United States Homeland Defense Market: Transportation- Special Report

The financial implications of the unfortunate events of September 2001 have been overwhelming, with many companies yet to recover from the losses. This has ironically provided a unique opportunity for businesses that cross many segments. The market for transportation security shows potential for significant growth across a broad market spectrum - from communication and surveillance systems to explosives detection and security personnel.

This Frost & Sullivan research examines the U.S. Homeland Defense Market - Transportation. This report segments the transportation aspect of homeland defense into airport/aircraft security, cruise ship security, and passenger rail (Amtrak)/trucking security.

Strict Regulations, Integrated Equipment Key to Market Success

Factors such as government funding, the perception of threat potential, and the adoption rate of new technologies determine demand. Stringent mandates enforced by the newly created Transportation Security Agency and the FAA are expected to greatly expand the market potential for a variety of security devices. Says the analyst, "Installing explosive detection systems and explosive trace detection devices in airports across the country is a multi-billion dollar project."

Many manufacturers are eager to showcase their product offerings to the government and private concerns, aiming to gain lucrative contracts. Products and systems needed to meet the heightened security requirements are not simply stand-alone equipment, but an integration of a complex set of systems. In all instances of transportation security, communication and other information systems are used to cover the vehicle and the operations center. Strategic alliances and partnerships would give smaller companies and new entrants the necessary leg up.

End-User Feedback and R&D Necessary to Stay Competitive

Constant end-user feedback and focused research and development (R&D) efforts can help meet current and anticipated market needs. Cost-effectiveness of systems is a prime consideration and manufacturers will do well to keep that in mind. Says the analyst, "Because of the shifting ideas and demands within this market as it finds its equilibrium, R&D departments must be conscientious of the targeted environment requirements."

Since the transportation segment is largely a consumer-driven market, it is imperative that airlines, rail services, and cruise lines invest in protective measures such as surveillance cameras, security personnel, and control access devices to achieve their revenue goals and remain in business.