Incident and Emergency Management Market

Market Overview

Incident and emergency management coordinates and responds to unforeseen events, crises, and catastrophes to minimize their impact on people, property, and the environment. This field comprises a variety of actions aimed at effectively addressing emergencies and protecting communities, including planning, preparedness, response, recovery, and mitigation.

Factors driving the growth of the incident and emergency management market include an increase in the need for safety and security solutions due to natural disasters and terrorist attacks, the implementation of regulatory policies for public safety, and the need for emergency preparedness. Furthermore, the rise of smart cities is expected to stimulate the implementation of intelligent evacuation and surveillance systems, accelerating the growth of the incident and emergency management market.

Market Dynamics

Global Incident and Emergency Management Market Drivers:

Increasing Frequency and Severity of Disasters

The increasing frequency and severity of natural and artificial disasters worldwide have contributed considerably to the growing demand for effective incident and emergency management systems. As climate change accelerates, the frequency of storms, floods, wildfires, earthquakes, and other catastrophic occurrences increases. This increased risk needs enhanced technologies and methods for reducing the impact on communities and infrastructure.

According to the World Meteorological Organization (WMO), 2023 smashed climate records and brought harsh weather that devastated the world. The WMO's provisional State of the Global Climate report shows that 2023 will be the warmest year on record. Lee was the strongest hurricane of 2023 and the season's first Category 5 storm. On September 7, 2023, Lee went from a Category 1 hurricane to a Category 5 storm in less than 24 hours. Lee made landfall as a post-tropical storm on September 16, 2023, in Nova Scotia, Canada, with gusts of 70 mph. Lee's swells generated dangerous surf and rip currents along the United States Atlantic coast, while powerful winds knocked out electricity in Maine and Canada. This produced enormous devastation and underlined the importance of good incident and emergency management.

Additionally, as these disasters become more regular, governments, corporations, and communities invest in sophisticated incident and emergency management solutions to improve readiness, response, and recovery. The Incident and Emergency Management Market trend emphasizes the importance of technology and detailed planning in meeting the problems provided by the increasing frequency and severity of disasters.

Global Incident and Emergency Management Market Restraints:

Budget Constraints

Many organizations and governments involved in incident and emergency management face substantial budgetary constraints. Limited financial resources can hinder the execution of complete solutions, preventing the acquisition of new technologies, training programs, and the creation of resilient infrastructure. In some places, particularly in developing countries or municipalities with limited budgets, assigning cash for incident and disaster management may compete with other critical objectives. Due to restricted total municipal budgets, a local government may need help to allocate sufficient funding for modernizing emergency communication equipment or performing frequent training exercises. According to a 2023 assessment, low and middle-income nations will require at least USD2.84-2.9 trillion in investment to improve their infrastructure resilience. According to Springer Professional, underdeveloped countries are more susceptible to natural calamities than developed countries.

According to a report from the Global Facility for Disaster Reduction and Recovery (GFDRR), many low and middle-income nations devote only a tiny portion of their budgets to disaster risk reduction and emergency management. The United Nations Office for Disaster Risk Reduction (UNDRR) emphasizes the global need for increasing investment in disaster risk reduction, pointing out that only USD0.40 of every USD100 spent on development is invested in disaster risk reduction.

Global Incident and Emergency Management Market Opportunity:

Technological Innovation and Integration

Continuous technological improvements, such as AI, IoT, and data analytics, offer opportunities to improve incident and emergency management capabilities. Integrating cutting-edge solutions for real-time data analysis, predictive modeling, and communication systems can dramatically enhance response times and overall effectiveness. Given our climate's increasing instability and the frequency of natural disasters, AI's contribution to disaster management is beneficial and necessary.

In addition, the application of artificial intelligence in disaster predictions, mitigation, and response has resulted in substantial advances. For example, Stanford researchers built the Stanford Earthquake Detecting System (STEDS), an AI model for earthquake prediction that identifies tiny quakes that conventional approaches generally miss. Furthermore, Google's flood predicting system, currently active in Bangladesh and India, illustrates AI's use in disaster prevention. The system models water flow across the environment using a combination of computational hydrology and machine learning, taking into account geography and historical flood data. It then generates maps and alerts shared with local communities and authorities, giving them valuable time to prepare and respond.

Regional Analysis

North America Dominates the Global Market

The global incident and emergency management market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global incident and emergency management market shareholder and is estimated to grow at a CAGR of 6.6% over the forecast period. The incident and emergency management market in North America is primarily driven by the widespread adoption of advanced technology, improved security measures, and the presence of major industry players, including Honeywell, Lockheed Martin, Motorola Solutions, Collins Aerospace, IBM, Hexagon, Esri, MissionMode, and Alert Technologies. In 2023, the United States saw 28 weather and climate crisis events, as reported by the National Oceanic and Atmospheric Administration (NOAA). Each of these occurrences resulted in losses above USD1 billion. The occurrences comprised a single drought, flooding, ten severe storms, two tropical cyclones, and one wildfire. These occurrences additionally fuel the need for the incident and emergency management industry in the North American region. 

Moreover, the escalating government expenditure and widespread usage of the software by diverse government and non-government entities propel the growth of the incident and emergency management market. NOAA reports that the United States allocated 92.9 billion USD for disaster-related expenses in 2023. In 2023, the United States encountered an unprecedented amount of costly disasters, with 28 verified incidents related to weather and climate. The most expensive occurrences in 2023 were the Southern/Midwestern Drought and Heat Wave, which incurred a cost of USD14.5 billion, and the Southern and Eastern Severe Weather in early March, which amounted to USD6.0 billion.

Asia-Pacific is anticipated to exhibit a CAGR of 6.9% over the forecast period. The Asia-Pacific incident and emergency management market is expected to experience rapid expansion due to the escalating government initiatives and investments in disaster management and safety. The report 'The Disaster Riskscape' published by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) in 2019, states that there was a significant decrease in the number of deaths, people affected, and economic losses in the Asia-Pacific (APAC) region from 2010 to 2019. Several nations' governments have been aggressively allocating funds towards disaster management. For example, the Indian government raised its annual investment by 5% for 2019-2020.

Similarly, the Government of Japan and the World Bank collaborated to establish a Japan-World Bank Program to integrate disaster risk management practices into developing nations. The program has provided financial support for more than 130 awards for technical assistance in more than 68 countries worldwide. Furthermore, as reported by the Chinese government, China incurred a total of 308.29 billion yuan (USD42 billion) in direct economic damages due to natural catastrophes during the initial nine months of 2023. The disasters encompass heavy rainfall, landslides, hailstorms, and typhoons. 

Europe encompasses significant economies like the UK and Germany, implementing highly advanced systems, solutions, and facilities for incident and disaster management. The main reason for this is an increasing necessity to safeguard individuals from natural and artificial catastrophes. The European Union (EU) raised its humanitarian relief funding to €1.7 billion in 2023. The EU also implements measures aimed at mitigating and averting disaster risks. These strategies encompass enhancing the ability of the EU's infrastructure, ecosystems, society, and economy to withstand and recover from adverse events. The EUR-OPA Major Hazards Agreement of the European Union aims to save cultural heritage from natural and technological disasters by advocating for disaster resilience and risk culture development. Therefore stimulating the expansion of the market.

Segmental Analysis

The global incident and emergency management market is segmented based on components, services, Solutions, communication systems, simulation, and verticals.

The market by component is further segmented into Solutions, Services, and Communication Systems.

Solution accounts for the largest share of the market.

Solution

This sub-segment contains the software and technology solutions that constitute the foundation of the incident and emergency management system. It includes apps, platforms, and tools that help with emergency readiness, response, and recovery. The Solution component is the technology backbone, including capabilities such as real-time data analytics, situational awareness, and decision assistance. These solutions are tailored to meet specific incident and emergency management needs, assisting in effective response methods. For example, consider comprehensive event management software that combines AI for predictive analytics, GIS (Geographic Information System) for mapping, and a user-friendly interface for real-time monitoring and decision-making.

The market is further segmented by Solution into Web-based Emergency Management Systems, Emergency / Mass Notification Systems, Disaster Recovery and Business Continuity, Perimeter Intrusion Detection, Geospatial Solutions, and Fire and HAZMAT Solutions.

A web-based emergency management system generates the most revenue in the market.

Web-based Emergency Management System

Web-based Emergency Management Systems are software applications created to streamline and support all aspects of emergency preparedness, response, and recovery. These systems may be accessed using web browsers, allowing stakeholders to collaborate and synchronize their efforts in real time. Emergency management systems commonly incorporate incident monitoring, resource allocation, communication tools, and data analytics to improve situational awareness and facilitate emergency decision-making.

Based on service, the market is fragmented into Consulting, Emergency Operation Center (EOC) Design and Integration, Training and Simulation, and Public Information Services.

Consulting commands the highest share of the market.

Consulting

The consulting services segment dominates the market because of its high federal, state, and municipal demand for solid planning and implementation of disaster management and preparedness infrastructure. The primary companies offer advisory services to organizations to promote more effective proactive risk management and synchronization of everyday activities. Leading corporations like Lockheed Martin assist militaries and governments worldwide in enhancing, equipping, developing, and utilizing intelligent technologies for influential event and emergency management.

The market is sub-segmented by communication systems into Campaign Management, First Responder Tools, Satellite Assisted Equipment, Vehicle Ready Gateways, and Emergency Response Radars.

First Responder Tools occupies the maximum share of the market.

First Responder Tools

The first responder tools segment dominates the market by utilizing incident and emergency management software to ensure robust security measures. First Responder Tools are various communication technologies and gadgets that assist emergency responders on duty. These encompass specialized communication devices, mobile applications, and wearable technology that facilitate communication among first responders, provide them with real-time updates, and grant access to vital information. These tools optimize the effectiveness and security of first responders in critical situations.

The market can be further bifurcated by simulation into Traffic Simulation Systems, Hazard Propagation Simulation, and Incident and Evacuation Simulation tools.

Incident and Evacuation Simulation tools hold a significant market share.

Incident and Evacuation Simulation tools

Incident and Evacuation Simulation Tools are specifically developed to replicate and mimic diverse emergencies and the processes involved in evacuating individuals. These simulations offer valuable insights into the progression of disasters, the potential locations that may be impacted, and the efficacy of evacuation strategies. These tools enhance the readiness and reaction to accidents and emergencies by optimizing evacuation routes, shelter placements, and resource allocation. They consider aspects such as population density, infrastructure, and topography.

Based on vertical, the market is classified into BFSI, Commercial and Industrial, Education, Energy and Utilities, Healthcare and Life Sciences, Defense and Military, Transportation and Logistics, and Government.

The government influenced the market growth.

Government

Government entities at different tiers (local, regional, and national) employ incident and emergency management solutions to guarantee public safety, synchronize response endeavors, and uphold crucial government operations during calamities. These solutions facilitate efficient communication, allocation of resources, and decision-making for government entities engaged in disaster management.

Recent Developments

• January 2024- Honeywell (NASDAQ: HON) introduced Advance Control for Buildings, an innovative platform representing a significant advancement in building control technology.
• January 2023- Amidst a year marked by the National Oceanic and Atmospheric Administration (NOAA) documenting unprecedented ocean temperatures, Lockheed Martin (NYSE: LMT) has developed a groundbreaking venture in partnership with NVIDIA. This project demonstrates the application of artificial intelligence to merge data and identify irregularities in present environmental circumstances.