The global homeland security market size was valued at USD 550 billion in 2021. It is projected to reach USD 920 billion by 2030, growing at a CAGR of 5.9% during the forecast period (2022–2030). The term "homeland security" refers to protecting a country against any threat to society. Governments have tried to offer security and resilience against all potential natural and artificial calamities. A nation's homeland security includes defense against various dangers and accidents, including terrorism, illicit weapons, cybercrime, drug trafficking, hurricanes, floods, earthquakes, tornadoes, and others. It protects the public and includes law enforcement, border security, transportation, and aviation security.
Due to factors including the increase in terrorist attacks, border conflicts, illegal immigration, smuggling, human trafficking, and frequent natural catastrophes, among others, the global market for homeland security is predicted to expand at a rapid rate. Several businesses are investing significantly in innovative goods and services to address and defend the unfavorable situations in countries worldwide.
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Civil wars and border disputes are becoming more prevalent worldwide. Border disputes arise between nations for various causes, including terrorism, expansionism, control over natural resources, etc. Civil wars frequently occur in a country and are caused mainly by conflicts resulting from political discontent, territorial disputes among governments, and other factors. Governments worldwide are taking significant measures to regulate these situations and, as a result, are investing more in the homeland security of the country to address the rising instances of conflicts.
For instance, the United States will spend USD 49.8 billion on homeland security in 2021. This represents the country's duty to protect its citizens within its boundaries, online, and beyond. The proposed resources prioritize border security, enforcing immigration regulations, increasing safety, preventing terrorism, and strengthening the nation's cybersecurity defenses. In the anticipated period, such government activities are anticipated to fuel the expansion of the homeland security industry.
Smuggling and trafficking fuel global, transnational criminal activity. The fastest-growing anti-social menace in the world is smuggling and trafficking, including drug trafficking, human trafficking, and illegal immigration. Numerous global factors, including the economic crisis in Asia, the recurrent conflicts in Iraq, Afghanistan, and Pakistan, and the prolonged poverty in many nations, including Paraguay, Namibia, Botswana, Mozambique, and Uruguay, have contributed to the alarming increase in immigration from these nations.
The market for global homeland security is predicted to rise due to the sharp increase in cases of human trafficking, as the goods and services on offer in the marketplace assist in recognizing and countering this threat. For instance, security patrols at airports, naval security, transportation security, and the detection of smuggled nuclear material are some of the steps taken to address the problems with smuggling and trafficking that affect a country's homeland security.
Costly technologies, goods, and services offered to various homeland security organizations are anticipated to restrain market expansion. Due to the high cost of goods and services and the comparably little investment made by governments, regions like the Asia-Pacific and the Middle East have slower adoption rates for homeland security services. Furthermore, these technologies have relatively high installation costs. A significant proportion of money, manpower, and equipment must be set aside for homeland security resources, which adds to the expense of maintaining homeland security. As an illustration, the United States spends about USD 100 billion yearly on homeland security. This includes the administration of federal, state, and local laws and emergency services.
The public and private sectors have lower implementation and investment in the market high-cost security surveillance systems due to the high cost of goods and services, such as expensive x-ray and explosive detection equipment, high-end cybersecurity devices, high-end real-time video analytics systems, and others. This aspect will limit the global market's expansion throughout the forecast period.
Information security safeguards user information and data against illegal access, modification, disruption, or destruction, which can threaten the country's security. Governments, the armed forces, hospitals, academic and research institutions, public and commercial businesses, and others maintain such information. Most of this data is kept on servers and in the cloud and travels across networks using electronic media.
Homeland security now places a high priority on enhancing the security of data networks, information, and cyberinfrastructure. Organizations in the public and private sectors, like those in the railway, energy, utility, IT & telecommunication, and military sectors, heavily rely on computers and Internet technology for a range of operations, including business, communications, vehicle control, surveillance, war situations, disaster management, signal processing, and other things.
Information Security Research Association (ISRA), a global organization for information security research, Homeland Security Information Network (HSIN) in the United States, and the Japan National Security Agency (JNSA). In the upcoming years, this feature will result in the widespread acceptance of the market for securing data and information in numerous industries worldwide.
The global homeland security market share is segmented by type, end-user, technology, and region.
Type-wise, the global market is classified into Border Security, Maritime Security, Aviation Security, Critical Infrastructure Security, Cyber Security, Mass Transportation Security, Law Enforcement, CBRN (Chemical, Biological, Radiological, and Nuclear) Security, and Others.
Cyber Security holds the highest homeland security market share and is predicted to expand at a CAGR of 7.6% during the forecast period. Cybersecurity is essential to guarantee the safety of data that, if hacked, can disrupt the working of organizations worldwide. A good cybersecurity infrastructure protects all sorts of data from theft. The rising severity and frequency of cyber-attacks are anticipated to fuel the growth of this segment over the forecast timeframe.
Law Enforcement, the second-largest segment, is evolving rapidly across the globe as police face new threats and challenges. The law enforcement departments are responding with substantial changes in technology, leadership, structure, and policy. Currently, most departments are deploying new technologies that assist police in their jobs while altering how they cooperate with the community. Emerging technologies such as facial recognition technology, augmented reality, evidence-based policing, and others are expected to boost the capabilities of law enforcement, which is expected to support the segment's growth over the forecast period.
Critical Infrastructure Security is growing swiftly. The security of the necessary infrastructure, physical and cyber systems and assets is vital to the nations as their destruction can devastate economic security or public health and safety. To enhance critical infrastructure security, the US government signed the Cybersecurity and Infrastructure Security Agency Act of 2018. This revolutionary regulation raised the task of the previous National Protection and Programs Directorate (NPPD) within the Department of Homeland Security (DHS). It established the Cybersecurity and Infrastructure Security Agency (CISA). The increasing awareness of governments to strengthen critical infrastructure security is expected to propel the growth of this segment over the forecast timeline.
End-user-wise, the global market is classified into Public and Private Sectors.
Public Sector is the highest contributor to the market and is estimated to grow at a CAGR of 5.8% during the forecast period. Government organizations and defense departments of several nations worldwide have adopted homeland security products and services. Government organizations like the International Civil Aviation Organization (ICAO), a UNO agency, the Customs and Border Protection (CBP) in the US, the Border Security Force (BSF) in India, Maritime Civil and Criminal Authority, Australian Maritime Safety Authority, and many more are majorly adopting products and services offerings of the market.
The Private Sector is the fastest-growing segment. It utilizes offerings of aviation security, maritime security, critical infrastructure security, cyber security, mass transport security, first responder security, and pipeline security. Various airlines utilize security services to protect airports, passengers, staff, and planes. Products and services such as explosive detection machines, X-rays machines, metal detectors, and others are installed by the airlines for the safety of the public and property. In addition, private shipping companies also utilize maritime security services. Also, the private players in the oil & gas industry have deployed security systems to protect oil & gas pipelines from terrorist attacks, destruction, and thefts.
Technology-wise, the global market is classified into Security Platforms, Recognition & Surveillance Systems, AI-Based Solutions, and Others (CBRN Solutions and Communication Platforms).
The AI-Based Solutions technology is the highest shareholder in the market and is estimated to grow at a CAGR of 6.6% during the forecast period. AI offers excellent security facilities. When linked with video analytics software, it can deliver automated security services. AI-based homeland security solutions assist in detecting potential threats, planning to deploy security resources, field operations, customs processes, and providing support functions to border security agencies. Due to the benefits offered by AI-based solutions, this adoption is rising globally. For instance, in May 2021, The WCC Group (one of the critical providers of cutting-edge solutions for both public & private employment services and security government agencies) became the first organization to effectively apply artificial intelligence (AI) in its border management offering. In January 2020, the Airport Authority of India introduced AI-powered baggage screening at eight airports to strengthen security efforts.
The Security Platform technology is the second-largest shareholder. The perimeter is effectively the first line of defense in a facility's physical security strategy. To achieve greater operational control of the border, border barrier construction is proven to be a key element. The growth in violent incidents worldwide due to various contentious rules and regulations enacted by governments everywhere has increased the demand for weapons with little chance of a fatality. Law enforcement forces are adopting non-lethal weapons designed to cause minor damage and injury. For instance, San Jose police started using non-lethal weapons in place of guns in their crowd control operations in February 2021. Over the projected period, it is projected that a rise in the adoption of security platforms for managing homeland security would support the segment's growth.
Region-wise, the global homeland security market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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North America dominates the global market and is projected to grow at a CAGR of 5% during the forecast period. North America is likely to witness an increase in the adoption of products and services related to homeland security owing to numerous military modernization and enhancement programs underway in the North American region. The increase in investment for improving national security against different threats by the North American countries is expected to propel the development of advanced equipment across North America. The presence of premier defense equipment manufacturers in the region further increases its contribution to the global market.
Asia-Pacific is the second-largest region. It is projected to reach USD 295 billion, growing at a CAGR of 7% during the forecast period. Broad maritime boundaries of nations such as India, Sri Lanka, Japan, and Bangladesh demand better naval security in the region. Increment in government initiatives for the safety of the public and properties and the adoption of new technologies in various security markets, including cyber security, aviation security, and critical infrastructure security, are providing enormous opportunities for market growth in the region.
The homeland security market in Europe includes countries such as the UK, Germany, France, and the rest of Europe. Increasing government investment in the region is the primary factor driving the growth of the homeland security market. The presence of major countries such as Germany, France, the UK, Russia, and others that effectively safeguard their internal security is expected to bode well for the growth of the homeland security market.