This is the final in a two-part series on homeland security globally.

A lot of money has been invested by security companies in coming up with the latest technology and equipment, as this industry (homeland security) is very much technology driven. Annually, security technology companies spend 10% to 20% of the company’s total annual revenue on research and development.

The security industry is fully dependent on the ability of a product to detect, deter, and prevent any security threats.

In order to improve competitive advantage, the industry will need to employ several product strategies to improve business growth and market penetration. Frost & Sullivan’s research finds that there are several key product strategies that can be exercised to facilitate a greater niche in the airport security and border security markets. Security integrators and original equipment manufacturers (OEM) play a big role in this, and they have to make sure that the product will be able to communicate with other security components within multiple and different security platforms.

An example would be the implementation of RFID technology within the industry. The lack of publicity and awareness of this technology is restraining its usage and acceptance amongst industry players. The technology still awaits definitive industry standards, lacks global regulatory standards, and is currently not mature enough. We need to know if RFID will be able to integrate well across all platforms. Therefore, security integrators and OEMs must be able to come together to achieve a common industry standard.

Secondly, the fact that the delays created by inefficient security procedures by both the government and the airlines in imposing increased security has resulted in lengthy queues, sometimes causing flight delays. Efficient security checkpoints have an average of approximately two to three minutes of waiting time, while airports that record high passenger traffic have an average of 20 to 30 minutes of waiting time.

In being able to significantly reduce the security check waiting time, security systems have to be designed in a way that operators are able to analyse and conclude available data in real time. Similarly, in surveillance monitoring, the current trend is towards cameras being able to perform content analysis and alert when a threat is identified.

Other factors include modular and upgradeable systems, whether software or hardware; and continuous training, simulations, and awareness programmes as governments or operators are now on high alert, and they need to be kept informed on any new security threats.

A lot of devices nowadays are connected wirelessly. In surveillance, wireless network video has been widely accepted and used for security reasons at many airports. This technology can also be implemented to inter-operate with other security technology, such as biometrics identification.

There have been many trials made by miSense, a programme developed through the International Air Transport Association’s Simplifying Passenger Travel (SPT) programme in the past few months on the usage of biometric-enabled equipment to screen passengers before getting a boarding pass and boarding an airplane.

At check-in, a self-service check-in counter scans both the passenger’s passport and fingerprint, and after thorough data profiling, a boarding pass will automatically be produced. To gain access to security screening, the passenger has to go through an automatic fingerprint and boarding pass scanner, and will only be let through if both scans match and are positive. Immediately before boarding the aircraft, passengers will again scan their fingerprints through a handheld device, operated by an airline staff. The data collected then is reconciled wirelessly against the earlier database and an ‘OK’ to board or no board message will be relayed back to the device.

Biotechnology also plays a big role in terms of fighting against the increasing usage of bio-chemical or liquid-based items for terrorist activity. At present, if one wants to board an airplane, they can only carry a limited amount of liquid-based items, and must pack them in a clear plastic bag. This will no longer be an issue if the airport has equipment that can trace liquid and bio-chemical contents.

Security equipments are currently being innovated to be able to trace bio-chemical substances, and have the ability to differentiate between harmful contents and non-harmful contents. Bio-technology is the next big thing in the homeland security industry.

Big names dominate security market players

There are more than 100 plus security equipment manufacturers and system integrators, and competition among market participants is very high.

A few prominent players in the security solution market include Rapiscan Systems (a wholly owned subsidiary of OSI Systems ), Indigo Vision (a leading manufacturer of complete end-to-end IP Security Management Systems), Smiths Detection (leading designer and manufacturer of sensors that detect and identify explosives), GE Security, Siemens, Mitsubishi, Poseidon Maritime Limited, SAIC, Sperry Marine, Thales Navigation, EADS, L3 Communications Security & Detection Systems, American Science & Engineering, O’Connors, Bosch Security, Honeywell Security, Northrop Grumman, and Qinetiq. Larger companies in this market incessantly acquire smaller ones, which have some niche technology or competence to address specific needs of their customers, thereby slowly and gradually moving towards becoming system integrators, assemblers or security suite providers.

There are multiple layers of security consisting of CCTV cameras, explosive detection screens, and hand-held or portable metal detectors. Intelligent video systems and command & control system for sensor integration and management are going to be of vital importance. Increasing adoption of biometric access controls for all entry and exit points promises better security since biometric identification cannot be replicated or forged. Whole body imaging systems would command an increasing market share at airports.

Discretionary Spending has increased and will continue to migrate from products to much needed services. Service providers are expected to dominate the Homeland Security market in 2010 and also in the foreseeable future.

The security market outlook in Asia Pacific

The Asia Pacific region has had relatively good success in the homeland security market. Some of the factors contributing to this success are the favouring of tried and tested security solutions over new and indigenous solutions.

Government and semi-government agencies have been reluctant to fund research and want ready-made security suites to be installed and maintained with vendor support. Hence, the long term cost of maintaining security platforms or solutions are scrutinised under stringent budgets. Only efficient security solutions, which are also cost effective, have been successful and govern larger market share.

There has been greater emphasis on the customisation of security solutions so as to cater to indigenous needs in such a way that the people using and maintaining these platforms are at ease in communicating and resolving concerns during times of distress. Hence cutting edge technology doesn’t always score so much in the final procurement decision as much as customisation to local needs does.

There is a steady trend of more and more importance given to comprehensive suites, and integrators are doing mix and match solutions, which are highly interoperable.

So, the emphasis has been on interoperable solutions, common dashboards, and complete suites. Many integrators and assemblers also launch their own brand simultaneously, which does well in the marketplace for sometime but over time, owing to lack of economies of scale and time taken to reach technological efficacy, these individual brands haven’t been so successful. However, there is far more brand awareness of integrators and assemblers that directly interact with the client and undertake the last mile journey.

Small manufacturing companies or vendors with unique solutions who have been quite successful in addressing the security needs of the customers are gradually being acquired by larger companies. Thereby, large solution providers and system integrators continue to absorb smaller industry participants in order to maximise “in-house” capabilities and reduce costs.

Spending in the homeland security and counter-terrorism landscape is expected to remain strong. Expenditure in Asia Pacific is expected to rise by 110% to US$ 4.2 billion in 2015. The rising GDP in the region increases the household disposable income and free trade and, hence, amplifies demand in the regional commercial and business air travel.

Economic growth is directly interrelated to air travel growth, which leads to increased airport expansion and, thus, increased demand for more airport security solutions. Asia Pacific is also home to almost four billion people, with a projection of up to 4.7 billion people by 2025, a good indication for growth in the commercial aviation industry.

Frost and Sullivan believe that the Airport and the Seaport Security is going to the drive the Asia-Pacific spending in 2011 and beyond. This is largely due to the constant change of international aviation regulations, which require implementation and procurements of new security systems at Asia Pacific international airports. China, Japan and India are expected to be the key market for HLS Spending.

Conclusion

One cannot accurately foresee when the next attack by terrorist will happen. The reality of the possibility of these attacks being carried out is very likely, thus the readiness of a country’s defense and homeland security is vital in ensuring the safety of its people.

The advancement in technology is moving very rapidly and the terrorists themselves are capitalising on this to further their own capabilities in deploying modern weaponry to attack more efficiently. These terrorist are very capable in surprise attacks and are not hesitant in using various methods to achieve their targets.

Therefore the level of response and readiness capabilities of a nation’s defense cannot be taken lightly and it is important to always keep up to date with the latest technologies. Governments of Asia Pacific countries should look at further developing the infrastructure for homeland security in the region to combat the increasing threats and also plan ahead to deter and prevent future attacks.

One Response to “Aerospace & Aviation: Do You Feel Safe? Part II”

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