Homeland security is an American team responsible for the security and defense of the United States of America along with 75 more countries. It ensures safety of citizens against potential acts of terrorism or other threats that could risk the country. It works on border protection, immigration, coast guard, customs, and more.
COVID-19 Impact on the Global Homeland Security Market
The pandemic has been a crucial period for several countries as most of them encountered the need to close their borders while also implementing social distancing guidelines. Due to this, the focus of most governments shifted from keeping their eyes on the defense of the country to dealing with a worldwide health crisis. To add further, due to disruption of the supply chain, most of the materials or constituents used in the production of acoustic sensors, radar, positioning sensors, C4ISR systems, as well as embedded navigation faced a severe shortage. These factors led to the pandemic negatively affecting the global homeland security market. But, with new age technology such as Industrial Internet of Things (IIOT) being used in the process of production, the market is anticipated to recover from the effects of the pandemic in the forecast period.
Key Developments in the Industry
Multiple organizations have been taking initiatives to establish themselves in the market while also taking part in research. Companies have also been using innovative methods to create high quality products to ensure customer satisfaction.
For instance, in December 2020, the Department of Homeland Security (DHS) alongside the Science and Technology Directorate (S&T) launched an entrepreneurship program directed towards finding solutions that homeland security faces. The program aims to develop new ideas that implement creativity as well as innovation. This newly introduced program is also conducted in collaboration with the Common Mission Project (CMP), as well as components of DHS namely Cybersecurity and Infrastructure Security Agency (CISA), Transport Security Agency (TSA), and Federal Emergency Management Agency (FEMA).
Forecast Analysis of the Global Market
A recently published report by Research Dive states that the global homeland security market is expected to witness a significant increase in revenue from $4,92,362.3 million in 2020 to over $8,03,967.3 million by 2028, at a steady CAGR of 6.1% from 2021-2028.
One of the primary reasons that is predicted to contribute to the growth of the homeland security market is the constant risk of terror attacks in different parts of the word. A report by the Global Terrorism Index of 2020, which was published by the Institute of Economics and Peace, mentioned how the number of deaths due to terrorism in 2019 accounted for over 13,826 worldwide. Also, the impact of the multiple terrorist attacks cost the global economy over $26.4 billion in 2019. These factors prove the need for every country to have a developed defense system which is further expected to add to the growth of the market.
On the contrary, the investment value of providing an entire country with a defense system is extremely high as it requires the implementation of security in every sector such as aviation, maritime, cyber security, and more. Also, the need to build mass transportation systems, power plants, and cyber security for not just the government but the public as well is extremely expensive. These financial factors are anticipated to hamper the growth of the market in the analysis period.
But technology has witnessed immense progress over time and the implementation of nanotechnology and biotechnology into the homeland security sector has benefitted it to a great extent. The use of nanotechnology has led to the development of new security devices that are built using miniature radio frequency identification transponders along with biochemical sensors. They are extremely compact and provide an effective source of protection in times of need. To add further, biotechnology has also been used to create products that use research based on terahertz radiation of T Ray. These devices are expected to replace X Ray machines in the future as the T Ray can identify an object by figuring out its chemical composition. These factors are expected to provide an opportunity of growth to the market in the forecast period.
To add further, many experts and pioneers of the market have put in plenty of efforts to make payments simpler and more organized. Some of them 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
- Unisys Corporation.