "Interoperable and layered security solutions, which feature open architecture structures will become crucial for existing airport operators," notes the F&S analyst.
Article appeared in Homeland Security Newswire
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