Homeland Security Market by Type (Aviation Security, Maritime Security, Critical Infrastructure Security, Cyber Security, Mass Transport Security, CBRN, and Others), Technology (Recognition & Surveillance Systems, Security Platform, and Others), End-user (Public Sector and Private Sector), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028

Global Homeland Security Market Analysis

The global homeland security market is projected to garner $8,03,967.3 million in the 2021-2028 timeframe, growing from $4,92,362.3 million in 2020, at a healthy CAGR of 6.1%

Market Synopsis

Growing threat of terrorist activities is expected to aid the growth of the homeland security market.

However, the high initial investment required in the homeland security industry is predicted to restrict the market growth.

According to the regional analysis of the market, the Asia-Pacific homeland security market share is anticipated to grow at a CAGR of 6.5%, by generating a revenue of $2,41,351.0 million during the review period.

Homeland security Overview

Homeland security is an American national security term for "the national effort to ensure a homeland that is safe, secure, and resilient against terrorism and other hazards where national interests Homeland security has been described as the ability of a state to cater for the protection and defense of its citizens. Homeland security includes customs and border protection, immigration and customs enforcement, aviation security, coast guard, cybersecurity, and others. The key functions of homeland security mission areas consist of intelligence and warning, border and transportation security, domestic counterterrorism, protecting critical infrastructure and key assets, defending against catastrophic threats, and emergency preparedness and response.

COVID-19 Impact on Homeland Security Market

The Covid-19 impact on homeland security market has been negative. During the pandemic period every country across the world has governments turning their focus from counter-terrorism operations to addressing the public health crisis. In addition to this, the shortage of critical components/materials required in the manufacturing and assembly of equipment used in the homeland security such as C4ISR systems, facial recognition cameras, thermal imaging technology, ai based solutions, emergency management and flir thermal imaging camera, electro-optical/infrared (EO/IR), acoustic sensors, embedded navigation, positioning sensors, and others is expected to negatively impact the homeland security market.

During this pandemic period, businesses across the world are experiencing the need for digital management of their operations. The need for implementation of technologies such as industrial internet of things (IIOT) that will enable real-time monitoring of manufacturing process of homeland security products and virtual control of production may have a positive impact on the market growth as well as desirable impact on the homeland security market share in the pandemic period.

Increasing Threats from Terrorism Activities are Expected to Surge the Homeland Security Market Growth

The increasing threat of terrorist activities is expected to aid the global homeland security market growth in the forecast period. As per the "Global Terrorism Index” report 2020, published by the "Institute for Economics and Peace”, a global think tank headquartered in Sydney, Australia, the total number of deaths from terrorism in 2019, were around 13,826 globally and the global economic impact of terrorism was estimated to be US $26.4 billion in 2019. The data mentioned above reflects the adverse impact of terrorism on the global population and the economy, aiding the need for implementation of homeland security measures across the world. These factors are expected to aid the growth of global homeland security market trends in the forecast period.

To know more about global homeland security market insight and drivers, get in touch with our analysts here.

The High Investment Required in Homeland Security Services to Restrain the Market Growth.

The high investment required for implementation of different security measures such as critical infrastructure security, cyber security, aviation security, maritime security, and others can act as restraints in the growth of homeland security market. There is a high capital requirement for implementation of aviation security of the air space, maritime security in the sea and inland waterways, critical infrastructure security of significant structures such as powerplants, public structures, mass transportation systems and others, cyber security of the government, and public networks. These factors can hamper the growth of the Covid-19 impact On homeland security market  in the forecast period.

The Increasing Prominence of Robotics and Nanotechnology is Expected to Create Massive Opportunities for The Market

The developments in nanotechnology and biotechnology are anticipated to significantly impact homeland security market. The progress in nanotechnology, for instance, has led to the growth in new security devices based on the fusion of miniature radio-frequency identification transponders with biochemical sensors. Because of their small size and versatile detection capability, these sensors can be used extensively to provide a blanket of protection. Another security application of biotechnology is in products being developed based on research in terahertz radiation (T-ray), which is likely to lead to the replacement of X ray machines with T-ray imaging devices that detect an object’s chemical composition. By the implementation of T-ray imaging devices, explosives which are not visible via X rays can be detected, such as ceramics, plastics, and polymers These factors are expected to open new scope of opportunities for this market.

To know more about global homeland security market trends, get in touch with our analysts here.

Source: Research Dive Analysis

The cybersecurity sub-segment is predicted to have a dominating share in the global market and register a revenue of $2,27,201.8 million in 2028, growing from $1,34,648.5 in 2020, during the forecast period.
Cyber security is the protection of computer systems, networks, and data from breach of network security. The increasing threat of cybercrime such as identity theft, counterfeiting forgery, and others is expected to aid the growth of cyber security subsegment. In recent developments, in April 2020, Cigent Technology, a start-up based in New Hampshire, United States, introduced "Cigent Data Defense", a breakthrough approach that protects companies and individuals from ransomware, data theft, and malicious insider attacks even after security breach. Developments like these are expected to positively impact the market and aid in the growth of the cyber security sub-segment in the forecast period.

The mass transport security sub-segment is anticipated to have the fastest market growth and generate a revenue of 63,496.2 million by 2028, growing from $35,461.7 million in 2020, at a healthy CAGR of 7.3%, in the forecast period. Mass transport security refers to ensuring safety & security of the mass transit systems such as light rail & passenger trains and rapid transit (metro/subway), to keep the infrastructure and passengers safe. Surging concerns regarding the mass transit systems such as railways and buses that can be easy targets for terror attacks and crimes are anticipated to increase the need for safety & security of mass transit systems and aid the growth of mass transport security market in the forecast period.

Source: Research Dive Analysis

The security platform sub-segment is estimated to have a dominating market share in the global market and register a revenue of $3,84,144.6 million during the forecast period. 
Security platform refers to the security architecture, tools, and processes that enable the internal security of a country. The increasing necessity of integrating solutions in the counter terrorism operations in different domains of security such as military and police using facial recognition cameras, thermal imaging technology, border security is expected to aid the growth of the security platform in the forecast period. The utilization of AI (artificial intelligence) enabled security platforms has advantages, such as in military field operations, the utilization of AI provides real-time information and quick assessments to improve mission outcomes, protect people, assets, and information. These factors are expected to aid the growth of security platform sub-segment.

The recognition & surveillance systems sub-segment is anticipated to have the fastest market growth and generate a revenue of $2,98,167.3 million by 2028, growing from $1,78,128.7 million in 2020, at a healthy CAGR of 6.4% in the forecast period. 
Recognition & surveillance systems are used for identification of people, surveillance, suspectable goods, and gathering information for security and law enforcement. The growing need for monitoring and preventing unlawful activities for national security of a country is expected to aid the growth of the recognition & surveillance systems sub-segment in the forecast period. In sensitive locations such as airports. the use of facial recognition technology is rapidly increasing for effective surveillance.  

Source: Research Dive Analysis

The public sector sub-segment is anticipated to have a dominating share in the global market and surpass $5,18,643.4 million by 2028, with an increase from $3,20,453.3 million in 2020. The public sector refers to the economy that is composed of all levels of government and government-controlled enterprises.

The surge in defense expenditure globally is expected to aid the growth of public sector in terms of end-user, in the forecast period. As per the Stockholm International Peace Research Institute (SIPRI), an independent international organization to research into conflict, armaments, and disarmament, the global defense expenditure increased to 1,981 billion in the year 2020, 2.6% higher in real terms than in 2019. Governments across the world have a large expenditure for procuring resources for ensuring national security of their country has and have aided the growth of the public sector sub-segment in terms of end-user.

The private sector sub-segment of the global homeland security market is projected to have the fastest growth and register a revenue of $2,85,323.9 million during the analysis timeframe, growing at a healthy CAGR of 6.3%. Private sector refers to that portion of the economy that is not covered by the government. The increasing necessity of the private sector organizations to adopt security measures such as cyber security for prevention from digital theft, loss of sensitive data, and others is expected to aid the growth of the private sector in the forecast period.

Source: Research Dive Analysis

The Market for Homeland Security in North America to be the Most Dominant

The share of North America homeland security market is estimated to grow at a CAGR of 5.9%, by registering a revenue of $2,91,598.9 million by 2028. The North American region market is the hub of most developed defense companies and has established framework of security in the commercial and public sectors. Major countries in the North America region such as the USA and Canada are having high expenditure for the internal security of their countries. For instance, the U.S. security expenditure reached an estimated $778 billion in 2020, highest in the world as per the Stockholm International Peace Research Institute (SIPRI), an independent international organization for research into conflict, armaments, and disarmament. These factors are expected to aid the growth of the Homeland Security Market in the North America region.

The Market for Homeland Security in Asia-Pacific to be the Fastest Growing

The Asia-Pacific homeland security market generated $1,43,277.4 million in 2020 and is projected to register a revenue of $2,41,351.0 million by 2028. The growing military expenditure by major countries in the region for upgrading communication systems in the armed forces is expected to increase the demand for software defined radios, which provide communication platform for seamless interoperability to the defense forces and aid the growth of the homeland security market in the Asia-Pacific region. As per the "Stockholm International Peace Research Institute (SIPRI)" an independent international organization for research into conflict, armaments, and disarmament, countries such as China ($252 billion), India ($72.9 billion), Japan ($49.1 billion), South Korea ($45.7 billion), and Australia ($27.5 billion) have increased their military expenditure in 2020. These factors are promoting the growth of the homeland security market in the Asia-Pacific region.

Competitive Scenario in the Global Homeland Security Market

Agreement and acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading homeland security market players are Northrop Grumman., L3Harris Technologies, INC., General Dynamics Corporation, BAE Systems., Thales Group, Leonardo S.p.A., Elbit Systems Ltd., Rohde & Schwarz, Leidos Holdings, Inc, and Unisys Corporation.

Porter’s Five Forces Analysis for the Global Homeland Security Market:

• Bargaining Power of Suppliers: The suppliers in the homeland security market are moderate in number. Several companies are working on new methodologies such as AI based homeland security to gain the major market share.Thus, there is less threat from the suppliers. 
  Thus, the bargaining power of suppliers is moderate.
• Bargaining Power of Buyers: Buyers have moderate bargaining power; they demand services at a cost-effective manner. This increases the pressure on the homeland security test providers to offer the best service in a cost-effective way. Thus, buyers can have alternatives to choose convenient service that best fits their preference. 
  Thus, the bargaining power of buyers is moderate
• Threat of New Entrants: Companies entering the homeland security market are adopting technological innovations such as Internet of Things (IOT) technology to reduce the cost of production and customize products such as communication systems to attract clients. The initial investment in the homeland security is high and technology is complex. 
  Thus, the threat of the new entrants is low.
• Threat of Substitutes: There is no alternative product for homeland security solutions. 
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Northrop Grumman., L3Harris Technologies, INC., and General Dynamics Corporation. Companies in the homeland security do acquisitions to gain major market share. 
  Therefore, competitive rivalry in the market is high.