Business Daily from THE HINDU group of publications Wednesday, Dec 10, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Security Domestic security spending pegged at $9.7 b by 2016
Our Bureau Mumbai, Dec. 9 The overall security spending in India is expected to touch $9.7 billion (about Rs 48,500 crore) by 2016. A Frost & Sullivan study indicates that airports’ security would be over $3.2 billion at a compound annual growth rate of 5 per cent. The homeland security market revenue of $800 million in 2007 is also estimated to cross $1 billion by then. “The continuous threat of terrorism, the development of India’s infrastructure and the eventual development of the nation’s civil aviation capacity promise to expand overall security spending in India to over $9 billion by 2016,” says Frost & Sullivan Senior Consultant Mr Friso Buker. Soft targetsThe high level of mass transport infrastructure construction will push this figure higher. Mass transport systems are increasingly seen as “soft” targets for criminals and terrorists. Intelligent and durable surveillance systems within “rolling stock” are key revenue generators. Emphasis on self-diagnosing CCTV systems, automatic wireless image downloads and innovative passenger screening technologies will boost investment within the domain. Key concernThe recent Mumbai terror attacks highlight one of the key issues when formulating security measures to protect soft targets: How to provide adequate protection to a large number of people without turning threat domains into areas resembling airport terminals. Hotels and other threat domains will have to take security measures previously avoided (such as substantially increasing security manpower levels and increasing use of sophisticated technological security enablers). This is expected to result in an uptick in security procurement over the next few years. The massive development of small to medium-size airports around the world, coupled with potential increases in baseline international airport security standards, will significantly enhance the demand for airport security measures. Tech focusKey technologies include biometric electronic access control, passenger screening portals and explosive detection systems for baggage as well as cutting-edge passenger processing systems. However, slow procurement trends, an emphasis on developing indigenous security industry and the prevalent dependence on manpower-intensive security measures will hamper security investment to a large degree, especially for foreign security firms that lack an effective local partner. Mr Buker felt measures to proactively counter future threats and attacks from terrorist organisations and Naxalites would continue to expand the security market in the foreseeable future. More Stories on : Security | Terrorism
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